South32 (SOUHY) AI Stock Analysis

• Market Cap: $9.23B
• Dividend Yield: 2.85%
• Average Volume (3M): 65.15K
• Price to Earnings (P/E): 36.0
• Beta (1Y): 1.08
• Revenue Growth: 4.84%
• EPS Growth: N/A
• Country: US
• Employees: 9,906
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): 0.30
• Shares Outstanding: 899,909,000
• 10 Day Avg. Volume: 25,610
• 30 Day Avg. Volume: 65,150
• PEG Ratio: -0.18
• Price to Book (P/B): 0.97
• Price to Sales (P/S): 1.49
• P/FCF Ratio: 25.86
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 1.48
• Enterprise Value/Gross Profit: 3.39
• Enterprise Value/Ebitda: 9.52
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 68 Neutral
• Price Target: $11.50 ▲(9.21% Upside)

The overall stock score of 67.5 reflects a mixed outlook for South32. The most significant factor is the strong technical analysis, indicating bullish momentum. However, this is tempered by concerns over high valuation and mixed financial performance, particularly in profitability and cash flow generation. The absence of earnings call and corporate events data limits further insights.

South32 Business Overview & Revenue Model

Company Description

South32 Limited operates as a diversified metals and mining company in Australia, Southern Africa, North America, and South America. The company operates through Worsley Alumina, Hillside Aluminium, Mozal Aluminium, Brazil Alumina, Illawarra Metallurgical Coal, Eagle Downs Metallurgical Coal, Australia Manganese, South Africa Managanese, Cerro Matoso, Cannington, Hermosa, and South Africa Energy Coal segments. It has a portfolio of assets producing alumina, aluminum, bauxite, energy and metallurgical coal, manganese ore and alloy, ferronickel, silver, lead, zinc, and other base metals. The company also exports its products. South32 Limited has a strategic alliance agreement with AusQuest Limited for exploration opportunity in gold-copper targets at the Gunanya Project. The company was formerly known as BHP Coal Holdings Pty Limited and changed its name to South32 Limited. South32 Limited was incorporated in 2000 and is headquartered in Perth, Australia.

How the Company Makes Money

South32 generates revenue primarily through the mining, production, and sale of commodities such as aluminum, coal, copper, silver, nickel, and manganese. The company's revenue model is largely driven by the global demand for these materials, which are essential in various industries, including construction, energy, and technology. Key revenue streams include the sale of mined products to industrial customers and trading companies, as well as long-term supply agreements that provide stable cash flows. Additionally, South32 benefits from partnerships with other mining companies and joint ventures that enhance its operational efficiency and market reach. The company also closely monitors commodity prices, as fluctuations in these prices can significantly impact revenue. Overall, South32's financial performance is influenced by its ability to manage costs effectively, optimize production, and respond to market dynamics.

South32 Financial Statement Overview

Summary

South32 demonstrates a mixed financial performance. The company shows resilience with revenue growth and a stable balance sheet, but profitability and cash flow generation remain areas of concern. While leverage is low, indicating financial stability, the company needs to focus on improving profitability margins and cash flow conversion to enhance overall financial health.

Income Statement

South32's income statement shows a mixed performance. The company has experienced a recent revenue growth of 4.7% in 2025, recovering from a decline in previous years. However, profitability margins such as the net profit margin (3.7%) and EBIT margin (14.3%) are relatively low, indicating challenges in maintaining high profitability. The gross profit margin has decreased from previous years, suggesting increased cost pressures.

Balance Sheet

The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.18, indicating conservative leverage. The equity ratio is strong, and the company maintains a positive return on equity of 2.4%, although it has decreased from prior years. Overall, the balance sheet suggests financial stability but with room for improvement in generating returns.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth, which was -15% in 2025, indicating potential liquidity concerns. The operating cash flow to net income ratio is healthy at 0.85, suggesting efficient cash generation relative to net income. However, the free cash flow to net income ratio is low at 0.25, highlighting challenges in converting earnings into free cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.78B	5.78B	5.48B	5.65B	9.27B	5.48B
Gross Profit	2.52B	2.52B	2.53B	2.56B	3.82B	1.01B
EBITDA	897.08M	1.34B	141.00M	416.00M	4.47B	769.00M
Net Income	212.95M	213.00M	-203.00M	-173.00M	2.67B	-195.00M
Balance Sheet
Total Assets	13.73B	13.73B	14.24B	14.56B	16.34B	13.24B
Cash, Cash Equivalents and Short-Term Investments	1.68B	1.68B	842.00M	1.26B	2.37B	1.61B
Total Debt	1.63B	1.63B	1.57B	1.74B	1.83B	1.21B
Total Liabilities	4.87B	4.87B	5.27B	5.19B	5.56B	4.29B
Stockholders Equity	8.85B	8.85B	8.96B	9.38B	10.78B	8.96B
Cash Flow
Free Cash Flow	299.08M	332.00M	-2.00M	303.00M	2.48B	815.00M
Operating Cash Flow	1.34B	1.33B	1.12B	1.19B	3.07B	1.41B
Investing Cash Flow	-18.39M	-20.00M	-1.11B	-908.00M	-2.10B	-608.00M
Financing Cash Flow	-405.56M	-405.00M	-417.00M	-1.39B	-215.00M	-501.00M

South32 Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.53
• 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 SOUHY, the sentiment is Positive. The current price of 10.53 is above the 20-day moving average (MA) of 9.91, above the 50-day MA of 9.23, and above the 200-day MA of 9.71, indicating a bullish trend. The MACD of 0.39 indicates Negative momentum. The RSI at 64.38 is Neutral, neither overbought nor oversold. The STOCH value of 66.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SOUHY.

South32 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RIO	80 Outperform	$118.23B	11.12	18.18%	5.28%	-0.44%	-4.20%
BHP	77 Outperform	$142.15B	15.58	19.51%	3.90%	-7.86%	14.17%
MTRN	76 Outperform	$2.74B	172.45	1.79%	0.42%	5.55%	-79.38%
VALE	74 Outperform	$49.06B	9.52	13.49%	7.03%	-12.89%	-46.86%
SOUHY	68 Neutral	$9.23B	36.00	3.56%	2.85%	4.84%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
MP	56 Neutral	$12.12B	―	-9.57%	―	39.42%	-172.40%

South32 Corporate Events

South32’s Strategic Shift Towards a Sustainable Future

South32 is a diversified mining and metals company operating in the Americas, Australia, and Southern Africa, focusing on minerals and metals critical to the world’s energy transition. In its 2025 annual report, South32 highlighted its strategic transformation over the past decade, emphasizing a shift towards higher-margin commodities like copper and zinc, and a commitment to sustainability. Key financial metrics for the year included underlying earnings of US$666 million and a net cash position of US$123 million, with significant shareholder returns through dividends and share buy-backs. The company also reported progress on its Hermosa project in Arizona and divestments aimed at simplifying its portfolio. Looking forward, South32 remains focused on enhancing its portfolio with critical minerals, reducing emissions, and strengthening climate resilience, positioning itself for future growth in a low-carbon economy.