NEWMONT CORP (NYSE:NEM) – A Gold Stock with Growth at a Reasonable Price

NEWMONT CORP (NYSE:NEM) stands out as a potential candidate for investors seeking growth at a reasonable price (GARP). The company, a leading gold producer, meets key criteria from Peter Lynch’s investment strategy, balancing solid growth, profitability, and an attractive valuation.

Why NEM Fits the GARP Approach

• Strong Historical Growth: NEM has delivered an impressive 5-year average EPS growth of 21.58%, well above the 15% minimum threshold in Lynch’s strategy. This reflects the company’s ability to expand earnings consistently.
• Reasonable Valuation: With a PEG ratio (past 5 years) of 0.67, NEM trades below the Lynch-recommended threshold of 1, indicating the stock is priced attractively relative to its growth.
• Healthy Profitability: The company’s return on equity (ROE) of 16.22% exceeds the 15% benchmark, demonstrating efficient use of shareholder capital.
• Conservative Financial Structure: NEM maintains a low debt-to-equity ratio of 0.25, aligning with Lynch’s preference for companies with minimal debt.
• Liquidity Strength: A current ratio of 1.98 ensures the company can comfortably cover short-term obligations.

Fundamental Highlights

NEM’s financial health is solid, with strong margins and cash flow. The company’s operating margin of 35.28% ranks near the top of its industry, while its debt-to-FCF ratio of 1.78 suggests manageable leverage. However, analysts expect a slowdown in earnings and revenue growth in the near term, which investors should monitor.

For a deeper analysis, review the full fundamental report on NEM.

Our Peter Lynch Strategy screener lists more stocks that fit this strategy and is updated regularly.

Disclaimer

This is not investing advice! The article highlights observations at the time of writing, but you should always conduct your own research before making investment decisions.