GOLD FIELDS LTD-SPONS ADR (GFI) Stock Fundamental Analysis
NYSE:GFI - New York Stock Exchange, Inc. - US38059T1060 - ADR - Currency: USD
We assign a fundamental rating of 7 out of 10 to GFI. GFI was compared to 156 industry peers in the Metals & Mining industry. While GFI belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. An interesting combination arises when we look at growth and value: GFI is growing strongly while it also seems undervalued.
1. Profitability
1.1 Basic Checks
GFI had positive earnings in the past year.
GFI had a positive operating cash flow in the past year.
In the past 5 years GFI has always been profitable.
In the past 5 years GFI always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of GFI (12.27%) is better than 91.67% of its industry peers.
The Return On Equity of GFI (23.94%) is better than 94.87% of its industry peers.
With an excellent Return On Invested Capital value of 17.69%, GFI belongs to the best of the industry, outperforming 96.79% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GFI is significantly above the industry average of 10.98%.
The last Return On Invested Capital (17.69%) for GFI is above the 3 year average (16.80%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.27% | ||
| ROE | 23.94% | ||
| ROIC | 17.69% |
ROA(3y)10.17%
ROA(5y)10.19%
ROE(3y)18.85%
ROE(5y)19.22%
ROIC(3y)16.8%
ROIC(5y)16.97%
1.3 Margins
GFI's Profit Margin of 23.93% is amongst the best of the industry. GFI outperforms 92.31% of its industry peers.
GFI's Profit Margin has improved in the last couple of years.
GFI's Operating Margin of 45.33% is amongst the best of the industry. GFI outperforms 96.15% of its industry peers.
In the last couple of years the Operating Margin of GFI has grown nicely.
Looking at the Gross Margin, with a value of 51.51%, GFI belongs to the top of the industry, outperforming 89.10% of the companies in the same industry.
In the last couple of years the Gross Margin of GFI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 45.33% | ||
| PM (TTM) | 23.93% | ||
| GM | 51.51% |
OM growth 3Y1.47%
OM growth 5Y7.58%
PM growth 3Y8.35%
PM growth 5Y34.46%
GM growth 3Y1.47%
GM growth 5Y7.58%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so GFI is still creating some value.
The number of shares outstanding for GFI remains at a similar level compared to 1 year ago.
Compared to 5 years ago, GFI has more shares outstanding
GFI has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.45 indicates that GFI is not in any danger for bankruptcy at the moment.
GFI has a better Altman-Z score (4.45) than 73.08% of its industry peers.
The Debt to FCF ratio of GFI is 7.04, which is on the high side as it means it would take GFI, 7.04 years of fcf income to pay off all of its debts.
GFI's Debt to FCF ratio of 7.04 is fine compared to the rest of the industry. GFI outperforms 67.31% of its industry peers.
GFI has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
GFI's Debt to Equity ratio of 0.41 is on the low side compared to the rest of the industry. GFI is outperformed by 71.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 7.04 | ||
| Altman-Z | 4.45 |
ROIC/WACC1.19
WACC14.8%
2.3 Liquidity
GFI has a Current Ratio of 1.13. This is a normal value and indicates that GFI is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.13, GFI is doing worse than 81.41% of the companies in the same industry.
A Quick Ratio of 0.72 indicates that GFI may have some problems paying its short term obligations.
GFI's Quick ratio of 0.72 is on the low side compared to the rest of the industry. GFI is outperformed by 82.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
GFI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 77.80%, which is quite impressive.
GFI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 48.07% yearly.
Looking at the last year, GFI shows a quite strong growth in Revenue. The Revenue has grown by 15.57% in the last year.
The Revenue has been growing by 11.88% on average over the past years. This is quite good.
EPS 1Y (TTM)77.8%
EPS 3Y16.47%
EPS 5Y48.07%
EPS Q2Q%253.74%
Revenue 1Y (TTM)15.57%
Revenue growth 3Y7.43%
Revenue growth 5Y11.88%
Sales Q2Q%37.74%
3.2 Future
The Earnings Per Share is expected to grow by 27.09% on average over the next years. This is a very strong growth
GFI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.65% yearly.
EPS Next Y110.74%
EPS Next 2Y56.12%
EPS Next 3Y27.09%
EPS Next 5YN/A
Revenue Next Year39.03%
Revenue Next 2Y25.39%
Revenue Next 3Y12.65%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 17.14, the valuation of GFI can be described as rather expensive.
79.49% of the companies in the same industry are more expensive than GFI, based on the Price/Earnings ratio.
GFI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.69.
GFI is valuated reasonably with a Price/Forward Earnings ratio of 8.84.
GFI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. GFI is cheaper than 78.85% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of GFI to the average of the S&P500 Index (21.29), we can say GFI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.14 | ||
| Fwd PE | 8.84 |
4.2 Price Multiples
75.64% of the companies in the same industry are more expensive than GFI, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GFI indicates a somewhat cheap valuation: GFI is cheaper than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.95 | ||
| EV/EBITDA | 7.9 |
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 GFI may justify a higher PE ratio.
A more expensive valuation may be justified as GFI's earnings are expected to grow with 27.09% in the coming years.
PEG (NY)0.15
PEG (5Y)0.36
EPS Next 2Y56.12%
EPS Next 3Y27.09%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.24%, GFI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.96, GFI pays a better dividend. On top of this GFI pays more dividend than 83.33% of the companies listed in the same industry.
GFI's Dividend Yield is comparable with the S&P500 average which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.24% |
5.2 History
On average, the dividend of GFI grows each year by 56.48%, which is quite nice.
GFI has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)56.48%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
The dividend of GFI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DPN/A
EPS Next 2Y56.12%
EPS Next 3Y27.09%
23.82
-0.19 (-0.79%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners57.63%
Inst Owner Change-1.51%
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap21.32B
Analysts70.91
Price Target23.99 (0.71%)
Short Float %0.53%
Short Ratio1.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.24% |
Yearly DividendN/A
Dividend Growth(5Y)56.48%
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)7.03%
PT rev (3m)35.97%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)75.67%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)5.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.14 | ||
| Fwd PE | 8.84 | ||
| P/S | 4.1 | ||
| P/FCF | 50.95 | ||
| P/OCF | 13.27 | ||
| P/B | 4.1 | ||
| P/tB | 4.1 | ||
| EV/EBITDA | 7.9 |
EPS(TTM)1.39
EY5.84%
EPS(NY)2.7
Fwd EY11.32%
FCF(TTM)0.47
FCFY1.96%
OCF(TTM)1.8
OCFY7.54%
SpS5.81
BVpS5.81
TBVpS5.81
PEG (NY)0.15
PEG (5Y)0.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.27% | ||
| ROE | 23.94% | ||
| ROCE | 27.96% | ||
| ROIC | 17.69% | ||
| ROICexc | 19.7% | ||
| ROICexgc | 19.7% | ||
| OM | 45.33% | ||
| PM (TTM) | 23.93% | ||
| GM | 51.51% | ||
| FCFM | 8.04% |
ROA(3y)10.17%
ROA(5y)10.19%
ROE(3y)18.85%
ROE(5y)19.22%
ROIC(3y)16.8%
ROIC(5y)16.97%
ROICexc(3y)18.78%
ROICexc(5y)18.99%
ROICexgc(3y)18.78%
ROICexgc(5y)18.99%
ROCE(3y)26.56%
ROCE(5y)26.83%
ROICexcg growth 3Y0.88%
ROICexcg growth 5Y7.72%
ROICexc growth 3Y0.88%
ROICexc growth 5Y9.31%
OM growth 3Y1.47%
OM growth 5Y7.58%
PM growth 3Y8.35%
PM growth 5Y34.46%
GM growth 3Y1.47%
GM growth 5Y7.58%
F-Score5
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 7.04 | ||
| Debt/EBITDA | 0.72 | ||
| Cap/Depr | 189.45% | ||
| Cap/Sales | 22.85% | ||
| Interest Coverage | 18.08 | ||
| Cash Conversion | 53.83% | ||
| Profit Quality | 33.61% | ||
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | 4.45 |
F-Score5
WACC14.8%
ROIC/WACC1.19
Cap/Depr(3y)149.57%
Cap/Depr(5y)138.14%
Cap/Sales(3y)23.74%
Cap/Sales(5y)22.47%
Profit Quality(3y)32.28%
Profit Quality(5y)37.35%
High Growth Momentum
Growth
EPS 1Y (TTM)77.8%
EPS 3Y16.47%
EPS 5Y48.07%
EPS Q2Q%253.74%
EPS Next Y110.74%
EPS Next 2Y56.12%
EPS Next 3Y27.09%
EPS Next 5YN/A
Revenue 1Y (TTM)15.57%
Revenue growth 3Y7.43%
Revenue growth 5Y11.88%
Sales Q2Q%37.74%
Revenue Next Year39.03%
Revenue Next 2Y25.39%
Revenue Next 3Y12.65%
Revenue Next 5YN/A
EBIT growth 1Y34.45%
EBIT growth 3Y9.01%
EBIT growth 5Y20.36%
EBIT Next Year121.73%
EBIT Next 3Y32.08%
EBIT Next 5YN/A
FCF growth 1Y202.97%
FCF growth 3Y43.53%
FCF growth 5Y12.47%
OCF growth 1Y34.73%
OCF growth 3Y9.32%
OCF growth 5Y13.72%