BARRICK GOLD CORP (ABX.CA) Stock Fundamental Analysis
TSX:ABX - Toronto Stock Exchange - CA0679011084 - Common Stock - Currency: CAD
Taking everything into account, ABX scores 6 out of 10 in our fundamental rating. ABX was compared to 818 industry peers in the Metals & Mining industry. ABX scores excellent on profitability, but 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.
In the past year ABX had a positive cash flow from operations.
ABX had positive earnings in each of the past 5 years.
ABX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.44%, ABX belongs to the top of the industry, outperforming 89.67% of the companies in the same industry.
The Return On Equity of ABX (6.83%) is better than 90.63% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.13%, ABX belongs to the top of the industry, outperforming 92.12% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ABX is significantly below the industry average of 11.89%.
The 3 year average ROIC (5.09%) for ABX is below the current ROIC(5.13%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.44% | ||
| ROE | 6.83% | ||
| ROIC | 5.13% |
ROA(3y)2.68%
ROA(5y)4.39%
ROE(3y)5.27%
ROE(5y)8.86%
ROIC(3y)5.09%
ROIC(5y)5.1%
1.3 Margins
ABX's Profit Margin of 13.19% is amongst the best of the industry. ABX outperforms 94.29% of its industry peers.
In the last couple of years the Profit Margin of ABX has declined.
ABX has a better Operating Margin (28.36%) than 95.52% of its industry peers.
ABX's Operating Margin has improved in the last couple of years.
The Gross Margin of ABX (34.30%) is better than 92.80% of its industry peers.
In the last couple of years the Gross Margin of ABX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.36% | ||
| PM (TTM) | 13.19% | ||
| GM | 34.3% |
OM growth 3Y-11.5%
OM growth 5Y5.4%
PM growth 3Y-15.43%
PM growth 5YN/A
GM growth 3Y-9.57%
GM growth 5Y1.71%
2. Health
2.1 Basic Checks
ABX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
ABX has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, ABX has more shares outstanding
The debt/assets ratio for ABX has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.23, we must say that ABX is in the distress zone and has some risk of bankruptcy.
ABX has a Altman-Z score (1.23) which is in line with its industry peers.
The Debt to FCF ratio of ABX is 4.96, which is a neutral value as it means it would take ABX, 4.96 years of fcf income to pay off all of its debts.
ABX has a Debt to FCF ratio of 4.96. This is amongst the best in the industry. ABX outperforms 91.30% of its industry peers.
ABX has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of ABX (0.20) is worse than 72.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 4.96 | ||
| Altman-Z | 1.23 |
ROIC/WACC0.57
WACC8.95%
2.3 Liquidity
A Current Ratio of 2.65 indicates that ABX has no problem at all paying its short term obligations.
ABX has a Current ratio (2.65) which is in line with its industry peers.
ABX has a Quick Ratio of 2.06. This indicates that ABX is financially healthy and has no problem in meeting its short term obligations.
ABX has a Quick ratio of 2.06. This is comparable to the rest of the industry: ABX outperforms 54.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.65 | ||
| Quick Ratio | 2.06 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 54.29% 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 18.47% yearly.
The Revenue has grown by 11.02% in the past year. This is quite good.
Measured over the past years, ABX shows a quite strong growth in Revenue. The Revenue has been growing by 9.49% on average per year.
EPS 1Y (TTM)54.29%
EPS 3Y-9.94%
EPS 5Y18.47%
EPS Q2Q%25%
Revenue 1Y (TTM)11.02%
Revenue growth 3Y-3.28%
Revenue growth 5Y9.49%
Sales Q2Q%17.68%
3.2 Future
The Earnings Per Share is expected to grow by 6.70% on average over the next years.
Based on estimates for the next years, ABX will show a decrease in Revenue. The Revenue will decrease by -0.97% on average per year.
EPS Next Y51.5%
EPS Next 2Y40.2%
EPS Next 3Y25.08%
EPS Next 5Y6.7%
Revenue Next Year15.33%
Revenue Next 2Y15.4%
Revenue Next 3Y10.77%
Revenue Next 5Y-0.97%
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
The Price/Earnings ratio is 16.08, which indicates a correct valuation of ABX.
Based on the Price/Earnings ratio, ABX is valued cheaply inside the industry as 91.44% of the companies are valued more expensively.
ABX is valuated rather cheaply when we compare the Price/Earnings ratio to 28.20, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 10.53, the valuation of ABX can be described as reasonable.
Based on the Price/Forward Earnings ratio, ABX is valued cheaper than 91.98% of the companies in the same industry.
ABX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 94.48.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.08 | ||
| Fwd PE | 10.53 |
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 93.61% of the companies listed in the same industry.
92.12% of the companies in the same industry are more expensive than ABX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.01 | ||
| EV/EBITDA | 5.64 |
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 25.08% in the coming years.
PEG (NY)0.31
PEG (5Y)0.87
EPS Next 2Y40.2%
EPS Next 3Y25.08%
5. Dividend
5.1 Amount
ABX has a Yearly Dividend Yield of 2.20%.
ABX's Dividend Yield is rather good when compared to the industry average which is at 7.63. ABX pays more dividend than 97.01% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.30, ABX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.2% |
5.2 History
The dividend of ABX is nicely growing with an annual growth rate of 30.07%!
ABX has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of ABX decreased recently.
Dividend Growth(5Y)30.07%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
43.02% of the earnings are spent on dividend by ABX. This is a bit on the high side, but may be sustainable.
The dividend of ABX is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP43.02%
EPS Next 2Y40.2%
EPS Next 3Y25.08%
BARRICK GOLD CORP
TSX:ABX (2/10/2025, 7:00:00 PM)
24.93
+0.6 (+2.47%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners62.36%
Inst Owner ChangeN/A
Ins Owners0.67%
Ins Owner ChangeN/A
Market Cap43.70B
Analysts80
Price Target33.3 (33.57%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.2% |
Yearly Dividend0.4
Dividend Growth(5Y)30.07%
DP43.02%
Div Incr Years0
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.18%
Min EPS beat(2)-4.73%
Max EPS beat(2)15.09%
EPS beat(4)3
Avg EPS beat(4)15.59%
Min EPS beat(4)-4.73%
Max EPS beat(4)32.52%
EPS beat(8)7
Avg EPS beat(8)16.68%
EPS beat(12)11
Avg EPS beat(12)14.61%
EPS beat(16)15
Avg EPS beat(16)12.74%
Revenue beat(2)0
Avg Revenue beat(2)-4.81%
Min Revenue beat(2)-7.09%
Max Revenue beat(2)-2.53%
Revenue beat(4)0
Avg Revenue beat(4)-2.85%
Min Revenue beat(4)-7.09%
Max Revenue beat(4)-0.62%
Revenue beat(8)2
Avg Revenue beat(8)-1.03%
Revenue beat(12)6
Avg Revenue beat(12)0.22%
Revenue beat(16)6
Avg Revenue beat(16)-0.38%
PT rev (1m)-3.71%
PT rev (3m)-4.49%
EPS NQ rev (1m)-4.26%
EPS NQ rev (3m)16.45%
EPS NY rev (1m)0.7%
EPS NY rev (3m)-1.01%
Revenue NQ rev (1m)-0.96%
Revenue NQ rev (3m)-0.96%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.08 | ||
| Fwd PE | 10.53 | ||
| P/S | 2.47 | ||
| P/FCF | 32.01 | ||
| P/OCF | 7.44 | ||
| P/B | 1.28 | ||
| P/tB | 1.52 | ||
| EV/EBITDA | 5.64 |
EPS(TTM)1.55
EY6.22%
EPS(NY)2.37
Fwd EY9.5%
FCF(TTM)0.78
FCFY3.12%
OCF(TTM)3.35
OCFY13.44%
SpS10.09
BVpS19.5
TBVpS16.45
PEG (NY)0.31
PEG (5Y)0.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.44% | ||
| ROE | 6.83% | ||
| ROCE | 7.89% | ||
| ROIC | 5.13% | ||
| ROICexc | 5.67% | ||
| ROICexgc | 6.25% | ||
| OM | 28.36% | ||
| PM (TTM) | 13.19% | ||
| GM | 34.3% | ||
| FCFM | 7.72% |
ROA(3y)2.68%
ROA(5y)4.39%
ROE(3y)5.27%
ROE(5y)8.86%
ROIC(3y)5.09%
ROIC(5y)5.1%
ROICexc(3y)5.7%
ROICexc(5y)5.71%
ROICexgc(3y)6.4%
ROICexgc(5y)6.46%
ROCE(3y)7.84%
ROCE(5y)7.85%
ROICexcg growth 3Y-15.56%
ROICexcg growth 5Y0.69%
ROICexc growth 3Y-14.56%
ROICexc growth 5Y0.2%
OM growth 3Y-11.5%
OM growth 5Y5.4%
PM growth 3Y-15.43%
PM growth 5YN/A
GM growth 3Y-9.57%
GM growth 5Y1.71%
F-Score8
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 4.96 | ||
| Debt/EBITDA | 0.86 | ||
| Cap/Depr | 157.59% | ||
| Cap/Sales | 25.49% | ||
| Interest Coverage | 10 | ||
| Cash Conversion | 74.55% | ||
| Profit Quality | 58.51% | ||
| Current Ratio | 2.65 | ||
| Quick Ratio | 2.06 | ||
| Altman-Z | 1.23 |
F-Score8
WACC8.95%
ROIC/WACC0.57
Cap/Depr(3y)139.86%
Cap/Depr(5y)119.26%
Cap/Sales(3y)25.03%
Cap/Sales(5y)21.78%
Profit Quality(3y)82.29%
Profit Quality(5y)84.02%
High Growth Momentum
Growth
EPS 1Y (TTM)54.29%
EPS 3Y-9.94%
EPS 5Y18.47%
EPS Q2Q%25%
EPS Next Y51.5%
EPS Next 2Y40.2%
EPS Next 3Y25.08%
EPS Next 5Y6.7%
Revenue 1Y (TTM)11.02%
Revenue growth 3Y-3.28%
Revenue growth 5Y9.49%
Sales Q2Q%17.68%
Revenue Next Year15.33%
Revenue Next 2Y15.4%
Revenue Next 3Y10.77%
Revenue Next 5Y-0.97%
EBIT growth 1Y36.57%
EBIT growth 3Y-14.4%
EBIT growth 5Y15.4%
EBIT Next Year106.26%
EBIT Next 3Y40.74%
EBIT Next 5Y11.91%
FCF growth 1Y-23.6%
FCF growth 3Y-42.3%
FCF growth 5Y12.1%
OCF growth 1Y0.56%
OCF growth 3Y-11.68%
OCF growth 5Y16.16%