Sibanye Stillwater (SBSW) AI Stock Analysis

• Market Cap: $6.59B
• Dividend Yield: N/A
• Average Volume (3M): 10.00M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.95
• Revenue Growth: -0.71%
• EPS Growth: 80.26%
• Country: US
• Employees: 57,857
• Sector: Basic Materials
• Sector Strength: 68
• Industry: Gold
• EPS (TTM): 0.12
• Shares Outstanding: 707,641,850
• 10 Day Avg. Volume: 8,996,122
• 30 Day Avg. Volume: 9,996,425
• PEG Ratio: -0.65
• Price to Book (P/B): 5.62
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.44K
• 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: $6.95
• Price Target Upside: -27.45% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 63 Neutral
• Price Target: $10.00 ▲(4.38%Upside)

Sibanye Stillwater's overall stock score is influenced primarily by its mixed financial performance and strong technical indicators. The company's declining revenue and profitability pose significant risks, reflected in a lower financial performance score. However, strong market momentum, as indicated by technical analysis, positively impacts the overall score. Valuation challenges remain, given the negative P/E ratio and lack of dividend, which weigh on the overall assessment.

Positive Factors

Tax Credits

The impending S45X tax credit should alleviate some cost pressures at the US PGM operations.

Negative Factors

Financial Performance

Sibanye-Stillwater reported adj. EBITDA of US$222M, lower than estimates due to higher costs and lower metal sales.

Production Issues

SA Gold operations were impacted by ore pass blockages at Kloof main shaft and pump station fire at Driefontein 5 shaft.

Sibanye Stillwater Business Overview & Revenue Model

Company Description

Sibanye Stillwater (SBSW) is a multinational mining and metals processing company, primarily engaged in the extraction and production of platinum group metals (PGMs) and gold. Headquartered in South Africa, the company operates a diverse portfolio of assets located in South Africa, the United States, and Zimbabwe. Sibanye Stillwater is recognized as one of the largest primary producers of platinum and palladium globally, and it is also a significant producer of gold and other associated minerals. The company is committed to sustainable mining practices and contributes to the economic development of the regions in which it operates.

How the Company Makes Money

Sibanye Stillwater generates revenue primarily through the sale of extracted precious metals, including platinum, palladium, rhodium, and gold. The company's revenue model is based on mining these metals, processing them into marketable products, and selling them on the global commodities market. Key revenue streams include the sale of PGMs and gold, which are used in various industries such as automotive, electronics, and jewelry. Additionally, the company benefits from strategic partnerships and joint ventures that enhance its operational capabilities and market reach. Factors such as fluctuating commodity prices, mining production levels, and operational efficiencies significantly impact its earnings. Sibanye Stillwater also explores opportunities in recycling and tailings retreatment, contributing to its revenue diversification.

Sibanye Stillwater Financial Statement Overview

Summary

Sibanye Stillwater is grappling with declining revenue and profitability, as seen in its income statement. The company faces profitability challenges and increasing leverage, despite maintaining a stable equity base. Cash flow issues are also evident, with recent negative free cash flow signaling potential liquidity constraints.

Income Statement

Sibanye Stillwater's income statement reveals a volatile financial performance. The company experienced a decline in total revenue from 2020 to 2024, with significant swings in net income, moving from substantial profits to losses. The net profit margin has been negative over the last two years, indicating profitability challenges. Despite a high EBIT margin in earlier years, recent EBIT figures show weakening performance. Overall, the company's revenue growth and profitability are under pressure.

Balance Sheet

The balance sheet of Sibanye Stillwater reflects a strong equity position, with stockholders' equity maintaining a substantial proportion of total assets, indicating a solid equity ratio. However, the increase in total debt over the years has led to a higher debt-to-equity ratio, indicating growing leverage. The return on equity has been negatively impacted by recent losses, although it was strong in earlier years. Overall, the balance sheet presents a stable equity base but rising leverage.

Cash Flow

Cash flow analysis shows fluctuating free cash flow, with recent negative figures indicating challenges in generating excess cash. Operating cash flow has been positive, but the free cash flow to net income ratio has been adversely affected by net losses. The operating cash flow to net income ratio demonstrated better stability in earlier periods. The cash flow trajectory indicates potential liquidity constraints if negative trends persist.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	112.13B	113.68B	138.29B	172.19B	127.39B
Gross Profit	6.30B	12.78B	34.83B	60.17B	42.26B
EBITDA	164.00M	-27.52B	37.13B	57.61B	45.42B
Net Income	-7.30B	-37.77B	18.40B	33.05B	29.31B
Balance Sheet
Total Assets	137.99B	142.94B	166.63B	152.99B	134.10B
Cash, Cash Equivalents and Short-Term Investments	16.05B	25.56B	26.08B	30.29B	20.24B
Total Debt	42.06B	41.01B	23.05B	20.58B	18.71B
Total Liabilities	89.70B	91.33B	75.63B	71.65B	63.39B
Stockholders Equity	43.98B	48.73B	91.00B	81.34B	70.72B
Cash Flow
Free Cash Flow	-11.28B	-15.32B	-356.00M	19.52B	17.53B
Operating Cash Flow	10.29B	7.09B	15.54B	32.26B	27.15B
Investing Cash Flow	-24.34B	-22.04B	-17.37B	-14.57B	-9.94B
Financing Cash Flow	4.56B	12.98B	-3.50B	-8.34B	-2.24B

Sibanye Stillwater Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.58
• 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 SBSW, the sentiment is Positive. The current price of 9.58 is above the 20-day moving average (MA) of 7.98, above the 50-day MA of 6.84, and above the 200-day MA of 4.78, indicating a bullish trend. The MACD of 0.70 indicates Negative momentum. The RSI at 80.21 is Negative, neither overbought nor oversold. The STOCH value of 90.84 is Negative, 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
HMY	80 Outperform	$8.88B	14.91	25.19%	1.67%	20.35%	20.44%
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%	―
Sector *	70 Outperform	¥175.59B	10.94	6.29%	3.36%	3.93%	3.23%
CDE	69 Neutral	$5.81B	33.37	6.44%	―	41.79%	―
HL	66 Neutral	$3.68B	52.39	3.49%	0.65%	41.04%	―
SBSW	63 Neutral	$6.59B	―	-15.89%	―	-0.71%	80.26%