South32 is a diversified midtier global mining company spun out from BHP in 2015. It has commodity diversification, and its operations are generally in the bottom half of their industry cost curves. However, they generally lack a 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 present a longer-term risk for missteps, with a major acquisition the key risk to the balance sheet.
|
Metric
|
S32
|
BHP
|
RIO
|
|---|---|---|---|
Price/Earnings (Normalized) | 15.15 | 15.05 | 13.96 |
Price/Book Value | 1.62 | 4.48 | 2.78 |
Price/Sales | 2.73 | 3.76 | 2.92 |
Price/Cash Flow | 10.23 | 9.42 | 8.75 |
|
Metric
|
S32
|
BHP
|
RIO
|
|---|---|---|---|
Quick Ratio | 1.88 | 1.44 | 0.93 |
Current Ratio | 2.44 | 1.88 | 1.42 |
Interest Coverage | 6.26 | 11.36 | 10.65 |
|
Metric
|
S32
|
BHP
|
RIO
|
|---|---|---|---|
Return on Assets (Normalized) | 7.32% | 11.44% | 10.13% |
Return on Equity (Normalized) | 11.12% | 27.20% | 20.84% |
Return on Invested Capital (Normalized) | 9.03% | 17.58% | 15.78% |
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1-Day Chart
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Name
|
Price
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Morningstar Rating for Stocks
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Capital Allocation
|
Economic Moat
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Market Cap
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United States