What Can We Learn From Barrick Gold Corporation(GOLD)’s Valuation Ratios?

Barrick Gold Corporation (NYSE:GOLD) trading with an addition of $0.42 to $19.65 on Thursday, an upside of 2.18 percent. An average of 14,173,096 shares of common stock have been traded in the last five days. There was a gain of $0.96 in the past week, and it reached a new high 4 times over the past 12 months. The last 20 days have seen an average of 18,248,213 shares traded, while the 50-day average volume stands at 17,654,293.

GOLD stock has decreased by -1.38% in the last month. The company shares reached their 1-month lowest point of $17.56 on 09/29/21. With the stock rallying to its 52-week high on 05/19/21, shares of the company touched a low of $17.56 and a high of $29.23 in 52 weeks. It has reached a new high 4 times so far this year and lost -14.51% or -$3.23 in price. In spite of this, the price is down -32.77% from the 52-week high.


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Valuation Metrics

Barrick Gold Corporation (GOLD) has a trailing price-to-earnings (P/E) ratio of 13.59, which compares with the 20.90 for the broader industry and 13.88 for the sector. In the last five years, Barrick Gold Corporation’s PE ratio has ranged between 41.36 and 6.934. The stock’s beta is 0.33. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 2.71, the price-to-book (PB) ratio at 1.44, and the price-to-cash flow ratio at 13.57.

Barrick Gold Corporation pays a $0.36 dividend per share annually. It offers a dividend yield of 1.83%. The company has a payout ratio of 24.70%. The company’s most recent quarterly dividend payment took place on Sep. 15, and it was $0.09 a share, without any change from last year. Its dividend has been increased for the last 2 consecutive years with the latest increase dividend $0.02 reported on Friday November 6 2020. Dividends have grown by 158.33% each year over the last three years.

Barrick Gold Corporation will next go ex-dividend on 29-Nov. The next dividend payment Barrick Gold Corporation will make is expected to be $0.14.

The quick ratio of Barrick Gold Corporation for the three months ended June 29 was 3.50, and the current ratio was 4.50, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.22 and a total debt to equity ratio of 0.22 for the quarter ending June 29. On the profitability front, the trailing 12-month gross margin is 43.50% against a 5-year average of 34.3%. Barrick Gold Corporation’s EBITDA margin for the year ending June 29 is 53.99%, while its operating margin for the same period stands at 44.20%. Its gross profit as reported stood at $5.18 billion compared to revenue of $12.6 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Barrick Gold Corporation’s return on assets was 5.40%, compared to 3.7% over the last five years. In the past year, the return on investment has been 13.70%, and the 5-year average is 7.9%. Meanwhile, the return on equity (ROE) for the past 12 months has been 10.80% and the 5-year average holds at 9.0%. For the broader industry, ROE averaged -13.62 over the past year.

Earnings Surprise

In the quarter under review, the net income was down than the previous quarter. The company posted a net income of $335.05 million in the quarter, while revenues were grew 99.99%. The analyst consensus anticipated Barrick Gold Corporation’s latest quarter earnings to come in at $0.26 per share, but it turned out to be $0.29, a 11.50% surprise. For the quarter, EBITDA amounted to $1.56 billion.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Barrick Gold Corporation (GOLD) price momentum. RSI 9-day as of the close on 13 October was 72.07%, suggesting the stock is Overbought, with historical volatility in this time frame at 15.87%.

As of today, GOLD’s price is $18.88 +5.16% or $0.96 from its 5-day moving average. GOLD is currently trading +5.62% higher than its 20-day SMA and -20.79% lower than its 100-day SMA. However, the stock’s current price level is -9.70% below the SMA50 and -14.67% below the SMA200.

The stochastic %K and %D were 85.95% and 74.83%, respectively, and the average true range (ATR) was 0.48. With the 14-day stochastic at 95.22% and the average true range at 0.47, the RSI (14) stands at 61.61%. The stock has reached 0.50 on the 9-day MACD Oscillator while the 14-day reading was at 0.75.

Analyst Ratings

KeyBanc Capital Markets launched coverage on Barrick Gold Corporation (NYSE: GOLD) in its analyst report released on September 24, 2021. The firm assigned the stock a a Sector weight rating.The consensus rating for Barrick Gold Corporation (GOLD) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell GOLD, while 5 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 4 analysts, while 14 others rate it as a “buy”.

What is GOLD’s price target for the next 12 months?

Analysts predict a range of price targets between $20.00 and $35.00, with a median target of $27.25. Taking a look at these predictions, the average price target given by analysts for Barrick Gold Corporation (GOLD) stock is $27.79.

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