Key Considerations Before Investing in Barrick Gold (GOLD)

Barrick Gold logged a 1.3% change during today's afternoon session, and is now trading at a price of $20.11 per share.

Barrick Gold returned gains of 35.4% last year, with its stock price reaching a high of $21.21 and a low of $13.76. Over the same period, the stock outperformed the S&P 500 index by 2.8%. More recently, the company's 50-day average price was $19.52. Barrick Gold Corporation engages in the exploration, mine development, production, and sale of gold and copper properties in Canada and internationally. The Large-Cap Basic Materials company is headquartered in Toronto, Canada. Barrick Gold has offered a 2.0% dividend yield over the last 12 months.

An Excellent Current Ratio but Positive Cash Flows:

2019 2020 2021 2022 2023 2024
Revenue (M) $9,717 $12,595 $11,985 $11,013 $11,397 $3,162
Net Margins 41% 18% 17% 4% 11% 12%
Net Income (M) $3,969 $2,324 $2,022 $432 $1,272 $370
Net Interest Expense (M) $435 $342 $357 $366 $387 -$51
Earnings Per Share $2.26 $1.31 $1.14 $0.24 $0.72 $0.21
EPS Growth n/a -42.04% -12.98% -78.95% 200.0% -70.83%
Free Cash Flow (M) $2,833 $5,417 $4,378 $3,481 $3,732 $1,159
Total Debt (M) $5,161 $5,135 $5,135 $4,769 $4,715 $4,713
Current Ratio 2.9 3.67 3.95 2.71 3.16 3.01

Barrick Gold's Earnings and Assets May Be Undervalued:

Barrick Gold has a trailing twelve month P/E ratio of 22.7, compared to an average of 24.53 for the Basic Materials sector. Based on its EPS guidance of $1.76, the company has a forward P/E ratio of 11.1. The -3.5% compound average growth rate of Barrick Gold's historical and projected earnings per share yields a PEG ratio of -6.47. This indicates that its shares are overvalued.In contrast, the market is likely undervaluing Barrick Gold in terms of its equity because its P/B ratio is 1.49 while the sector average is 2.64.

Analysts Give Barrick Gold an Average Rating of Buy:

The 16 analysts following Barrick Gold have set target prices ranging from $22.0 to $28.15 per share, for an average of $23.94 with a buy rating. The company is trading -16.0% 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 4% stake in the company is worth $1,556,802,424.

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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