By way of background, I've been a multi-property owner in San Francisco, Lake Tahoe, and Honolulu since 2003. This is a positive situation and suggests that the risks created by fluctuating metal prices are manageable. Ryan Newman has been a member of The Motley Fool universe since it first came to Australia. Spending on growth might be good or bad a few years later, but the point is that the P/E ratio does not account for the option (or lack thereof). Important note: South32 is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. On September 30, 2019 September 30, 2019 By alanpatrickryan In Uncategorized. Get Started Investing 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. So if you’re looking to get your finances on track and you’re in or near retirement – we’ve got you covered! South32 stock investment conclusion. He is the Research Analyst for the Motley Fool Pro service and a contributor to fool.com.au. South32 Limited has generated a total shareholder return of 7.4% over three years, so most shareholders wouldn't be too disappointed. We recommend evaluating whether the future of the company South32 is really as difficult as the low price of the stock suggests. 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Sign Up for Take Stock 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. Considering that metals prices have started improving on trade deal hopes, the prospect of highly accelerated earnings is not out of scope for South 32. Sadly for shareholders, earnings per share are actually down, over three years. South32 has a growing ROE and is set to benefit from recent improvements in metals prices. Has South32 Limited Been A Good Investment? Chris hopes that he can share what he has learned about stock picking and investing to help investors grow their wealth. The Motley Fool Australia has no position in any of the stocks mentioned. S32 has a strong track record of performance. - Past performance is not necessarily indicative of future returns. 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. Has South32 Limited Been A Good Investment? We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Simply click the link below to grab your free copy and discover Scott's 5 bargain stocks now. South32's governance score Governance score: 8.96/100 ... investment decision scheduled for the December 2020 half year. 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. Scott Phillips has released a FREE stock report revealing 5 stocks that he believes are WAY undervalued by the market at these current prices. 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. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Find the investing style that's right for you. Don't miss out! Scott thinks these 5 stocks are a 'must consider' for any savvy investor. .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;}. Please refer to our Financial Services Guide (FSG) for more information. 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. Authorised by Bruce Jackson. Background on South32 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. This will provide further support to a higher share price. Subscription Terms of Service, ACN: 146 988 052 | Australian Financial Services Licence (AFSL): 400691, The Motley Fool Australia, PO Box 4635, Ashmore, Qld 4214. Find out more at Intelligent Investor Based on these three factors, S32 makes for a strong long-term investment in the face of a fickle stock market. Motley Fool contributor Ryan Newman has no position in any stocks mentioned. Our Top 5 Stocks for Investors 50 or Older – NOW AVAILABLE! Join our flagship membership service, Share Advisor. In its quarterly report to March, the company reported that net cash had increased to US$726 million (AU$1 billion), so it has plenty of funds to continue paying dividends. If you are looking for stocks with good return, South32 Limited stock can be a bad, high-risk 1-year investment option. S32’s strong ASX standing has been confirmed in the ensuing years and the miner is now ranked … 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. 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. © 2009 - 2020 The Motley Fool Australia Pty Ltd. All rights reserved. Good morning everyone. Coronavirus (Covid-19): Why Is Italy’s Fatality Rate So Bad. Ryan’s interest in investing and stocks began at a young age and has only grown through his services with the Motley Fool. Join Our Premium Community Don't miss out! .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 does not guarantee the performance of, or returns on any investment. The Motley Fool has a disclosure policy. The Motley Fool Australia does not guarantee the performance of, or returns on any investment. This Service provides only general, and not personalised financial advice, and has not taken your personal circumstances into account. In addition, South32 has a share buyback in place, which is set to continue until September 2019. Sign Up for Take Stock The Bottom Line On South32’s P/E Ratio South32 has a P/E of 9.5. In its report for the first half of the 2019 financial year, the Aussie miner’s underlying earnings per share were up 20% to US12.6 cents per share (AU18 cents). Chris Chitty | July 15, 2019 12:30pm | More on: S32. 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 article contains general investment advice only (under AFSL 400691). The Motley Fool Australia » Resources Shares » The South32 share price is down 4.4% in 2019: is it a buy? I think that the total shareholder return of 181%, over three years, would leave most South32 Limited shareholders smiling. 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 … 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. 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). 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