BARRICK GOLD CORP (ABX.CA) Stock Fundamental Analysis
TSX:ABX - Toronto Stock Exchange - CA0679011084 - Common Stock - Currency: CAD
We assign a fundamental rating of 7 out of 10 to ABX. ABX was compared to 799 industry peers in the Metals & Mining industry. While ABX has a great profitability rating, there are some minor concerns on its financial health. ABX may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make ABX suitable for value investing!
1. Profitability
1.1 Basic Checks
In the past year ABX was profitable.
ABX had a positive operating cash flow in the past year.
In the past 5 years ABX has always been profitable.
In the past 5 years ABX always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of ABX (4.50%) is better than 90.36% of its industry peers.
The Return On Equity of ABX (8.83%) is better than 91.99% of its industry peers.
The Return On Invested Capital of ABX (6.58%) is better than 92.74% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ABX is significantly below the industry average of 24.74%.
The 3 year average ROIC (5.32%) for ABX is below the current ROIC(6.58%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.5% | ||
| ROE | 8.83% | ||
| ROIC | 6.58% |
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
ABX has a Profit Margin of 16.59%. This is amongst the best in the industry. ABX outperforms 94.49% of its industry peers.
ABX's Profit Margin has declined in the last couple of years.
ABX has a Operating Margin of 33.59%. This is amongst the best in the industry. ABX outperforms 96.75% of its industry peers.
In the last couple of years the Operating Margin of ABX has grown nicely.
ABX has a better Gross Margin (38.39%) than 93.99% of its industry peers.
ABX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.59% | ||
| PM (TTM) | 16.59% | ||
| GM | 38.39% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ABX is destroying value.
Compared to 1 year ago, ABX has less shares outstanding
ABX has less shares outstanding than it did 5 years ago.
ABX has a better debt/assets ratio than last year.
2.2 Solvency
ABX has an Altman-Z score of 1.45. This is a bad value and indicates that ABX is not financially healthy and even has some risk of bankruptcy.
ABX has a Altman-Z score (1.45) which is comparable to the rest of the industry.
The Debt to FCF ratio of ABX is 3.59, which is a good value as it means it would take ABX, 3.59 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.59, ABX belongs to the top of the industry, outperforming 92.37% of the companies in the same industry.
A Debt/Equity ratio of 0.19 indicates that ABX is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.19, ABX is doing worse than 66.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 3.59 | ||
| Altman-Z | 1.45 |
ROIC/WACC0.74
WACC8.88%
2.3 Liquidity
ABX has a Current Ratio of 2.89. This indicates that ABX is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.89, ABX is in the better half of the industry, outperforming 63.58% of the companies in the same industry.
ABX has a Quick Ratio of 2.15. This indicates that ABX is financially healthy and has no problem in meeting its short term obligations.
ABX's Quick ratio of 2.15 is in line compared to the rest of the industry. ABX outperforms 58.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.89 | ||
| Quick Ratio | 2.15 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 51.19% over the past year.
ABX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.55% yearly.
Looking at the last year, ABX shows a quite strong growth in Revenue. The Revenue has grown by 13.38% in the last year.
Measured over the past years, ABX shows a small growth in Revenue. The Revenue has been growing by 5.87% on average per year.
EPS 1Y (TTM)51.19%
EPS 3Y2.77%
EPS 5Y19.55%
EPS Q2Q%70.37%
Revenue 1Y (TTM)13.38%
Revenue growth 3Y2.54%
Revenue growth 5Y5.87%
Sales Q2Q%19.16%
3.2 Future
ABX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.03% yearly.
ABX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.49% yearly.
EPS Next Y27.68%
EPS Next 2Y21.39%
EPS Next 3Y14.5%
EPS Next 5Y8.03%
Revenue Next Year3.85%
Revenue Next 2Y4.44%
Revenue Next 3Y5.51%
Revenue Next 5Y2.49%
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 decreasing.
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
Based on the Price/Earnings ratio of 16.09, the valuation of ABX can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of ABX indicates a rather cheap valuation: ABX is cheaper than 91.49% of the companies listed in the same industry.
ABX's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.63.
The Price/Forward Earnings ratio is 12.58, which indicates a correct valuation of ABX.
Based on the Price/Forward Earnings ratio, ABX is valued cheaply inside the industry as 91.74% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 20.85. ABX is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.09 | ||
| Fwd PE | 12.58 |
4.2 Price Multiples
94.87% of the companies in the same industry are more expensive than ABX, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ABX is valued cheaply inside the industry as 92.87% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.75 | ||
| EV/EBITDA | 5.74 |
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.
ABX has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as ABX's earnings are expected to grow with 14.50% in the coming years.
PEG (NY)0.58
PEG (5Y)0.82
EPS Next 2Y21.39%
EPS Next 3Y14.5%
5. Dividend
5.1 Amount
ABX has a Yearly Dividend Yield of 1.94%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.00, ABX pays a better dividend. On top of this ABX pays more dividend than 97.37% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.51, ABX is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
5.2 History
The dividend of ABX has a limited annual growth rate of 1.45%.
ABX has paid a dividend for at least 10 years, which is a reliable track record.
ABX has decreased its dividend recently.
Dividend Growth(5Y)1.45%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
32.46% of the earnings are spent on dividend by ABX. This is a low number and sustainable payout ratio.
ABX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP32.46%
EPS Next 2Y21.39%
EPS Next 3Y14.5%
TSX:ABX (4/21/2025, 7:00:00 PM)
28.32
+0.36 (+1.29%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners62.18%
Inst Owner ChangeN/A
Ins Owners0.7%
Ins Owner ChangeN/A
Market Cap48.91B
Analysts80
Price Target24.53 (-13.38%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
Yearly Dividend0.55
Dividend Growth(5Y)1.45%
DP32.46%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.13%
Min EPS beat(2)-4.73%
Max EPS beat(2)10.98%
EPS beat(4)3
Avg EPS beat(4)10.21%
Min EPS beat(4)-4.73%
Max EPS beat(4)19.5%
EPS beat(8)7
Avg EPS beat(8)16.14%
EPS beat(12)11
Avg EPS beat(12)14.25%
EPS beat(16)15
Avg EPS beat(16)12.71%
Revenue beat(2)1
Avg Revenue beat(2)-1.46%
Min Revenue beat(2)-7.09%
Max Revenue beat(2)4.17%
Revenue beat(4)1
Avg Revenue beat(4)-1.65%
Min Revenue beat(4)-7.09%
Max Revenue beat(4)4.17%
Revenue beat(8)2
Avg Revenue beat(8)-1.11%
Revenue beat(12)6
Avg Revenue beat(12)0.32%
Revenue beat(16)7
Avg Revenue beat(16)-0.06%
PT rev (1m)-27.82%
PT rev (3m)-29.07%
EPS NQ rev (1m)16.39%
EPS NQ rev (3m)-27.5%
EPS NY rev (1m)4.88%
EPS NY rev (3m)-7.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.09 | ||
| Fwd PE | 12.58 | ||
| P/S | 2.73 | ||
| P/FCF | 26.75 | ||
| P/OCF | 7.84 | ||
| P/B | 1.45 | ||
| P/tB | 1.67 | ||
| EV/EBITDA | 5.74 |
EPS(TTM)1.76
EY6.21%
EPS(NY)2.25
Fwd EY7.95%
FCF(TTM)1.06
FCFY3.74%
OCF(TTM)3.61
OCFY12.75%
SpS10.39
BVpS19.53
TBVpS16.92
PEG (NY)0.58
PEG (5Y)0.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.5% | ||
| ROE | 8.83% | ||
| ROCE | 9.65% | ||
| ROIC | 6.58% | ||
| ROICexc | 7.24% | ||
| ROICexgc | 7.86% | ||
| OM | 33.59% | ||
| PM (TTM) | 16.59% | ||
| GM | 38.39% | ||
| FCFM | 10.19% |
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-Score8
Asset Turnover0.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 3.59 | ||
| Debt/EBITDA | 0.75 | ||
| Cap/Depr | 165.74% | ||
| Cap/Sales | 24.56% | ||
| Interest Coverage | 11.42 | ||
| Cash Conversion | 71.8% | ||
| Profit Quality | 61.43% | ||
| Current Ratio | 2.89 | ||
| Quick Ratio | 2.15 | ||
| Altman-Z | 1.45 |
F-Score8
WACC8.88%
ROIC/WACC0.74
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)51.19%
EPS 3Y2.77%
EPS 5Y19.55%
EPS Q2Q%70.37%
EPS Next Y27.68%
EPS Next 2Y21.39%
EPS Next 3Y14.5%
EPS Next 5Y8.03%
Revenue 1Y (TTM)13.38%
Revenue growth 3Y2.54%
Revenue growth 5Y5.87%
Sales Q2Q%19.16%
Revenue Next Year3.85%
Revenue Next 2Y4.44%
Revenue Next 3Y5.51%
Revenue Next 5Y2.49%
EBIT growth 1Y50.9%
EBIT growth 3Y-0.26%
EBIT growth 5Y13.86%
EBIT Next Year68.06%
EBIT Next 3Y24.48%
EBIT Next 5Y13.26%
FCF growth 1Y103.87%
FCF growth 3Y-12.16%
FCF growth 5Y3.07%
OCF growth 1Y20.34%
OCF growth 3Y0.85%
OCF growth 5Y9.65%