JSE:GFI

Stock Analysis Report

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Executive Summary

Gold Fields Limited operates as a gold producer with reserves and resources in Chile, South Africa, Ghana, Australia, and Peru.


Snowflake Analysis

Reasonable growth potential with acceptable track record.


Similar Companies

Share Price & News

How has Gold Fields's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-12.5%

GFI

0.5%

ZA Metals and Mining

6.1%

ZA Market


1 Year Return

58.4%

GFI

45.9%

ZA Metals and Mining

-20.8%

ZA Market

Return vs Industry: GFI exceeded the ZA Metals and Mining industry which returned 45.9% over the past year.

Return vs Market: GFI exceeded the ZA Market which returned -20.8% over the past year.


Shareholder returns

GFIIndustryMarket
7 Day-12.5%0.5%6.1%
30 Day-17.5%5.7%6.9%
90 Day7.9%15.1%-3.0%
1 Year61.0%58.4%53.7%45.9%-9.3%-20.8%
3 Year161.2%150.2%193.6%168.9%8.2%-12.5%
5 Year229.7%207.8%205.2%163.7%15.2%-13.9%

Price Volatility Vs. Market

How volatile is Gold Fields's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Gold Fields undervalued compared to its fair value and its price relative to the market?

36.51x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GFI (ZAR120) is trading above our estimate of fair value (ZAR100.91)

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


Price To Earnings Ratio

PE vs Industry: GFI is poor value based on its PE Ratio (36.5x) compared to the Metals and Mining industry average (17.4x).

PE vs Market: GFI is poor value based on its PE Ratio (36.5x) compared to the ZA market (8.4x).


Price to Earnings Growth Ratio

PEG Ratio: GFI is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: GFI is overvalued based on its PB Ratio (2.1x) compared to the ZA Metals and Mining industry average (1x).


Next Steps

Future Growth

How is Gold Fields forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

37.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GFI's forecast earnings growth (37.6% per year) is above the savings rate (9.5%).

Earnings vs Market: GFI's earnings (37.6% per year) are forecast to grow faster than the ZA market (19.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: GFI's revenue (11.2% per year) is forecast to grow faster than the ZA market (8.3% per year).

High Growth Revenue: GFI's revenue (11.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GFI's Return on Equity is forecast to be low in 3 years time (17.2%).


Next Steps

Past Performance

How has Gold Fields performed over the past 5 years?

-4.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GFI has high quality earnings.

Growing Profit Margin: GFI became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: GFI has become profitable over the past 5 years, growing earnings by -4.7% per year.

Accelerating Growth: GFI has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: GFI has become profitable in the last year, making it difficult to compare its past year earnings growth to the Metals and Mining industry (6.4%).


Return on Equity

High ROE: GFI's Return on Equity (6%) is considered low.


Next Steps

Financial Health

How is Gold Fields's financial position?


Financial Position Analysis

Short Term Liabilities: GFI's short term assets ($1.1B) do not cover its short term liabilities ($1.4B).

Long Term Liabilities: GFI's short term assets ($1.1B) do not cover its long term liabilities ($2.3B).


Debt to Equity History and Analysis

Debt Level: GFI's debt to equity ratio (63.5%) is considered high.

Reducing Debt: GFI's debt to equity ratio has increased from 52.2% to 63.5% over the past 5 years.

Debt Coverage: GFI's debt is well covered by operating cash flow (48.2%).

Interest Coverage: GFI's interest payments on its debt are well covered by EBIT (8.4x coverage).


Balance Sheet


Next Steps

Dividend

What is Gold Fields's current dividend yield, its reliability and sustainability?

1.48%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GFI's dividend (1.48%) isn’t notable compared to the bottom 25% of dividend payers in the ZA market (4.19%).

High Dividend: GFI's dividend (1.48%) is low compared to the top 25% of dividend payers in the ZA market (11.59%).


Stability and Growth of Payments

Stable Dividend: GFI is not paying a notable dividend for the ZA market, therefore no need to check if payments are stable.

Growing Dividend: GFI is not paying a notable dividend for the ZA market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: GFI is not paying a notable dividend for the ZA market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GFI's dividend in 3 years as they are not forecast to pay a notable one for the ZA market.


Next Steps

Management

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

6.6yrs

Average management tenure


CEO

Nick Holland (61yo)

12.08yrs

Tenure

US$6,575,500

Compensation

Mr. Nicholas John Holland, also known as Nick, has been the Chief Executive Officer of Gold Fields Limited since May 1, 2008. Mr. Holland has been an Executive Director of Gold Fields Limited since April 1 ...


CEO Compensation Analysis

Compensation vs Market: Nick's total compensation ($USD6.58M) is above average for companies of similar size in the ZA market ($USD2.23M).

Compensation vs Earnings: Nick's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Nicholas Holland
CEO & Executive Director12.08yrsUS$6.58m0.12% $128.2m
Paul Schmidt
Financial Director11.42yrsUS$3.29mno data
Richard Butcher
Executive Vice President of Technical4.33yrsUS$1.79m0.0014% $1.5m
Avishkar Nagaser
Executive Vice President of Investor Relations & Corporate Affairs5.42yrsUS$1.06m0.0056% $6.0m
Taryn Harmse
Executive VP6.08yrsUS$1.78m0.0038% $4.0m
Brett Mattison
Executive Vice President of Strategy7.08yrsUS$2.19m0.0061% $6.5m
Alfred Baku
Executive VP & Head of West Africa7.25yrsUS$4.47mno data
Naseem Chohan
Executive Vice President of Sustainable Development9.75yrsUS$1.52m0.00066% $699.6k
Martin Preece
Executive Vice President of South Africa3.08yrsUS$991.40k0.017% $17.7m
Stuart Mathews
Executive Vice President of Australasia Region3.33yrsUS$2.13mno data

6.6yrs

Average Tenure

53.5yo

Average Age

Experienced Management: GFI's management team is seasoned and experienced (6.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Nicholas Holland
CEO & Executive Director12.08yrsUS$6.58m0.12% $128.2m
Paul Schmidt
Financial Director11.42yrsUS$3.29mno data
Terence Goodlace
Independent Non-Executive Director3.92yrsUS$106.64kno data
Richard Menell
Deputy Chairperson & Lead Independent Director4.83yrsUS$140.46k0.00066% $699.6k
Steven Reid
Independent Non-Executive Director4.33yrsUS$142.23kno data
Cheryl Carolus
Independent Non-Executive Chairperson7.33yrsUS$215.77k0.00035% $371.0k
Peter Bacchus
Independent Non-Executive Director3.75yrsUS$152.20kno data
Alhassan Andani
Independent Non-Executive Director3.83yrsUS$125.31kno data
Yunus G. Suleman
Independent Non-Executive Director3.75yrsUS$136.48kno data
Carmen Letton
Independent Non-Executive Director3.08yrsUS$130.89kno data

4.1yrs

Average Tenure

60yo

Average Age

Experienced Board: GFI's board of directors are considered experienced (4.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: GFI insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.6%.


Top Shareholders

Company Information

Gold Fields Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Gold Fields Limited
  • Ticker: GFI
  • Exchange: JSE
  • Founded: 1887
  • Industry: Gold
  • Sector: Materials
  • Market Cap: R106.000b
  • Shares outstanding: 883.33m
  • Website: https://www.goldfields.com

Number of Employees


Location

  • Gold Fields Limited
  • 150 Helen Road
  • Sandown
  • Sandton
  • Gauteng
  • 2196
  • South Africa

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GFIO.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1975
0QQ8LSE (London Stock Exchange)YesOrdinary SharesGBCHFJan 1975
EDGADB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1975
GFIJSE (The Johannesburg Securities Exchange)YesOrdinary SharesZAZARJan 1975
GFINYSE (New York Stock Exchange)SPONSORED ADRUSUSDMay 1999
EDGDB (Deutsche Boerse AG)SPONSORED ADRDEEURMay 1999

Biography

Gold Fields Limited operates as a gold producer with reserves and resources in Chile, South Africa, Ghana, Australia, and Peru. It holds interests in nine operating mines with an annual gold-equivalent production of approximately 2.2 million ounces, as well as gold mineral reserves of approximately 51.3 million ounces and mineral resources of approximately 115.7 million ounces. The company also holds copper mineral reserves totaling 616 million pounds and mineral resources totaling 882 million pounds. Gold Fields Limited was founded in 1887 and is based in Sandton, South Africa. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/06 20:19
End of Day Share Price2020/06/05 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.