Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 3 stocks made the list for top value stocks in the Non-Gold Precious Metals & Minerals industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.

Why Focus on Undervalued Non-Gold Precious Metals & Minerals Stocks?

Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.

AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

What Goes Into AAII’s Value Grade?

Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.

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3 Undervalued Non-Gold Precious Metals & Minerals Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 3 undervalued stocks in the Non-Gold Precious Metals & Minerals industry for Thursday, February 08, 2024. Let’s take a closer look at their individual scores to see how they measure up against each other and the Non-Gold Precious Metals & Minerals industry median.

The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.

The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)

Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).

As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.

A-Mark Precious Metals Inc’s Value Grade

Value Grade:

A-Mark Precious Metals, Inc. is a fully integrated precious metals platform. The Company offers an array of gold, silver, platinum, palladium, and copper bullion, numismatic coins, and related products to wholesale and retail customers. The company conducts its operations through three segments: Wholesale Sales & Ancillary Services, Direct-to-Consumer, and Secured Lending. The Wholesale Sales & Ancillary Services segment operates as a full-service precious metals company. The Company operates its Direct-to-Consumer segment through its wholly owned subsidiaries JM Bullion, Inc. (JMB) and Goldline, Inc. The Company operates its Secured Lending segment through its wholly owned subsidiary Collateral Finance Corporation, LLC (CFC). JM Bullion is an e-commerce retailer of precious metals and operates seven separately branded, Company-owned websites such as JMBullion.com, ProvidentMetals.com, Silver.com, GoldPrice.org, SilverPrice.org, BGASC.com, CyberMetals.com, and BullionMax.com.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

A-Mark Precious Metals Inc has a Value Score of 95, which is considered to be undervalued.

When you look at A-Mark Precious Metals Inc’s price-to-sales ratio at 0.06 compared to the industry median at 1.29, this company has a lower price relative to revenue compared to its peers. This could make A-Mark Precious Metals Inc’s stock more attractive for value investors.

A-Mark Precious Metals Inc’s price-earnings ratio is 4.95 compared to the industry median at 12.57. This means it has a lower share price relative to earnings compared to its peers. This could make A-Mark Precious Metals Inc more attractive for value investors.

Now, let’s assess A-Mark Precious Metals Inc’s EV/EBITDA ratio, also known as enterprise multiple. At 7.8, when compared to the industry median of 7.8, the company may be considered fairly valued in relation to its peers. Value investors could use the enterprise multiple to identify stocks that are considered overvalued or undervalued relative to their industry.

Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. A-Mark Precious Metals Inc’s shareholder yield is higher than its industry median ratio of (2.85%). Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.

As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. A-Mark Precious Metals Inc’s price-to-book ratio is lower than its industry median ratio of 1.09. This could make A-Mark Precious Metals Inc more attractive to investors looking for a new addition to their portfolio.

Impala Platinum Holdings Ltd - ADR’s Value Grade

Value Grade:

Impala Platinum Holdings Limited is a South Africa-based fully integrated platinum group metals (PGMs) producer to industrial economies. The Company’s segments include Mining, Impala Refining Services and all other segments. The Company has around seven mining operations and Impala Refining Services, a toll-refining business. The Company’s mining operations are located in the Bushveld Complex in South Africa, the Great Dyke in Zimbabwe, the two significant PGM-bearing ore bodies in the world and the Canadian Shield. Its mining operations include Impala Rustenburg, Impala Bafokeng, Marula, Two Rivers, Zimplats, Mimosa and Impala Canada. Its products include platinum, palladium, rhodium, nickel and by-products. The metals it produces are the key to making many essential industrial, medical and electronic items and they contribute to a cleaner and greener world. It also markets and sells its products in South Africa, Japan, China, the United States and Europe.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Impala Platinum Holdings Ltd - ADR has a Value Score of 93, which is considered to be undervalued.

Impala Platinum Holdings Ltd - ADR’s price-earnings ratio is 11.9 compared to the industry median at 12.6. This means that it has a lower price relative to its earnings compared to its peers. This makes Impala Platinum Holdings Ltd - ADR more attractive for value investors.

Impala Platinum Holdings Ltd - ADR’s price-to-book ratio is higher than its peers. This could make Impala Platinum Holdings Ltd - ADR less attractive for value investors when compared to the industry median at 1.09.

You can read more about Impala Platinum Holdings Ltd - ADR’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Sibanye Stillwater Ltd (ADR)’s Value Grade

Value Grade:

Sibanye Stillwater Limited is a multinational mining and metals processing group with a diverse portfolio of operations, projects, and investments across five continents. It is a platinum group metals (PGMs) automotive catalytic recycler and also has interests in mine tailing’s retreatment operations. It holds various interests in a pipeline of exploration stage projects throughout the Americas: Rhyolite Ridge, Altar, Rio Grande, and Marathon. Its Southern African PGM projects include Marikana K4, Klipfontein, Blue Ridge, Akanani and Limpopo, which are all located in the Bushveld Complex in South Africa. It also has two advanced gold projects underway in South Africa: Burnstone and the Southern Free State (SOFS) project. In Europe, it has the Keliber lithium project and Sandouville hydrometallurgical nickel processing facilities. It also operates the New Century zinc tailings retreatment operation in Queensland, Australia. The Company also owns the Kroondal operation.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Sibanye Stillwater Ltd (ADR) has a Value Score of 99, which is considered to be undervalued.

Sibanye Stillwater Ltd (ADR)’s price-earnings ratio is 4.3 compared to the industry median at 12.6. This means that it has a lower price relative to its earnings compared to its peers. This makes Sibanye Stillwater Ltd (ADR) more attractive for value investors.

Sibanye Stillwater Ltd (ADR)’s price-to-book ratio is higher than its peers. This could make Sibanye Stillwater Ltd (ADR) less attractive for value investors when compared to the industry median at 1.09.

You can read more about Sibanye Stillwater Ltd (ADR)’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Other Non-Gold Precious Metals & Minerals Stock Grades

Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.

Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Non-Gold Precious Metals & Minerals stocks as well as other industrys.

Choosing Which of the 3 Best Non-Gold Precious Metals & Minerals Stocks Is Right for You

Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.

• A-Mark Precious Metals Inc stock has a Value Grade of A.
• Impala Platinum Holdings Ltd - ADR stock has a Value Grade of A.
• Sibanye Stillwater Ltd (ADR) stock has a Value Grade of A.

Now that you have a bit more background about each of the 3 undervalued stocks in the Non-Gold Precious Metals & Minerals industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Additional Resources About Non-Gold Precious Metals & Minerals Stocks

Want to learn more about Non-Gold Precious Metals & Minerals stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.

• 3 Undervalued Non-Gold Precious Metals & Minerals Stocks for Thursday, February 08
• 3 Undervalued Non-Gold Precious Metals & Minerals Stocks for Wednesday, February 07
• What You Need to Know About A-Mark Precious Metals Inc's Q2 Earnings
• 3 Undervalued Non-Gold Precious Metals & Minerals Stocks for Monday, February 05

AAII Disclaimer

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