Gold Fields (GFI) AI Stock Analysis

• Market Cap: $29.44B
• Dividend Yield: 1.58%
• Average Volume (3M): 3.09M
• Price to Earnings (P/E): 15.9
• Beta (1Y): 0.59
• Revenue Growth: 49.62%
• EPS Growth: 195.39%
• Country: US
• Employees: 6,560
• Sector: Basic Materials
• Sector Strength: 73
• Industry: Gold
• EPS (TTM): 0.85
• Shares Outstanding: 895,024,230
• 10 Day Avg. Volume: 3,099,607
• 30 Day Avg. Volume: 3,094,533
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.78
• Enterprise Value/Revenue: 3.48
• Enterprise Value/Gross Profit: 6.33
• Enterprise Value/Ebitda: 6.02
• 1Y Price Target: $33.58
• Price Target Upside: -2.36% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 79 Outperform
• Price Target: $37.00 ▲(7.59% Upside)

Gold Fields' strong financial performance and positive earnings call are the primary drivers of its stock score. Technical indicators suggest bullish momentum, though caution is advised due to overbought signals. The valuation is fair, providing moderate income potential. Overall, the company is well-positioned with a positive outlook, but investors should monitor cost management and decarbonization challenges.

Positive Factors

Free Cash Flow

Gold Fields generated FCF of US$1,019M, higher than estimated, due to positive working capital change and lower capex spend.

Operational Performance

Salares Norte is ramping up as expected, contributing positively to the company's operational outlook.

Shareholder Returns

The dividend is forecast to triple, leading to much stronger shareholder returns, with an expected increase in the dividend yield.

Negative Factors

Cost Guidance

There is a risk of the company missing costs guidance for 2025.

Earnings

Headline EPS missed estimates which is a function of sales timing and higher exploration spend.

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 generates revenue primarily through the extraction and sale of gold. The company operates several mines that produce gold and by-products, including copper and silver. The revenue model is driven by the sale of gold bullion, which is influenced by global gold prices in the commodities market. Additionally, Gold Fields engages in hedging strategies to manage price volatility and protect its revenue streams. Key revenue streams include direct sales of gold, long-term supply contracts with various customers, and, to a lesser extent, the sale of by-products. The company also benefits from cost management initiatives and operational efficiencies, which contribute to profitability. Strategic partnerships with local governments and communities enhance their social license to operate, further supporting their earnings potential.

Gold Fields Financial Statement Overview

Summary

Gold Fields demonstrates strong financial performance with robust revenue and profit growth, efficient cost management, and solid operational margins. The balance sheet is stable with a healthy equity base, though debt management requires monitoring. Cash flows are strong, supporting operations and future investments.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.56B	5.20B	4.50B	4.29B	4.20B	3.89B
Gross Profit	3.61B	2.21B	1.64B	1.57B	1.71B	1.64B
EBITDA	3.80B	2.66B	2.07B	2.07B	2.29B	2.15B
Net Income	1.89B	1.25B	703.30M	711.00M	789.30M	723.00M
Balance Sheet
Total Assets	10.86B	10.14B	8.23B	7.34B	7.35B	7.47B
Cash, Cash Equivalents and Short-Term Investments	1.07B	860.20M	648.70M	769.40M	524.70M	886.80M
Total Debt	2.55B	2.95B	1.67B	1.47B	1.49B	1.96B
Total Liabilities	4.61B	4.78B	3.61B	3.00B	3.22B	3.64B
Stockholders Equity	6.08B	5.20B	4.48B	4.34B	4.13B	3.66B
Cash Flow
Free Cash Flow	1.70B	709.20M	437.60M	614.30M	463.80M	665.40M
Operating Cash Flow	3.02B	1.96B	1.56B	1.68B	1.55B	1.25B
Investing Cash Flow	-2.74B	-2.59B	-1.37B	-1.07B	-1.07B	-607.40M
Financing Cash Flow	219.70M	861.70M	-286.20M	-361.30M	-832.80M	-277.50M

Gold Fields Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 34.39
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 34.39 is above the 20-day moving average (MA) of 31.24, above the 50-day MA of 27.18, and above the 200-day MA of 21.00, indicating a bullish trend. The MACD of 1.78 indicates Negative momentum. The RSI at 74.02 is Negative, neither overbought nor oversold. The STOCH value of 88.56 is Negative, 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
GFI	79 Outperform	$29.44B	15.90	35.09%	1.58%	49.62%	195.39%
CDE	79 Outperform	$8.45B	33.72	9.88%	―	68.88%	―
HMY	78 Outperform	$8.39B	10.43	32.05%	1.21%	29.08%	70.63%
NEM	78 Outperform	$81.72B	13.36	20.26%	1.32%	39.02%	―
RGLD	78 Outperform	$11.82B	26.29	14.32%	0.96%	30.15%	86.71%
AU	73 Outperform	$28.53B	24.27	19.42%	2.78%	26.43%	―
Sector *	61 Neutral	$10.24B	6.18	0.71%	2.90%	3.45%	-36.02%