Barrick Mining (NYSE:B) stock looks fairly priced – making it an ambivalent pick to buy at its current price of around $18.90. We believe there are a couple of concerns with Barrick stock, which makes it fairly priced given that its current valuation looks moderate.
We arrive at our conclusion by comparing the current valuation of Barrick stock with its operating performance over the recent years as well as its current and historical financial condition. Our analysis of Barrick Mining along key parameters of Growth, Profitability, Financial Stability, and Downturn Resilience shows that the company has a moderate operating performance and financial condition, as detailed below. That said, if you seek upside with lower volatility than individual stocks, the Trefis High Quality portfolio presents an alternative – having outperformed the S&P 500 and generated returns exceeding 91% since its inception.
How Does Barrick Mining’s Valuation Look vs. The S&P 500?
Going by what you pay per dollar of sales or profit, Barrick stock looks slightly cheap compared to the broader market.
• Barrick Mining has a price-to-sales (P/S) ratio of 2.5 vs. a figure of 2.8 for the S&P 500
• Additionally, the company’s price-to-free cash flow (P/FCF) ratio is 7.3 compared to 17.6 for S&P 500
• And, it has a price-to-earnings (P/E) ratio of 15.3 vs. the benchmark’s 24.5
How Have Barrick Mining’s Revenues Grown Over Recent Years?
Barrick Mining’s Revenues have seen notable growth over recent years.
• Barrick Mining has seen its top line grow at an average rate of 2.9% over the last 3 years (vs. increase of 6.2% for S&P 500)
• Its revenues have grown 13.4% from $11 Bil to $13 Bil in the last 12 months (vs. growth of 5.3% for S&P 500)
• Also, its quarterly revenues grew 19.2% to $3.6 Bil in the most recent quarter from $3.1 Bil a year ago (vs. 4.9% improvement for S&P 500)
How Profitable Is Barrick Mining?
Barrick Mining’s profit margins are higher than most companies in the Trefis coverage universe.
• Barrick Mining’s Operating Income over the last four quarters was $4.2 Bil, which represents a high Operating Margin of 32.4% (vs. 13.1% for S&P 500)
• Barrick Mining’s Operating Cash Flow (OCF) over this period was $4.5 Bil, pointing to a high OCF Margin of 34.8% (vs. 15.7% for S&P 500)
• For the last four-quarter period, Barrick Mining’s Net Income was $2.1 Bil – indicating a moderate Net Income Margin of 16.6% (vs. 11.3% for S&P 500)
Does Barrick Mining Look Financially Stable?
Barrick Mining’s balance sheet looks fine.
• Barrick Mining’s Debt figure was $5.3 Bil at the end of the most recent quarter, while its market capitalization is $33 Bil (as of 5/21/2025). This implies a moderate Debt-to-Equity Ratio of 16.0% (vs. 21.5% for S&P 500). [Note: A low Debt-to-Equity Ratio is desirable]
• Cash (including cash equivalents) makes up $4.1 Bil of the $48 Bil in Total Assets for Barrick Mining. This yields a moderate Cash-to-Assets Ratio of 8.6% (vs. 15.0% for S&P 500)
How Resilient Is B Stock During A Downturn?
Barrick stock has fared worse than the benchmark S&P 500 index during some of the recent downturns. While investors have their fingers crossed for a soft landing by the U.S. economy, how bad can things get if there is another recession? Our dashboard How Low Can Stocks Go During A Market Crash captures how key stocks fared during and after the last six market crashes.
Inflation Shock (2022)
• Bsrrick stock fell 48.8% from a high of $25.58 on 13 April 2022 to $13.10 on 3 November 2022, vs. a peak-to-trough decline of 25.4% for the S&P 500
• The stock is yet to recover to its pre-Crisis high
• The highest the stock has reached since then is $21.19 on 22 October 2024 and currently trades at around $18.90
Covid Pandemic (2020)
• Barrick stock fell 42.3% from a high of $30.46 on 9 September 2020 to $17.58 on 29 September 2021, vs. a peak-to-trough decline of 33.9% for the S&P 500
• The stock is yet to recover to its pre-Crisis high
Global Financial Crisis (2008)
• Barrick stock fell 66.1% from a high of $53.57 on 28 January 2008 to $18.14 on 27 October 2008, vs. a peak-to-trough decline of 56.8% for the S&P 500
• The stock fully recovered to its pre-Crisis peak by 3 December 2010
Putting All The Pieces Together: What It Means For B Stock
In summary, Barrick Mining’s performance across the parameters detailed above are as follows:
• Growth: Very Strong
• Profitability: Strong
• Financial Stability: Neutral
• Downturn Resilience: Very Weak
• Overall: Neutral
This is aligned with the stock’s moderate valuation because of which we think it is fairly priced, which supports our conclusion that B is an ambivalent stock to buy.
While it doesn’t look like there is much upside to Barrick stock, the Trefis Reinforced Value (RV) Portfolio, which has outperformed its all-cap stocks benchmark (combination of the S&P 500, S&P mid-cap, and Russell 2000 benchmark indices) to produce strong returns for investors. Why is that? The quarterly rebalanced mix of large-, mid- and small-cap RV Portfolio stocks provided a responsive way to make the most of upbeat market conditions while limiting losses when markets head south, as detailed in RV Portfolio performance metrics.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
