IAG

We rate IAMGOLD CORP (IAG) as a Buy with a composite score of 70.0/100 at a current price of $22.93. The stock scores above average across the majority of our six quantitative factors and ranks #91 out of 7,333 stocks in our universe, reflecting a favorable risk-reward profile.

The rating is primarily driven by strength in momentum (89th percentile) and value (82th percentile), which together account for the majority of the composite score. Offsetting weakness in investment (36th percentile) and stability (52th percentile) tempers our overall conviction. We assign a Narrow Moat rating (65/100), Low uncertainty, and Exemplary capital allocation.

Key items to watch: sustainability of the current growth rate. Any material change in these dynamics could warrant a reassessment of our rating. The moat trend is stable, which suggests the competitive landscape is stable for now.

IAMGOLD CORP holds a top-quartile position (#8 of 50) within the Mining sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 70.0/100 places it at rank #91 in our full 7,333-stock universe. At $2.5B in market capitalization, IAMGOLD CORP is a mid-cap player in the Mining space, which limits certain scale advantages but may allow for more agile strategic execution.

The near-term outlook is constructive, with revenue growing at 65% and momentum in the 89th percentile confirming positive market sentiment and institutional accumulation. The combination of strong top-line growth and favorable price dynamics suggests the company is executing well on its growth strategy. Investment factor at the 36th percentile indicates reinvestment patterns that investors should monitor for sustainability.

The margin cascade tells an important story: gross margins of 34% (-9.5pp vs sector) narrow to operating margins of 58% (+45.6pp vs sector) and net margins of 51.9%, yielding a gross-to-net conversion rate of 154%. This efficient conversion suggests well-controlled operating costs and limited margin leakage between the gross and net levels.

At a current price of $22.93, IAMGOLD CORP appears undervalued relative to its fundamentals. Our value factor score of 82/100 reflects a composite assessment across multiple valuation metrics including price-to-earnings, price-to-book, EV/EBITDA, and price-to-sales ratios relative to both sector peers and the broader market. The stock screens as attractively priced on a majority of these measures, suggesting the market may be underappreciating the underlying fundamentals.

The stock currently trades at a P/E of 15.0x (roughly in line with the sector median of 13.7x), EV/EBITDA of 2.9x (discounted to peers), P/B of 4.0x, P/S of 2.0x. The above-sector P/E multiple suggests the market is pricing in superior growth or quality, which our analysis partially supports given strong quality metrics.

We assign a Low uncertainty rating to IAMGOLD CORP. The company exhibits strong financial stability with a beta of 0.67, conservative leverage (34% D/E), and a stability factor in the 52th percentile. The predictable nature of the business model and solid financial position reduce the range of potential outcomes, giving us confidence in our fair value estimate.

Specific risk factors that inform our assessment include: low beta of 0.67 — while defensive, this may indicate limited upside participation in bull markets. Each of these factors independently widens the distribution of potential outcomes, and in combination they create a risk profile that demands careful position sizing. The stability factor at the 52th percentile and quality factor at the 71th percentile provide a quantitative summary of the overall risk landscape.

We identify limited risk mitigants at this time, which contributes to our low uncertainty assessment. Investors should monitor for improvement in balance sheet metrics, margin stability, and business predictability that could warrant a downgrade in our risk assessment over time.

We rate IAMGOLD CORP's capital allocation as Exemplary. Management demonstrates a strong track record of balancing reinvestment with shareholder returns, evidenced by returns on equity of 101.6%, disciplined leverage (34% D/E), best-in-class net margins of 51.9%. Exemplary allocators typically generate returns on equity above 20% while maintaining debt-to-equity below 50% — IAMGOLD CORP meets this high bar.

The balance sheet remains conservatively managed, providing financial flexibility for opportunistic investments while maintaining a margin of safety for shareholders. We note that the combination of 63.1% return on assets and controlled leverage suggests management is deploying capital at rates well above the cost of capital — the hallmark of exemplary stewardship.

In summary, IAMGOLD CORP receives a Buy rating with a composite score of 70.0/100 (rank #91 of 7,333). Our quantitative framework assigns a Narrow Moat (65/100, trend: stable), Low uncertainty, and Exemplary capital allocation. The average factor score across quality, value, momentum, stability, and investment is 66/100.

Our analysis supports a constructive view on IAMGOLD CORP. The combination of identifiable competitive advantages, low uncertainty, and exemplary capital allocation creates a risk-reward profile that favors accumulation at current levels. We recommend investors consider adding this name to portfolios aligned with the stock's risk profile.