Top 15 Basic Materials Stocks Right Now
Marvin's rules picked 15 Basic Materials stocks, led by AngloGold Ashanti, Barrick Mining and Balchem. Scores compare each company with others in its own industry, so they are not a ranking across industries.
Basic Materials covers companies that dig up, grow or process the raw inputs other businesses use, such as gold, copper, fertilizer, specialty chemicals and building materials. This list shows the 15 companies that Marvin's rules rank highest in the sector today.
Each company is scored against others in its own industry, not against the whole sector. A high score for a gold miner means it looks strong next to other gold miners. It does not mean it beats a chemical maker. Check the figures in each blurb, including the cautions.
Some figures are missing for certain companies, and results in this sector can swing with commodity cycles. Treat the list as a starting point for your own research, not as advice.
The list
How Marvin ranked these stocks
Marvin included companies above a minimum size and ranked them by Marvin scores, which run up to one hundred and are relative to each company's own industry. The list covers the Basic Materials sector, with the highest Overall score first and a limit on how many stocks can come from any single industry.
Companies above about $300 million in size, ranked by Marvin scores (0-100, relative to each company's own industry). The Basic Materials sector, highest Overall score first; at most 4 per industry.
The stocks, one by one
AngloGold Ashanti Plc AU
AngloGold Ashanti has an overall score of 97. Revenue grew 70.8% last fiscal year, return on equity is 39.2%, and debt-to-equity is a light 0.28. Caution: operating and free cash flow margins are missing, so cash generation is harder to judge.
Barrick Mining Corporation B
Barrick Mining scores 96 overall. A gross margin of 51.3% and a free cash flow margin of 22.8% suggest it keeps a healthy share of sales, and debt-to-equity is low at 0.18. Caution: return on equity of 18.8% is more modest than some names here.
Balchem Corp BCPC
Balchem has a quality score of 96 and an operating margin of 20.4%, pointing to a solidly run business with decent growth of 8.8%. Caution: its opportunity score is only 36, and debt and free cash flow figures are missing.
Quanex Building Products Corporation NX
Quanex Building Products has an overall score of 95 and revenue growth of 43.8%, which is fast. Caution: its quality score is only 59, return on equity is 6.1%, and debt-to-equity of 1.09 is higher than most companies on this list.
CF Industries Holdings, Inc. CF
CF Industries scores 91 overall, with a strong operating margin of 41.1%, a free cash flow margin of 24.7% and return on equity of 43.5%. Caution: debt-to-equity of 0.63 is higher than the least indebted names here, and growth was 19.3%.
Coeur Mining, Inc. CDE
Coeur Mining grew revenue 96.4% last fiscal year and shows an operating margin of 33.8% and a free cash flow margin of 36.5%, both strong. Caution: return on equity is only 8.2%, and debt and gross margin figures are missing.
Oil-Dri Corporation of America ODC
Oil-Dri has an overall score of 87, an operating margin of 13.8% and return on equity of 19.1%, which suggest steady profitability. Caution: revenue growth was just 1.7%, so expansion is slow, and no debt figure is available.
Arcosa, Inc. ACA
Arcosa has an operating margin of 12.0%, revenue growth of 12.2% and moderate debt-to-equity of 0.50, a fairly balanced profile. Caution: its free cash flow margin is a thin 4.6%, so little of each sales dollar turns into spare cash.
Newmont Corporation NEM
Newmont has a quality score of 97, a free cash flow margin of 37.8%, return on equity of 24.4% and very low debt-to-equity of 0.14. Caution: its opportunity score of 86 is lower, and operating and gross margins are missing.
NewMarket Corporation NEU
NewMarket has a quality score of 90, an operating margin of 20.0% and return on equity of 23.6%, suggesting a profitable, well-run business. Caution: revenue growth was -2.2%, meaning sales shrank last fiscal year.
Innospec Inc. IOSP
Innospec has an overall score of 85 and a quality score of 86, yet margins are thinner: operating margin is 7.0% and free cash flow margin is 3.7%. Caution: revenue growth was -3.7%, and return on equity is 9.0%.
CVR Partners, LP UAN
CVR Partners shows an operating margin of 28.1%, a free cash flow margin of 21.4% and revenue growth of 15.4%, a healthy mix of profit and expansion. Caution: return on equity and debt-to-equity are not available, so its leverage cannot be checked.
NPK International Inc. NPKI
NPK International has very little debt, with debt-to-equity of 0.05, and grew revenue 27.4% with an operating margin of 17.3%. Caution: return on equity is a modest 11.5%, and the free cash flow margin is 9.2%.
Southern Copper Corporation SCCO
Southern Copper has a high operating margin of 56.9%, a gross margin of 63.8% and return on equity of 45.0%, signs of a very profitable operation. Caution: its opportunity score is only 76, and debt-to-equity is 0.68.
United States Lime & Minerals, Inc. USLM
United States Lime & Minerals has an operating margin of 42.1%, a free cash flow margin of 24.4% and almost no debt, with debt-to-equity of 0.00. Caution: its opportunity score of 60 is well below its quality score of 96.
Common questions
What does Basic Materials mean?
Basic Materials is a stock market sector for companies that produce raw or semi-processed inputs used by other industries. It includes miners, chemical makers, fertilizer producers and building materials suppliers.
Why can Basic Materials stocks be volatile?
These companies often sell goods whose prices move with broad economic demand and supply. When those prices change, revenue and profit can change quickly, which is why a single year of growth should be read with care.
Can I compare a gold miner's score with a chemical company's score?
Not directly. Marvin scores compare each company with others in its own industry, so a gold miner and a specialty chemical maker are each measured against their own peers. Compare the underlying figures, such as margins and debt, and keep the industry differences in mind.
Keep reading
- Top 15 Basic Materials Companies With the Strongest Businesses
- Top 15 Basic Materials Stocks Ranked by Marvin Opportunity Score
- Top 15 Construction Materials Stocks by Marvin Score
- Top 15 Specialty Chemicals Stocks
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Marvin's scores (0-100) compare each company with others in its industry today. Growth and margin figures come from SEC filings. This is general information, not personal investment advice or a recommendation to buy or sell anything. Do your own research.