By Rob Otman
B2Gold (NYSE: BTG) is a mid cap company that operates within the metals and mining industry. Its market cap is $3 billion today and the total one-year return is -3.68% for shareholders.
B2Gold stock is underperforming the market. It’s beaten down, but it reports earnings soon. So is it a good time to buy? To answer this question we’ve turned to the Investment U Stock Grader. Our research team built this system to diagnose the financial health of a company.
Our system looks at six key metrics…[iu-adbox]
✗ Earnings-per-Share (EPS) Growth: B2Gold reported a recent EPS growth rate of -75%. That’s below the metals and mining industry average of 225.47%. That’s not a good sign. We like to see companies that have higher earnings growth.
✗ Price-to-Earnings (P/E): The average price-to-earnings ratio of the metals and mining industry is 31. And B2Gold’s ratio comes in at 223.08. Its valuation looks expensive compared to many of its competitors.
✓ Debt-to-Equity: The debt-to-equity ratio for B2Gold stock is 43.46%. That’s below the metals and mining industry average of 74.94%. That’s a good sign. B2Gold’s debt levels are not out of control.
✗ Free Cash Flow per Share Growth: B2Gold has decreased its FCF per share over the last year relative to its competitors. That’s not good for investors. In general, if a company is growing its FCF, it will be able to pay down debt, buy back stock, pay out more in dividends and/or invest money back into the business to help boost growth.
✓ Profit Margins: The profit margin of B2Gold comes in at 7.43% today. And generally, the higher, the better. We also like to see this ratio above competitors. B2Gold’s profit margin is above the metals and mining average of -31.27%. So that’s a positive indicator for investors.
✗ Return on Equity: Return on equity gives us a look at the amount of net income returned to shareholders. The ROE for B2Gold is 2.27% and that’s below its industry average ROE of 13.47%.
B2Gold stock passes two of our six key metrics today. That’s why our Investment U Stock Grader gives it a Hold with Caution.
Please note that our fundamental factor checklist is just the first step in performing your own due diligence. There are many other factors you should consider before investing. That’s why The Oxford Club offers more than a dozen newsletters and trading advisories all aimed at helping investors grow and maintain their wealth.
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Source:: Investment You