ABX  Barrick Gold Corporation

Exchange

NYSE

Sector

Basic Industries

Industry

Precious Metals

Market Cap.

18.69B

Vuru Grade

22.53/100

Current Price

$16.03
-0.07 (-0.43%)

Growth Price

$15.16
Overvalued by 5.41%

Company Metrics

  • P/E 7.94
  • P/S 2.14
  • P/B 1.95
  • EPS 2.02
  • Cash ROIC 1.08%
  • Cash Ratio 1.31
  • Dividend 0.12 / 0.74%
  • Avg. Vol. 9.51M
  • Shares 1.17B
  • Market Cap. 18.69B

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

Gold Surges Above US$1300: Time to Own Barrick Gold Corp.?
The Motley Fool Canada - Oct 13, 2017
Gold's recent recovery is picking up steam, and investors are wondering which stocks in the sector might be attractive today. Let's take a look at the reasons for the recent bounce in gold, and see if the industry giant Barrick Gold Corp. (TSX:ABX ...
Barrick Gold Corp (TSE:ABX) “Market Perform” Rating Reaffirmed Today By BMO ... - BZ Weekly
US Global Investors Inc. Has $796000 Stake in Barrick Gold Corporation (ABX) - Newburgh Gazette
The Biggest Reason You Should Buy Barrick Gold Corp. Today
The Motley Fool Canada - Oct 1, 2017
Barrick is doing a great job on both ends. It is already the lowest-cost producer among the publicly listed gold companies, with a projected all-in sustaining cost (AISC) of only US$745 per ounce at the midpoint for 2017. Rival Goldcorp Inc. (TSX:G ...
$0.18 EPS Expected for Barrick Gold Corp (USA) (ABX) - WeeklyHub
Barrick Gold Corp (USA) (ABX) Analysts See $0.18 EPS - Weekly Register
Is a Fall Gold Rally in the Cards? Barrick Gold Corp. and Alamos Gold Inc ...
The Motley Fool Canada - Oct 11, 2017
Gold prices were up marginally on October 6, as the U.S. dollar retreated on news that tensions with North Korea were heating up again.
Analysts See $0.18 EPS for Barrick Gold Corp (USA) (ABX)
WeeklyHub - Sep 26, 2017
Investors wait Barrick Gold Corp (USA) (NYSE:ABX) to report on October, 25 after the close. its quarterly earnings Wall Street analysts expect $0.18 earnings per share, down $0.06 or 25.00 % from last year's $0.24 same quarter earnings.
Barrick Gold Corporation (NYSE:ABX) has industry P/E ratio of 12.23 - Newburgh Gazette
IAC InterActiveCorp (IAC) Analysts See $0.71 EPS; Shorts at Barrick Gold (ABX ...
UtahHerald.com - 21 hours ago
With 9.14M avg volume, 2 days are for Barrick Gold Corporation (NYSE:ABX)'s short sellers to cover ABX's short positions. The SI to Barrick Gold Corporation's float is 1.15%.
Barrick Gold, Mastercard, S&P, Financials: Fast Money Picks For September 26
Benzinga - Sep 26, 2017
Karen Finerman is a seller of Mastercard Inc (NYSE: MA). She is concerned about its business because of margin pressures. Dan Nathan would sell SPDR S&P 500 ETF Trust (NYSE: SPY).
EPS for Barrick Gold Corp (ABX) Expected At $0.24
WeeklyHub - Oct 3, 2017
published on September 26, 2017, Investorplace.com published: “Trade of the Day: Barrick Gold Corp (USA) (ABX)” on September 08, 2017.
Analysts See $0.01 EPS for Kinross Gold Corporation (USA) (KGC)
BZ Weekly - Oct 20, 2017
Wall Street await Kinross Gold Corporation (USA) (NYSE:KGC) to release earnings on November, 1. Analysts forecast earnings per ... After posting $0.04 EPS for the previous quarter, Kinross Gold Corporation (USA)'s analysts now forecast -75.00 ...
Does The Data Supplment Kinross Gold Corporation (NYSE:KGC) Movement? - Іnsіdеr Cаr Nеws
Barrick Gold Corp (ABX) Shareholder Oldfield Partners Llp Trimmed Its Stake as ...
KL Daily - Oct 17, 2017
Barrick Gold Corp (USA) (NYSE:ABX) has declined 8.26% since October 17, 2016 and is downtrending. It has underperformed by 24.96% the S&P500.
As Deere & Co. (DE) Stock Price Rose, Holder Cardinal Capital Management Has ...
BZ Weekly - Oct 19, 2017
More important recent Barrick Gold Corp (USA) (NYSE:ABX) news were published by: Fool.ca which released: “Gold Surges Above US$1300: Time to Own Barrick Gold Corp.
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.

$16.03 Current Price

$15.16 Growth Price (DCF)

Overvalued by 5.41%


Growth Rate Assumed by Market: 2.50%


Future Free Cash Flow Growth Rate: 0.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$13.02 Book Price

Overvalued by 18.75%


Poor Cash Return on Invested Capital over the past 5 years

ABX has been unable to consistently generate sufficient returns from 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 only created $1.08 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20122013201420152016
Free Cash Flow -930.00M -1.26B -136.00M 1.08B 1.51B
divided by
Invested Capital 40.77B 32.16B 28.62B 22.01B 21.06B
Cash ROIC -2.28% -3.92% -0.48% 4.91% 7.19%

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 $28.57 loss for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20122013201420152016
Net Income -677.00M -10.60B -2.96B -3.11B 861.00M
divided by
Stockholders' Equity 21.85B 13.53B 10.25B 7.18B 7.94B
Return on Equity -3.10% -78.35% -28.88% -43.37% 10.85%

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
2007200820092010201120122013201420152016
Free Cash Flow 706.88M 429.91M -4.67B 804.00M 342.00M -930.00M -1.26B -136.00M 1.08B 1.51B

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
2007200820092010201120122013201420152016
Cash 2.21B 1.44B 2.56B 3.97B 2.75B 2.09B 2.40B 2.70B 2.46B 2.39B
Current Assets 4.29B 4.11B 4.94B 7.11B 6.55B 5.86B 6.21B 6.15B 5.47B 4.87B
Total Assets 21.95B 24.16B 27.08B 33.32B 48.88B 47.28B 37.45B 33.88B 26.31B 25.26B
Current Liabilities 1.30B 1.84B 1.77B 2.49B 2.91B 4.42B 2.88B 2.56B 1.85B 1.82B
Total Liabilities 6.70B 8.88B 12.01B 14.26B 25.52B 25.44B 23.92B 23.63B 19.13B 17.33B
Stockholder' Equity 15.26B 15.28B 15.06B 19.07B 23.36B 21.85B 13.53B 10.25B 7.18B 7.94B
Current Ratio 3.31 2.23 2.79 2.86 2.25 1.33 2.15 2.40 2.96 2.68
TL-to-TA 0.31 0.37 0.44 0.43 0.52 0.54 0.64 0.70 0.73 0.69

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
2007200820092010201120122013201420152016
Retained Earnings 1.83B 2.26B -2.38B 456.00M 4.56B 3.14B -7.58B -10.74B -13.64B -13.07B
Retained Earnings Growth - 23.43% -205.36% 119.14% 900.44% -31.13% -341.28% -41.66% -27.03% 4.16%

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
2007200820092010201120122013201420152016
Net Income 1.12B 784.88M -4.27B 3.30B 4.54B -677.00M -10.60B -2.96B -3.11B 861.00M
divided by
Revenue 6.33B 7.91B 8.14B 10.92B 14.31B 14.55B 12.51B 10.24B 9.03B 8.56B
Net Profit Margin 17.67% 9.92% -52.46% 30.18% 31.70% -4.65% -84.75% -28.90% -34.48% 10.06%

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.

$45.45 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
2007200820092010201120122013201420152016
Gross Profit 3.15B 4.04B 4.33B 6.72B 8.00B 6.89B 5.27B 3.41B 2.12B 3.15B
divided by
Revenue 6.33B 7.91B 8.14B 10.92B 14.31B 14.55B 12.51B 10.24B 9.03B 8.56B
Gross Margin 49.72% 51.02% 53.21% 61.54% 55.87% 47.38% 42.11% 33.29% 23.50% 36.84%

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.

132.19% 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
2007200820092010201120122013201420152016
Capital Expenditure 1.05B 1.78B 2.35B 3.32B 4.97B 6.37B 5.50B 2.43B 1.71B 1.13B
divided by
Net Income 1.12B 784.88M -4.27B 3.30B 4.54B -677.00M -10.60B -2.96B -3.11B 861.00M
Capital Expenditure Ratio 93.52% 226.23% -55.08% 100.79% 109.61% -940.77% -51.88% -82.19% -55.03% 130.78%

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
2007200820092010201120122013201420152016
Dividend Paid 260.80M 349.20M 369.00M 436.00M 509.00M 750.00M 508.00M 232.00M 250.00M 86.00M
divided by
Shares Outstanding 874.00M 872.00M 903.00M 987.00M 1.00B 1.00B 1.02B 1.17B 1.17B 1.17B
Dividend Paid Per Share 0.30 0.40 0.41 0.44 0.51 0.75 0.50 0.20 0.21 0.07
Price at Year End 40.98 35.13 38.66 51.90 45.11 34.01 17.11 10.86 7.37 15.98
Dividend Yield 0.73% 1.14% 1.06% 0.85% 1.13% 2.20% 2.91% 1.83% 2.91% 0.46%

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
2007200820092010201120122013201420152016
Shares Outstanding 874.00M 872.00M 903.00M 987.00M 1.00B 1.00B 1.02B 1.17B 1.17B 1.17B
Stock Bought Back - 0.23% -3.43% -8.51% -1.40% - -2.05% -12.27% - -
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