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 reasonable valuation levels, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, a generally disappointing performance in the stock itself and deteriorating net income.
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Highlights from the ratings report include:
- The gross profit margin for BARRICK GOLD CORP is rather high; currently it is at 51.10%. 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 17.98% compares favorably to the industry average.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 34.71%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 54.41% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- Net operating cash flow has declined marginally to $1,732.00 million or 8.31% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
Barrick Gold Corporation engages in the production and sale of gold and copper. The company has a portfolio of 27 operating mines, and exploration and development projects located in North America, South America, the Australia Pacific region, and Africa. Barrick has a market cap of $34.51 billion and is part of the basic materials sector and metals & mining industry. The company has a P/E ratio of 10.3, below the S&P 500 P/E ratio of 17.7. Shares are down 23.8% year to date as of the close of trading on Tuesday.
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--Written by a member of TheStreet Ratings Staff.
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