Buffett Brain · Research note
Score updated 26 Sept 2026 · analysis from 23 May 2026
GFI· Materials
Gold Fields
Gold Fields' top-quintile ROIC and margins in Basic Materials suggest a moat, but valuation and capital intensity raise concerns.
Buffett fit
Strong fit
Owner
70
Durability
91
Management
56
Price
39
Score updated 26 Sept 2026 · analysis from 23 May 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Materials stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
Owning 100% of Gold Fields would mean managing a business with strong profitability metrics, such as a 24.3% and a net margin of 40.9%.
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Gold Fields has shown impressive durability with a 5-year EPS CAGR of 44.4% and profitability in each of the last five years.
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Management has maintained a stable share count with a slight reduction (-0.19% CAGR) and a modest yield of 0.02%.
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At a of 9.8 and an yield of 8.52%, the valuation appears reasonable, but the inherent volatility of gold prices adds risk.
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
7- 1 of 24.3% is top-quintile in the Basic Materials sector.
- 2 of 59% and of 54% are both top-quintile.
- 3EPS CAGR of 44.4% over the past 5 years indicates strong growth.
- 4Interest coverage ratio of 65.4 suggests solid financial health.
Concerns
6- 1Valuation at P/B of 4.28 suggests a premium to book value.
- 2High sensitivity to gold prices, impacting revenue and margins.
- 3Market cap vs retained earnings of 5.85 suggests limited reinvestment returns.
- 4 yield of 0.02% is negligible, indicating limited buybacks.
Price history
$35.14+278.7%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Gold Fields Limited operates as a major gold producer with reserves across multiple continents, producing approximately 2.34 million ounces annually. The company benefits from high of 59% and of 54%, both top-quintile in its sector. The business is capital-intensive, with significant investments in mining operations. Unit economics are strong, but heavily reliant on gold prices.
What other investors would say
The same company, judged by three other documented playbooks.
Keep researching
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