Sibanye Stillwater (SBSW) AI Stock Analysis

• Market Cap: $3.78B
• Dividend Yield: N/A
• Average Volume (3M): 11.30M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.22
• Revenue Growth: -0.71%
• EPS Growth: 80.26%
• Country: US
• Employees: 57,857
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Gold
• EPS (TTM): -0.16
• Shares Outstanding: 707,641,850
• 10 Day Avg. Volume: 9,369,611
• 30 Day Avg. Volume: 11,302,061
• PEG Ratio: -0.09
• Price to Book (P/B): 1.34
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.15
• 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: $5.55
• Price Target Upside: -2.97% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 47 Neutral
• Price Target: ―

Sibanye Stillwater faces significant financial challenges, with declining revenue, increasing debt, and negative profitability. Technical analysis indicates a bearish trend, and valuation metrics highlight profitability concerns. The company needs to address these issues to improve investor confidence.

Positive Factors

Tax Credit

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.

Operational Challenges

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

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's financial statements illustrate a company facing profitability challenges and increasing leverage. The income statement shows declining revenue and profitability, while the balance sheet maintains a solid equity base amid rising debt. Cash flow analysis highlights potential liquidity issues due to negative free cash flow. The company needs to address these issues to improve financial stability and performance.

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
15.73B	12.78B	34.83B	60.17B	42.26B
	EBIT
15.44B	8.55B	34.22B	57.00B	39.42B
	EBITDA
164.00M	-27.52B	37.13B	57.61B	45.42B
	Net Income Common Stockholders
-7.30B	-37.77B	18.40B	33.05B	29.31B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
16.05B	25.56B	26.08B	30.29B	20.24B
	Total Assets
137.99B	142.94B	166.63B	152.99B	134.10B
	Total Debt
42.06B	41.01B	23.05B	20.58B	18.71B
	Net Debt
26.02B	15.45B	-3.03B	-9.71B	-1.53B
	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: 5.72
• 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 5.72 is above the 20-day moving average (MA) of 4.88, above the 50-day MA of 4.54, and above the 200-day MA of 4.13, indicating a bullish trend. The MACD of 0.28 indicates Negative momentum. The RSI at 74.16 is Negative, neither overbought nor oversold. The STOCH value of 91.53 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
GFI	77 Outperform	$19.43B	15.81	25.35%	2.02%	13.41%	73.34%
HMY	76 Outperform	$9.54B	16.47	25.19%	0.90%	20.35%	20.44%
CDE	75 Outperform	$5.02B	27.51	6.44%	―	41.79%	―
AU	71 Outperform	$21.84B	18.58	19.42%	2.10%	26.43%	―
HL	59 Neutral	$3.25B	46.17	3.49%	0.74%	41.04%	―
Sector *	50 Neutral	$2.00B	-1.02	-21.34%	3.70%	2.00%	-30.65%
SBSW	47 Neutral	$3.78B	―	-15.89%	―	-0.71%	80.26%