Gold Fields Limited American Depositary Shares (GFI)

FairStock Score: 72/100 — STEADY

Key Financials

Strengths

• Generates $2.5 billion in annual free cash flow (6.4% yield on market cap)
• High return on equity of 51.9% demonstrating efficient capital deployment
• Conservative balance sheet with debt-to-equity of just 0.37, providing financial flexibility
• Altman Z-Score of 4.4 confirms minimal bankruptcy risk and strong solvency
• Attractive 5.1% dividend yield providing steady income returns

Concerns

• Trades significantly above Graham Number ($29) with negative 54% margin of safety—limited downside protection
• Weak Piotroski F-Score of 2/9 suggests deteriorating financial quality across multiple dimensions

AI Analysis

Gold Fields Limited American Depositary Shares is a mid-cap basic materials company valued at $39.8 billion. The business generates $8.8 billion in annual revenue with a 2.1% net margin and $2.5 billion in free cash flow. From a quality standpoint, Gold shows weak Piotroski F-Score of 2/9 signaling deteriorating fundamentals and healthy Altman Z-Score of 4.4. On valuation, the stock is attractively valued at 11.2x earnings, with trades above its Graham Number with a negative 54% margin. The 5.1% dividend yield adds an income component for patient holders. Our composite FairStock Score of 71/100 reflects above-average fundamentals overall. This combination of reasonable valuation, solid returns, and conservative leverage makes it worth a closer look for value-oriented portfolios.

Bull Case

The market underappreciates Gold's consistent 52% ROE at just 11x earnings—a re-rating toward sector peers could unlock 30-50% upside. With $2.5 billion in annual free cash flow (6.4% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the basic materials space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer