Buy Barrick Stock At $19?

Barrick Mining (NYSE:B) stock appears to be fairly valued – which makes it a neutral choice to buy at its present price of approximately $18.90. We have identified a few concerns regarding Barrick stock, which contribute to its fair valuation given that its current assessment seems moderate.

We reached our conclusion by analyzing the current valuation of Barrick stock in relation to its operational performance over the past few years as well as its current and historical financial situation. Our assessment of Barrick Mining across significant metrics such as Growth, Profitability, Financial Stability, and Resilience During Downturns indicates that the company exhibits a moderate operating performance and financial health, as elaborated below. However, if you are looking for potential upside with lower volatility than that of individual stocks, the Trefis High Quality portfolio offers an alternative – having surpassed the S&P 500 and delivering returns greater than 91% since its inception.

How Does Barrick Mining’s Valuation Compare to The S&P 500?

In terms of what you pay for each dollar of sales or profit, Barrick stock appears slightly undervalued compared to the overall market.

• Barrick Mining has a price-to-sales (P/S) ratio of 2.5 compared to a figure of 2.8 for the S&P 500
• Furthermore, the company’s price-to-free cash flow (P/FCF) ratio stands at 7.3 versus 17.6 for the S&P 500
• Moreover, its price-to-earnings (P/E) ratio is 15.3 compared to the benchmark’s 24.5

How Have Barrick Mining’s Revenues Increased in Recent Years?

Barrick Mining’s Revenues have experienced significant growth in recent years.

• Barrick Mining has witnessed its top line expand at an average rate of 2.9% over the last 3 years (versus an increase of 6.2% for the S&P 500)
• Its revenues have increased 13.4% from $11 Billion to $13 Billion in the past 12 months (against a growth of 5.3% for the S&P 500)
• Additionally, its quarterly revenues rose 19.2% to $3.6 Billion in the latest quarter from $3.1 Billion a year earlier (compared to a 4.9% improvement for the S&P 500)

What Is Barrick Mining’s Profitability?

Barrick Mining’s profit margins exceed those of most companies in the Trefis coverage universe.

• Barrick Mining’s Operating Income during the last four quarters was $4.2 Billion, reflecting a high Operating Margin of 32.4% (compared to 13.1% for the S&P 500)
• Barrick Mining’s Operating Cash Flow (OCF) for this period was $4.5 Billion, indicating a high OCF Margin of 34.8% (versus 15.7% for the S&P 500)
• For the last four-quarter period, Barrick Mining’s Net Income totaled $2.1 Billion – demonstrating a moderate Net Income Margin of 16.6% (compared to 11.3% for the S&P 500)

Is Barrick Mining Financially Stable?

Barrick Mining’s balance sheet appears to be adequate.

• Barrick Mining’s Debt amount was $5.3 Billion at the close of the most recent quarter, while its market capitalization is $33 Billion (as of 5/21/2025). This results in a moderate Debt-to-Equity Ratio of 16.0% (versus 21.5% for the S&P 500). [Note: A low Debt-to-Equity Ratio is preferable]

• Cash (including cash equivalents) constitutes $4.1 Billion of the $48 Billion in Total Assets for Barrick Mining. This results in a moderate Cash-to-Assets Ratio of 8.6% (compared to 15.0% for the S&P 500)

How Resilient Is B Stock During A Downturn?

Barrick stock has underperformed against the benchmark S&P 500 index during various recent downturns. While investors are hopeful for a gentle landing in the U.S. economy, how severe could it become if another recession occurs? Our dashboard How Low Can Stocks Go During A Market Crash illustrates how key stocks performed during and following the last six market crashes.

Inflation Shock (2022)

• Barrick stock declined 48.8% from a high of $25.58 on 13 April 2022 to $13.10 on 3 November 2022, compared to a peak-to-trough drop of 25.4% for the S&P 500
• The stock has not yet recovered to its pre-Crisis high
• The highest price for the stock since then was $21.19 on 22 October 2024, and it currently trades at approximately $18.90

Covid Pandemic (2020)

• Barrick stock decreased 42.3% from a high of $30.46 on 9 September 2020 to $17.58 on 29 September 2021, while the peak-to-trough fall for the S&P 500 was 33.9%
• The stock has not yet recovered 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, while the peak-to-trough drop for the S&P 500 was 56.8%
• The stock fully rebounded to its pre-Crisis peak by 3 December 2010

Bringing Everything Together: Implications for B Stock

To summarize, Barrick Mining’s performance across the parameters highlighted above is as follows:

• Growth: Very Strong
• Profitability: Strong
• Financial Stability: Neutral
• Resilience During Downturns: Very Weak
• Overall: Neutral

This aligns with the stock’s moderate valuation, which is why we consider it to be fairly priced, reinforcing our assessment that B is an ambivalent stock to buy.

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