Top 15 Basic Materials Stocks Ranked by Marvin Opportunity Score
Marvin's rules picked 15 Basic Materials stocks, mostly gold and silver miners plus steel, chemicals and fertilizer makers. AngloGold Ashanti has the highest Opportunity score, and each pick has its own strengths and cautions.
Basic Materials covers companies that dig up, process or make the raw inputs other industries rely on, such as metals, chemicals, fertilizer, steel and construction materials. This list shows 15 of them that Marvin's rules rate well against other companies in the same industry.
The list starts with the highest Opportunity score and works down. It only includes companies that also clear a minimum Business Quality score, so a high ranking is not just a sign of a weak business that has fallen behind its peers. Margins, growth and debt still vary a lot from one company to the next.
Keep in mind that these companies often depend on commodity prices and economic cycles, which can swing results from year to year. The scores and figures below describe the past and present, not what comes next, and a missing figure means the data was not available.
The list
How Marvin ranked these stocks
Marvin started with companies above a minimum size and kept those in the Basic Materials sector with a Business Quality score above a set floor. They are ranked by Opportunity score, highest first, with no more than four stocks from any one industry. All Marvin scores are relative: each company is compared only with others in its own industry, so a score for a gold miner and one for a chemical maker are not measured against the same group.
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 Opportunity score first, among companies with a Business Quality score of at least 50; at most 4 per industry.
The stocks, one by one
AngloGold Ashanti Plc AU
AngloGold Ashanti, a gold miner, has the top Opportunity score on this list at 97. Revenue grew 70.8% last fiscal year, gross margin is 49.2% and return on equity is 39.2%. Debt-to-equity of 0.28 is low. Caution: operating and free cash flow margins are not available.
Friedman Industries, Incorporated FRD
Friedman Industries, a steel company, has an Opportunity score of 96 and a Business Quality score of 69. Caution: revenue growth was -13.9% last fiscal year, meaning sales shrank, and margin, return and debt figures are not available, so this picture is incomplete.
Barrick Mining Corporation B
Barrick Mining, a gold miner, grew revenue 31.2% last fiscal year and kept a free cash flow margin of 22.8% and a gross margin of 51.3%. Debt-to-equity of 0.18 is low. Caution: return on equity of 18.8% is more modest than some peers, and operating margin is missing.
Mativ Holdings, Inc. MATV
Mativ Holdings, a specialty chemicals company, has an Opportunity score of 95, but its Business Quality score is only 51. Revenue growth was 0.3%, and operating margin is thin at 3.5%. Caution: debt-to-equity of 2.27 is high.
Kaiser Aluminum Corporation KALU
Kaiser Aluminum, an aluminum company, grew revenue 11.5% with an operating margin of 8.2% and a return on equity of 24.1%. Caution: free cash flow margin is only 2.1%, gross margin is 14.5%, and debt-to-equity of 1.13 is fairly high.
Coeur Mining, Inc. CDE
Coeur Mining, a gold miner, posted revenue growth of 96.4%, an operating margin of 33.8% and a free cash flow margin of 36.5%, all strong. Caution: return on equity is a modest 8.2%, and gross margin and debt figures are not available.
Arcosa, Inc. ACA
Arcosa, a construction materials company, shows steady rather than flashy results: revenue growth of 12.2%, operating margin of 12.0% and return on equity of 16.5%. Debt-to-equity of 0.50 is moderate. Caution: free cash flow margin is just 4.6%.
CF Industries Holdings, Inc. CF
CF Industries, an agricultural inputs company, combines an operating margin of 41.1%, a free cash flow margin of 24.7% and return on equity of 43.5% with revenue growth of 19.3%. Caution: debt-to-equity of 0.63 is moderate, not low.
SSR Mining Inc. SSRM
SSR Mining, a gold miner, grew revenue 63.7% and earned an operating margin of 35.1% and a free cash flow margin of 16.6%. Caution: return on equity is low at 7.0%, and gross margin and debt figures are not available.
Perimeter Solutions, Inc. PRM
Perimeter Solutions, a specialty chemicals company, has a gross margin of 54.7%, a free cash flow margin of 12.8% and revenue growth of 16.4%. Caution: operating margin is -50.6% and return on equity is -33.2%, both negative, and debt-to-equity is 1.23.
CVR Partners, LP UAN
CVR Partners, an agricultural inputs company, shows an operating margin of 28.1%, a free cash flow margin of 21.4% and a gross margin of 33.5%, with revenue growth of 15.4%. Caution: return on equity and debt figures are not available.
NWPX Infrastructure, Inc. NWPX
NWPX Infrastructure, a construction materials company, has an operating margin of 11.5%, a free cash flow margin of 13.9% and low debt-to-equity of 0.24. Caution: revenue growth was only 6.8%, and its Business Quality score is a modest 53.
Commercial Metals Company CMC
Commercial Metals, a steel company, grew revenue 20.5% and earned a return on equity of 14.0%, with debt-to-equity of 0.77. Caution: free cash flow margin is only 5.1%, gross margin is 18.6%, and operating margin is not available.
Vox Royalty Corp. VOXR
Vox Royalty, in precious metals, has a high gross margin of 83.7% and revenue growth of 9.0%. Caution: return on equity is low at 5.5%, and operating margin, free cash flow margin and debt figures are not available.
Hecla Mining Company HL
Hecla Mining, in precious metals, posted revenue growth of 53.0%, an operating margin of 44.6% and a free cash flow margin of 27.8%. Return on equity is 12.5%. Caution: its Opportunity score of 79 is the lowest here, and debt data is missing.
Common questions
What does the Opportunity score mean?
It is a Marvin score that describes how a company compares with others in its own industry today. It is not a forecast or a recommendation, and a high score can sit alongside weak figures, as the cautions in each pick show.
Why are so many gold miners on the list?
Marvin's rules rank by Opportunity score and allow no more than four stocks per industry. Gold is the industry that reached that limit here, with AngloGold Ashanti, Barrick Mining, Coeur Mining and SSR Mining, so many gold miners scored well within their group.
What risks do Basic Materials stocks share?
Many of these companies sell goods whose prices rise and fall with the wider economy and commodity markets, so revenue and margins can change quickly from year to year. Companies with higher debt can feel those swings more, so it helps to check debt alongside margins and growth.
Keep reading
- Top 15 Basic Materials Companies With the Strongest Businesses
- Top 15 Basic Materials Stocks Right Now
- Top 20 Stocks to Hold for the Long Term, Ranked by Marvin
- Top 20 Stocks for Beginners: Large, Profitable, Low-Debt
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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.