Gold stocks are a great place to put that portion of your money that can’t, for whatever reason, be devoted to physical bullion. In this article, we examine and rank the top 15 gold stocks trading on major indices in the U.S. Our rankings are based almost entirely on financial and share data, and we provide a run-down of each stock’s current status below. The criteria are as follows:
- Share price: The current price per share of the stock.
- Market capitalization: The total value of all outstanding shares (i.e., share price multipled by the number of shares the stock has).
- Price-to-earnings ratio: The stock’s share price divided by its most recent earnings per share (EPS). This is a popular measure of a stock’s valuation. In general, low P/Es are preferable, but the best growth stocks tend to have high P/Es. You have to decide if the stock is worth a premium P/E. (See PEG ratio).
- Price-to-book ratio: This stat compares the stock’s share price to its net-asset value, or book value. Book value is equal to the total worth of a company’s assets minus its liabilities. In this case, the book value per share is considered. Whenever a stock is trading at a price-to-book ratio of less than 1.0, it means that it is trading at a discount to its liquidation value.
- Price-to-sales ratio: Similar to the other ratios, only this one considers the total revenue of the company, rather than its earnings, book value, or cash flow (see below).
- Price-to-cash-flow ratio: “Earnings” is an accounting term. “Cash flow” is the real inflow and outflow of cash to and from a business. Earnings and cash flow can be different due to various “paper” earnings and losses—things such as depreciation and ammortization immediately come to mind.
- Dividend yield: This is the amount paid in annual dividends divided by share price.
- PEG ratio: “PEG” is price-to-earnings ratio divided by projected growth rate. This is a way of seeing if a stock’s P/E is “worth it.” Of course, PEG is not foolproof. But in general, lower PEGs are seen as being more desirable.
- Earnings per share (EPS) change last quarter: The change in earnings per share for the most recent quarter, on a year-over-year basis. This compares the stock’s EPS for the most recent quarter to its EPS from the same quarter last year (i.e., Q2-2012 would be compared to Q2-2011; not Q1-2012).
- Average EPS growth for past three quarters: This is the average change in EPS, on a year-over-year basis, for each of the past three quarters. This average is compounded, so a value of 10% means 10% per quarter, not 10% total for the three quarters.
- Estimated EPS change for current fiscal year: Just what it says.
- Sales change last quarter: This one is also obvious.
- Three-year sales growth rate: As is this one. The growth rate here is also compounded and not merely a total of the three-year growth.
- Pretax profit margin: The company’s profits as a percentage of sales, prior to Uncle Sam taking his share.
- Annual return on equity: The amount of net income divided by shareholder’s equity (shareholder’s equity is equal to the difference between assets and liabilities). Higher is better.
- Debt-to-equity ratio: The amount of long-term debt as compared to shareholder’s equity (see above). The lower this number, generally, the better.
Note: A value of “–” means there was no data available.
So, without further ado, here is the list:
1. Yamana Gold (Ticker: AUY)
Share price: $14.55
Market capitalization: $10.85 billion
Price-to-earnings ratio: 19.6
Price-to-book ratio: 1.5
Price-to-sales ratio: 5.0
Price-to-cash-flow ratio: 8.8
Dividend yield: 1.2%
PEG ratio: 0.1
Earnings per share (EPS) change last quarter: 9%
Average EPS growth for past three quarters: 74%
Estimated EPS change for current fiscal year: 21.9%
Sales change last quarter: 6%
Three-year sales growth rate: 44%
Pretax profit margin: 46.7%
Annual return on equity: 9.8%
Debt-to-equity ratio: 6%
2. Iamgold Corp (Ticker: IAG)
Share price: $12.45
Market capitalization: $4.68 billion
Price-to-earnings ratio: 5.8
Price-to-book ratio: 1.3
Price-to-sales ratio: 2.8
Price-to-cash-flow ratio: 7.9
Dividend yield: 1.8%
PEG ratio: 0.2
Earnings per share (EPS) change last quarter: -9%
Average EPS growth for past three quarters: 100%
Estimated EPS change for current fiscal year: 24.1%
Sales change last quarter: 9%
Three-year sales growth rate: 27%
Pretax profit margin: 38.9%
Annual return on equity: 13.2%
Debt-to-equity ratio: 0%
3. Eldorado Gold Corp (Ticker: EGO)
Share price: $13.98
Market capitalization: $7.71 billion
Price-to-earnings ratio: 24.1
Price-to-book ratio: 3.1
Price-to-sales ratio: 7.0
Price-to-cash-flow ratio: 15.1
Dividend yield: 1.1%
PEG ratio: 3.1
Earnings per share (EPS) change last quarter: 100%
Average EPS growth for past three quarters: 62%
Estimated EPS change for current fiscal year: 29.3%
Sales change last quarter: 42%
Three-year sales growth rate: 74%
Pretax profit margin: 46.7%
Annual return on equity: 10.3%
Debt-to-equity ratio: 0%
4. Kinross Gold Corporation (Ticker: KGC)
Share price: $9.01
Market capitalization: $10.26 billion
Price-to-earnings ratio: -4.9
Price-to-book ratio: 0.8
Price-to-sales ratio: 2.6
Price-to-cash-flow ratio: 7.2
Dividend yield: 1.6%
PEG ratio: 0.1
Earnings per share (EPS) change last quarter: 21%
Average EPS growth for past three quarters: 35%
Estimated EPS change for current fiscal year: 26%
Sales change last quarter: 3%
Three-year sales growth rate: 33%
Pretax profit margin: 34.5%
Annual return on equity: 6.5%
Debt-to-equity ratio: 13%
5. Newmont Mining Corp (Ticker: NEM)
Share price: $47.47
Market capitalization: $23.5 billion
Price-to-earnings ratio: 47.4
Price-to-book ratio: 1.8
Price-to-sales ratio: 2.3
Price-to-cash-flow ratio: 6.7
Dividend yield: 2.5%
PEG ratio: 0.7
Earnings per share (EPS) change last quarter: -1%
Average EPS growth for past three quarters: 11%
Estimated EPS change for current fiscal year: 11.3%
Sales change last quarter: 9%
Three-year sales growth rate: 24%
Pretax profit margin: 34.4%
Annual return on equity: 16.5%
Debt-to-equity ratio: 28%
6. Barrick Gold Corporation (Ticker: ABX)
Share price: $39.97
Market capitalization: $40 billion
Price-to-earnings ratio: 8.9
Price-to-book ratio: 1.7
Price-to-sales ratio: 2.8
Price-to-cash-flow ratio: 7.5
Dividend yield: 1.4
PEG ratio: 0.3
Earnings per share (EPS) change last quarter: 18%
Average EPS growth for past three quarters: 37%
Estimated EPS change for current fiscal year: 7.3%
Sales change last quarter: 26%
Three-year sales growth rate: 26%
Pretax profit margin: 48.8%
Annual return on equity: 21.4%
Debt-to-equity ratio: 56%
7. Harmony Gold Mining Company (Ticker: HMY)
Share price: $9.75
Market capitalization: $4.2 billion
Price-to-earnings ratio: 51.3
Price-to-book ratio: 0.9
Price-to-sales ratio: 2.4
Price-to-cash-flow ratio: 12.3
Dividend yield: 1.3%
PEG ratio: 0.3
Earnings per share (EPS) change last quarter: 200%
Average EPS growth for past three quarters: —
Estimated EPS change for current fiscal year: 165.6%
Sales change last quarter: 32%
Three-year sales growth rate: 17%
Pretax profit margin: 6.1%
Annual return on equity: -1.5%
Debt-to-equity ratio: —
8. Gold Fields Ltd (Ticker: GFI)
Share price: $12.82
Market capitalization: $9.28 billion
Price-to-earnings ratio: 25.6
Price-to-book ratio: 1.4
Price-to-sales ratio: 2.1
Price-to-cash-flow ratio: 7.1
Dividend yield: 3.5%
PEG ratio: —
Earnings per share (EPS) change last quarter: 48%
Average EPS growth for past three quarters: 59%
Estimated EPS change for current fiscal year: 38.3%
Sales change last quarter: 9%
Three-year sales growth rate: 25%
Pretax profit margin: 25.9%
Annual return on equity: 8.3%
Debt-to-equity ratio: 7%
9. Goldcorp, Inc. (Ticker: GG)
Share price: $41.05
Market capitalization: $33.26 billion
Price-to-earnings ratio: 18.8
Price-to-book ratio: 1.6
Price-to-sales ratio: 6.3
Price-to-cash-flow ratio: 14.3
Dividend yield: 1.1%
PEG ratio: 0.2
Earnings per share (EPS) change last quarter: 2%
Average EPS growth for past three quarters: 28%
Estimated EPS change for current fiscal year: 11.6%
Sales change last quarter: 15%
Three-year sales growth rate: 35%
Pretax profit margin: 46.6%
Annual return on equity: 8.8%
Debt-to-equity ratio: 3%
10. Anglogold Ashanti (Ticker: AU)
Share price: $34.08
Market capitalization: $13 billion
Price-to-earnings ratio: 11.5
Price-to-book ratio: 2.5
Price-to-sales ratio: 2.2
Price-to-cash-flow ratio: 5.7
Dividend yield: 1.5%
PEG ratio: —
Earnings per share (EPS) change last quarter: 223%
Average EPS growth for past three quarters: —
Estimated EPS change for current fiscal year: 22.4%
Sales change last quarter: 11%
Three-year sales growth rate: 29%
Pretax profit margin: 9.8%
Annual return on equity: 2.9%
Debt-to-equity ratio: —
11. AuRico Gold (Ticker: AUQ)
Share price: $8.58
Market capitalization: $2.42 billion
Price-to-earnings ratio: 11.6
Price-to-book ratio: 1.1
Price-to-sales ratio: 4.0
Price-to-cash-flow ratio: 10.0
Dividend yield: —
PEG ratio: 0.1
Earnings per share (EPS) change last quarter: 48%
Average EPS growth for past three quarters: 165%
Estimated EPS change for current fiscal year: -33%
Sales change last quarter: 118%
Three-year sales growth rate: 26%
Pretax profit margin: 29.4%
Annual return on equity: -20.2%
Debt-to-equity ratio: 4%
12. Agnico-Eagle Mines (Ticker: AEM)
Share price: $34.41
Market capitalization: $5.88 billion
Price-to-earnings ratio: -9.8
Price-to-book ratio: 1.8
Price-to-sales ratio: 3.1
Price-to-cash-flow ratio: 8.4
Dividend yield: 2.1%
PEG ratio: 1.2
Earnings per share (EPS) change last quarter: -18%
Average EPS growth for past three quarters: 6%
Estimated EPS change for current fiscal year: -5.6%
Sales change last quarter: -1%
Three-year sales growth rate: 100%
Pretax profit margin: 28.3%
Annual return on equity: 9.7%
Debt-to-equity ratio: 29%
13. Buenaventura Mining Company Inc. (Ticker: BVN)
Share price: $40.95
Market capitalization: $10.42 billion
Price-to-earnings ratio: 12.2
Price-to-book ratio: 3.5
Price-to-sales ratio: 6.7
Price-to-cash-flow ratio: 16.9
Dividend yield: 1.5%
PEG ratio: —
Earnings per share (EPS) change last quarter: 1%
Average EPS growth for past three quarters: 34%
Estimated EPS change for current fiscal year: 10.3%
Sales change last quarter: 1%
Three-year sales growth rate: 30%
Pretax profit margin: 75.6%
Annual return on equity: 30%
Debt-to-equity ratio: 3%
14. DRD Gold Limited (Ticker: DRD)
Share price: $6.62
Market capitalization: $255.12 million
Price-to-earnings ratio: -6.9
Price-to-book ratio: 1.6
Price-to-sales ratio: 0.8
Price-to-cash-flow ratio: 6.1
Dividend yield: 1.2%
PEG ratio: —
Earnings per share (EPS) change last quarter: —
Average EPS growth for past three quarters: 174%
Estimated EPS change for current fiscal year: —
Sales change last quarter: 9%
Three-year sales growth rate: 11%
Pretax profit margin: —
Annual return on equity: 64.8%
Debt-to-equity ratio: 0%
15. Golden Star Resources Ltd (Ticker: GSS)
Share price: $1.60
Market capitalization: $413.88 million
Price-to-earnings ratio: -200.0
Price-to-book ratio: 0.9
Price-to-sales ratio: 0.9
Price-to-cash-flow ratio: 17.5
Dividend yield: 0%
PEG ratio: —
Earnings per share (EPS) change last quarter: 160%
Average EPS growth for past three quarters: —
Estimated EPS change for current fiscal year: —
Sales change last quarter: 13%
Three-year sales growth rate: 20%
Pretax profit margin: 1.8%
Annual return on equity: -0.5%
Debt-to-equity ratio: 2%