BARRICK GOLD CORP (GOLD) Stock Fundamental Analysis
NYSE:GOLD - New York Stock Exchange, Inc. - CA0679011084 - Common Stock - Currency: USD
Taking everything into account, GOLD scores 7 out of 10 in our fundamental rating. GOLD was compared to 155 industry peers in the Metals & Mining industry. GOLD scores excellent on profitability, but there are some minor concerns on its financial health. GOLD is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings could make GOLD a good candidate for value investing.
1. Profitability
1.1 Basic Checks
GOLD had positive earnings in the past year.
GOLD had a positive operating cash flow in the past year.
GOLD had positive earnings in each of the past 5 years.
GOLD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of GOLD (4.83%) is better than 72.90% of its industry peers.
The Return On Equity of GOLD (9.50%) is better than 73.55% of its industry peers.
GOLD has a better Return On Invested Capital (7.34%) than 70.97% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GOLD is significantly below the industry average of 11.61%.
The last Return On Invested Capital (7.34%) for GOLD 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
GOLD has a Profit Margin of 17.46%. This is amongst the best in the industry. GOLD outperforms 86.45% of its industry peers.
GOLD's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 36.66%, GOLD belongs to the best of the industry, outperforming 91.61% of the companies in the same industry.
GOLD's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 41.30%, GOLD belongs to the top of the industry, outperforming 81.94% of the companies in the same industry.
GOLD's Gross Margin has improved in the last couple of years.
| 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
GOLD has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
GOLD has less shares outstanding than it did 1 year ago.
GOLD has less shares outstanding than it did 5 years ago.
The debt/assets ratio for GOLD has been reduced compared to a year ago.
2.2 Solvency
GOLD has an Altman-Z score of 1.42. This is a bad value and indicates that GOLD is not financially healthy and even has some risk of bankruptcy.
GOLD has a worse Altman-Z score (1.42) than 64.52% of its industry peers.
GOLD has a debt to FCF ratio of 2.85. This is a good value and a sign of high solvency as GOLD would need 2.85 years to pay back of all of its debts.
GOLD has a better Debt to FCF ratio (2.85) than 74.19% of its industry peers.
GOLD has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
GOLD has a Debt to Equity ratio (0.19) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 2.85 | ||
| Altman-Z | 1.42 |
ROIC/WACC0.85
WACC8.6%
2.3 Liquidity
GOLD has a Current Ratio of 2.87. This indicates that GOLD is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.87, GOLD is in the better half of the industry, outperforming 64.52% of the companies in the same industry.
GOLD has a Quick Ratio of 2.16. This indicates that GOLD is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of GOLD (2.16) is better than 64.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.87 | ||
| Quick Ratio | 2.16 |
3. Growth
3.1 Past
GOLD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 60.67%, which is quite impressive.
GOLD shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.55% yearly.
Looking at the last year, GOLD shows a quite strong growth in Revenue. The Revenue has grown by 15.69% in the last year.
The Revenue has been growing slightly by 5.87% on average over the past years.
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
GOLD is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.03% yearly.
GOLD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.49% yearly.
EPS Next Y27.68%
EPS Next 2Y21.39%
EPS Next 3Y14.5%
EPS Next 5Y8.03%
Revenue Next Year12.94%
Revenue Next 2Y11%
Revenue Next 3Y8.86%
Revenue Next 5Y2.49%
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 decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
GOLD is valuated correctly with a Price/Earnings ratio of 13.19.
Compared to the rest of the industry, the Price/Earnings ratio of GOLD indicates a rather cheap valuation: GOLD is cheaper than 85.81% of the companies listed in the same industry.
GOLD's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.30.
A Price/Forward Earnings ratio of 10.08 indicates a reasonable valuation of GOLD.
Based on the Price/Forward Earnings ratio, GOLD is valued a bit cheaper than the industry average as 76.77% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of GOLD to the average of the S&P500 Index (21.76), we can say GOLD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.19 | ||
| Fwd PE | 10.08 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GOLD indicates a rather cheap valuation: GOLD is cheaper than 89.03% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, GOLD is valued a bit cheaper than 79.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.62 | ||
| EV/EBITDA | 4.93 |
4.3 Compensation for Growth
GOLD'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 GOLD may justify a higher PE ratio.
GOLD's earnings are expected to grow with 14.50% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.48
PEG (5Y)0.67
EPS Next 2Y21.39%
EPS Next 3Y14.5%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.17%, GOLD has a reasonable but not impressive dividend return.
GOLD's Dividend Yield is rather good when compared to the industry average which is at 2.90. GOLD pays more dividend than 80.65% of the companies in the same industry.
GOLD's Dividend Yield is comparable with the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.17% |
5.2 History
The dividend of GOLD has a limited annual growth rate of 1.44%.
GOLD has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of GOLD 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 GOLD. This is a low number and sustainable payout ratio.
GOLD's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP29.83%
EPS Next 2Y21.39%
EPS Next 3Y14.5%
18.86
+18.86 (+Infinity%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners62.18%
Inst Owner Change0%
Ins Owners0.7%
Ins Owner ChangeN/A
Market Cap32.57B
Analysts81.25
Price Target26.99 (43.11%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.17% |
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)1
Avg Revenue beat(2)-3.74%
Min Revenue beat(2)-11.66%
Max Revenue beat(2)4.17%
Revenue beat(4)1
Avg Revenue beat(4)-4.28%
Min Revenue beat(4)-11.66%
Max Revenue beat(4)4.17%
Revenue beat(8)1
Avg Revenue beat(8)-3.15%
Revenue beat(12)5
Avg Revenue beat(12)-0.81%
Revenue beat(16)7
Avg Revenue beat(16)-0.62%
PT rev (1m)58.15%
PT rev (3m)16.55%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.09%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.8%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)8.75%
Revenue NY rev (3m)-2.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.19 | ||
| Fwd PE | 10.08 | ||
| P/S | 2.45 | ||
| P/FCF | 19.62 | ||
| P/OCF | 6.59 | ||
| P/B | 1.33 | ||
| P/tB | 1.54 | ||
| EV/EBITDA | 4.93 |
EPS(TTM)1.43
EY7.58%
EPS(NY)1.87
Fwd EY9.92%
FCF(TTM)0.96
FCFY5.1%
OCF(TTM)2.86
OCFY15.18%
SpS7.7
BVpS14.16
TBVpS12.28
PEG (NY)0.48
PEG (5Y)0.67
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 | 1.42 |
F-Score7
WACC8.6%
ROIC/WACC0.85
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 5Y8.03%
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 5Y2.49%
EBIT growth 1Y61.74%
EBIT growth 3Y-0.26%
EBIT growth 5Y13.86%
EBIT Next Year68.06%
EBIT Next 3Y24.48%
EBIT Next 5Y13.26%
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%