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January 25, 2025

GFI

Essential Insights for Gold Fields (GFI) Investors

Today we're going to take a closer look at Large-Cap Basic Materials company Gold Fields, whose shares are currently trading at $15.28. We've been asking ourselves whether the company is under or over valued at today's prices... let's perform a brief value analysis to find out!

an Increase in Expected Earnings Improves Its Value Outlook but Priced Beyond Its Margin of Safety:

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 24.53 and an average price to book (P/B) ratio of 2.64. In contrast, Gold Fields has a trailing 12 month P/E ratio of 21.5 and a P/B ratio of 2.93.

Gold Fields has moved 21.1% over the last year compared to 23.3% for the S&P 500 — a difference of -2.2%. Gold Fields has a 52 week high of $18.97 and a 52 week low of $12.28.

An Excellent Current Ratio and Positive Cash Flows:

2018 2019 2020 2021 2022 2023
Revenue (M) $2,578 $2,967 $3,892 $4,195 $4,287 $4,501
Net Margins -14% 5% 19% 19% 17% 16%
Net Income (M) -$348 $162 $723 $789 $711 $703
Diluted Shares (M) 822 829 883 888 891 894
Earnings Per Share -$0.42 $0.19 $0.81 $0.88 $0.78 $0.77
Free Cash Flow (M) $569 $232 $528 $142 $310 $1,193
Total Debt (M) $1,814 $1,161 $1,443 $1,078 $1,079 $653
Current Ratio 1.73 0.78 1.89 7.21 7.05 4.21
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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