BARRICK GOLD CORP (GOLD) Stock Fundamental Analysis
NYSE:GOLD - New York Stock Exchange, Inc. - CA0679011084 - Common Stock - Currency: USD
Taking everything into account, GOLD scores 7 out of 10 in our fundamental rating. GOLD was compared to 157 industry peers in the Metals & Mining industry. GOLD has an excellent profitability rating, but there are some minor concerns on its financial health. GOLD scores decently on growth, while it is valued quite cheap. This could make an interesting combination. This makes GOLD very considerable for value investing!
1. Profitability
1.1 Basic Checks
In the past year GOLD was profitable.
GOLD had a positive operating cash flow in the past year.
Each year in the past 5 years GOLD has been profitable.
Each year in the past 5 years GOLD had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.83%, GOLD is in the better half of the industry, outperforming 72.90% of the companies in the same industry.
The Return On Equity of GOLD (9.50%) is better than 73.55% of its industry peers.
With a decent Return On Invested Capital value of 7.34%, GOLD is doing good in the industry, outperforming 70.97% of the companies in the same industry.
GOLD had an Average Return On Invested Capital over the past 3 years of 5.32%. This is significantly below the industry average of 12.11%.
The 3 year average ROIC (5.32%) for GOLD is below the current ROIC(7.34%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.83% | ||
| ROE | 9.5% | ||
| ROIC | 7.34% |
ROA(3y)2.74%
ROA(5y)3.51%
ROE(3y)5.39%
ROE(5y)6.92%
ROIC(3y)5.32%
ROIC(5y)5.94%
1.3 Margins
GOLD has a Profit Margin of 17.46%. This is amongst the best in the industry. GOLD outperforms 86.45% of its industry peers.
GOLD's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 36.66%, GOLD belongs to the best of the industry, outperforming 91.61% of the companies in the same industry.
In the last couple of years the Operating Margin of GOLD has grown nicely.
With an excellent Gross Margin value of 41.30%, GOLD belongs to the best of the industry, outperforming 81.94% of the companies in the same industry.
GOLD's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 36.66% | ||
| PM (TTM) | 17.46% | ||
| GM | 41.3% |
OM growth 3Y-2.73%
OM growth 5Y7.55%
PM growth 3Y-0.55%
PM growth 5Y-16.49%
GM growth 3Y-2.05%
GM growth 5Y5.86%
2. Health
2.1 Basic Checks
GOLD has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for GOLD has been reduced compared to 1 year ago.
GOLD has less shares outstanding than it did 5 years ago.
GOLD has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.42, we must say that GOLD is in the distress zone and has some risk of bankruptcy.
GOLD has a Altman-Z score of 1.42. This is in the lower half of the industry: GOLD underperforms 64.52% of its industry peers.
The Debt to FCF ratio of GOLD is 2.85, which is a good value as it means it would take GOLD, 2.85 years of fcf income to pay off all of its debts.
GOLD has a Debt to FCF ratio of 2.85. This is in the better half of the industry: GOLD outperforms 74.19% of its industry peers.
GOLD has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
GOLD has a Debt to Equity ratio (0.19) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 2.85 | ||
| Altman-Z | 1.42 |
ROIC/WACC0.85
WACC8.6%
2.3 Liquidity
GOLD has a Current Ratio of 2.87. This indicates that GOLD is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.87, GOLD is in the better half of the industry, outperforming 64.52% of the companies in the same industry.
A Quick Ratio of 2.16 indicates that GOLD has no problem at all paying its short term obligations.
The Quick ratio of GOLD (2.16) is better than 64.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.87 | ||
| Quick Ratio | 2.16 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 60.67% over the past year.
The Earnings Per Share has been growing by 19.55% on average over the past years. This is quite good.
The Revenue has grown by 15.69% in the past year. This is quite good.
Measured over the past years, GOLD shows a small growth in Revenue. The Revenue has been growing by 5.87% on average per year.
EPS 1Y (TTM)60.67%
EPS 3Y2.77%
EPS 5Y19.55%
EPS Q2Q%84.21%
Revenue 1Y (TTM)15.69%
Revenue growth 3Y2.54%
Revenue growth 5Y5.87%
Sales Q2Q%13.94%
3.2 Future
The Earnings Per Share is expected to grow by 8.03% on average over the next years. This is quite good.
Based on estimates for the next years, GOLD will show a small growth in Revenue. The Revenue will grow by 2.49% on average per year.
EPS Next Y27.68%
EPS Next 2Y21.39%
EPS Next 3Y14.5%
EPS Next 5Y8.03%
Revenue Next Year12.94%
Revenue Next 2Y11%
Revenue Next 3Y8.86%
Revenue Next 5Y2.49%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.19, GOLD is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of GOLD indicates a rather cheap valuation: GOLD is cheaper than 85.81% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.99, GOLD is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.08, the valuation of GOLD can be described as very reasonable.
GOLD's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. GOLD is cheaper than 76.77% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.36, GOLD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.19 | ||
| Fwd PE | 10.08 |
4.2 Price Multiples
GOLD's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. GOLD is cheaper than 89.03% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GOLD indicates a somewhat cheap valuation: GOLD is cheaper than 79.35% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.62 | ||
| EV/EBITDA | 4.93 |
4.3 Compensation for Growth
GOLD's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
GOLD has an outstanding profitability rating, which may justify a higher PE ratio.
GOLD's earnings are expected to grow with 14.50% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.48
PEG (5Y)0.67
EPS Next 2Y21.39%
EPS Next 3Y14.5%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.17%, GOLD has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.86, GOLD pays a better dividend. On top of this GOLD pays more dividend than 80.65% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, GOLD has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.17% |
5.2 History
The dividend of GOLD has a limited annual growth rate of 1.44%.
GOLD has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of GOLD decreased recently.
Dividend Growth(5Y)1.44%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
29.83% of the earnings are spent on dividend by GOLD. This is a low number and sustainable payout ratio.
The dividend of GOLD is growing, but earnings are growing more, so the dividend growth is sustainable.
DP29.83%
EPS Next 2Y21.39%
EPS Next 3Y14.5%
18.86
+18.86 (+Infinity%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners62.18%
Inst Owner Change-6.25%
Ins Owners0.7%
Ins Owner ChangeN/A
Market Cap32.57B
Analysts81.25
Price Target26.99 (43.11%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.17% |
Yearly Dividend0.4
Dividend Growth(5Y)1.44%
DP29.83%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)16.82%
Min EPS beat(2)10.98%
Max EPS beat(2)22.67%
EPS beat(4)3
Avg EPS beat(4)11%
Min EPS beat(4)-4.73%
Max EPS beat(4)22.67%
EPS beat(8)7
Avg EPS beat(8)15.69%
EPS beat(12)11
Avg EPS beat(12)15.63%
EPS beat(16)15
Avg EPS beat(16)13.78%
Revenue beat(2)1
Avg Revenue beat(2)-3.74%
Min Revenue beat(2)-11.66%
Max Revenue beat(2)4.17%
Revenue beat(4)1
Avg Revenue beat(4)-4.28%
Min Revenue beat(4)-11.66%
Max Revenue beat(4)4.17%
Revenue beat(8)1
Avg Revenue beat(8)-3.15%
Revenue beat(12)5
Avg Revenue beat(12)-0.81%
Revenue beat(16)7
Avg Revenue beat(16)-0.62%
PT rev (1m)58.15%
PT rev (3m)16.55%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.09%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.8%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)8.75%
Revenue NY rev (3m)-2.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.19 | ||
| Fwd PE | 10.08 | ||
| P/S | 2.45 | ||
| P/FCF | 19.62 | ||
| P/OCF | 6.59 | ||
| P/B | 1.33 | ||
| P/tB | 1.54 | ||
| EV/EBITDA | 4.93 |
EPS(TTM)1.43
EY7.58%
EPS(NY)1.87
Fwd EY9.92%
FCF(TTM)0.96
FCFY5.1%
OCF(TTM)2.86
OCFY15.18%
SpS7.7
BVpS14.16
TBVpS12.28
PEG (NY)0.48
PEG (5Y)0.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.83% | ||
| ROE | 9.5% | ||
| ROCE | 10.76% | ||
| ROIC | 7.34% | ||
| ROICexc | 8.07% | ||
| ROICexgc | 8.75% | ||
| OM | 36.66% | ||
| PM (TTM) | 17.46% | ||
| GM | 41.3% | ||
| FCFM | 12.48% |
ROA(3y)2.74%
ROA(5y)3.51%
ROE(3y)5.39%
ROE(5y)6.92%
ROIC(3y)5.32%
ROIC(5y)5.94%
ROICexc(3y)5.89%
ROICexc(5y)6.64%
ROICexgc(3y)6.46%
ROICexgc(5y)7.43%
ROCE(3y)7.8%
ROCE(5y)8.7%
ROICexcg growth 3Y-3.04%
ROICexcg growth 5Y11.36%
ROICexc growth 3Y-1.4%
ROICexc growth 5Y12.6%
OM growth 3Y-2.73%
OM growth 5Y7.55%
PM growth 3Y-0.55%
PM growth 5Y-16.49%
GM growth 3Y-2.05%
GM growth 5Y5.86%
F-Score7
Asset Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 2.85 | ||
| Debt/EBITDA | 0.7 | ||
| Cap/Depr | 177.27% | ||
| Cap/Sales | 24.67% | ||
| Interest Coverage | 12.9 | ||
| Cash Conversion | 73.45% | ||
| Profit Quality | 71.46% | ||
| Current Ratio | 2.87 | ||
| Quick Ratio | 2.16 | ||
| Altman-Z | 1.42 |
F-Score7
WACC8.6%
ROIC/WACC0.85
Cap/Depr(3y)156.49%
Cap/Depr(5y)135.67%
Cap/Sales(3y)26.44%
Cap/Sales(5y)23.19%
Profit Quality(3y)70.74%
Profit Quality(5y)90.6%
High Growth Momentum
Growth
EPS 1Y (TTM)60.67%
EPS 3Y2.77%
EPS 5Y19.55%
EPS Q2Q%84.21%
EPS Next Y27.68%
EPS Next 2Y21.39%
EPS Next 3Y14.5%
EPS Next 5Y8.03%
Revenue 1Y (TTM)15.69%
Revenue growth 3Y2.54%
Revenue growth 5Y5.87%
Sales Q2Q%13.94%
Revenue Next Year12.94%
Revenue Next 2Y11%
Revenue Next 3Y8.86%
Revenue Next 5Y2.49%
EBIT growth 1Y61.74%
EBIT growth 3Y-0.26%
EBIT growth 5Y13.86%
EBIT Next Year68.06%
EBIT Next 3Y24.48%
EBIT Next 5Y13.26%
FCF growth 1Y1207.09%
FCF growth 3Y-12.16%
FCF growth 5Y3.07%
OCF growth 1Y51.95%
OCF growth 3Y0.85%
OCF growth 5Y9.65%