As part of our ongoing series here at The Acquirer’s Multiple, we provide this feature article titled ‘Stock in Focus‘ where we focus on one of the stocks from our Stock Screeners.
One of the cheapest stocks in our Stock Screeners is Sibanye Stillwater Ltd (NYSE: SBSW).
Sibanye Stillwater Ltd is a South Africa-focused mining company. The Group currently owns and operates five underground and surface gold operations in South Africa: the Cooke, DRDGOLD, Driefontein, and Kloof operations in the West Witwatersrand region, and the Beatrix Operation in the southern Free State province. In addition to mining, the company owns and manages extraction and processing facilities at its operations, where gold-bearing ore is treated and beneficiated to produce gold dore. The gold dore is further refined at Rand Refinery into gold bars with a purity of at least 99.5% and is then sold on international markets. Sibanye holds a 44% interest in Rand Refinery, global refiners of gold, and the largest in Africa. Rand Refinery markets gold to customers around the world.
A quick look at the share price history for Sibanye Stillwater Ltd (below) over the past twelve months shows that the price is up 38%. Here’s why the company is undervalued.
Market Cap: $10.86 Billion
Enterprise Value: $10.90 Billion
Operating Earnings: $2.55 Billion
Acquirer’s Multiple: 4.27
Free Cash Flow (TTM)
Free Cash Flow: $1.1 Billion
FCF/EV Yield: 10%
Piotroski F-Score: 7
Altman Z-Score: 4.04
Beneish M-Score: -2.06
Shareholder Yield: 5%
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