BARRICK MINING CORP (ABX.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ABX - CA06849F1080 - Common Stock
67.88 CAD
+0.04 (+0.06%)
Taking everything into account, ABX scores 8 out of 10 in our fundamental rating. ABX was compared to 817 industry peers in the Metals & Mining industry. ABX scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ABX is evaluated to be cheap and growing strongly. This does not happen too often! This makes ABX very considerable for value and growth and quality 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.
- Each year in the past 5 years ABX has been profitable.
- In the past 5 years ABX always reported a positive cash flow from operatings.
1.2 Ratios
- ABX has a better Return On Assets (7.41%) than 91.06% of its industry peers.
- ABX has a Return On Equity of 14.25%. This is amongst the best in the industry. ABX outperforms 92.66% of its industry peers.
- ABX has a Return On Invested Capital of 9.83%. This is amongst the best in the industry. ABX outperforms 93.76% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for ABX is significantly below the industry average of 11.97%.
- The last Return On Invested Capital (9.83%) for ABX is above the 3 year average (5.32%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.41% | ||
| ROE | 14.25% | ||
| ROIC | 9.83% |
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
- With an excellent Profit Margin value of 24.53%, ABX belongs to the best of the industry, outperforming 95.10% of the companies in the same industry.
- In the last couple of years the Profit Margin of ABX has declined.
- With an excellent Operating Margin value of 44.74%, ABX belongs to the best of the industry, outperforming 98.16% of the companies in the same industry.
- In the last couple of years the Operating Margin of ABX has grown nicely.
- ABX's Gross Margin of 48.32% is amongst the best of the industry. ABX outperforms 95.47% of its industry peers.
- In the last couple of years the Gross Margin of ABX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 44.74% | ||
| PM (TTM) | 24.53% | ||
| GM | 48.32% |
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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ABX is creating some value.
- ABX has less shares outstanding than it did 1 year ago.
- ABX has less shares outstanding than it did 5 years ago.
- ABX has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.94 indicates that ABX is not a great score, but indicates only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 2.94, ABX is in line with its industry, outperforming 48.35% of the companies in the same industry.
- The Debt to FCF ratio of ABX is 1.71, which is an excellent value as it means it would take ABX, only 1.71 years of fcf income to pay off all of its debts.
- ABX has a Debt to FCF ratio of 1.71. This is amongst the best in the industry. ABX outperforms 92.66% of its industry peers.
- A Debt/Equity ratio of 0.18 indicates that ABX is not too dependend on debt financing.
- The Debt to Equity ratio of ABX (0.18) is worse than 65.97% of its industry peers.
- Even though the debt/equity ratio score it not favorable for ABX, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 1.71 | ||
| Altman-Z | 2.94 |
ROIC/WACC1.03
WACC9.57%
2.3 Liquidity
- ABX has a Current Ratio of 2.94. This indicates that ABX is financially healthy and has no problem in meeting its short term obligations.
- The Current ratio of ABX (2.94) is better than 62.42% of its industry peers.
- A Quick Ratio of 2.33 indicates that ABX has no problem at all paying its short term obligations.
- ABX has a Quick ratio (2.33) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.94 | ||
| Quick Ratio | 2.33 |
3. Growth
3.1 Past
- ABX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 72.22%, which is quite impressive.
- Measured over the past years, ABX shows a quite strong growth in Earnings Per Share. The EPS has been growing by 19.55% on average per year.
- Looking at the last year, ABX shows a quite strong growth in Revenue. The Revenue has grown by 18.39% in the last year.
- ABX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.87% yearly.
EPS 1Y (TTM)72.22%
EPS 3Y2.77%
EPS 5Y19.55%
EPS Q2Q%93.33%
Revenue 1Y (TTM)18.39%
Revenue growth 3Y2.54%
Revenue growth 5Y5.87%
Sales Q2Q%23.16%
3.2 Future
- Based on estimates for the next years, ABX will show a very strong growth in Earnings Per Share. The EPS will grow by 20.99% on average per year.
- ABX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.02% yearly.
EPS Next Y79.89%
EPS Next 2Y62.59%
EPS Next 3Y44.19%
EPS Next 5Y20.99%
Revenue Next Year21.51%
Revenue Next 2Y23.75%
Revenue Next 3Y18.11%
Revenue Next 5Y8.02%
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.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 26.41, which means the current valuation is very expensive for ABX.
- 91.80% of the companies in the same industry are more expensive than ABX, based on the Price/Earnings ratio.
- ABX's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.32.
- The Price/Forward Earnings ratio is 14.64, which indicates a correct valuation of ABX.
- 92.04% of the companies in the same industry are more expensive than ABX, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 24.32. ABX is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.41 | ||
| Fwd PE | 14.64 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ABX indicates a rather cheap valuation: ABX is cheaper than 95.96% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ABX indicates a rather cheap valuation: ABX is cheaper than 94.61% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.15 | ||
| EV/EBITDA | 9.92 |
4.3 Compensation for Growth
- ABX'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 ABX may justify a higher PE ratio.
- A more expensive valuation may be justified as ABX's earnings are expected to grow with 44.19% in the coming years.
PEG (NY)0.33
PEG (5Y)1.35
EPS Next 2Y62.59%
EPS Next 3Y44.19%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.79%, ABX is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.64, ABX pays a better dividend. On top of this ABX pays more dividend than 96.70% of the companies listed in the same industry.
- With a Dividend Yield of 0.79, ABX pays less dividend than the S&P500 average, which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
5.2 History
- The dividend of ABX has a limited annual growth rate of 1.44%.
- ABX has paid a dividend for at least 10 years, which is a reliable track record.
- The dividend of ABX decreased recently.
Dividend Growth(5Y)1.44%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
- 21.43% 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.
DP21.43%
EPS Next 2Y62.59%
EPS Next 3Y44.19%
BARRICK MINING CORP / ABX.CA FAQ
Can you provide the ChartMill fundamental rating for BARRICK MINING CORP?
ChartMill assigns a fundamental rating of 8 / 10 to ABX.CA.
What is the valuation status for ABX stock?
ChartMill assigns a valuation rating of 8 / 10 to BARRICK MINING CORP (ABX.CA). This can be considered as Undervalued.
How profitable is BARRICK MINING CORP (ABX.CA) stock?
BARRICK MINING CORP (ABX.CA) has a profitability rating of 8 / 10.
What is the financial health of BARRICK MINING CORP (ABX.CA) stock?
The financial health rating of BARRICK MINING CORP (ABX.CA) is 8 / 10.
What is the earnings growth outlook for BARRICK MINING CORP?
The Earnings per Share (EPS) of BARRICK MINING CORP (ABX.CA) is expected to grow by 79.89% in the next year.