South32 is a diversified midtier global mining company spun out from BHP in 2015. South32 has commodity diversification and its operations are generally in the bottom half of their industry cost curves. However, they generally lack maintainable competitive advantage given relatively high capital intensity, a lack of barriers to entry, and in some cases, relatively short reserve life.
South32 is a beneficiary of continued global population growth, urbanization and increased demand for commodities from industrialization.
The desire to diversify earnings into base metals and the need to eventually replace depletion presents a longer-term risk for missteps, with a major acquisition the key risk to the balance sheet.
|
Metric
|
S32
|
BHP
|
NGLOY
|
|---|---|---|---|
Price/Earnings (Normalized) | 27.22 | 11.58 | 13.73 |
Price/Book Value | 1.30 | 3.77 | 1.62 |
Price/Sales | 1.70 | 2.83 | 1.33 |
Price/Cash Flow | 12.75 | 7.32 | 5.89 |
|
Metric
|
S32
|
BHP
|
NGLOY
|
|---|---|---|---|
Quick Ratio | 1.00 | 1.08 | 1.06 |
Current Ratio | 1.84 | 1.57 | 1.85 |
Interest Coverage | −2.82 | 7.59 | 4.20 |
|
Metric
|
S32
|
BHP
|
NGLOY
|
|---|---|---|---|
Return on Assets (Normalized) | 2.66% | 13.90% | 3.73% |
Return on Equity (Normalized) | 4.10% | 31.67% | 9.49% |
Return on Invested Capital (Normalized) | 3.39% | 21.70% | 6.06% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
BHPLF
| BHP Group Ltd | G | Vxwhl | $151.7 Bil | |
BHP
| BHP Group Ltd ADR | Lpdhrjhcy | Dqb | $151.7 Bil | |
RTNTF
| Rio Tinto Ltd | — | Gwg | $141.6 Bil | |
RIO
| Rio Tinto PLC ADR | Tzhmvmkg | Ywxzh | $116.9 Bil | |
VALE
| Vale SA ADR | Ktnh | Vkdf | $54.0 Bil | |
NGLOY
| Anglo American PLC ADR | Pdfpdpprp | Brtpj | $40.4 Bil | |
TECK
| Teck Resources Ltd Class B (Sub Voting) | Frhdzynw | Xmzm | $26.7 Bil | |
LAC
| Lithium Americas Corp | Hqmgnymp | Ykqb | $835.6 Mil | |
LAAC
| Lithium Americas (Argentina) Corp | Mfccnbwzc | Szkynxh | $771.3 Mil | |
CMP
| Compass Minerals International Inc | Rrtvhggtj | Fggpmh | $517.5 Mil |
