GFIGold Fields Limited
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (1.1×).
Operating profit is fully backed by cash.
Profits are tracking sales roughly one-for-one, limited operating leverage either way.
Margin-driven, fat margins on slower asset turns. ROE 24% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is GFI?
Gold Fields Limited earns 26% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 17 points above what the capital costs: growth creates value
- Operating margin
- 44%
Operating margin · Gold median 38% · fiscal year to FY2024
- Cash conversion
- 1.09×
Cash conversion · 1.14× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +0.05%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2019 | 29% |
| FY2020 | 44% |
| FY2021 | 42% |
| FY2022 | 39% |
| FY2023 | 38% |
| FY2024 | 44% |
Details›
- Gross marginfiscal year to FY2024
- 45%
- Operating marginfiscal year to FY2024
- 44%
- Net marginfiscal year to FY2024
- 24%
- Free cash flow margin
- 8.1%
- Revenue, trailing twelve months
- $5.20B
- Free cash flow, trailing twelve months
- $424M
- Net income, trailing twelve months
- $1.25B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 26%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.