South32 Ltd
S32: XASX (AUS)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| A$2.20 | Dzx | Vdnbxyfr |
South32's Fair Value Estimate Modestly Lowered on Exit From Metallurgical Coal
Business Strategy and Outlook
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.