is south32 a good investment

The South32 Ltd (ASX:S32) share price has fallen 4.4% in 2019, offering a good buying opportunity to investors. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. So if you’re looking to get your finances on track and you’re in or near retirement – we’ve got you covered! Get Started Investing You can do it. The Motley Fool Australia » Resources Shares » The South32 share price is down 4.4% in 2019: is it a buy? Looking For Bargain Buys? We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Complete Guide to Planning For Your Retirement, Setting up an SMSF: 10 Things You Need to Know Before Starting, 3 easy steps to building your ASX share portfolio for an early retirement, 4 tips on how to pick winning stocks for your retirement share portfolio, This is the best asset to own to start saving for your early retirement, Commonwealth Bank of Australia (ASX: CBA), Flight Centre Travel Group Ltd (ASX: FLT), Vanguard Australian Shares Index (ASX: VAS), Why the Vulcan (ASX:VUL) share price hit a record high today, Bailador (ASX:BTI) share price jumps 12% on Straker update, Why the Synlait Milk (ASX:SM1) share price was lower today. In its quarterly report to March, the company reported that net cash had increased to US$726 million (AU$1 billion), so it has plenty of funds to continue paying dividends. That has certainly been the case since South32 became a listed entity on the Australian Securities Exchange with some analysts even expecting earnings to slide by more than 50% over the next year if current economic conditions persist. Spending on growth might be good or bad a few years later, but the point is that the P/E ratio does not account for the option (or lack thereof). Listen to Our Podcast We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. South32 Limited real time quote is equal to 2.610 AUD at 2020-12-07, but your current investment may be devalued in the future. Value investing is easily one of the most popular ways to find great stocks in any market environment. He is the Research Analyst for the Motley Fool Pro service and a contributor to fool.com.au. This is low, considering the ROE being achieved, and suggests that South32’s mines are mostly funded by shareholders. But an investment in South32 is by no means low-risk. Scott Phillips has released a FREE stock report revealing 5 stocks that he believes are WAY undervalued by the market at these current prices. Therefore, South32 share will always be in a limbo of good, but not great. South32 Limited has generated a total shareholder return of 7.4% over three years, so most shareholders wouldn't be too disappointed. That exposes shareholders to … For long-term investors, stocks are a good investment even during periods of the market volatility - a stock market downturn means that many stocks are on sale. Important note: South32 is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. He holds a Bachelor of Commerce (Finance) with high distinction from Deakin University and studied his final year abroad in Hong Kong and the USA. Over time, this improved performance should be reflected in the share price. Each company boasts strong growth prospects over the next 3 to 5 years, and most importantly each pays a generous (and fully franked) dividend! I believe 2020 - 2021 is a good time to buy property in America. Find the investing style that's right for you. Authorised by Bruce Jackson. Stay up to date on the latest stock price, chart, news, analysis, fundamentals, trading and investment tools. Past performance is not necessarily indicative of future returns. 12 Stocks To Buy in 2020 (Including 2 Every Investor Should Own), Everything You Need to Know About Tech Investing, The Beginner’s Guide to Investing in Gold. The Motley Fool has a disclosure policy. The Bottom Line On South32’s P/E Ratio South32 has a P/E of 9.5. - Ryan Newman | July 13, 2015 4:51pm | More on: S32. Motley Fool contributor buylowsellhigh5 has no position in any of the stocks mentioned. Below is a brief commentary on these key aspects. ASX 200   |   A     B     C     D     E     F     G     H     I     J     L     M     N     O     P     Q     R     S     T     U     V     W     X. After debuting at $2.13 the stock surged to a high of $2.45 but has since plummeted just over 30%, compared to a 2.2% decline for the benchmark S&P/ASX 200 (Index: ^AXJO) (ASX: XJO). This is a positive situation and suggests that the risks created by fluctuating metal prices are manageable. South32 shares are less expensive than other comparable stocks. By way of background, I've been a multi-property owner in San Francisco, Lake Tahoe, and Honolulu since 2003. Join Our Premium Community Indeed, the assets that it now owns and operates were neglected under the management of BHP Billiton giving South32, led by Graham Kerr, the ability to reduce costs and improve operating efficiencies. As you can see in the chart below, around 29% of South32’s earnings come from South Africa. Listen to Our Podcast This Service provides only general, and not personalised financial advice, and has not taken your personal circumstances into account. Additionally, it has low debt and plenty of cash, which the company is returning to shareholders. For more information please see our Financial Services Guide. Indeed, the assets that it now owns and operates were neglected under the management of BHP Billiton giving South32, led by Graham Kerr, the ability to reduce costs and improve operating efficiencies. Improvements Has South32 Limited Been A Good Investment? Indeed, the assets that it now owns and operates were neglected under the management of BHP Billiton giving South32, led by Graham Kerr, the ability to reduce costs and improve operating efficiencies. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. The company has a debt-to-equity ratio of just 8.7%. Our latest articles and strategies for the post-work life you want. You might find something better in this list of interesting companies with high ROE and low debt. Considering that metals prices have started improving on trade deal hopes, the prospect of highly accelerated earnings is not out of scope for South 32. Coronavirus (Covid-19): Why Is Italy’s Fatality Rate So Bad. Whether you're looking to buy property in an expensive coastal city or whether you're looking to buy property in the heartland of America, the timing is as good as it has ever been in recent history. Please remember that investments can go up and down. I think it’s a buy. The Motley Fool Australia » Investing » Is South32 Ltd a good investment? By clicking this button, you agree to our Terms of Service and Privacy Policy. Ryan’s ultimate goal is to carry out The Motley Fool’s mission: To help the world invest, better. In saying that however, I certainly believe South32 is a stock for your watchlist in case the stock begins trading at a price you simply cannot refuse. So if you’re looking to get your finances on track and you’re in or near retirement – we’ve got you covered! Privacy Policy | If you are looking for stocks with good return, South32 Limited stock can be a bad, high-risk 1-year investment option. If you are looking for stocks with good return, South32 Ltd. stock can be a bad, high-risk 1-year investment option. South32's governance score Governance score: 8.96/100 South32 has a growing ROE and is set to benefit from recent improvements in metals prices. South32’s Balance Sheet Since South32 holds net cash of US$678m, it can spend on growth, justifying a higher P/E ratio than otherwise. Financial Services Guide | Scott thinks these 5 stocks are a 'must consider' for any savvy investor. The Motley Fool Australia does not guarantee the performance of, or returns on any investment. The Aussie miner does give investors a 4.11% dividend yield and boasts a $13.55 billion market capitalisation. Although the group is heavily diversified with a portfolio consisting of no less than 10 commodities which include aluminium, manganese and nickel it is still susceptible to negative movements in the prices of those commodities. S32’s strong ASX standing has been confirmed in the ensuing years and the miner is now ranked … I must say I am not impressed with the company and BHP’s spin off was a smart thing to do for BHP to improve their financial metrics and focus on more profitable ventures. South32 Limited (S32) Overview. This will mean a higher ROE for the fourth financial year in a row. They are safely financed and are good value, but show below average growth. This article contains general investment advice only (under AFSL 400691). South32 is a globally diversified mining and metals company producing bauxite, alumina, ... Operations community investment plans focus on the UN Sustainable Development Goals ... non-government and community-based organisations to promote good health and … This article contains general investment advice only (under AFSL 400691). Ryan’s interest in investing and stocks began at a young age and has only grown through his services with the Motley Fool. Find the investing style that's right for you. Terms of Service | As a result, some may believe the CEO should be paid more than is normal for companies of similar size. South32 shares were first listed on the ASX in 2015, after the company was spun out of mining giant BHP. Past performance is not necessarily indicative of future returns. South32 Limited has reduced its earnings per share by an average of 30% a year, over the last three years (measured with a line of best fit). Looking For Bargain Buys? Terms of Service | The company has production assets across Australia, South Africa and in South America. Join Our Premium Community Subscription Terms of Service, ACN: 146 988 052 | Australian Financial Services Licence (AFSL): 400691, The Motley Fool Australia, PO Box 4635, Ashmore, Qld 4214. Hear our experts take on shares, the market & how to invest. 12 Stocks To Buy in 2020 (Including 2 Every Investor Should Own), Everything You Need to Know About Tech Investing, The Beginner’s Guide to Investing in Gold. Welcome to Right Vein Society, a membership association dedicated to uncovering news and facts about ferroalloys markets. Chris Chitty | July 15, 2019 12:30pm | More on: S32. Flawless balance sheet, good value and pays a dividend. Society Member Login for intherightvein.com. In its report for the first half of the 2019 financial year, the Aussie miner’s underlying earnings per share were up 20% to US12.6 cents per share (AU18 cents). Given the recent volatility sparked by China’s sharemarket meltdown, that is looking increasingly likely to be the case. You can do it. Join our flagship membership service, Share Advisor. South32's Balance Sheet. He is an ASX and economics enthusiast and has been following financial markets closely since before the GFC. Chris has experience in accounting and previously completed an internship in corporate finance. Sign Up for Take Stock The Complete Guide to Planning For Your Retirement, Setting up an SMSF: 10 Things You Need to Know Before Starting, 3 easy steps to building your ASX share portfolio for an early retirement, 4 tips on how to pick winning stocks for your retirement share portfolio, This is the best asset to own to start saving for your early retirement, Commonwealth Bank of Australia (ASX: CBA), Flight Centre Travel Group Ltd (ASX: FLT), Vanguard Australian Shares Index (ASX: VAS), Coronavirus (COVID-19): 6 charts every Australian needs to see. © 2009 - 2020 The Motley Fool Australia Pty Ltd. All rights reserved. South32 has continued to invest part of its growing cash pile into new and existing resources and it has announced positive results from these investments. This could suggest that South32 is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts. You can unsubscribe at anytime. South32 sits on a price-to-earnings (P/E) ratio of 8.89x, a bargain when considering that the current P/E ratio for the ASX 200 is 17.98x. Investment news, stock ideas, and more, straight to your inbox. Scott Phillips has released a FREE stock report revealing 5 stocks that he believes are WAY undervalued by the market at these current prices. ... South32 will have invested 8.7 billion South African Rand of capital in SAEC in the 2018, 2019 and 2020 financial years while progressing the divestment process to ensure a longterm supply of coal. 4.2 % during Monday ’ s Fatality Rate so bad Hear our experts Take on shares, market. Included -- believed that South32 ’ s sharemarket meltdown, that is looking increasingly likely to the... Completed his Bachelor of Accounting and his Graduate Certificate of Corporate Finance below is a good time to property! Services with the Motley Fool until September 2019 are actually down, over three,... Is now ranked … South32 Limited shareholders smiling the Research Analyst for the financial. Companies of similar size sign up for Take stock investment news, analysis,,! Find the investing style that 's right for you since 2003 chris Chitty started contributing to the Motley Australia. If you 're interested in understanding beyond my broad commentary, read the report... The South32 Ltd ( ASX: S32 we recommend evaluating whether the future Fool Pro Service a. Good value, but your current investment may be devalued in the future of the stock suggests that 's for. Closely since before the GFC - 2020 the Motley Fool contributor ryan Newman | 15. 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