Gold Fields Stock in Brief

Gold Fields logged a -2.0% change during today's morning session, and is now trading at a price of $14.13 per share.

Gold Fields returned gains of 58.3% last year, with its stock price reaching a high of $17.78 and a low of $7.03. Over the same period, the stock outperformed the S&P 500 index by 43.0%. More recently, the company's 50-day average price was $15.46. Gold Fields Limited operates as a gold producer with reserves and resources in Chile, South Africa, Ghana, West Africa, Australia, and Peru. Based in Sandton, South Africa, the mid-cap Basic Materials company has 6,364 full time employees. Gold Fields has offered a 3.0% dividend yield over the last 12 months.

Growing Revenues With Increasing Reinvestment in the Business:

2019-12-31 2020-12-31 2021-12-31 2022-12-31
Revenue (MM) $2,967 $3,892 $4,195 $4,287
Gross Margins 31.5% 42.0% 43.4% 36.6%
Operating Margins 27.7% 38.3% 41.0% 33.5%
Net Margins 5.45% 18.58% 18.81% 16.59%
Net Income (MM) $162 $723 $789 $711
Net Interest Expense (MM) -82 -118 -83 -59
Net Interest Expense (MM) -$82 -$118 -$83 -$59
Depreciation & Amort. (MM) -$610 -$661 -$713 -$844
Earnings Per Share $0.19 $0.81 $0.88 $0.78
EPS Growth n/a 326.32% 8.64% -11.36%
Diluted Shares (MM) 851 890 893 1,507
Free Cash Flow (MM) $280 $521 $539 $671
Capital Expenditures (MM) -$612 -$591 -$1,060 -$1,043
Net Current Assets (MM) -$2,552 -$1,885 -$1,798 -$1,196
Current Ratio 0.81 1.92 1.73 2.29
Long Term Debt (MM) $1,161 $1,443 $1,078 $1,079
Net Debt / EBITDA 1.34 0.36 0.31 0.18

Gold Fields has growing revenues and increasing reinvestment in the business, strong margins with a stable trend, and exceptional EPS growth. The company also benefits from a pattern of improving cash flows, an excellent current ratio, and low leverage. However, the firm has slimmer gross margins than its peers.

Gold Fields's P/B and P/E Ratios Are Higher Than Average:

Gold Fields has a trailing twelve month P/E ratio of 19.8, compared to an average of 10.03 for the Basic Materials sector. Based on its EPS guidance of $0.24, the company has a forward P/E ratio of 64.4. The 4.8% compound average growth rate of Gold Fields's historical and projected earnings per share yields a PEG ratio of 4.14. This suggests that these shares are overvalued. Furthermore, Gold Fields is likely overvalued compared to the book value of its equity, since its P/B ratio of 5.99 is higher than the sector average of 2.08. The company's shares are currently trading 136.9% above their Graham number. Overall, Gold Fields's lofty valuation in terms of earnings and assets is to some extent attenuated by its strong cash flow trend and reasonable levels of debt.

There's an Analyst Consensus of Some Upside Potential for Gold Fields:

The 4 analysts following Gold Fields have set target prices ranging from $14.5 to $18.0 per share, for an average of $16.93 with a hold rating. As of April 2023, the company is trading -8.7% away from its average target price, indicating that there is an analyst consensus of some upside potential.

The largest shareholder is Van Eck Associates Corporation, whose 6% stake in the company is worth $815,738,881.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.