Sibanye Stillwater (SBSW) AI Stock Analysis

• Market Cap: $3.00B
• Dividend Yield: N/A
• Average Volume (3M): 8.73M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.08
• Revenue Growth: -0.71%
• EPS Growth: 80.26%
• Country: US
• Employees: 63,220
• Sector: Basic Materials
• Sector Strength: 61
• Industry: Gold
• EPS (TTM): -0.56
• Shares Outstanding: 707,641,850
• 10 Day Avg. Volume: 9,651,594
• 30 Day Avg. Volume: 8,732,607
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.49
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $5.30
• Price Target Upside: 22.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Sibanye Stillwater faces significant profitability challenges, reflected in its financial performance. Despite solid upward market momentum, the stock's valuation is concerning, with a negative P/E ratio indicating potential overvaluation. The absence of a dividend yield further impacts its appeal. Technical indicators suggest caution due to potential overbought conditions. Overall, the stock score reflects the need for improved financial stability and performance.

Sibanye Stillwater Business Overview & Revenue Model

Company Description

Sibanye Stillwater Limited, together with its subsidiaries, operates as a precious metals mining company in South Africa, the United States, Zimbabwe, Canada, and Argentina. The company produces gold; platinum group metals (PGMs), including palladium, platinum, and rhodium; and by-products, such as iridium, ruthenium, nickel, copper, and chrome. It owns the East Boulder and Stillwater mines located in Montana, the United States; and Columbus metallurgical complex, which smelts the material mined to produce PGM-rich filter cake, as well as conducts PGM recycling activities. The company is also involved in the Kroondal, Rustenburg, Marikana, and Platinum Mile operations situated in South Africa; Mimosa located on the southern portion in Zimbabwe; the Driefontein, Kloof, and Cooke surface operations located on the West Rand of the Witwatersrand Basin; and the Beatrix situated in the southern Free State. In addition, it owns an interest in surface tailings retreatment facilities; the Marathon PGM project in Ontario, Canada; the Altar and Rio Grande copper gold projects in the Andes in north-west Argentina; the Hoedspruit; and the Burnstone and southern Free State gold projects in South Africa. Sibanye Stillwater Limited was founded in 2013 and is headquartered in Weltevreden Park, South Africa.

How the Company Makes Money

Sibanye Stillwater generates revenue through the mining, processing, and sale of precious metals, notably platinum, palladium, rhodium, and gold. The company's key revenue streams include the extraction and sale of raw and refined PGMs and gold. In addition to mining, Sibanye Stillwater has a robust PGM recycling business, which involves recovering metals from used catalytic converters and other sources, further contributing to its revenue. The company's financial performance is influenced by market prices for these metals, production volumes, and operational efficiencies. Sibanye Stillwater also engages in strategic partnerships and joint ventures to enhance its operational capabilities and market reach, contributing positively to its earnings.

Sibanye Stillwater Financial Statement Overview

Summary

Sibanye Stillwater faces significant financial challenges with declining revenue and profitability, a negative net profit margin, and increased leverage. While the equity ratio indicates some stability, the negative free cash flow and return on equity highlight financial pressures.

Income Statement

Sibanye Stillwater's income statement shows a concerning trajectory with declining revenue and profitability. Revenue decreased significantly from 2021 to 2023, with a negative revenue growth rate of approximately -17.7% from 2022 to 2023. The company reported a net loss in 2023, resulting in a negative net profit margin of -33.2%, down from a positive 13.3% in 2022. Additionally, the EBIT margin fell sharply to 7.5% in 2023 from 24.7% in 2022. The negative EBITDA margin in 2023 further highlights profitability challenges.

Balance Sheet

The balance sheet reveals a mixed picture. The debt-to-equity ratio increased to 0.84 in 2023 from 0.25 in 2022, indicating higher leverage and potential financial risk. However, the equity ratio remained stable at approximately 34.1% in 2023. Return on equity plummeted to -77.5% in 2023 from 20.2% in 2022, reflecting the large net loss incurred and negatively impacting shareholder returns.

Cash Flow

Cash flow analysis indicates significant challenges. The company saw a substantial decline in free cash flow from 2021 to 2023, with a negative free cash flow of -15.3 billion in 2023. The free cash flow to net income ratio is negative due to the net loss. Operating cash flow also decreased sharply, and the operating cash flow to net income ratio is negative, highlighting inefficiencies in cash generation relative to earnings.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
134.88B	113.68B	138.29B	172.19B	127.39B	72.93B
	Gross Profit
4.57B	12.78B	34.83B	60.17B	42.26B	9.18B
	EBIT
-15.01B	8.55B	34.22B	57.00B	39.42B	8.26B
	EBITDA
11.15B	-27.52B	37.13B	57.61B	45.42B	8.41B
	Net Income Common Stockholders
-75.26B	-37.77B	18.40B	33.05B	29.31B	62.10M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
25.56B	25.56B	26.08B	30.29B	20.24B	5.62B
	Total Assets
142.94B	142.94B	166.63B	152.99B	134.10B	101.07B
	Total Debt
41.01B	41.01B	23.05B	20.58B	18.71B	24.12B
	Net Debt
15.45B	15.45B	-3.03B	-9.71B	-1.53B	18.50B
	Total Liabilities
91.33B	91.33B	75.63B	71.65B	63.39B	69.93B
	Stockholders Equity
48.73B	48.73B	91.00B	81.34B	70.72B	31.14B
Cash Flow		Free Cash Flow
-18.64B	-15.32B	-356.00M	19.52B	17.53B	1.76B
	Operating Cash Flow
9.84B	7.09B	15.54B	32.26B	27.15B	9.46B
	Investing Cash Flow
-31.66B	-22.04B	-17.37B	-14.57B	-9.94B	-4.86B
	Financing Cash Flow
17.16B	12.98B	-3.50B	-8.34B	-2.24B	-1.47B

Sibanye Stillwater Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.33
• 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 SBSW, the sentiment is Positive. The current price of 4.33 is above the 20-day moving average (MA) of 3.82, above the 50-day MA of 3.77, and above the 200-day MA of 4.12, indicating a bullish trend. The MACD of 0.19 indicates Negative momentum. The RSI at 63.62 is Neutral, neither overbought nor oversold. The STOCH value of 77.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SBSW.

Sibanye Stillwater Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FCX	71 Outperform	$57.84B	30.89	10.92%	1.49%	10.71%	1.94%
AU	71 Outperform	$17.86B	429.94	0.90%	0.63%	9.18%	―
NEM	66 Neutral	$53.37B	16.58	11.13%	2.11%	58.27%	―
SBSW	55 Neutral	$3.00B	―	-15.89%	―	-0.71%	80.26%
Sector *	47 Neutral	$2.66B	-3.61	-22.67%	3.28%	3.74%	-27.14%