During the last day, the stock moved £0.02 between high and low, or 1.49%.For the last week, the stock has had a daily average volatility of 2.63%.. Our recommended stop-loss: £1.29 (-5.32%) (This stock has medium daily movements and this gives medium risk. Win at Retirement 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 is a healthy figure and is appealing since the company trades on a price-to-book ratio of around 1.1x. ... investment decision scheduled for the December 2020 half year. 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. Important note: South32 is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. With further downward pressure expected to be applied to the commodities which South32 produces, now mightn’t be the ideal time to load up on the miner’s shares. 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. These Cheap Stocks Could Be Just What You’re After (FREE REPORT). The South32 Ltd (ASX:S32) share price has fallen 4.4% in 2019, offering a good buying opportunity to investors. Ryan’s ultimate goal is to carry out The Motley Fool’s mission: To help the world invest, better. The Motley Fool Australia » Resources Shares » The South32 share price is down 4.4% in 2019: is it a buy? Additionally, a 10% improvement in the price of one of the main metals that South32 produces could result in a further US$100 million to US$200 million added to the company’s underlying earnings before interest and tax, which is an increase of around 10–20%. 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. South32 is a globally diversified mining and metals company producing bauxite, alumina, aluminium, energy and metallurgical coal, manganese, nickel, silver, lead and zinc in Australia, Southern Africa and South America. The South32 Ltd (ASX:S32) share price has fallen 4.4% in 2019, offering a good buying opportunity to investors. Ryan has completed his Bachelor of Accounting and his Graduate Certificate of Corporate Finance, together with Level 1 of the CFA course. Chris Chitty started contributing to the Motley Fool in 2019. By way of background, I've been a multi-property owner in San Francisco, Lake Tahoe, and Honolulu since 2003. 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. Prior to its stockmarket debut, many investors — myself included — believed that South32 could be a great stock for long-term investors. Get Started Investing Ryan Newman has been a member of The Motley Fool universe since it first came to Australia. The Bottom Line On South32’s P/E Ratio South32 has a P/E of 9.5. 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. He is an ASX and economics enthusiast and has been following financial markets closely since before the GFC. In his spare time, Chris likes reading newspapers and watching movies. The Motley Fool Australia has no position in any of the stocks mentioned. You can unsubscribe at anytime. Terms of Service | Looking For Bargain Buys? Simply click the link below to grab your free copy and discover Scott's 5 bargain stocks now. When considering the company’s latest quarterly and half-year reports, ROE is set to be higher for the 2019 financial year. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. South32 stock investment conclusion. S32 has a strong track record of performance. Scott Phillips has released a FREE stock report revealing 5 stocks that he believes are WAY undervalued by the market at these current prices. Sign Up for Take Stock Over time, this improved performance should be reflected in the share price. Additionally, it has low debt and plenty of cash, which the company is returning to shareholders. 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. For a limited time, The Motley Fool Australia is giving away an urgent new investment report outlining our 5 favourite stocks for investors over 50. Ryan Newman | July 13, 2015 4:51pm | More on: S32. Investment news, stock ideas, and more, straight to your inbox. Don't miss out! Stay up to date on the latest stock price, chart, news, analysis, fundamentals, trading and investment tools. Learn about investing with our Investing Education hub. Improvements Value investing is easily one of the most popular ways to find great stocks in any market environment. © 2009 - 2020 The Motley Fool Australia Pty Ltd. All rights reserved. I still believe that to be the case, although I also feel shareholders of South32 could be in for more pain in the near-term. 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. Scott thinks these 5 stocks are a 'must consider' for any savvy investor. They are safely financed and are good value, but show below average growth. 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. Find the investing style that's right for you. Therefore, South32 share will always be in a limbo of good, but not great. For more information please see our Financial Services Guide. Our latest articles and strategies for the post-work life you want. The Motley Fool Australia does not guarantee the performance of, or returns on any investment. Join our flagship membership service, Share Advisor. You can unsubscribe at anytime. However, investors can often do well by “buying the dip” with commodities shares. Sadly for shareholders, earnings per share are actually down, over three years. Coronavirus (Covid-19): Why Is Italy’s Fatality Rate So Bad. Listen to Our Podcast 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. This Service provides only general, and not personalised financial advice, and has not taken your personal circumstances into account. Has South32 Limited Been A Good Investment? At current prices, South32 is paying a 4.41% dividend yield (6.3% with franking), which is pretty good for a resource company (BHP is currently yielding 3.88%). Chris has experience in accounting and previously completed an internship in corporate finance. 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. Simply click the link below to grab your free copy and discover Scott's 5 bargain stocks now. Find out more at Intelligent Investor As you can see in the chart below, around 29% of South32’s earnings come from South Africa. It saw its revenue drop 14% over the last year. Chris Chitty | July 15, 2019 12:30pm | More on: S32. As is the case with any mining corporation, South32 has little control over the price at which it sells its commodities and must accept whatever price the market is generally dictating at the time. Sign Up for Take Stock This is low, considering the ROE being achieved, and suggests that South32’s mines are mostly funded by shareholders. This Service provides only general, and not personalised financial advice, and has not taken your personal circumstances into account. 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. - We recommend evaluating whether the future of the company South32 is really as difficult as the low price of the stock suggests. Hear our experts take on shares, the market & how to invest. This will mean a higher ROE for the fourth financial year in a row. Based on these three factors, S32 makes for a strong long-term investment in the face of a fickle stock market. Below is a brief commentary on these key aspects. Though South32 Ltd. might be a good choice for value investors, there are plenty of other factors to consider before investing in this name. .fool-ecap.fool-ecap-id-19.fool-ecap-type-vanilla {background: #fff7c4;} aside section .fool-ecap-id-19.fool-ecap-type-vanilla h3 {font-size: 1.6em;} p.ecap-disclaimer {font-size: 0.6em!important;}div.fool-ecap.fool-ecap-id-19 form {position: relative;text-align: center;margin: .2em 1em;}.fool-ecap.fool-ecap-id-19 p.ecap-disclaimer {margin-left: 0px;} .fool-ecap.fool-ecap-id-19 p.above-email{ margin-bottom: 0px;text-align:center;} div.fool-ecap.fool-ecap-id-19 p {color: #464646;}.fool-ecap-type-vanilla.fool-ecap-id-19 h3 {color: #404040;display: block !important;}.fool-ecap-type-vanilla.fool-ecap-id-19 .ecap-disclaimer{color: #484848 !important;}.fool-ecap-id-19.fool-ecap-type-vanilla h3.title{display:none !important;} .fool-ecap.fool-ecap-id-19.fool-ecap-type-vanilla{ margin-bottom: 10px;}.fool-ecap-type-vanilla.fool-ecap-id-19 input[type="submit"] { margin: .5rem 0 .5rem !important;}.fool-ecap.fool-ecap-id-19 img {display: inline;}. The Motley Fool Australia operates under AFSL 400691. But an investment in South32 is by no means low-risk. Terms of Service | Join Our Premium Community You might find something better in this list of interesting companies with high ROE and low debt. Chris hopes that he can share what he has learned about stock picking and investing to help investors grow their wealth. He is the Research Analyst for the Motley Fool Pro service and a contributor to fool.com.au. Please refer to our Financial Services Guide (FSG) for more information. 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. South32's Balance Sheet. Investment news, stock ideas, and more, straight to your inbox. Welcome to Right Vein Society, a membership association dedicated to uncovering news and facts about ferroalloys markets. Find the investing style that's right for you. Financial Services Guide | South32's governance score Governance score: 8.96/100 The Aussie miner does give investors a 4.11% dividend yield and boasts a $13.55 billion market capitalisation. In this FREE STOCK REPORT, Scott Phillips just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. South32 has a growing ROE and is set to benefit from recent improvements in metals prices. The fear of missing out, i.e., FOMO, can cause potential investors in SOUTH32 FPO to buy its stock at a price that has no basis in reality. Privacy Policy | This will provide further support to a higher share price. 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. Authorised by Bruce Jackson. Motley Fool contributor buylowsellhigh5 has no position in any of the stocks mentioned. South32 was spun out of BHP in 2015 and consists of high quality metal production assets including alumina, aluminium, coal, manganese, nickel, silver, lead and zinc. 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). Given the current valuation and technical environment, South32 could just be the best value ASX mining stock on the market, in my opinion. So if you’re looking to get your finances on track and you’re in or near retirement – we’ve got you covered! In the 2018 financial year, the company had a return on equity (ROE) of 13.5%. The Motley Fool Australia » Investing » Is South32 Ltd a good investment? Get Started Investing Authorised by Scott Phillips. © 2009 - 2020 The Motley Fool Australia Pty Ltd. All rights reserved. South32 Limited (S32) Overview. If you’re a risk averse investor, lining your portfolio with proven companies you’re willing to buy more and more of as the price falls, is a good strategy to build your wealth over the long run. The company has production assets across Australia, South Africa and in South America. Listen to Our Podcast In that case, they are not buying SOUTH32 because the equity is a good investment, but because they need to do something to avoid the feeling of missing out. It’s been a rough couple of months for the freshly-listed South32 Ltd (ASX: S32), which was spun-off from mining heavyweight BHP Billiton Limited (ASX: BHP) in May this year. Past performance is not necessarily indicative of future returns. 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. This is generous considering that the Reserve Bank of Australia cash rate is just 1%, and provides compensation for risk. Please refer to our Financial Services Guide (FSG) for more information. In addition, South32 has a share buyback in place, which is set to continue until September 2019. Win at Retirement By clicking this button, you agree to our Terms of Service and Privacy Policy. Our Top 5 Stocks for Investors 50 or Older – NOW AVAILABLE! So if you’re looking to get your finances on track and you’re in or near retirement – we’ve got you covered! South32 not a good investment. As a result, some may believe the CEO should be paid more than is normal for companies of similar size. 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 Motley Fool has a disclosure policy. ... 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. You can do it. 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). On September 30, 2019 September 30, 2019 By alanpatrickryan In Uncategorized. But they would probably prefer not to see CEO compensation far in excess of the median. 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. Each company boasts strong growth prospects over the next 3 to 5 years, and most importantly each pays a generous (and fully franked) dividend! This is a positive situation and suggests that the risks created by fluctuating metal prices are manageable. South32 trades on a grossed up dividend yield of 6.5%. 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. South32 shares are less expensive than other comparable stocks. If you are looking for stocks with good return, South32 Ltd. stock can be a bad, high-risk 1-year investment option. Is South32 Limited Growing? It fell 4.2% during Monday’s session to close at just $1.705. 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. Hear our experts take on shares, the market & how to invest. Join our flagship membership service, Share Advisor. Scott Phillips has released a FREE stock report revealing 5 stocks that he believes are WAY undervalued by the market at these current prices. Financial Services Guide | Flawless balance sheet, good value and pays a dividend. The Motley Fool Australia has no position in any of the stocks mentioned. By clicking this button, you agree to our Terms of Service and Privacy Policy. Given the recent volatility sparked by China’s sharemarket meltdown, that is looking increasingly likely to be the case. 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