Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 7 stocks made the list for top value stocks in the Metals & Mining 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 Metals & Mining 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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7 Undervalued Metals & Mining Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 7 undervalued stocks in the Metals & Mining industry for Wednesday, October 30, 2024. Let’s take a closer look at their individual scores to see how they measure up against each other and the Metals & Mining 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.

Ascent Industries Co.’s Value Grade

Value Grade:

Ascent Industries Co. an industrials company, produces and distributes stainless steel pipe and tube and specialty chemicals in the United States and internationally. The company operates through two segments, Tubular Products and Specialty Chemicals. It manufactures welded pipes and tubes, primarily from stainless steel, duplex, and nickel alloys; and ornamental stainless steel tubes for automotive, commercial transportation, marine, food services, construction, furniture, healthcare, and other industries. The company also produces defoamers, surfactants, and lubricating agents for end users, including companies that supply agrochemical paper, metal working, coatings, water treatment, paint, mining, oil and gas, and janitorial and other applications. In addition, it provides contract manufacturing services, as well as operates as a multi-purpose plant to process various difficult to handle materials, including flammable solvents, viscous liquids, and granular solids. The company was formerly known as Synalloy Corporation and changed its name to Ascent Industries Co. in August 2022. Ascent Industries Co. was founded in 1945 and is headquartered in Schaumburg, Illinois.

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.

Ascent Industries Co. has a Value Score of 77, which is considered to be undervalued.

When you look at Ascent Industries Co.’s price-to-sales ratio at 0.52 compared to the industry median at 1.92, this company has a lower price relative to revenue compared to its peers. This could make Ascent Industries Co.’s stock more attractive for value investors.

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. Ascent Industries Co.’s shareholder yield is higher than its industry median ratio of (1.50%). 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. Ascent Industries Co.’s price-to-book ratio is lower than its industry median ratio of 1.78. This could make Ascent Industries Co. more attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Ascent Industries Co.’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Ascent Industries Co.’s price-to-free-cash-flow ratio is lower than its industry median ratio of 25.80. This could make Ascent Industries Co. more attractive because the lower P/FCF ratio indicates that Ascent Industries Co. is undervalued. The P/FCF ratio metric can also be viewed over a long-term time frame to see if the company's cash flow to share price value is generally improving or worsening.

Arch Resources, Inc.’s Value Grade

Value Grade:

Arch Resources, Inc. engages in the production and sale of metallurgical products. It operates in two segments, Metallurgical and Thermal. The company operates active mines. It owned or controlled primarily through long-term leases of coal land in Ohio, Maryland, Virginia, West Virginia, Wyoming, Kentucky, Montana, Pennsylvania, Colorado, and Illinois; and smaller parcels of property in Alabama, Indiana, Washington, Arkansas, California, Utah, and Texas. The company sells its products to utility, industrial, and steel producers in the United States and internationally. Arch Resources, Inc. was incorporated in 1969 and is headquartered in Saint Louis, Missouri.

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.

Arch Resources, Inc. has a Value Score of 84, which is considered to be undervalued.

Arch Resources, Inc.’s price-earnings ratio is 10.5 compared to the industry median at 20.1. This means that it has a lower price relative to its earnings compared to its peers. This makes Arch Resources, Inc. more attractive for value investors.

Arch Resources, Inc.’s price-to-book ratio is lower than its peers. This could make Arch Resources, Inc. fairly attractive for value investors when compared to the industry median at 1.78.

You can read more about Arch Resources, Inc.’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.

B2Gold Corp.’s Value Grade

Value Grade:

B2Gold Corp. operates as a gold producer company. It operates the Fekola Mine in Mali, the Masbate Mine in the Philippines, and the Otjikoto Mine in Namibia. The company also has an 100% interest in the Gramalote gold project in Colombia; 24% interest in the Calibre Mining Corp.; and approximately 19% interest in BeMetals Corp. In addition, it has a portfolio of other evaluation and exploration assets in Mali and Finland. The company was incorporated in 2006 and is headquartered in Vancouver, Canada.

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.

B2Gold Corp. has a Value Score of 72, which is considered to be undervalued.

B2Gold Corp.’s price-to-book ratio is higher than its peers. This could make B2Gold Corp. less attractive for value investors when compared to the industry median at 1.78.

You can read more about B2Gold Corp.’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.

DRDGOLD Limited’s Value Grade

Value Grade:

DRDGOLD Limited, a gold mining company, engages in the surface gold tailings retreatment business in South Africa. It also involved in the exploration, extraction, processing, and smelting activities. The company recovers gold from surface tailings in the Witwatersrand basin in Gauteng province. DRDGOLD Limited was formerly known as Durban Roodepoort Deep Limited and changed its name to DRDGOLD Limited in 2004. The company was incorporated in 1895 and is headquartered in Johannesburg, South Africa. DRDGOLD Limited is a subsidiary of Sibanye Gold Limited.

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.

DRDGOLD Limited has a Value Score of 98, which is considered to be undervalued.

DRDGOLD Limited’s price-earnings ratio is 14.8 compared to the industry median at 20.1. This means that it has a lower price relative to its earnings compared to its peers. This makes DRDGOLD Limited more attractive for value investors.

DRDGOLD Limited’s price-to-book ratio is higher than its peers. This could make DRDGOLD Limited less attractive for value investors when compared to the industry median at 1.78.

You can read more about DRDGOLD Limited’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.

Harmony Gold Mining Company Limited’s Value Grade

Value Grade:

Harmony Gold Mining Company Limited engages in the exploration, extraction, and processing of gold. The company explores for uranium, silver, copper, and molybdenum deposits. It has eight underground operations in the Witwatersrand Basin; an open-pit mine on the Kraaipan Greenstone Belt; and various surface source operations in South Africa. In addition, the company owns interests in the Hidden Valley, an open-pit gold and silver mine; and the Wafi-Golpu project located in Morobe Province in Papua New Guinea. Further, it holds interest in Rosby and Eva Copper Project located in Queensland, Australia. Harmony Gold Mining Company Limited was incorporated in 1950 and is headquartered in Randfontein, South Africa.

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.

Harmony Gold Mining Company Limited has a Value Score of 94, which is considered to be undervalued.

Harmony Gold Mining Company Limited’s price-earnings ratio is 15.2 compared to the industry median at 20.1. This means that it has a lower price relative to its earnings compared to its peers. This makes Harmony Gold Mining Company Limited more attractive for value investors.

Harmony Gold Mining Company Limited’s price-to-book ratio is higher than its peers. This could make Harmony Gold Mining Company Limited less attractive for value investors when compared to the industry median at 1.78.

You can read more about Harmony Gold Mining Company Limited’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.

Kaiser Aluminum Corporation’s Value Grade

Value Grade:

Kaiser Aluminum Corporation, together with its subsidiaries, engages in manufacture and sale of semi-fabricated specialty aluminum mill products in the United States and internationally. It offers rolled, extruded, and drawn aluminum products used for aerospace and defense, aluminum beverage and food packaging, automotive and general engineering products. The company’s automotive extrusions include extruded aluminum products for structural components, crash management systems, anti-lock braking systems, and drawn tubes for drive shafts, as well as offers fabrication services, including sawing and cutting to length. Its packaging products consist of bare and coated 3000- and 5000-series alloy aluminum coil used for beverage and food packaging industry. In addition, the company’s general engineering products comprise alloy plate, sheet, rod, bar, tube, wire, and standard extrusion shapes used in various applications, including the production of military vehicles, ordnances, semiconductor manufacturing cells, electronic devices, after-market motor sport parts, tooling plates, parts for machinery and equipment, bolts, screws, nails, and rivets. Further, its rerolled, extruded, drawn, and cast billet aluminum products used for industrial end uses. The company sells its products directly to customers through sales personnel located in the United States, Canada, Western Europe, and China, as well as through independent sales agents in other regions of Asia, Latin America, and the Middle East. Kaiser Aluminum Corporation was founded in 1946 and is headquartered in Franklin, Tennessee.

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.

Kaiser Aluminum Corporation has a Value Score of 64, which is considered to be undervalued.

Kaiser Aluminum Corporation’s price-earnings ratio is 26.4 compared to the industry median at 20.1. This means that it has a higher price relative to its earnings compared to its peers. This makes Kaiser Aluminum Corporation less attractive for value investors.

Kaiser Aluminum Corporation’s price-to-book ratio is lower than its peers. This could make Kaiser Aluminum Corporation more attractive for value investors when compared to the industry median at 1.78.

You can read more about Kaiser Aluminum Corporation’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.

SSR Mining Inc.’s Value Grade

Value Grade:

SSR Mining Inc., together with its subsidiaries, engages in the operation, acquisition, exploration, and development of precious metal resource properties in the United States, Türkiye, Canada, and Argentina. The company explores for gold doré, copper, silver, lead, and zinc deposits. Its mines include the Çöpler, located in Erzincan province, Turkey; the Marigold, located in Nevada, the United States; the Seabee, located in Saskatchewan, Canada; and the Puna, located in Jujuy province, Argentina. The company was formerly known as Silver Standard Resources Inc. and changed its name to SSR Mining Inc. in August 2017. SSR Mining Inc. was incorporated in 1946 and is based in Denver, Colorado.

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.

SSR Mining Inc. has a Value Score of 83, which is considered to be undervalued.

SSR Mining Inc.’s price-to-book ratio is higher than its peers. This could make SSR Mining Inc. less attractive for value investors when compared to the industry median at 1.78.

You can read more about SSR Mining Inc.’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 Metals & Mining 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 Metals & Mining stocks as well as other industrys.

Choosing Which of the 7 Best Metals & Mining 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.

• Ascent Industries Co. stock has a Value Grade of B.
• Arch Resources, Inc. stock has a Value Grade of A.
• B2Gold Corp. stock has a Value Grade of B.
• DRDGOLD Limited stock has a Value Grade of A.
• Harmony Gold Mining Company Limited stock has a Value Grade of A.
• Kaiser Aluminum Corporation stock has a Value Grade of B.
• SSR Mining Inc. stock has a Value Grade of A.

Now that you have a bit more background about each of the 7 undervalued stocks in the Metals & Mining 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 Metals & Mining Stocks

Want to learn more about Metals & Mining 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.

• 7 Undervalued Metals & Mining Stocks for Wednesday, October 30
• 6 Undervalued Metals & Mining Stocks for Tuesday, October 29
• 6 Undervalued Metals & Mining Stocks for Monday, October 28
• 4 Undervalued Metals & Mining Stocks for Friday, October 25

AAII Disclaimer

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