Barrick Gold Corporation (GOLD): What Does Valuation Ratios Tell Us?

BEPC Stock
BEPC Stock

Barrick Gold Corporation (NYSE:GOLD) saw an upside of 1.37% to close Monday at $19.23 after adding $0.26 on the day. The 5-day average trading volume is 19,641,600 shares of the company’s common stock. It has gained $19.46 in the past week and touched a new high 1 time within the past 5 days. An average of 16,884,785 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 18,414,980.

GOLD’s 1-month performance is 11.28% or $1.84 on its low of $17.04 reached on 12/30/22. The company’s shares have touched a 52-week low of $12.97 and high of $25.70, with the stock’s rally to the 52-week high happening on 01/13/23. YTD, GOLD has achieved 11.93% or $2.05 and has reached a new high 8 times. However, the current price is down -25.16% from the 52-week high price.

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Valuation Metrics

GOLD stock has a beta of 0.30. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 2.89 while the price-to-book (PB) in the most recent quarter is 1.42, with the price to cash flow ratio at 163.06.

Barrick Gold Corporation’s quick ratio for the period ended September 29 was 3.00, with the current ratio over the same period at 3.80. As well, the company’s long term debt to equity for the quarter ending September 29 was 0.21, while the total debt to equity was 0.21. In terms of profitability, the gross margin trailing 12 months is 36.70%. The firm’s gross profit as reported stood at $4.9 billion against revenue of $11.98 billion.

Earnings Surprise

For the quarterly period ending September 29 this year, Net income and sales went down compared to those figures reported in the previous quarter. Analysts expected GOLD to announce $0.11 per share in earnings in its latest quarter, but it posted $0.13, representing a 18.20% surprise. EBITDA for the quarter stood at more than $1.1 billion. GOLD stock balance sheet for the quarter ending September 29 shows that total liabilities totaled 14.13 billion, with total debt at $5.1 billion.

Let’s look briefly at Barrick Gold Corporation (GOLD) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 23 January was 61.38% to suggest the stock is trending Neutral, with historical volatility in this time period at 33.51%.

The stock’s 5-day moving average is $18.81, reflecting a -2.09% or -$0.41 change from its current price. GOLD is currently trading +9.89% above its 20-day SMA, +25.28% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by +23.19% and SMA200 by-21.38%.

Stochastic %K and %D was 68.32% and 61.46% and the average true range (ATR) pointed at 0.59. The RSI (14) points at 61.50%, while the 14-day stochastic is at 75.11% with the period’s ATR at 0.58. The stock’s 9-day MACD Oscillator is pointing at -0.11 and 0.03 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for Barrick Gold Corporation (NYSE: GOLD), Goldman launched coverage with a Neutral rating. Analysts offering their rating for GOLD stock have a consensus rating for the stock as Overweight. Currently, 0 brokerage advisors rate GOLD as a “sell,”, while 8 advise that investors “Hold.” 0 analysts have rated the stock as underweight. 2 rates the stock as overweight while 14 have offered a “buy” rating.

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

Analysts have a consensus price target ranging from a low of $16.00 and a high of $25.00, with their median price target at $21.60. Looking at these predictions, the average price target given by analysts is for Barrick Gold Corporation (GOLD) stock is $21.12.


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