B2GOLD CORP (BTO.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:BTO - CA11777Q2099 - Common Stock
7.25 CAD
+0.07 (+0.97%)
We assign a fundamental rating of 6 out of 10 to BTO. BTO was compared to 820 industry peers in the Metals & Mining industry. While BTO has a great profitability rating, there are quite some concerns on its financial health. BTO is growing strongly while it also seems undervalued. This is an interesting combination
1. Profitability
1.1 Basic Checks
- In the past year BTO was profitable.
- BTO had a positive operating cash flow in the past year.
- BTO had positive earnings in 4 of the past 5 years.
- In the past 5 years BTO always reported a positive cash flow from operatings.
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.
- The Return On Equity of BTO (6.60%) is better than 89.27% of its industry peers.
- BTO has a Return On Invested Capital of 15.82%. This is amongst the best in the industry. BTO outperforms 96.95% of its industry peers.
- 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
- BTO's Profit Margin of 8.75% is amongst the best of the industry. BTO outperforms 91.71% of its industry peers.
- BTO has a Operating Margin of 40.82%. This is amongst the best in the industry. BTO outperforms 96.95% of its industry peers.
- BTO's Operating Margin has been stable in the last couple of years.
- BTO has a Gross Margin of 46.01%. This is amongst the best in the industry. BTO outperforms 94.27% 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BTO is creating some value.
- Compared to 1 year ago, BTO has more shares outstanding
- Compared to 5 years ago, BTO has more shares outstanding
- The debt/assets ratio for BTO is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.74 indicates that BTO is not a great score, but indicates only limited risk for bankruptcy at the moment.
- With a Altman-Z score value of 2.74, BTO perfoms like the industry average, outperforming 46.46% of the companies in the same industry.
- A Debt/Equity ratio of 0.18 indicates that BTO is not too dependend on debt financing.
- 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 | 2.74 |
ROIC/WACC1.63
WACC9.71%
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 41.46% 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.
- With a Quick ratio value of 0.46, BTO is not doing good in the industry: 69.02% of the companies in the same industry are doing better.
| 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.
- BTO shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -9.71% yearly.
- The Revenue has grown by 30.97% in the past year. This is a very strong growth!
- The Revenue has been growing by 10.48% on average over the past years. This is quite good.
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
- BTO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 47.30% yearly.
- The Revenue is expected to grow by 17.03% on average over the next years. This is quite good.
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.
- 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
- Based on the Price/Earnings ratio of 14.50, the valuation of BTO can be described as correct.
- 95.00% of the companies in the same industry are more expensive than BTO, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, BTO is valued a bit cheaper.
- A Price/Forward Earnings ratio of 6.90 indicates a rather cheap valuation of BTO.
- Based on the Price/Forward Earnings ratio, BTO is valued cheaper than 96.59% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. BTO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.5 | ||
| Fwd PE | 6.9 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, BTO is valued cheaper than 98.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.16 |
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.
- BTO has an outstanding profitability rating, which 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.
- Compared to an average industry Dividend Yield of 0.56, BTO pays a better dividend. On top of this BTO pays more dividend than 99.02% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, BTO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.03% |
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 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 14.5 and the Price/Book (PB) ratio is 2.12.
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%.