GOLD FIELDS LTD-SPONS ADR (GFI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GFI - US38059T1060 - ADR
54.68 USD
+1.46 (+2.74%)
54.75 USD
+0.07 (+0.13%)
We assign a fundamental rating of 8 out of 10 to GFI. GFI was compared to 154 industry peers in the Metals & Mining industry. GFI scores excellent on profitability, but 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. These ratings could make GFI a good candidate for value and growth investing.
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.
- GFI had positive earnings in each of the past 5 years.
- Each year in the past 5 years GFI had a positive operating cash flow.
1.2 Ratios
- GFI has a better Return On Assets (17.34%) than 96.10% of its industry peers.
- GFI has a Return On Equity of 30.95%. This is amongst the best in the industry. GFI outperforms 96.75% of its industry peers.
- With an excellent Return On Invested Capital value of 22.56%, GFI belongs to the best of the industry, outperforming 96.75% 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 10.32%.
- The last Return On Invested Capital (22.56%) for GFI is above the 3 year average (16.80%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.34% | ||
| ROE | 30.95% | ||
| ROIC | 22.56% |
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
- Looking at the Profit Margin, with a value of 28.72%, GFI belongs to the top of the industry, outperforming 92.21% of the companies in the same industry.
- In the last couple of years the Profit Margin of GFI has grown nicely.
- GFI's Operating Margin of 53.08% is amongst the best of the industry. GFI outperforms 96.10% of its industry peers.
- In the last couple of years the Operating Margin of GFI has grown nicely.
- GFI has a better Gross Margin (57.99%) than 90.26% of its industry peers.
- In the last couple of years the Gross Margin of GFI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 53.08% | ||
| PM (TTM) | 28.72% | ||
| GM | 57.99% |
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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), GFI is creating some value.
- GFI has about the same amout of shares outstanding than it did 1 year ago.
- The number of shares outstanding for GFI has been increased compared to 5 years ago.
- Compared to 1 year ago, GFI has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 8.34 indicates that GFI is not in any danger for bankruptcy at the moment.
- With a decent Altman-Z score value of 8.34, GFI is doing good in the industry, outperforming 74.03% of the companies in the same industry.
- GFI has a debt to FCF ratio of 2.08. This is a good value and a sign of high solvency as GFI would need 2.08 years to pay back of all of its debts.
- GFI has a better Debt to FCF ratio (2.08) than 78.57% of its industry peers.
- A Debt/Equity ratio of 0.41 indicates that GFI is not too dependend on debt financing.
- GFI has a Debt to Equity ratio of 0.41. This is in the lower half of the industry: GFI underperforms 69.48% of its industry peers.
- Although GFI does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 2.08 | ||
| Altman-Z | 8.34 |
ROIC/WACC1.42
WACC15.86%
2.3 Liquidity
- A Current Ratio of 1.89 indicates that GFI should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.89, GFI is not doing good in the industry: 62.34% of the companies in the same industry are doing better.
- A Quick Ratio of 1.89 indicates that GFI should not have too much problems paying its short term obligations.
- GFI has a Quick ratio (1.89) which is in line with its industry peers.
- GFI does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.89 | ||
| Quick Ratio | 1.89 |
3. Growth
3.1 Past
- GFI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 196.68%, 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.
- GFI shows a strong growth in Revenue. In the last year, the Revenue has grown by 50.41%.
- GFI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.88% yearly.
EPS 1Y (TTM)196.68%
EPS 3Y16.47%
EPS 5Y48.07%
EPS Q2Q%161.25%
Revenue 1Y (TTM)50.41%
Revenue growth 3Y7.43%
Revenue growth 5Y11.88%
Sales Q2Q%63.73%
3.2 Future
- The Earnings Per Share is expected to grow by 53.87% on average over the next years. This is a very strong growth
- The Revenue is expected to grow by 24.95% on average over the next years. This is a very strong growth
EPS Next Y158.97%
EPS Next 2Y95.86%
EPS Next 3Y53.87%
EPS Next 5YN/A
Revenue Next Year64.8%
Revenue Next 2Y45.06%
Revenue Next 3Y24.95%
Revenue Next 5YN/A
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 stable.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 26.16 indicates a quite expensive valuation of GFI.
- 81.82% of the companies in the same industry are more expensive than GFI, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of GFI to the average of the S&P500 Index (27.25), we can say GFI is valued inline with the index average.
- GFI is valuated reasonably with a Price/Forward Earnings ratio of 11.15.
- 86.36% of the companies in the same industry are more expensive than GFI, based on the Price/Forward Earnings ratio.
- GFI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.16 | ||
| Fwd PE | 11.15 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GFI indicates a somewhat cheap valuation: GFI is cheaper than 75.32% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of GFI indicates a somewhat cheap valuation: GFI is cheaper than 78.57% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.92 | ||
| EV/EBITDA | 11.65 |
4.3 Compensation for Growth
- GFI's 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.
- GFI's earnings are expected to grow with 53.87% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.16
PEG (5Y)0.54
EPS Next 2Y95.86%
EPS Next 3Y53.87%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.69%, GFI has a reasonable but not impressive dividend return.
- GFI's Dividend Yield is rather good when compared to the industry average which is at 1.02. GFI pays more dividend than 83.77% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, GFI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
5.2 History
- The dividend of GFI is nicely growing with an annual growth rate of 56.48%!
- 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
- GFI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DPN/A
EPS Next 2Y95.86%
EPS Next 3Y53.87%
GOLD FIELDS LTD-SPONS ADR / GFI FAQ
What is the fundamental rating for GFI stock?
ChartMill assigns a fundamental rating of 8 / 10 to GFI.
Can you provide the valuation status for GOLD FIELDS LTD-SPONS ADR?
ChartMill assigns a valuation rating of 8 / 10 to GOLD FIELDS LTD-SPONS ADR (GFI). This can be considered as Undervalued.
How profitable is GOLD FIELDS LTD-SPONS ADR (GFI) stock?
GOLD FIELDS LTD-SPONS ADR (GFI) has a profitability rating of 10 / 10.
Can you provide the PE and PB ratios for GFI stock?
The Price/Earnings (PE) ratio for GOLD FIELDS LTD-SPONS ADR (GFI) is 26.16 and the Price/Book (PB) ratio is 8.05.
Can you provide the expected EPS growth for GFI stock?
The Earnings per Share (EPS) of GOLD FIELDS LTD-SPONS ADR (GFI) is expected to grow by 158.97% in the next year.