Navigating Gold Fields – A Comprehensive Guide

Now trading at a price of $15.44, Gold Fields has moved 3.1% so far today.

Gold Fields returned gains of 36.7% last year, with its stock price reaching a high of $17.78 and a low of $10.31. Over the same period, the stock outperformed the S&P 500 index by 3.7%. More recently, the company's 50-day average price was $13.64. 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 Large-Cap Basic Materials company has 6,297 full time employees. Gold Fields has offered a 2.7% dividend yield over the last 12 months.

Strong Revenue Growth With No Capital Eexpenditures:

2017 2018 2019 2020 2021 2022
Revenue (M) $2,762 $2,578 $2,967 $3,892 $4,195 $4,287
Gross Margins 24% 21% 31% 45% 43% 39%
Net Margins -1% -14% 5% 19% 19% 17%
Net Income (M) -$19 -$348 $162 $723 $789 $711
Total Debt (M) $1,588 $1,814 $1,161 $1,443 $1,078 $1,079
Current Ratio 1.3 1.73 0.78 1.89 7.21 7.05

Trades Below Its Graham Number but Has an Elevated P/E Ratio:

Gold Fields has a trailing twelve month P/E ratio of 17.3, compared to an average of 16.53 for the Basic Materials sector. Based on its EPS guidance of $0.24, the company has a forward P/E ratio of 56.8. Furthermore, Gold Fields is likely overvalued compared to the book value of its equity, since its P/B ratio of 3.08 is higher than the sector average of 2.07. The company's shares are currently trading -40.2% below 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 Little Upside Potential for Gold Fields:

The 4 analysts following Gold Fields have set target prices ranging from $12.0 to $17.0 per share, for an average of $14.55 with a hold rating. The company is trading 6.1% away from its average target price, indicating that there is an analyst consensus of little upside potential.

The largest shareholder is Van Eck Associates Corporation, whose 5% stake in the company is worth $684,093,252.

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.