Seeking Alpha
Value, growth, long-term horizon, medium-term horizon
Profile| Send Message| ()  

The following is a list of the most profitable gold stocks, based on average gross and net profit margins over the last five years.

To compile this list, we started with a universe of about 60 gold stocks. We then narrowed the list by only focusing on those stocks that have higher gross and net profit margins compared to industry averages.

We're not going to go into detailed analysis for each company. The goal here is to give you a starting point for your own analysis.

Profitability data and industry comps sourced from Reuters, short float and performance data sourced from Finviz.

Interactive Chart: Press Play to see how analyst ratings have changed for all the stocks mentioned below. (Analyst ratings sourced from Zacks Investment Research)


The list has been sorted by the average 5-year net profit margin.

1. Compania de Minas Buenaventura SA (BVN): Market cap of $12.92B. 5-year average gross margin at 53.56% vs. industry average at 40.68%. 5-year average net profit margin at 60.25% vs. industry average at -0.72%. Short float at 1.15%, which implies a short ratio of 1.95 days. The stock has gained 23.68% over the last year.

2. Goldcorp Inc. (GG):
Market cap of $33.98B. 5-year average gross margin at 57.33% vs. industry average at 40.68%. 5-year average net profit margin at 29.08% vs. industry average at -0.72%. Short float at 1.88%, which implies a short ratio of 2.24 days. The stock has gained 3.59% over the last year.

3. Eldorado Gold Corp. (EGO): Market cap of $9.85B. 5-year average gross margin at 59.0% vs. industry average at 40.68%. 5-year average net profit margin at 27.55% vs. industry average at -0.72%. Short float at 0.85%, which implies a short ratio of 0.88 days. The stock has gained 29.15% over the last year.

4. Yamana Gold, Inc. (AUY): Market cap of $8.84B. 5-year average gross margin at 41.03% vs. industry average at 40.68%. 5-year average net profit margin at 23.14% vs. industry average at -0.72%. Short float at 0.73%, which implies a short ratio of 0.57 days. The stock has lost -13.49% over the last year.

5. Agnico-Eagle Mines Ltd. (AEM): Market cap of $13.76B. 5-year average gross margin at 55.25% vs. industry average at 40.68%. 5-year average net profit margin at 22.61% vs. industry average at -0.72%. Short float at 5.48%, which implies a short ratio of 4.09 days. The stock has gained 25.74% over the last year.

6. Randgold Resources Ltd. (GOLD): Market cap of $8.56B. 5-year average gross margin at 55.1% vs. industry average at 40.68%. 5-year average net profit margin at 18.76% vs. industry average at -0.72%. Short float at 1.27%, which implies a short ratio of 1.49 days. The stock has gained 6.58% over the last year.

7. Newmont Mining Corp. (NEM): Market cap of $29.41B. 5-year average gross margin at 52.45% vs. industry average at 40.68%. 5-year average net profit margin at 15.03% vs. industry average at -0.72%. Short float at 3.04%, which implies a short ratio of 2.2 days. The stock has gained 8.02% over the last year.

Disclosure: No positions

Source: Top Seven Most Profitable Gold Stocks