Today we're going to take a closer look at Large-Cap Basic Materials company Gold Fields, whose shares are currently trading at $21.84. 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 Its Shares Are Expensive:
Gold Fields Limited operates as a gold producer with reserves and resources in Australia, South Africa, Ghana, Peru, Chile, and Canada. 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 15.8 and a P/B ratio of 3.76.
Gold Fields has moved 37.4% over the last year compared to 6.4% for the S&P 500 — a difference of 30.9%. Gold Fields has a 52 week high of $22.8 and a 52 week low of $12.98.
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 |
