Barrick Gold Corporation
Barrick Gold Corporation Fundamental Analysis
Barrick Gold Corporation (ABX.TO) shows strong financial fundamentals with a PE ratio of 14.12, profit margin of 29.39%, and ROE of 19.79%. The company generates $17.0B in annual revenue with strong year-over-year growth of 13.38%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 80.0/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze ABX.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakABX.TO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentABX.TO trades at attractive valuation levels.
Growth Score
ExcellentABX.TO delivers strong and consistent growth momentum.
Financial Health Score
ExcellentABX.TO maintains a strong and stable balance sheet.
Profitability Score
ExcellentABX.TO achieves industry-leading margins.
Key Financial Metrics
Is ABX.TO Expensive or Cheap?
P/E Ratio
ABX.TO trades at 14.12 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ABX.TO's PEG of 0.46 indicates potential undervaluation.
Price to Book
The market values Barrick Gold Corporation at 2.66 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.53 times EBITDA. This is generally considered low.
How Well Does ABX.TO Make Money?
Net Profit Margin
For every $100 in sales, Barrick Gold Corporation keeps $29.39 as profit after all expenses.
Operating Margin
Core operations generate 47.45 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $19.79 in profit for every $100 of shareholder equity.
ROA
Barrick Gold Corporation generates $9.70 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Barrick Gold Corporation generates strong operating cash flow of $7.84B, reflecting robust business health.
Free Cash Flow
Barrick Gold Corporation generates strong free cash flow of $4.00B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.39 in free cash annually.
FCF Yield
ABX.TO converts 5.65% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.12
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.46
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.66
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.15
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.18
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.92
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.20
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.17
vs 25 benchmark
How ABX.TO Stacks Against Its Sector Peers
| Metric | ABX.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.12 | 24.02 | Better (Cheaper) |
| ROE | 19.79% | 867.00% | Weak |
| Net Margin | 29.39% | -102872.00% (disorted) | Strong |
| Debt/Equity | 0.18 | 0.51 | Strong (Low Leverage) |
| Current Ratio | 2.92 | 5.08 | Strong Liquidity |
| ROA | 9.70% | -6488.00% (disorted) | Weak |
ABX.TO outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Barrick Gold Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-74.65%
Industry Style: Cyclical, Commodity, Value
DecliningEPS CAGR
-60.40%
Industry Style: Cyclical, Commodity, Value
DecliningFCF CAGR
-95.36%
Industry Style: Cyclical, Commodity, Value
Declining