B2GOLD CORP (BTO.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:BTO - CA11777Q2099 - Common Stock
7.25 CAD
+0.07 (+0.97%)
Taking everything into account, BTO scores 6 out of 10 in our fundamental rating. BTO was compared to 817 industry peers in the Metals & Mining industry. While BTO belongs to the best of the industry regarding profitability, there are concerns on its financial health. BTO is growing strongly while it also seems undervalued. This is an interesting combination
1. Profitability
1.1 Basic Checks
- BTO had positive earnings in the past year.
- BTO had a positive operating cash flow in the past year.
- Of the past 5 years BTO 4 years were profitable.
- Each year in the past 5 years BTO had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of BTO (3.85%) is better than 88.74% of its industry peers.
- Looking at the Return On Equity, with a value of 6.60%, BTO belongs to the top of the industry, outperforming 89.23% of the companies in the same industry.
- BTO's Return On Invested Capital of 15.82% is amongst the best of the industry. BTO outperforms 97.06% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for BTO is in line with the industry average of 11.97%.
- The last Return On Invested Capital (15.82%) for BTO is above the 3 year average (10.53%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.85% | ||
| ROE | 6.6% | ||
| ROIC | 15.82% |
ROA(3y)-2%
ROA(5y)4.89%
ROE(3y)-4.15%
ROE(5y)5.33%
ROIC(3y)10.53%
ROIC(5y)13.43%
1.3 Margins
- With an excellent Profit Margin value of 8.75%, BTO belongs to the best of the industry, outperforming 91.68% of the companies in the same industry.
- Looking at the Operating Margin, with a value of 40.82%, BTO belongs to the top of the industry, outperforming 96.94% of the companies in the same industry.
- BTO's Operating Margin has been stable in the last couple of years.
- With an excellent Gross Margin value of 46.01%, BTO belongs to the best of the industry, outperforming 94.37% of the companies in the same industry.
- In the last couple of years the Gross Margin of BTO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 40.82% | ||
| PM (TTM) | 8.75% | ||
| GM | 46.01% |
OM growth 3Y-7.12%
OM growth 5Y-0.62%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-5.22%
GM growth 5Y-0.97%
2. Health
2.1 Basic Checks
- BTO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- BTO has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, BTO has more shares outstanding
- Compared to 1 year ago, BTO has a worse debt to assets ratio.
2.2 Solvency
- BTO has an Altman-Z score of 2.71. This is not the best score and indicates that BTO is in the grey zone with still only limited risk for bankruptcy at the moment.
- BTO's Altman-Z score of 2.71 is in line compared to the rest of the industry. BTO outperforms 46.76% of its industry peers.
- BTO has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
- BTO has a worse Debt to Equity ratio (0.18) than 65.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.71 |
ROIC/WACC1.66
WACC9.55%
2.3 Liquidity
- A Current Ratio of 1.03 indicates that BTO should not have too much problems paying its short term obligations.
- BTO has a Current ratio of 1.03. This is comparable to the rest of the industry: BTO outperforms 41.25% of its industry peers.
- A Quick Ratio of 0.46 indicates that BTO may have some problems paying its short term obligations.
- BTO's Quick ratio of 0.46 is on the low side compared to the rest of the industry. BTO is outperformed by 69.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.46 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 71.43% over the past year.
- BTO shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -9.71% yearly.
- Looking at the last year, BTO shows a very strong growth in Revenue. The Revenue has grown by 30.97%.
- BTO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.48% yearly.
EPS 1Y (TTM)71.43%
EPS 3Y-25.99%
EPS 5Y-9.71%
EPS Q2Q%600%
Revenue 1Y (TTM)30.97%
Revenue growth 3Y2.58%
Revenue growth 5Y10.48%
Sales Q2Q%74.68%
3.2 Future
- BTO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 47.30% yearly.
- BTO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.03% yearly.
EPS Next Y256.87%
EPS Next 2Y126.51%
EPS Next 3Y95.52%
EPS Next 5Y47.3%
Revenue Next Year65.82%
Revenue Next 2Y42.68%
Revenue Next 3Y33.06%
Revenue Next 5Y17.03%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 14.50, BTO is valued correctly.
- Based on the Price/Earnings ratio, BTO is valued cheaply inside the industry as 95.10% of the companies are valued more expensively.
- BTO is valuated rather cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 6.82, the valuation of BTO can be described as very cheap.
- Based on the Price/Forward Earnings ratio, BTO is valued cheaply inside the industry as 96.57% of the companies are valued more expensively.
- BTO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.5 | ||
| Fwd PE | 6.82 |
4.2 Price Multiples
- BTO's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BTO is cheaper than 98.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.09 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The excellent profitability rating of BTO may justify a higher PE ratio.
- BTO's earnings are expected to grow with 95.52% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.06
PEG (5Y)N/A
EPS Next 2Y126.51%
EPS Next 3Y95.52%
5. Dividend
5.1 Amount
- BTO has a Yearly Dividend Yield of 3.03%.
- Compared to an average industry Dividend Yield of 0.64, BTO pays a better dividend. On top of this BTO pays more dividend than 99.02% of the companies listed in the same industry.
- BTO's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.03% |
5.2 History
- On average, the dividend of BTO grows each year by 69.07%, which is quite nice.
- BTO has been paying a dividend for over 5 years, so it has already some track record.
- BTO has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)69.07%
Div Incr Years0
Div Non Decr Years5
5.3 Sustainability
- BTO pays out 56.73% of its income as dividend. This is a bit on the high side, but may be sustainable.
- BTO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP56.73%
EPS Next 2Y126.51%
EPS Next 3Y95.52%
B2GOLD CORP / BTO.CA FAQ
What is the ChartMill fundamental rating of B2GOLD CORP (BTO.CA) stock?
ChartMill assigns a fundamental rating of 6 / 10 to BTO.CA.
What is the valuation status of B2GOLD CORP (BTO.CA) stock?
ChartMill assigns a valuation rating of 8 / 10 to B2GOLD CORP (BTO.CA). This can be considered as Undervalued.
Can you provide the profitability details for B2GOLD CORP?
B2GOLD CORP (BTO.CA) has a profitability rating of 8 / 10.
What is the valuation of B2GOLD CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for B2GOLD CORP (BTO.CA) is 14.5 and the Price/Book (PB) ratio is 2.11.
Is the dividend of B2GOLD CORP sustainable?
The dividend rating of B2GOLD CORP (BTO.CA) is 6 / 10 and the dividend payout ratio is 56.73%.