IAMGOLD Corp. (NYSE: IAG), a Canadian small-cap gold miner, is a good value stock, trading at trailing and forward multiples of 8.5x and 10.0x, respectively. IAMGOLD is also trading at a 30% discount to its book value, with a price-to-book ratio that is 60% below the stock’s average ratio over the past five years. Shares have lost 45% of their value over the past 12 months, and are down 7% over the past five years.
IAMGOLD has been a major dividend-grower, so to speak, increasing dividends at an average CAGR of 33% over the past five years. Currently, the gold miner is yielding 3.4% on a payout ratio of 30% of its current-year EPS estimate. The company reported a drop in its 2012 EPS, based on flat revenues, as gold output declined and operating costs and exploration expenses increased. The company’s 2013 outlook calls for an increase in gold production of between 5.4% and 14.4% from 2012.