Buenaventura, A Mining Stock That Buffett And Lynch Could Love

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Emerging Money

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.

This article was written by

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With hedge fund manager, CNBC regular and long-time veteran of the Russian markets Tim Seymour at the helm, Emerging Money (http://www.emergingmoney.com) provides education, trading analysis and comprehensive views of emerging markets around the world. As economies in the BRIC group and beyond become the growth engines of global wealth creation, Emerging Money provides insights and tools for investors to trade successfully in these markets via individual ADRs, foreign-traded stocks, currencies and ETFs. Visit: http://www.emergingmoney.com

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