Buenaventura, A Mining Stock That Buffett And Lynch Could Love

By Jonathan Yates

Peter Lynch prefers stocks with a price-to-earnings growth ratio of under 1, and Warren Buffett likes his companies to have low debt. Compania de Minas Buenaventura (NYSE:BVN) is a Peruvian gold mining firm with financials that would please both these picky investors.

Buenaventura has a price-to-earnings growth ratio of 0.95, and very low debt-to-equity ratio of just 0.03.

Its quarterly growth in sales and earnings is also excellent, with sales growth up by 55.21% and earnings-per-share growth up 19.72% - and projected to continue rising.

BVN has a profit margin of 63.38% and a return-on-investment of 33.76%. A return-on-investment of 15% and profit margin of 20% are considered to be very solid.

Year to date, Buenaventura is up by 4.86%, a marked contrast with the 2.42% drop in the SPDR Gold Shares ETF (GLD). The company is trading around $41.80, with a mean analyst target of $47.29. With a dividend of 1.53% offering both growth and income, BVN has plenty of appeal for both legendary and ordinary investors.