Gold Fields (GFI) AI Stock Analysis

• Market Cap: $22.04B
• Dividend Yield: 2.14%
• Average Volume (3M): 2.70M
• Price to Earnings (P/E): 17.4
• Beta (1Y): 0.68
• Revenue Growth: 14.83%
• EPS Growth: 75.86%
• Country: US
• Employees: 6,560
• Sector: Basic Materials
• Sector Strength: 68
• Industry: Gold
• EPS (TTM): 0.81
• Shares Outstanding: 895,024,230
• 10 Day Avg. Volume: 2,810,452
• 30 Day Avg. Volume: 2,704,397
• PEG Ratio: 3.78
• Price to Book (P/B): 4.19
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 769.41
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 1.29
• Enterprise Value/Gross Profit: 9.17
• Enterprise Value/Ebitda: 2.71
• 1Y Price Target: $25.25
• Price Target Upside: -0.75% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 76 Outperform
• Price Target: $29.00 ▲(13.99%Upside)

Gold Fields' strong financial performance, highlighted by robust revenue growth, profitability, and efficient cash flow management, is the primary driver of the overall stock score. The positive technical analysis, with bullish momentum and price trends, further supports the score. Valuation metrics suggest the stock is fairly valued, with a reasonable P/E ratio and dividend yield contributing to a balanced outlook.

Positive Factors

Exploration and Reserve Replacement

Gold Fields has a strong track record in exploration and reserve replacement, particularly in Australia, outperforming its peers.

Gold Price Forecast

Gold is forecasted to reach $3000/oz, supported by high central bank buying and global economic conditions, benefiting Gold Fields.

Production Growth and Dividend Yield

Gold Fields is recognized for its industry-leading production growth and high gold price leverage, which enhances its potential for a leading dividend yield.

Negative Factors

Capex and Project Delays

Despite an increase in capex and delays, the Salares Norte project maintains neutral net present value returns, suggesting resilience in project management.

Project Management Challenges

The Salares Norte mine has started ramping up and delivered 45koz of gold, aligning with the company's revised guidance.

Gold Fields Business Overview & Revenue Model

Company Description

Gold Fields Limited operates as a gold producer with reserves and resources in Chile, South Africa, Ghana, West Africa, Australia, and Peru. The company also explores for copper deposits. It holds interests in 9 operating mines with an annual gold-equivalent production of approximately 2.34 million ounces, as well as gold mineral reserves of approximately 48.6 million ounces and mineral resources of approximately 111.8 million ounces. Gold Fields Limited was founded in 1887 and is based in Sandton, South Africa.

How the Company Makes Money

Gold Fields makes money through the exploration, extraction, processing, and sale of gold and copper. The company's revenue is primarily generated from the sale of refined gold bullion to various markets, including direct sales to refineries and bullion banks. In addition, Gold Fields produces copper as a by-product, which is sold in the form of copper concentrates. The company's earnings are influenced by factors such as global gold prices, production costs, and operational efficiency. Strategic partnerships, investments in technology, and geographic diversification further contribute to its financial performance by enhancing production capabilities and market reach.

Gold Fields Financial Statement Overview

Summary

Gold Fields exhibits strong financial performance with substantial revenue and profit growth, efficient cost management, and robust operational margins. The balance sheet is stable with a solid equity base and manageable debt levels. The company's cash flow is strong, indicating healthy cash generation and efficient capital management.

Income Statement

Gold Fields has shown strong revenue growth over recent years, with a notable increase in Total Revenue from $4.5 billion in 2023 to $5.2 billion in 2024, representing a growth rate of 15.56%. Gross Profit Margin increased as well, indicating efficient cost management, reaching 54.53% in 2024. Net Profit Margin improved to 23.94%, reflecting enhanced profitability. Both EBIT Margin and EBITDA Margin are robust at 52.28% and 51.05% respectively, showcasing operational efficiency. Overall, the company's income statement reflects a positive trajectory with strong profitability metrics.

Balance Sheet

The balance sheet shows a stable and improving financial position. The Debt-to-Equity Ratio at 0.57 suggests a relatively conservative use of leverage, while the Equity Ratio of 51.28% highlights a solid equity base. Return on Equity (ROE) improved to 23.94%, indicating effective use of equity to generate profits. The company maintains a strong equity base, but attention should be given to managing total debt levels as they increased from previous years.

Cash Flow

Cash flow metrics are strong, with Free Cash Flow increasing from $437.6 million in 2023 to $709.2 million in 2024, marking a growth rate of 62.05%. Operating Cash Flow to Net Income Ratio stands at 1.57, demonstrating healthy cash generation relative to net income. The Free Cash Flow to Net Income Ratio is 0.57, indicating sufficient cash generation to cover net income and support growth initiatives. Overall, the cash flow statement reflects strong cash generation capabilities and efficient capital expenditure management.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.20B	4.50B	4.29B	4.20B	3.89B
Gross Profit	2.21B	1.64B	1.57B	1.71B	1.64B
EBITDA	2.66B	2.07B	2.07B	2.29B	2.15B
Net Income	1.25B	703.30M	711.00M	789.30M	723.00M
Balance Sheet
Total Assets	10.14B	8.23B	7.34B	7.35B	7.47B
Cash, Cash Equivalents and Short-Term Investments	860.20M	648.70M	769.40M	524.70M	886.80M
Total Debt	2.95B	1.67B	1.47B	1.49B	1.96B
Total Liabilities	4.78B	3.61B	3.00B	3.22B	3.64B
Stockholders Equity	5.20B	4.48B	4.34B	4.13B	3.66B
Cash Flow
Free Cash Flow	709.20M	437.60M	614.30M	463.80M	665.40M
Operating Cash Flow	1.96B	1.56B	1.68B	1.55B	1.25B
Investing Cash Flow	-2.59B	-1.37B	-1.07B	-1.07B	-607.40M
Financing Cash Flow	861.70M	-286.20M	-361.30M	-832.80M	-277.50M

Gold Fields Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 25.44
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GFI, the sentiment is Positive. The current price of 25.44 is above the 20-day moving average (MA) of 24.06, above the 50-day MA of 23.52, and above the 200-day MA of 19.04, indicating a bullish trend. The MACD of 0.20 indicates Negative momentum. The RSI at 61.87 is Neutral, neither overbought nor oversold. The STOCH value of 65.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GFI.

Gold Fields Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NEM	81 Outperform	$64.77B	13.06	16.64%	2.09%	48.69%	―
HMY	80 Outperform	$8.88B	14.91	25.19%	1.67%	20.35%	20.44%
RGLD	78 Outperform	$10.19B	25.56	13.03%	1.11%	18.77%	38.55%
GFI	76 Outperform	$22.04B	17.43	25.72%	2.14%	14.83%	75.86%
AU	75 Outperform	$24.00B	20.42	19.42%	0.68%	26.43%	―
SBSW	63 Neutral	$6.59B	―	-15.89%	―	-0.71%	80.26%
Sector *	44 Neutral	C$963.03M	-6.69	-13.68%	1.90%	17.55%	-32.71%