HARMONY GOLD MNG-SPON ADR (HMY) Stock Fundamental Analysis
NYSE:HMY - New York Stock Exchange, Inc. - US4132163001 - ADR - Currency: USD
We assign a fundamental rating of 8 out of 10 to HMY. HMY was compared to 153 industry peers in the Metals & Mining industry. HMY has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. An interesting combination arises when we look at growth and value: HMY is growing strongly while it also seems undervalued. With these ratings, HMY could be worth investigating further for value and growth and quality investing!.
1. Profitability
1.1 Basic Checks
HMY had positive earnings in the past year.
In the past year HMY had a positive cash flow from operations.
In multiple years HMY reported negative net income over the last 5 years.
In the past 5 years HMY always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 15.28%, HMY belongs to the top of the industry, outperforming 94.77% of the companies in the same industry.
HMY has a better Return On Equity (22.97%) than 92.81% of its industry peers.
HMY has a better Return On Invested Capital (21.39%) than 98.69% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HMY is above the industry average of 8.62%.
The 3 year average ROIC (12.70%) for HMY is below the current ROIC(21.39%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.28% | ||
| ROE | 22.97% | ||
| ROIC | 21.39% |
ROA(3y)6.79%
ROA(5y)5.77%
ROE(3y)10.48%
ROE(5y)8.8%
ROIC(3y)12.7%
ROIC(5y)10.76%
1.3 Margins
With an excellent Profit Margin value of 15.68%, HMY belongs to the best of the industry, outperforming 86.27% of the companies in the same industry.
HMY's Profit Margin has improved in the last couple of years.
HMY's Operating Margin of 25.71% is amongst the best of the industry. HMY outperforms 80.39% of its industry peers.
In the last couple of years the Operating Margin of HMY has grown nicely.
With a decent Gross Margin value of 30.55%, HMY is doing good in the industry, outperforming 69.93% of the companies in the same industry.
HMY's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.71% | ||
| PM (TTM) | 15.68% | ||
| GM | 30.55% |
OM growth 3Y13.59%
OM growth 5Y39.42%
PM growth 3Y4.7%
PM growth 5YN/A
GM growth 3Y14.56%
GM growth 5Y27.88%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), HMY is creating some value.
The number of shares outstanding for HMY has been increased compared to 1 year ago.
HMY has more shares outstanding than it did 5 years ago.
The debt/assets ratio for HMY has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.39 indicates that HMY is not in any danger for bankruptcy at the moment.
HMY has a better Altman-Z score (6.39) than 78.43% of its industry peers.
The Debt to FCF ratio of HMY is 0.22, which is an excellent value as it means it would take HMY, only 0.22 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of HMY (0.22) is better than 92.16% of its industry peers.
HMY has a Debt/Equity ratio of 0.04. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.04, HMY is in the better half of the industry, outperforming 70.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.22 | ||
| Altman-Z | 6.39 |
ROIC/WACC1.3
WACC16.47%
2.3 Liquidity
HMY has a Current Ratio of 1.84. This is a normal value and indicates that HMY is financially healthy and should not expect problems in meeting its short term obligations.
HMY's Current ratio of 1.84 is on the low side compared to the rest of the industry. HMY is outperformed by 60.78% of its industry peers.
A Quick Ratio of 1.46 indicates that HMY should not have too much problems paying its short term obligations.
The Quick ratio of HMY (1.46) is comparable to the rest of the industry.
HMY does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.46 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.64% over the past year.
The Earnings Per Share has been growing by 18.22% on average over the past years. This is quite good.
Looking at the last year, HMY shows a quite strong growth in Revenue. The Revenue has grown by 16.84% in the last year.
HMY shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.93% yearly.
EPS 1Y (TTM)16.64%
EPS 3Y18.22%
EPS 5YN/A
EPS Q2Q%31.87%
Revenue 1Y (TTM)16.84%
Revenue growth 3Y13.72%
Revenue growth 5Y17.93%
Sales Q2Q%18.23%
3.2 Future
The Earnings Per Share is expected to grow by 31.05% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 11.50% on average over the next years. This is quite good.
EPS Next Y57.49%
EPS Next 2Y43.35%
EPS Next 3Y31.05%
EPS Next 5YN/A
Revenue Next Year19.53%
Revenue Next 2Y17.11%
Revenue Next 3Y11.5%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 15.37, which indicates a correct valuation of HMY.
HMY's Price/Earnings ratio is rather cheap when compared to the industry. HMY is cheaper than 83.66% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.35. HMY is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 7.06, which indicates a rather cheap valuation of HMY.
86.27% of the companies in the same industry are more expensive than HMY, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of HMY to the average of the S&P500 Index (22.20), we can say HMY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.37 | ||
| Fwd PE | 7.06 |
4.2 Price Multiples
HMY's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HMY is cheaper than 80.39% of the companies in the same industry.
79.74% of the companies in the same industry are more expensive than HMY, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.94 | ||
| EV/EBITDA | 7.01 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of HMY may justify a higher PE ratio.
HMY's earnings are expected to grow with 31.05% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.27
PEG (5Y)N/A
EPS Next 2Y43.35%
EPS Next 3Y31.05%
5. Dividend
5.1 Amount
HMY has a Yearly Dividend Yield of 1.17%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.97, HMY pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.17, HMY pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
5.2 History
On average, the dividend of HMY grows each year by 47.94%, which is quite nice.
HMY has been paying a dividend for at least 10 years, so it has a reliable track record.
HMY has decreased its dividend in the last 3 years.
Dividend Growth(5Y)47.94%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
HMY pays out 14.98% of its income as dividend. This is a sustainable payout ratio.
The dividend of HMY is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP14.98%
EPS Next 2Y43.35%
EPS Next 3Y31.05%
14.45
-1.39 (-8.78%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners53.57%
Inst Owner Change-8.7%
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap8.99B
Analysts47.69
Price Target12.43 (-13.98%)
Short Float %1.4%
Short Ratio1.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
Yearly Dividend0.13
Dividend Growth(5Y)47.94%
DP14.98%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)9.57%
PT rev (3m)32.18%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)4.37%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.37 | ||
| Fwd PE | 7.06 | ||
| P/S | 2.4 | ||
| P/FCF | 16.94 | ||
| P/OCF | 8.55 | ||
| P/B | 3.51 | ||
| P/tB | 3.51 | ||
| EV/EBITDA | 7.01 |
EPS(TTM)0.94
EY6.51%
EPS(NY)2.05
Fwd EY14.16%
FCF(TTM)0.85
FCFY5.9%
OCF(TTM)1.69
OCFY11.7%
SpS6.02
BVpS4.11
TBVpS4.11
PEG (NY)0.27
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.28% | ||
| ROE | 22.97% | ||
| ROCE | 28.96% | ||
| ROIC | 21.39% | ||
| ROICexc | 25.39% | ||
| ROICexgc | 25.4% | ||
| OM | 25.71% | ||
| PM (TTM) | 15.68% | ||
| GM | 30.55% | ||
| FCFM | 14.16% |
ROA(3y)6.79%
ROA(5y)5.77%
ROE(3y)10.48%
ROE(5y)8.8%
ROIC(3y)12.7%
ROIC(5y)10.76%
ROICexc(3y)13.71%
ROICexc(5y)11.71%
ROICexgc(3y)13.72%
ROICexgc(5y)11.76%
ROCE(3y)17.19%
ROCE(5y)14.57%
ROICexcg growth 3Y21.3%
ROICexcg growth 5Y51.35%
ROICexc growth 3Y21.65%
ROICexc growth 5Y51.84%
OM growth 3Y13.59%
OM growth 5Y39.42%
PM growth 3Y4.7%
PM growth 5YN/A
GM growth 3Y14.56%
GM growth 5Y27.88%
F-Score8
Asset Turnover0.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.22 | ||
| Debt/EBITDA | 0.09 | ||
| Cap/Depr | 199.1% | ||
| Cap/Sales | 13.91% | ||
| Interest Coverage | 55.48 | ||
| Cash Conversion | 85.85% | ||
| Profit Quality | 90.31% | ||
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.46 | ||
| Altman-Z | 6.39 |
F-Score8
WACC16.47%
ROIC/WACC1.3
Cap/Depr(3y)190.28%
Cap/Depr(5y)161.27%
Cap/Sales(3y)14.59%
Cap/Sales(5y)13.68%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)16.64%
EPS 3Y18.22%
EPS 5YN/A
EPS Q2Q%31.87%
EPS Next Y57.49%
EPS Next 2Y43.35%
EPS Next 3Y31.05%
EPS Next 5YN/A
Revenue 1Y (TTM)16.84%
Revenue growth 3Y13.72%
Revenue growth 5Y17.93%
Sales Q2Q%18.23%
Revenue Next Year19.53%
Revenue Next 2Y17.11%
Revenue Next 3Y11.5%
Revenue Next 5YN/A
EBIT growth 1Y40.71%
EBIT growth 3Y29.18%
EBIT growth 5Y64.42%
EBIT Next Year74.31%
EBIT Next 3Y31.76%
EBIT Next 5YN/A
FCF growth 1Y131.28%
FCF growth 3Y21.56%
FCF growth 5YN/A
OCF growth 1Y179.52%
OCF growth 3Y19.46%
OCF growth 5Y27.31%