Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
NEW YORK (
) has been reiterated by TheStreet Ratings as a hold with a ratings score of C+ . The company's strengths can be seen in multiple areas, such as its attractive valuation levels, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.
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Highlights from the ratings report include:
- Net operating cash flow has increased to $763.00 million or 10.57% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -15.99%.
- The gross profit margin for BARRICK GOLD CORP is rather high; currently it is at 53.20%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, ABX's net profit margin of 22.90% compares favorably to the industry average.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Metals & Mining industry and the overall market, BARRICK GOLD CORP's return on equity exceeds that of both the industry average and the S&P 500.
- The share price of BARRICK GOLD CORP has not done very well: it is down 24.96% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
Barrick Gold Corporation engages in the production and sale of gold and copper. The company has a portfolio of 26 operating mines, and exploration and development projects located in North America, South America, the Australia Pacific region, and Africa. The company has a P/E ratio of 9.3, above the average metals & mining industry P/E ratio of 8.3 and below the S&P 500 P/E ratio of 17.7. Barrick has a market cap of $34.16 billion and is part of the
industry. Shares are down 16.5% year to date as of the close of trading on Friday.
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--Written by a member of TheStreet Ratings Staff.