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 154 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. GFI is growing strongly while it also seems undervalued. This is an interesting combination
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.
Each year in the past 5 years GFI has been profitable.
Each year in the past 5 years GFI had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 12.27%, GFI belongs to the top of the industry, outperforming 91.56% of the companies in the same industry.
GFI has a Return On Equity of 23.94%. This is amongst the best in the industry. GFI outperforms 95.45% of its industry peers.
The Return On Invested Capital of GFI (17.69%) is better than 96.75% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GFI is significantly above the industry average of 11.61%.
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 has a Profit Margin of 23.93%. This is amongst the best in the industry. GFI outperforms 91.56% of its industry peers.
In the last couple of years the Profit Margin of GFI has grown nicely.
GFI has a better Operating Margin (45.33%) than 95.45% of its industry peers.
GFI's Operating Margin has improved in the last couple of years.
GFI's Gross Margin of 51.51% is amongst the best of the industry. GFI outperforms 88.96% of its industry peers.
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
GFI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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.
GFI has a worse debt/assets ratio than last year.
2.2 Solvency
GFI has an Altman-Z score of 4.47. This indicates that GFI is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.47, GFI is in the better half of the industry, outperforming 70.13% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 7.04, GFI is in the better half of the industry, outperforming 66.23% of the companies in the same industry.
GFI has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
GFI has a Debt to Equity ratio of 0.41. This is in the lower half of the industry: GFI underperforms 70.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 7.04 | ||
| Altman-Z | 4.47 |
ROIC/WACC1.16
WACC15.25%
2.3 Liquidity
A Current Ratio of 1.13 indicates that GFI should not have too much problems paying its short term obligations.
GFI has a Current ratio of 1.13. This is amonst the worse of the industry: GFI underperforms 81.82% of its industry peers.
A Quick Ratio of 0.72 indicates that GFI may have some problems paying its short term obligations.
With a Quick ratio value of 0.72, GFI is not doing good in the industry: 82.47% of the companies in the same industry are doing better.
| 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.
GFI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.57%.
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)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
Based on estimates for the next years, GFI will show a very strong growth in Earnings Per Share. The EPS will grow by 27.09% on average per year.
The Revenue is expected to grow by 12.65% on average over the next years. This is quite good.
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
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 17.42, which indicates a rather expensive current valuation of GFI.
Based on the Price/Earnings ratio, GFI is valued a bit cheaper than 78.57% of the companies in the same industry.
When comparing the Price/Earnings ratio of GFI to the average of the S&P500 Index (27.54), we can say GFI is valued slightly cheaper.
A Price/Forward Earnings ratio of 8.99 indicates a reasonable valuation of GFI.
Based on the Price/Forward Earnings ratio, GFI is valued cheaper than 82.47% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.44, GFI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.42 | ||
| Fwd PE | 8.99 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GFI is valued a bit cheaper than the industry average as 78.57% of the companies are valued more expensively.
GFI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. GFI is cheaper than 66.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.81 | ||
| EV/EBITDA | 7.96 |
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.
GFI's earnings are expected to grow with 27.09% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.16
PEG (5Y)0.36
EPS Next 2Y56.12%
EPS Next 3Y27.09%
5. Dividend
5.1 Amount
GFI has a Yearly Dividend Yield of 2.33%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.66, GFI pays a better dividend. On top of this GFI pays more dividend than 85.06% of the companies listed in the same industry.
GFI's Dividend Yield is comparable with the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.33% |
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 2Y56.12%
EPS Next 3Y27.09%
24.22
+0.24 (+1%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners57.63%
Inst Owner Change1.49%
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap21.68B
Analysts70.91
Price Target24.63 (1.69%)
Short Float %0.62%
Short Ratio1.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.33% |
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)0.9%
PT rev (3m)22.38%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
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 | 17.42 | ||
| Fwd PE | 8.99 | ||
| P/S | 4.17 | ||
| P/FCF | 51.81 | ||
| P/OCF | 13.49 | ||
| P/B | 4.17 | ||
| P/tB | 4.17 | ||
| EV/EBITDA | 7.96 |
EPS(TTM)1.39
EY5.74%
EPS(NY)2.7
Fwd EY11.13%
FCF(TTM)0.47
FCFY1.93%
OCF(TTM)1.8
OCFY7.41%
SpS5.81
BVpS5.81
TBVpS5.81
PEG (NY)0.16
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 | 4.47 |
F-Score5
WACC15.25%
ROIC/WACC1.16
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%