B2GOLD CORP (BTO.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:BTO - CA11777Q2099 - Common Stock
7.25 CAD
+0.44 (+6.46%)
BTO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 817 industry peers in the Metals & Mining industry. BTO scores excellent on profitability, but there are concerns on its financial health. BTO has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination!
1. Profitability
1.1 Basic Checks
- BTO had positive earnings in the past year.
- BTO had a positive operating cash flow in the past year.
- BTO had positive earnings in 4 of the past 5 years.
- BTO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- BTO has a better Return On Assets (3.85%) than 88.74% of its industry peers.
- BTO has a better Return On Equity (6.60%) than 89.23% of its industry peers.
- BTO has a Return On Invested Capital of 15.82%. This is amongst the best in the industry. BTO outperforms 97.06% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for BTO is in line with the industry average of 11.97%.
- The 3 year average ROIC (10.53%) for BTO is below the current ROIC(15.82%), indicating increased profibility in the last year.
| 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 91.68% of the companies in the same industry.
- BTO has a better Operating Margin (40.82%) than 96.94% of its industry peers.
- BTO's Operating Margin has been stable in the last couple of years.
- BTO's Gross Margin of 46.01% is amongst the best of the industry. BTO outperforms 94.37% of its industry peers.
- 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.
- The number of shares outstanding for BTO has been increased compared to 1 year ago.
- BTO has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for BTO is higher compared to a year ago.
2.2 Solvency
- BTO has an Altman-Z score of 2.71. 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 (2.71) which is in line with 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 Debt to Equity ratio of 0.18. This is in the lower half of the industry: BTO underperforms 65.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.71 |
ROIC/WACC1.66
WACC9.55%
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.
- Looking at the Current ratio, with a value of 1.03, BTO is in line with its industry, outperforming 41.25% of the companies in the same industry.
- BTO has a Quick Ratio of 1.03. This is a bad value and indicates that BTO is not financially healthy enough and could expect problems in meeting its short term obligations.
- BTO has a worse Quick ratio (0.46) than 69.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.46 |
3. Growth
3.1 Past
- BTO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 71.43%, which is quite impressive.
- Measured over the past years, BTO shows a decrease in Earnings Per Share. The EPS has been decreasing by -9.71% on average per year.
- Looking at the last year, BTO shows a very strong growth in Revenue. The Revenue has grown by 30.97%.
- Measured over the past years, BTO shows a quite strong growth in Revenue. The Revenue has been growing by 10.48% on average per year.
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 Y256.87%
EPS Next 2Y126.51%
EPS Next 3Y95.52%
EPS Next 5Y47.3%
Revenue Next Year65.82%
Revenue Next 2Y42.68%
Revenue Next 3Y33.06%
Revenue Next 5Y17.03%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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
- With a Price/Earnings ratio of 14.50, BTO is valued correctly.
- BTO's Price/Earnings ratio is rather cheap when compared to the industry. BTO is cheaper than 95.10% of the companies in the same industry.
- When comparing the Price/Earnings ratio of BTO to the average of the S&P500 Index (27.21), we can say BTO is valued slightly cheaper.
- The Price/Forward Earnings ratio is 6.82, which indicates a rather cheap valuation of BTO.
- Based on the Price/Forward Earnings ratio, BTO is valued cheaply inside the industry as 96.57% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. BTO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.5 | ||
| Fwd PE | 6.82 |
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 98.16% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.09 |
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.
- 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 95.52% in the coming years.
PEG (NY)0.06
PEG (5Y)N/A
EPS Next 2Y126.51%
EPS Next 3Y95.52%
5. Dividend
5.1 Amount
- BTO has a Yearly Dividend Yield of 3.38%.
- BTO's Dividend Yield is rather good when compared to the industry average which is at 0.64. 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 | 3.38% |
5.2 History
- On average, the dividend of BTO grows each year by 69.07%, which is quite nice.
- 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.
- BTO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP56.73%
EPS Next 2Y126.51%
EPS Next 3Y95.52%
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 14.5 and the Price/Book (PB) ratio is 2.11.
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%.