Gold Fields shares fell by -9.1% during the day's afternoon session, and are now trading at a price of $16.26. Is it time to buy the dip? To better answer that question, it's essential to check if the market is valuing the company's shares fairly in terms of its earnings and equity levels.
Gold Fields's P/B and P/E Ratios Are Higher Than Average:
Gold Fields Limited operates as a gold producer with reserves and resources in Chile, South Africa, Ghana, Canada, Australia, and Peru. The company belongs to the Basic Materials sector, which has an average price to earnings (P/E) ratio of 16.53 and an average price to book (P/B) ratio of 2.07. In contrast, Gold Fields has a trailing 12 month P/E ratio of 20.6 and a P/B ratio of 3.25.
Gold Fields has moved 8.8% over the last year compared to 24.2% for the S&P 500 — a difference of -15.4%. Gold Fields has a 52 week high of $18.97 and a 52 week low of $10.31.
Growing Revenues 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 |
| Earnings Per Share | n/a | -$0.42 | $0.19 | $0.81 | $0.88 | $0.78 |
| Free Cash Flow (M) | $732 | $569 | $232 | $528 | $142 | $310 |
| 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 |
