BARRICK MINING CORP (B) Stock Fundamental Analysis
NYSE:B - New York Stock Exchange, Inc. - CA06849F1080 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to B. B was compared to 154 industry peers in the Metals & Mining industry. B scores excellent on profitability, but there are some minor concerns on its financial health. B scores decently on growth, while it is valued quite cheap. This could make an interesting combination. This makes B very considerable for value investing!
1. Profitability
1.1 Basic Checks
B had positive earnings in the past year.
In the past year B had a positive cash flow from operations.
Each year in the past 5 years B has been profitable.
B had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
B's Return On Assets of 4.83% is fine compared to the rest of the industry. B outperforms 75.32% of its industry peers.
Looking at the Return On Equity, with a value of 9.50%, B is in the better half of the industry, outperforming 75.97% of the companies in the same industry.
B has a better Return On Invested Capital (7.34%) than 72.08% of its industry peers.
B had an Average Return On Invested Capital over the past 3 years of 5.32%. This is significantly below the industry average of 11.67%.
The last Return On Invested Capital (7.34%) for B is above the 3 year average (5.32%), which is a sign of increasing profitability.
| 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
B has a better Profit Margin (17.46%) than 85.71% of its industry peers.
B's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 36.66%, B belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
B's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 41.30%, B belongs to the best of the industry, outperforming 82.47% of the companies in the same industry.
In the last couple of years the Gross Margin of B has grown nicely.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so B is destroying value.
B has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, B has less shares outstanding
B has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.53, we must say that B is in the distress zone and has some risk of bankruptcy.
B has a Altman-Z score of 1.53. This is in the lower half of the industry: B underperforms 66.23% of its industry peers.
B has a debt to FCF ratio of 2.85. This is a good value and a sign of high solvency as B would need 2.85 years to pay back of all of its debts.
The Debt to FCF ratio of B (2.85) is better than 77.92% of its industry peers.
B has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.19, B perfoms like the industry average, outperforming 48.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 2.85 | ||
| Altman-Z | 1.53 |
ROIC/WACC0.86
WACC8.57%
2.3 Liquidity
B has a Current Ratio of 2.87. This indicates that B is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of B (2.87) is better than 63.64% of its industry peers.
B has a Quick Ratio of 2.16. This indicates that B is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of B (2.16) is better than 63.64% 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.
B shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.55% yearly.
B shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.69%.
Measured over the past years, B 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
B is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.93% yearly.
Based on estimates for the next years, B will show a small growth in Revenue. The Revenue will grow by 4.67% on average per year.
EPS Next Y27.68%
EPS Next 2Y21.39%
EPS Next 3Y14.5%
EPS Next 5Y12.93%
Revenue Next Year12.94%
Revenue Next 2Y11%
Revenue Next 3Y8.86%
Revenue Next 5Y4.67%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 15.01, the valuation of B can be described as correct.
Based on the Price/Earnings ratio, B is valued cheaper than 85.06% of the companies in the same industry.
B is valuated rather cheaply when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 11.47, which indicates a very decent valuation of B.
Based on the Price/Forward Earnings ratio, B is valued a bit cheaper than the industry average as 72.08% of the companies are valued more expensively.
B is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.01 | ||
| Fwd PE | 11.47 |
4.2 Price Multiples
87.66% of the companies in the same industry are more expensive than B, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, B is valued a bit cheaper than 79.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.33 | ||
| EV/EBITDA | 5.6 |
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.
B has an outstanding profitability rating, which may justify a higher PE ratio.
B's earnings are expected to grow with 14.50% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.54
PEG (5Y)0.77
EPS Next 2Y21.39%
EPS Next 3Y14.5%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.88%, B has a reasonable but not impressive dividend return.
B's Dividend Yield is rather good when compared to the industry average which is at 2.98. B pays more dividend than 80.52% of the companies in the same industry.
B's Dividend Yield is slightly below the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.88% |
5.2 History
The dividend of B has a limited annual growth rate of 1.44%.
B has been paying a dividend for over 5 years, so it has already some track record.
The dividend of B 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 B. This is a low number and sustainable payout ratio.
The dividend of B is growing, but earnings are growing more, so the dividend growth is sustainable.
DP29.83%
EPS Next 2Y21.39%
EPS Next 3Y14.5%
21.46
+0.24 (+1.13%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners61.61%
Inst Owner ChangeN/A
Ins Owners0.75%
Ins Owner Change0%
Market Cap37.06B
Analysts80
Price Target27.64 (28.8%)
Short Float %1.01%
Short Ratio0.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.88% |
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)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)-43.42%
PT rev (3m)N/A
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.01 | ||
| Fwd PE | 11.47 | ||
| P/S | 2.79 | ||
| P/FCF | 22.33 | ||
| P/OCF | 7.5 | ||
| P/B | 1.52 | ||
| P/tB | 1.75 | ||
| EV/EBITDA | 5.6 |
EPS(TTM)1.43
EY6.66%
EPS(NY)1.87
Fwd EY8.72%
FCF(TTM)0.96
FCFY4.48%
OCF(TTM)2.86
OCFY13.34%
SpS7.7
BVpS14.16
TBVpS12.28
PEG (NY)0.54
PEG (5Y)0.77
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 | 1.53 |
F-Score7
WACC8.57%
ROIC/WACC0.86
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 5Y12.93%
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 5Y4.67%
EBIT growth 1Y61.74%
EBIT growth 3Y-0.26%
EBIT growth 5Y13.86%
EBIT Next Year85.54%
EBIT Next 3Y30.25%
EBIT Next 5Y18.1%
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%