ABX  Barrick Gold Corporation

Exchange

NYSE

Sector

Basic Industries

Industry

Precious Metals

Market Cap.

23.17B

Vuru Grade

23.32/100

Current Price

$19.88
-0.235 (-1.169%)

Growth Price

$12.12
Overvalued by 38.99%

Company Metrics

  • P/E 35.491
  • P/S 2.739
  • P/B 2.954
  • EPS 0.56
  • Cash ROIC -0.20%
  • Cash Ratio 1.33
  • Dividend 0.08 / 0.52%
  • Avg. Vol. 17.73M
  • Shares 1.17B
  • Market Cap. 23.17B

Company Description

Barrick Gold Corporation engages in the production and sale of gold, as well as related activities, such as exploration and mine development. The company has a portfolio of 25 operating mines and a pipeline of projects located in North America, South America, the Australia Pacific region, and Africa. It also produces copper and holds interests in oil and gas properties located in Canada. The compa... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Barrick Gold Corporation (USA) (ABX) Announces 4Q:16 and Full-Year Financial ...
Smarter Analyst - Feb 15, 2017
Barrick Gold Corporation (USA) (NYSE:ABX) reported annual results that exceeded the Company's key targets for the year.
3 Stocks to Watch on Thursday: Barrick Gold Corporation (USA) (ABX), Cisco ... - Investorplace.com
Billionaire Soros Dumps Barrick Gold Corp.: Good Move or Big Mistake? - The Motley Fool Canada
Gold Investors: Is it Time to Own Barrick Gold Corp.?
The Motley Fool Canada - 13 hours ago
The company generated adjusted net earnings of US$818 million, or US$0.70 per share for the year. Operating cash flow was US$2.64 billion, and Barrick churned out US$1.51 billion in free cash flow. Gold production came in at 5.52 million ounces, near ...
Smart Money Buying the Price Weakness of Barrick Gold Corporation (ABX) - Money Flow Index & Trends
Analysts Rating Stocks Watch: Barrick Gold Corporation (USA) (NYSE:ABX ... - Daily News Journal (press release)
Berenberg Weighs In On Barrick Gold Corporation (USA) (ABX) In Light of Merger ...
Smarter Analyst - Jan 17, 2017
Berenberg analyst Yuriy Vlasov remains bearish on Barrick Gold Corporation (USA) (NYSE:ABX) amid the prospective merger talks between Acacia Mining and Endeavour Mining, which he points out are just beginning and may not come to fruition.
Company Update (NYSE:ABX): Barrick Gold Corporation (USA) Achieves 2016 ...
Smarter Analyst - Jan 25, 2017
Barrick Gold Corporation (NYSE:ABX) announced preliminary full-year gold production of 5.52 million ounces for 2016, at the high end of the Company's guidance of 5.25-5.55 million ounces.
How Will Barrick Gold Corporation (USA) (NYSE:ABX) Attract The Burst Of Buying ... - Journal Transcript
Arlington Capital Management Boosts Position by $14712597 in Barrick Gold ... - Highland Mirror
Stock Update (NYSE:ABX): Barrick Gold Corporation (USA) Announces Resumption ...
Smarter Analyst - Oct 4, 2016
Barrick Gold Corporation (USA) (NYSE:ABX) announced the resumption of normal operations at the Veladero mine in Argentina following approval from San Juan provincial authorities.
Goldcorp Inc.'s Founder Thinks Gold Is Headed to $1900: Here's Why He May Be Right - The Motley Fool Canada
Barrick Gold Corporation (USA) (ABX) Rally Draws a Rare Batch of Option Bears
Schaeffers Research (blog) - Jan 5, 2017
Gold prices are getting a lift today, as the stock market trades lower and the U.S. dollar retreats from 14-year-high territory. The malleable metal's rise is helping boost gold stocks, like Barrick Gold Corporation (USA) (NYSE:ABX) -- which is trading ...
Barrick Gold Corp.: Is This Stock Headed Back to $30? - The Motley Fool Canada
Berenberg Sees Barrick Gold Corporation (USA) (ABX) as an Overvalued Gold Play
Smarter Analyst - Sep 19, 2016
Berenberg analyst Yuriy Vlasov initiates coverage on Barrick Gold Corporation (USA) (NYSE:ABX) on the heels of reported operational issues at Bulyanhulu, where a London-listed gold-mining company called Acacia Mining holds an underground gold mine.
Barrick Gold Corp.: Should This Stock Still Be in your Portfolio? - The Motley Fool Canada
Barrick Gold Corporation: Update on Veladero and Kalgoorlie - GuruFocus.com
Hussman Strategic Advisors Cuts Position in Barrick Gold Corporation (USA ...
Highland Mirror - Feb 7, 2017
Hussman Strategic Advisors reduced its stake in Barrick Gold Corporation (USA) by 53.85% during the most recent quarter end.
Analysts' Recommendations Stocks Update: Barrick Gold Corporation (USA) (NYSE ... - Money News
Trader's Buzzers – Barrick Gold Corporation (USA) (NYSE:ABX), Chevron ... - Financial Breaking News
Stock Update (NYSE:ABX): Barrick Gold Corporation (USA) Names Mark Hill Chief ...
Smarter Analyst - Aug 30, 2016
Barrick Gold Corporation (USA) (NYSE:ABX) announced the appointment of Mark Hill as Chief Investment Officer, effective September 12.
Is Barrick Gold Corp. Now Oversold? - The Motley Fool Canada
Basic Material Stocks in Focus: Kinross Gold Corporation (USA) (NYSE:KGC ... - Post Registrar
Why Valeant Pharmaceuticals Intl Inc (VRX), Barrick Gold Corporation (USA ...
Investorplace.com - Nov 30, 2016
Inspired by reports that OPEC had come to an agreement to curb its oil output as a means of propping up floundering crude prices, stocks got Wednesday started on a rather bullish foot.
Morgan Stanley Cuts Price Targets for Goldcorp, Barrick Gold and Newmont Mining - GuruFocus.com
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for ABX to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate ABX's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$19.88 Current Price

$12.12 Growth Price (DCF)

Overvalued by 38.99%


Growth Rate Assumed by Market: 20.45%


Future Free Cash Flow Growth Rate: 0.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$11.71 Book Price

Overvalued by 41.09%


Very Poor Cash Return on Invested Capital over the past 5 years

ABX has failed to generate positive returns on its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

ABX has lost $0.20 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20112012201320142015
Free Cash Flow 342.00M -930.00M -1.26B -136.00M 1.08B
divided by
Invested Capital 43.23B 40.77B 32.16B 28.62B 22.01B
Cash ROIC 0.79% -2.28% -3.92% -0.48% 4.91%

Very Poor Return on Equity over the past 5 years

ABX has shown an inability to deliver results for shareholders. This could be due to poor management, ABX operating in a highly competitive industry, or having a weak business in general.

ABX has generated a $26.85 loss for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20112012201320142015
Net Income 4.54B -677.00M -10.60B -2.96B -3.11B
divided by
Stockholders' Equity 23.36B 21.85B 13.53B 10.25B 7.18B
Return on Equity 19.42% -3.10% -78.35% -28.88% -43.37%

Mediocre Business Performance over the past 10 years

ABX isn't a strong business and might be consistently attempting to fuel growth with debt or has trouble staying profitable. The lack of predictability in free cash flow should be concerning for the reliability of future earnings.

ABX has been unable to consistently create value for shareholders.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Free Cash Flow 1.06B 706.88M 429.91M -4.67B 804.00M 342.00M -930.00M -1.26B -136.00M 1.08B

Weak Balance Sheet

ABX's financial position is not ideal. The key is to check whether ABX is using debt to fuel its growth and the sustainability of that tendency. Highly capital intensive businesses (see Economic Moat) follow this route, which can deeply impact the future prospects of the business.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Cash 3.04B 2.21B 1.44B 2.56B 3.97B 2.75B 2.09B 2.40B 2.70B 2.46B
Current Assets 4.80B 4.29B 4.11B 4.94B 7.11B 6.55B 5.86B 6.21B 6.15B 5.47B
Total Assets 21.37B 21.95B 24.16B 27.08B 33.32B 48.88B 47.28B 37.45B 33.88B 26.31B
Current Liabilities 1.85B 1.30B 1.84B 1.77B 2.49B 2.91B 4.42B 2.88B 2.56B 1.85B
Total Liabilities 7.17B 6.70B 8.88B 12.01B 14.26B 25.52B 25.44B 23.92B 23.63B 19.13B
Stockholder' Equity 14.20B 15.26B 15.28B 15.06B 19.07B 23.36B 21.85B 13.53B 10.25B 7.18B
Current Ratio 2.59 3.31 2.23 2.79 2.86 2.25 1.33 2.15 2.40 2.96
TL-to-TA 0.34 0.31 0.37 0.44 0.43 0.52 0.54 0.64 0.70 0.73

Consistent Reinvestment of Profits over the past 10 years

ABX has consistently retained profits. This may put ABX in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, ABX can greatly improve their long-term economic picture.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Retained Earnings 974.33M 1.83B 2.26B -2.38B 456.00M 4.56B 3.14B -7.58B -10.74B -13.64B
Retained Earnings Growth - 87.99% 23.43% -205.36% 119.14% 900.44% -31.13% -341.28% -41.66% -27.03%

Erratic Net Profit Margins over the past 10 years

ABX has had highly erratic net profit margins which are a great cause for concern. This company may operate in a highly volatile industry, or it may just have poor performance. Look at reasons for this inconsistency to understand if there is any reason to look past it.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Net Income 1.51B 1.12B 784.88M -4.27B 3.30B 4.54B -677.00M -10.60B -2.96B -3.11B
divided by
Revenue 5.64B 6.33B 7.91B 8.14B 10.92B 14.31B 14.55B 12.51B 10.24B 9.03B
Net Profit Margin 26.71% 17.67% 9.92% -52.46% 30.18% 31.70% -4.65% -84.75% -28.90% -34.48%

Strong Pricing Power over the past 10 years

ABX has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. This potentially leaves flexibility in inflationary environments to raise prices on consumers and maintain profitability.

$46.91 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Gross Profit 2.90B 3.15B 4.04B 4.33B 6.72B 8.00B 6.89B 5.27B 3.41B 2.12B
divided by
Revenue 5.64B 6.33B 7.91B 8.14B 10.92B 14.31B 14.55B 12.51B 10.24B 9.03B
Gross Margin 51.46% 49.72% 51.02% 53.21% 61.54% 55.87% 47.38% 42.11% 33.29% 23.50%

High Capital Intensity over the past 10 years

ABX spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

120.47% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Capital Expenditure 1.09B 1.05B 1.78B 2.35B 3.32B 4.97B 6.37B 5.50B 2.43B 1.71B
divided by
Net Income 1.51B 1.12B 784.88M -4.27B 3.30B 4.54B -677.00M -10.60B -2.96B -3.11B
Capital Expenditure Ratio 72.18% 93.52% 226.23% -55.08% 100.79% 109.61% -940.77% -51.88% -82.19% -55.03%

Very Strong Dividend History over the past 10 years

ABX has consistently distributed a dividend for at least the past 10 years. Such a long dividend history suggests ABX is very established in its market and that its dividend distribution is likely to continue for a significant period of time.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Dividend Paid 191.43M 260.80M 349.20M 369.00M 436.00M 509.00M 750.00M 508.00M 232.00M 250.00M
divided by
Shares Outstanding 850.68M 874.00M 872.00M 903.00M 987.00M 1.00B 1.00B 1.02B 1.17B 1.17B
Dividend Paid Per Share 0.23 0.30 0.40 0.41 0.44 0.51 0.75 0.50 0.20 0.21
Price at Year End 29.08 40.98 35.13 38.66 51.90 45.11 34.01 17.11 10.86 7.37
Dividend Yield 0.77% 0.73% 1.14% 1.06% 0.85% 1.13% 2.20% 2.91% 1.83% 2.91%

History of Stock Buybacks over the past 10 years

ABX has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Shares Outstanding 850.68M 874.00M 872.00M 903.00M 987.00M 1.00B 1.00B 1.02B 1.17B 1.17B
Stock Bought Back - -2.67% 0.23% -3.43% -8.51% -1.40% - -2.05% -12.27% -
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