NYSE:BVN

Stock Analysis Report

Compañía de Minas BuenaventuraA

Executive Summary

Compañía de Minas Buenaventura S.A.A., a precious metals company, engages in the exploration, mining, and processing of gold, silver, lead, zinc, and copper metals in Peru, the United States, Europe, and Asia.


Snowflake Analysis

Adequate balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has Compañía de Minas BuenaventuraA's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BVN's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.5%

BVN

-1.8%

US Metals and Mining

0.9%

US Market


1 Year Return

-25.8%

BVN

-0.1%

US Metals and Mining

20.0%

US Market

Return vs Industry: BVN underperformed the US Metals and Mining industry which returned 0.9% over the past year.

Return vs Market: BVN underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

BVNIndustryMarket
7 Day-1.5%-1.8%0.9%
30 Day-9.1%-7.1%1.4%
90 Day-17.2%-1.2%8.8%
1 Year-25.4%-25.8%2.4%-0.1%22.5%20.0%
3 Year-4.6%-6.2%-6.7%-11.7%49.9%40.3%
5 Year18.3%15.9%19.3%10.0%73.2%54.1%

Price Volatility Vs. Market

How volatile is Compañía de Minas BuenaventuraA's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Compañía de Minas BuenaventuraA undervalued compared to its fair value and its price relative to the market?

1.1x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: BVN ($12.31) is trading above our estimate of fair value ($5.61)

Significantly Below Fair Value: BVN is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BVN is unprofitable, so we can't compare its PE Ratio to the Metals and Mining industry average.

PE vs Market: BVN is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate BVN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: BVN is good value based on its PB Ratio (1.1x) compared to the US Metals and Mining industry average (1.5x).


Next Steps

Future Growth

How is Compañía de Minas BuenaventuraA forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

43.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BVN is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: BVN is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: BVN's is expected to become profitable in the next 3 years.

Revenue vs Market: BVN's revenue (2.6% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: BVN's revenue (2.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BVN's Return on Equity is forecast to be low in 3 years time (5.4%).


Next Steps

Past Performance

How has Compañía de Minas BuenaventuraA performed over the past 5 years?

24.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BVN is currently unprofitable.

Growing Profit Margin: BVN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: BVN is unprofitable, but has reduced losses over the past 5 years at a rate of 24.3% per year.

Accelerating Growth: Unable to compare BVN's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: BVN is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (14.9%).


Return on Equity

High ROE: BVN has a negative Return on Equity (-0.91%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Compañía de Minas BuenaventuraA's financial position?


Financial Position Analysis

Short Term Liabilities: BVN's short term assets ($650.8M) exceed its short term liabilities ($377.1M).

Long Term Liabilities: BVN's short term assets ($650.8M) do not cover its long term liabilities ($711.7M).


Debt to Equity History and Analysis

Debt Level: BVN's debt to equity ratio (20.4%) is considered satisfactory.

Reducing Debt: BVN's debt to equity ratio has increased from 1% to 20.4% over the past 5 years.


Balance Sheet

Inventory Level: BVN has a high level of physical assets or inventory.

Debt Coverage by Assets: BVN's debt is covered by short term assets (assets are 1.1x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable BVN has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: BVN is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 47.2% per year.


Next Steps

Dividend

What is Compañía de Minas BuenaventuraA's current dividend yield, its reliability and sustainability?

0.97%

Current Dividend Yield


Dividend Yield vs Market

company1.0%marketbottom25%1.4%markettop25%3.7%industryaverage2.6%forecastin3Years0.9%

Current dividend yield vs market & industry

Notable Dividend: BVN's dividend (0.97%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: BVN's dividend (0.97%) is low compared to the top 25% of dividend payers in the US market (3.69%).


Stability and Growth of Payments

Stable Dividend: BVN's dividend payments have been volatile in the past 10 years.

Growing Dividend: BVN's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: BVN is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: BVN's dividends in 3 years are forecast to be well covered by earnings (17.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.0yrs

Average management tenure


CEO

Víctor Gobitz Colchado (54yo)

3.1yrs

Tenure

0

Mr. Victor Gobitz Colchado has been Chief Executive Officer and President of Compañía de Minas Buenaventura S.A.A. since January 1, 2017 and alos serves as its General Manager. Mr. Colchado serves as the C ...


Leadership Team

NamePositionTenureCompensationOwnership
Víctor Gobitz Colchado
GM, CEO & President3.1yrsno datano data
Leandro Luis Martin Garcia Raggio
VP & CFO2.2yrsno datano data
Juan Carlos Ortiz Zevallos
Vice President of Operations1.8yrsno datano data
Pedro Torres T.
Accounting Manager0yrsno datano data
Gulnara La Rosa R.
General Counsel0yrsno datano data
Jose Lopez La Torre
Director of Compliance0yrsno datano data
John Collao Guanilo
Director of Sales0yrsno datano data
Jose Malca La Fuente
Human Resources Manager1.4yrsno datano data
Juan Carlos Salazar Caceres
Explorations Manager0yrsno datano data
Julio Meza P.
Geology Manager0yrsno datano data

2.0yrs

Average Tenure

52yo

Average Age

Experienced Management: BVN's management team is not considered experienced ( 2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Roque Eduardo Benavides Ganoza
Chairman of the Board8.9yrsno data5.48% $171.3m
José Miguel Marales Morales Dasso
Director7.6yrsno data5.56% $174.0m
Felipe Arturo Ortiz de Zevallos Madueño
Independent Director8.9yrsno datano data
Germán Suárez Chávez
Independent Director14.9yrsno datano data
William Champion
Independent Director4.1yrsno datano data
Diego Eduardo Martín de la Torre de la Piedra
Independent Director2.9yrsno data0.0057% $178.8k
Nicole Edel Laure Marie Bernex De Falen
Independent Director2.1yrsno datano data

7.6yrs

Average Tenure

69yo

Average Age

Experienced Board: BVN's board of directors are considered experienced (7.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Compañía de Minas Buenaventura S.A.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Compañía de Minas Buenaventura S.A.A.
  • Ticker: BVN
  • Exchange: NYSE
  • Founded: 1953
  • Industry: Gold
  • Sector: Materials
  • Market Cap: US$3.127b
  • Shares outstanding: 253.99m
  • Website: https://www.buenaventura.com

Location

  • Compañía de Minas Buenaventura S.A.A.
  • Calle Las Begonias 415
  • San Isidro
  • Lima
  • 27
  • Peru

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BUENAVC1BVL (Bolsa de Valores de Lima)Common SharesPEPENSep 1993
BUENAVI1BVL (Bolsa de Valores de Lima)Investment SharesPEPENMay 1994
BVNNYSE (New York Stock Exchange)YesSPON ADR REP 1 COM PEN10USUSDMay 1996
BVNBVL (Bolsa de Valores de Lima)YesSPON ADR REP 1 COM PEN10PEUSDMay 1996
MBUDB (Deutsche Boerse AG)YesSPON ADR REP 1 COM PEN10DEEURMay 1996
BVN NBMV (Bolsa Mexicana de Valores)YesSPON ADR REP 1 COM PEN10MXMXNMay 1996

Biography

Compañía de Minas Buenaventura S.A.A., a precious metals company, engages in the exploration, mining, and processing of gold, silver, lead, zinc, and copper metals in Peru, the United States, Europe, and Asia. The company operates five operating mining units, including Uchucchacua, Orcopampa, Julcani, Mallay, and Tambomayo in Peru; and San Gabriel, a mining unit under development stage. It also owns interests in Colquijirca-Marcapunta, Tantahuatay, La Zanja, Yanacocha, Cerro Verde, Yumpag, Daniela, Ccelloccasa, San Gregorio, and Tambomayo mines, as well as Trapiche, a mining unit at the development stage. In addition, the company produces manganese sulphate, which is used in agriculture and mining industries. Further, it provides electrical transmission services; energy generation services through hydroelectric power plants; and insurance brokerage services, as well as processes chemicals. The company was founded in 1953 and is based in Lima, Peru. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 23:33
End of Day Share Price2020/02/14 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.