Unveiling Barrick Gold (GOLD) – A Comprehensive Overview

A strong performer from today's morning trading session is Barrick Gold, whose shares rose 1.3% to $20.84 per share. For those of you thinking about investing in the stock, here is a brief value analysis of the stock using the company's basic fundamental ratios.

Barrick Gold's Earnings and Assets May Be Undervalued:

Barrick Gold Corporation engages in the exploration, mine development, production, and sale of gold and copper properties in Canada and internationally. The company belongs to the Basic Materials sector, which has an average price to earnings (P/E) ratio of 23.66 and an average price to book (P/B) ratio of 2.69. In contrast, Barrick Gold has a trailing 12 month P/E ratio of 24.2 and a P/B ratio of 1.55.

Barrick Gold's PEG ratio is 2.4, which shows that the stock is probably overvalued in terms of its estimated growth. For reference, a PEG ratio near or below 1 is a potential signal that a company is undervalued.

Generally Positive Cash Flows and a Positive EPS Growth Rate:

2018 2019 2020 2021 2022 2023
Revenue (M) $7,243 $9,717 $12,595 $11,985 $11,013 $11,397
Net Margins -21% 41% 18% 17% 4% 11%
Net Income (M) -$1,545 $3,969 $2,324 $2,022 $432 $1,272
Net Interest Expense (M) $452 $435 $342 $357 $366 $387
Earnings Per Share -$1.32 $2.26 $1.31 $1.14 $0.24 $0.72
EPS Growth n/a 271.21% -42.04% -12.98% -78.95% 200.0%
Free Cash Flow (M) $1,765 $2,833 $5,417 $4,378 $3,481 $3,732
Total Debt (M) $5,695 $5,161 $5,135 $5,135 $4,769 $4,715
Current Ratio 2.38 2.9 3.67 3.95 2.71 3.16

Barrick Gold has generally positive cash flows, an excellent current ratio of 3.16, and positive EPS growth.

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.

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