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Sibanye Stillwater (LTS:0A56) Financial Strength : 5 (As of Jun. 2024)


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What is Sibanye Stillwater Financial Strength?

Sibanye Stillwater has the Financial Strength Rank of 5.

Warning Sign:

Sibanye Stillwater Ltd displays poor financial strength. Usually, this is caused by too much debt for the company.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Sibanye Stillwater's Interest Coverage for the quarter that ended in Jun. 2024 was 0.86. Sibanye Stillwater's debt to revenue ratio for the quarter that ended in Jun. 2024 was 0.34. As of today, Sibanye Stillwater's Altman Z-Score is 0.46.


Competitive Comparison of Sibanye Stillwater's Financial Strength

For the Other Precious Metals & Mining subindustry, Sibanye Stillwater's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Sibanye Stillwater's Financial Strength Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Sibanye Stillwater's Financial Strength distribution charts can be found below:

* The bar in red indicates where Sibanye Stillwater's Financial Strength falls into.



Sibanye Stillwater Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Sibanye Stillwater's Interest Expense for the months ended in Jun. 2024 was $-87 Mil. Its Operating Income for the months ended in Jun. 2024 was $74 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2024 was $1,785 Mil.

Sibanye Stillwater's Interest Coverage for the quarter that ended in Jun. 2024 is

Interest Coverage=-1*Operating Income (Q: Jun. 2024 )/Interest Expense (Q: Jun. 2024 )
=-1*74.447/-86.656
=0.86

The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Sibanye Stillwater Ltds earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.

2. Debt to revenue ratio. The lower, the better.

Sibanye Stillwater's Debt to Revenue Ratio for the quarter that ended in Jun. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(265.504 + 1784.515) / 5990.96
=0.34

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Sibanye Stillwater has a Z-score of 0.46, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.46 is in distress zone. This implies bankruptcy possibility in the next two years.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Sibanye Stillwater  (LTS:0A56) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Sibanye Stillwater has the Financial Strength Rank of 5.


Sibanye Stillwater Financial Strength Related Terms

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Sibanye Stillwater Business Description

Traded in Other Exchanges
Address
Cnr 14th Avenue and Hendrik Potgieter Road, Bridgeview House, Building 11, Ground Floor, Lakeview Avenue, Constantia Office Park, Weltevreden Park, Roodepoort, GT, ZAF, 1709
Sibanye Stillwater Ltd is a South African mining and metals processing group with a diverse portfolio of operations, projects, and investments across five continents. The Group is also one of the foremost recyclers of PGM autocatalysts and has interests in mine tailings retreatment operations. It is a producer of platinum, palladium, and rhodium and is a top-tier gold producer. It also produces and refines iridium and ruthenium, nickel, chrome, copper, and cobalt. Its products are Gold, Nickel, Zinc, Chrome, PGMs, and other.

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