NEW YORK (TheStreet) -- Shares of Gold Fields Ltd. (GFI) - Get Gold Fields Limited Sponsored ADR Report are advancing by 2.55% to $5.64 in late morning trading on Tuesday, as some gold and mining related stocks rise along with the price of the precious metal.
Gold for April delivery is gaining by 1.22% to $1,296 per ounce on the COMEX this morning.
The yellow metal moved higher on Tuesday following two sessions of loses as the dollar softened ahead of the Fed's policy meeting which could push back anticipations as to when the U.S. will raise interest rates, Reuters reports.
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The Fed's two day policy meeting begins later today and investors are expecting an acknowledgement of an uncertain global outlook and to keep to its promise of remaining patient on tightening, Reuters added.
Separately, TheStreet Ratings team rates GOLD FIELDS LTD as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate GOLD FIELDS LTD (GFI) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. Among the areas we feel are negative, one of the most important has been an overall disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Metals & Mining industry and the overall market on the basis of return on equity, GOLD FIELDS LTD underperformed against that of the industry average and is significantly less than that of the S&P 500.
- Despite currently having a low debt-to-equity ratio of 0.53, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further.
- GOLD FIELDS LTD reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, GOLD FIELDS LTD swung to a loss, reporting -$0.78 versus $0.44 in the prior year. This year, the market expects an improvement in earnings ($0.11 versus -$0.78).
- 35.17% is the gross profit margin for GOLD FIELDS LTD which we consider to be strong. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, GFI's net profit margin of 2.73% significantly trails the industry average.
- Net operating cash flow has increased to $205.50 million or 29.08% when compared to the same quarter last year. In addition, GOLD FIELDS LTD has also vastly surpassed the industry average cash flow growth rate of -29.15%.
- You can view the full analysis from the report here: GFI Ratings Report