SBYSF - Sibanye Stillwater: The Tide May Be Turning

2024-04-16 01:10:46 ET

Summary

• Sibanye Stillwater's stock has underperformed the market over the past 3 years, down 65% compared to the S&P 500's return of 22%. But the tide may be turning soon.
• Despite falling metal prices, the company's cost-cutting efforts and focus on the green metals market make it undervalued with potential for growth.
• The stock price may have hit a bottom, and a recovery is possible with the implementation of management's strategic plan and the rise in commodity prices.
• The SBSW stock is now "dirt cheap", as some analysts put it. Looking at the most important competitors, SBSW's EV/EBITDA of less than 5.1x is the lowest of all peers.
• I reaffirm my "Buy" rating.

My Thesis

I've been covering Sibanye Stillwater Limited 's ( SBSW ) stock here on Seeking Alpha since May 2021 , always reiterating my bullish stance on it. But over the past 3 years, SBSW underperformed the general market significantly - since my very first bullish call, the stock is down almost 65% (in total returns) vs. the S&P 500 index's ( SPX ) ( SP500 ) return of ~22%....

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