It's been a great afternoon session for Barrick Gold investors, who saw their shares rise 1.5% to a price of $16.61 per share. At these higher prices, is the company still fairly valued? If you are thinking about investing, make sure to check the company's fundamentals before making a decision.
The Market May Be Undervaluing Barrick Gold's Earnings and Assets:
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 24.53 and an average price to book (P/B) ratio of 2.64. In contrast, Barrick Gold has a trailing 12 month P/E ratio of 18.1 and a P/B ratio of 1.22.
Barrick Gold has moved 7.9% over the last year compared to 22.2% for the S&P 500 — a difference of -14.3%. Barrick Gold has a 52 week high of $21.35 and a 52 week low of $13.76.
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 |
