B2GOLD CORP (BTO.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:BTO - CA11777Q2099 - Common Stock
7.83 CAD
+0.3 (+3.98%)
BTO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 820 industry peers in the Metals & Mining industry. BTO scores excellent on profitability, but there are concerns on its financial health. An interesting combination arises when we look at growth and value: BTO is growing strongly while it also seems undervalued.
1. Profitability
1.1 Basic Checks
- In the past year BTO was profitable.
- BTO had a positive operating cash flow in the past year.
- Of the past 5 years BTO 4 years were profitable.
- Each year in the past 5 years BTO had a positive operating cash flow.
1.2 Ratios
- BTO has a Return On Assets of 3.85%. This is amongst the best in the industry. BTO outperforms 88.66% of its industry peers.
- Looking at the Return On Equity, with a value of 6.60%, BTO belongs to the top of the industry, outperforming 89.27% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 15.82%, BTO belongs to the top of the industry, outperforming 96.95% of the companies in the same industry.
- BTO had an Average Return On Invested Capital over the past 3 years of 10.53%. This is in line with the industry average of 12.04%.
- The last Return On Invested Capital (15.82%) for BTO is above the 3 year average (10.53%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.85% | ||
| ROE | 6.6% | ||
| ROIC | 15.82% |
ROA(3y)-2%
ROA(5y)4.89%
ROE(3y)-4.15%
ROE(5y)5.33%
ROIC(3y)10.53%
ROIC(5y)13.43%
1.3 Margins
- Looking at the Profit Margin, with a value of 8.75%, BTO belongs to the top of the industry, outperforming 91.71% of the companies in the same industry.
- With an excellent Operating Margin value of 40.82%, BTO belongs to the best of the industry, outperforming 96.95% of the companies in the same industry.
- In the last couple of years the Operating Margin of BTO has remained more or less at the same level.
- Looking at the Gross Margin, with a value of 46.01%, BTO belongs to the top of the industry, outperforming 94.27% of the companies in the same industry.
- In the last couple of years the Gross Margin of BTO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 40.82% | ||
| PM (TTM) | 8.75% | ||
| GM | 46.01% |
OM growth 3Y-7.12%
OM growth 5Y-0.62%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-5.22%
GM growth 5Y-0.97%
2. Health
2.1 Basic Checks
- BTO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, BTO has more shares outstanding
- BTO has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, BTO has a worse debt to assets ratio.
2.2 Solvency
- BTO has an Altman-Z score of 2.91. This is not the best score and indicates that BTO is in the grey zone with still only limited risk for bankruptcy at the moment.
- BTO has a Altman-Z score of 2.91. This is comparable to the rest of the industry: BTO outperforms 46.71% of its industry peers.
- BTO has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
- BTO has a worse Debt to Equity ratio (0.18) than 65.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.91 |
ROIC/WACC1.63
WACC9.72%
2.3 Liquidity
- BTO has a Current Ratio of 1.03. This is a normal value and indicates that BTO is financially healthy and should not expect problems in meeting its short term obligations.
- BTO's Current ratio of 1.03 is in line compared to the rest of the industry. BTO outperforms 41.46% of its industry peers.
- A Quick Ratio of 0.46 indicates that BTO may have some problems paying its short term obligations.
- The Quick ratio of BTO (0.46) is worse than 69.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.46 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 71.43% over the past year.
- The Earnings Per Share has been decreasing by -9.71% on average over the past years.
- The Revenue has grown by 30.97% in the past year. This is a very strong growth!
- BTO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.48% yearly.
EPS 1Y (TTM)71.43%
EPS 3Y-25.99%
EPS 5Y-9.71%
EPS Q2Q%600%
Revenue 1Y (TTM)30.97%
Revenue growth 3Y2.58%
Revenue growth 5Y10.48%
Sales Q2Q%74.68%
3.2 Future
- Based on estimates for the next years, BTO will show a very strong growth in Earnings Per Share. The EPS will grow by 47.30% on average per year.
- BTO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.03% yearly.
EPS Next Y250.13%
EPS Next 2Y125.67%
EPS Next 3Y92.74%
EPS Next 5Y47.3%
Revenue Next Year65.82%
Revenue Next 2Y42.68%
Revenue Next 3Y33.06%
Revenue Next 5Y17.03%
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 accelerating.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 15.98, which indicates a correct valuation of BTO.
- BTO's Price/Earnings ratio is rather cheap when compared to the industry. BTO is cheaper than 94.88% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, BTO is valued a bit cheaper.
- A Price/Forward Earnings ratio of 7.56 indicates a rather cheap valuation of BTO.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of BTO indicates a rather cheap valuation: BTO is cheaper than 96.46% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.83. BTO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.98 | ||
| Fwd PE | 7.56 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BTO indicates a rather cheap valuation: BTO is cheaper than 98.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.64 |
4.3 Compensation for Growth
- BTO'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 BTO may justify a higher PE ratio.
- A more expensive valuation may be justified as BTO's earnings are expected to grow with 92.74% in the coming years.
PEG (NY)0.06
PEG (5Y)N/A
EPS Next 2Y125.67%
EPS Next 3Y92.74%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.03%, BTO has a reasonable but not impressive dividend return.
- BTO's Dividend Yield is rather good when compared to the industry average which is at 0.56. BTO pays more dividend than 99.02% of the companies in the same industry.
- BTO's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.03% |
5.2 History
- The dividend of BTO is nicely growing with an annual growth rate of 69.07%!
- BTO has been paying a dividend for over 5 years, so it has already some track record.
- BTO has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)69.07%
Div Incr Years0
Div Non Decr Years5
5.3 Sustainability
- BTO pays out 56.73% of its income as dividend. This is a bit on the high side, but may be sustainable.
- The dividend of BTO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP56.73%
EPS Next 2Y125.67%
EPS Next 3Y92.74%
B2GOLD CORP / BTO.CA FAQ
What is the ChartMill fundamental rating of B2GOLD CORP (BTO.CA) stock?
ChartMill assigns a fundamental rating of 6 / 10 to BTO.CA.
What is the valuation status of B2GOLD CORP (BTO.CA) stock?
ChartMill assigns a valuation rating of 8 / 10 to B2GOLD CORP (BTO.CA). This can be considered as Undervalued.
Can you provide the profitability details for B2GOLD CORP?
B2GOLD CORP (BTO.CA) has a profitability rating of 8 / 10.
What is the valuation of B2GOLD CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for B2GOLD CORP (BTO.CA) is 15.98 and the Price/Book (PB) ratio is 2.32.
Is the dividend of B2GOLD CORP sustainable?
The dividend rating of B2GOLD CORP (BTO.CA) is 6 / 10 and the dividend payout ratio is 56.73%.