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Compania de Minas Buenaventura SAA (BVN)
NYSE:BVN
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Compania de Minas Buenaventura SAA
(NYSE:BVN)
77Outperform
Compania de Minas Buenaventura SAA (BVN) vs. S&P 500 (SPY)
Market Cap
$3.68B
Dividend Yield0.49%
Average Volume (3M)1.25M
Price to Earnings (P/E)9.3
Beta (1Y)0.87
Revenue Growth39.13%
EPS Growth1927.49%
CountryUS
Employees13,759
SectorBasic Materials
Sector Strength59
IndustryOther Precious Metals
Share Statistics
EPS (TTM)1.58
Shares Outstanding253,715,180
10 Day Avg. Volume1,242,150
30 Day Avg. Volume1,251,112
Financial Highlights & Ratios
PEG Ratio0.00483
Price to Book (P/B)N/A
Price to Sales (P/S)15.47
Price to Cash Flow (P/CF)8.40
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$16.45Price Target Upside12.29% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Compania de Minas Buenaventura SAA Business Overview & Revenue Model
Company DescriptionCompañía de Minas Buenaventura S.A.A. engages in the exploration, mining development, processing, and trading of precious and base metals. The company explores for gold, silver, lead, zinc, and copper metals. It operates operating mining units, including Tambomayo located in the Caylloma province, Orcopampa Unit located in the province of Castilla, Uchucchacua located in province of Oyón, Julcani located in province of Angaraes, Peru, as well as San Gabrie located in the province of General Sánchez Cerro, in the Moquegua region. The company also owns interests in Colquijirca, La Zanja, Yanacocha, Cerro Verde, El Brocal, Coimolache, Yumpaq, San Gregorio mines, and Trapiche mining unit. In addition, it produces manganese sulphate monohydrate and other by-products generated from minerals; and operates hydroelectric power plants. The company was incorporated in 1953 and is based in Lima, Peru.
How the Company Makes MoneyCompañía de Minas Buenaventura SAA generates revenue primarily through the sale of gold and silver extracted from its mining operations. The company operates several wholly-owned mines and holds equity stakes in other mining operations, which contribute to its consolidated revenue. Key revenue streams include the direct sale of precious metals, as well as dividends and royalty payments from its ownership interests in other mining companies. The company benefits from strategic partnerships with industry leaders, which facilitate access to advanced mining technologies and international markets. Buenaventura's earnings are influenced by global commodity prices, production volumes, and operational efficiencies.
Compania de Minas Buenaventura SAA Financial Statement Overview
Summary
Compañía de Minas Buenaventura SAA shows strong financial performance with significant revenue growth, improved profitability margins, and robust cash flow generation. The company's solid balance sheet position with low leverage enhances its financial stability. Continued focus on managing capital expenditures and maintaining revenue growth will be crucial for sustaining this positive trajectory.Income Statement
The company's income statement shows robust improvement with a significant increase in revenue from $823.85M to $1.15B, a growth rate of 40.1%. Gross profit margin improved to 48.8% from 11.1% the previous year, and net profit margin increased to 34.9% from 2.4%. EBIT margin strengthened to 38.6% from 2.6%, and EBITDA margin rose to 51.9% from 21.1%. This indicates strong profitability and efficient cost management.82
Very Positive
Balance Sheet
The balance sheet reveals a solid equity position with a debt-to-equity ratio of 0.18, suggesting manageable leverage. Return on equity improved to 11.9% from 0.7%, demonstrating enhanced profitability. The equity ratio stands at 67.2%, indicating a strong financial foundation. However, the overall asset base has increased, which may require careful management to ensure continued returns.76
Positive
Cash Flow
The cash flow statement highlights a positive shift with free cash flow growing to $148.32M from a negative position previously. Operating cash flow to net income ratio is 1.21, showing a healthy conversion of net income to cash. The free cash flow to net income ratio of 0.37 also reflects improved cash generation abilities. Although cash flow performance has improved, the capital expenditure remains substantial, impacting free cash flow.78
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.15B | 823.85M | 824.80M | 900.45M | 676.54M | Gross Profit |
| 563.13M | 91.25M | 61.33M | 87.34M | 23.93M | EBIT |
| 445.65M | 21.12M | 131.82M | 198.44M | -74.41M | EBITDA |
| 599.21M | 173.71M | 178.97M | 101.62M | 103.77M | Net Income Common Stockholders |
| 402.69M | 19.86M | 124.39M | 124.80M | -155.75M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 478.44M | 219.79M | 253.92M | 377.00M | 235.45M | Total Assets |
| 5.05B | 4.53B | 4.50B | 4.56B | 3.98B | Total Debt |
| 626.78M | 706.58M | 703.46M | 928.56M | 572.36M | Net Debt |
| 148.35M | 486.79M | 449.55M | 551.56M | 336.91M | Total Liabilities |
| 1.49B | 1.36B | 1.34B | 2.02B | 1.18B | Stockholders Equity |
| 3.39B | 3.01B | 3.01B | 2.37B | 2.63B |
| Cash Flow | Free Cash Flow | |||
| 148.32M | -11.60M | -110.31M | -287.82M | 70.89M | Operating Cash Flow |
| 486.06M | 227.07M | 41.67M | -197.51M | 142.43M | Investing Cash Flow |
| -117.92M | -205.54M | 205.75M | -86.29M | -62.22M | Financing Cash Flow |
| -109.49M | -55.66M | -370.50M | 425.35M | -35.26M |
Compania de Minas Buenaventura SAA Technical Analysis
Positive
14.65
Price Trends
13.84
Positive
13.09
Positive
13.35
Positive
Market Momentum
0.15
Negative
54.29
Neutral
66.68
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BVN, the sentiment is Positive. The current price of 14.65 is above the 20-day moving average (MA) of 14.45, above the 50-day MA of 13.84, and above the 200-day MA of 13.35, indicating a bullish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 54.29 is Neutral, neither overbought nor oversold. The STOCH value of 66.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BVN.
Compania de Minas Buenaventura SAA Risk Analysis
Compania de Minas Buenaventura SAA disclosed 42 risk factors in its most recent earnings report. Compania de Minas Buenaventura SAA reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Compania de Minas Buenaventura SAA Peers Comparison
Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $3.68B | 9.32 | 12.62% | 0.49% | 39.13% | 1927.49% | |
72 Outperform | $1.41B | 15.38 | 24.89% | 1.25% | 22.63% | 28.96% | |
69 Neutral | $3.85B | 41.90 | 5.49% | ― | 27.30% | ― | |
67 Neutral | $3.76B | 104.95 | 1.79% | 0.65% | 29.12% | ― | |
53 Neutral | $947.79M | ― | -15.99% | ― | ― | 25.69% | |
48 Neutral | $1.91B | -1.65 | -22.29% | 3.86% | 0.68% | -27.46% |
* Basic Materials Sector Average
Performance Comparison
BVN
Compania de Minas Buenaventura SAA
14.65
-0.80
-5.18%
CDE
Coeur Mining
5.75
1.13
24.46%
DRD
Drdgold
16.13
8.39
108.40%
HL
Hecla Mining Company
5.65
0.44
8.45%
PPTA
Perpetua Resources
13.30
7.03
112.12%
ATLX
Atlas Lithium
4.00
-10.32
-72.07%
Compania de Minas Buenaventura SAA Earnings Call Summary
Earnings Call Date: Oct 30, 2024 | % Change Since: 14.01% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong financial performance with significant improvements in EBITDA, net income, and production volumes of silver and gold. The company also made strategic advancements with asset sales and project developments, which were well-received by the market as reflected in a credit rating upgrade. However, there were challenges such as a decrease in copper production, increased costs at certain mines, and permitting delays affecting profitability. Despite these issues, the positive aspects of the financial and operational results significantly outweighed the negative, leading to an overall positive sentiment.Highlights
EBITDA and Net Income Increase
EBITDA from direct operations increased to $132 million, with a higher EBITDA margin of 40%, compared to 25% last year. Net income reached $237 million, up from a $28 million net loss in the same period last year.
Significant Increase in Silver and Gold Production
Silver production reached 4.4 million ounces, a significant increase from 1.9 million ounces last year. Gold production increased 7% year-over-year.
Sale of Chaupiloma Royalty Company
Completed the sale to Franco-Nevada for $210 million, contributing positively to the financial results.
Credit Rating Upgrade
Moody's upgraded Buenaventura's credit rating to B1 with a positive outlook, citing operational improvements and cost efficiency.
San Gabriel Project Progress
Achieved 65% overall completion with significant advancements, including water dam and power line construction.
Record Low Leverage Ratio
Achieved a net debt-to-EBITDA ratio of 0.5x, the lowest in years.
Lowlights
Decrease in Copper Production
Copper production decreased by 9% year-over-year, attributed to the absence of exceptional open pit ore that was available last year.
Increased Gold CAS
Gold cost applicable to sales increased year-over-year due to lower grades at Tambomayo and Orcopampa.
High Cash Cost at San Gabriel
Total cash costs at San Gabriel increased to $1,300 per ounce from an initially planned $800, due to changes in mining methods and rock quality issues.
Challenges in Coimolache Operations
Coimolache's profitability is impacted due to permitting delays, keeping operations close to breakeven.
Company Guidance
During the third quarter of 2024, Compañía de Minas Buenaventura reported significant financial and operational achievements, reflecting strong guidance and an optimistic outlook. The company's EBITDA from direct operations rose to $132 million, marking an increase from the previous year, and the EBITDA margin improved to 40% from 25%. Net income for the quarter reached $237 million, a substantial turnaround from a $28 million net loss in the same period of 2023. The quarter also saw notable production increases, with silver output reaching 4.4 million ounces and gold production rising by 7% year-over-year. Capital expenditures totaled $98 million, with significant investment in the San Gabriel project, which achieved 65% completion. Buenaventura's credit rating was upgraded to B1 with a positive outlook by Moody's, supported by improved production efficiency and effective cost management. The company's cash position stood at $458 million, and a net debt-to-EBITDA ratio of 0.5x was achieved, highlighting its solid financial health and strategic focus on deleveraging.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.