Sibanye Gold Limited (NYSE:SBGL) has been downgraded by Macquarie on August 28 which now rates the stock as Underperform compared with Neutral rating suggested in the past. Analysts at Citigroup, shed their positive views on June 27 by lowering it fromBuy to Neutral. The stock won favor of Goldman analysts who expressed their confidence in it using an upgrade from Neutral to Buy on March 26.
Sibanye Gold Limited (SBGL) hit an intraday high Tuesday at $4.25. The shares finished at $4.19, after trading as low as $4.11 earlier in the session. It rose 0.48% in recent trade and currently has a stock-market value of $2.14B. Trading activity significantly weakened as the volume at ready counter decreased to 3,876,052 shares versus 4,083,865 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 3,785,269 shares. The stock is now 107.43% above against its bear-market low of $2.02 on August 17, 2018. It has retreated -14.08% since it’s 52-week high of $4.78 reached in February. Now the market price is up 7.6% on the year and up 48.06% YTD.
SBGL’s 50 day simple moving average (SMA 50) price is $2.97 and its 200-day simple moving average (SMA 200) price is $2.72. The company’s stock currently has a total float of 134.98M shares. Its weekly volatility is hovering around 5.41% and felt 4.74% volatility in price over a month. On the upside, the share price will test short term resistance at around $4.26. On a downside, the stock is likely to find some support, which begins at $4.12. The failure to get near-term support could push it to $4.04.
Wall Street’s most bullish Sibanye Gold Limited (NYSE:SBGL) analysts are predicting the share price to blow past $7.26 per share during the next 12 months. The current median share price forecast by them is $4.24, suggesting that the stock could increase 1.19% in that time frame. The average price target of $4.6 calls for a nearly 9.79% increase in the stock price.
When looking at valuations, Sibanye Gold Limited (SBGL) has a pricey P/E of 74.82x as compared to industry average of 23.15x. Moreover, it trades for 32.23 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 1.27x price/book and 0.58x price/sales. Compared to others, Sibanye Gold Limited is in a different league with regards to profitability, having net margins of 0.9%. To put some perspective around this, the industry’s average net margin is 3.82%. SBGL’s ROE is 2%, which is also considerably worse than the industry’s ROE of 9.63%. It’s also very liquid in the near term, with a current ratio of 1.8. The stock has a debt/capital of 1.13.
For this quarter, Wall Street analysts forecast revenue in a range of $4.76 billion to $4.76 billion, which should be compared with $0 generated last year. EPS is seen in a range of $3574.49 to $3574.49, against the 0 reported a year ago.