HARMONY GOLD MNG-SPON ADR (HMY) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HMY - US4132163001 - ADR
25.6 USD
+1.44 (+5.96%)
We assign a fundamental rating of 7 out of 10 to HMY. HMY was compared to 154 industry peers in the Metals & Mining industry. Both the health and profitability get an excellent rating, making HMY a very profitable company, without any liquidiy or solvency issues. HMY is growing strongly while it also seems undervalued. This is an interesting combination This makes HMY very considerable for value and growth and quality investing!
1. Profitability
1.1 Basic Checks
- In the past year HMY was profitable.
- In the past year HMY had a positive cash flow from operations.
- Of the past 5 years HMY 4 years were profitable.
- HMY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- HMY has a Return On Assets of 18.56%. This is amongst the best in the industry. HMY outperforms 97.40% of its industry peers.
- The Return On Equity of HMY (29.82%) is better than 96.10% of its industry peers.
- With an excellent Return On Invested Capital value of 22.66%, HMY belongs to the best of the industry, outperforming 97.40% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for HMY is significantly above the industry average of 10.32%.
- The last Return On Invested Capital (22.66%) for HMY is above the 3 year average (17.58%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.56% | ||
| ROE | 29.82% | ||
| ROIC | 22.66% |
ROA(3y)13.73%
ROA(5y)9.87%
ROE(3y)21.58%
ROE(5y)15.51%
ROIC(3y)17.58%
ROIC(5y)14.04%
1.3 Margins
- HMY has a Profit Margin of 19.47%. This is amongst the best in the industry. HMY outperforms 83.12% of its industry peers.
- With a decent Operating Margin value of 28.04%, HMY is doing good in the industry, outperforming 79.87% of the companies in the same industry.
- In the last couple of years the Operating Margin of HMY has grown nicely.
- HMY has a Gross Margin of 33.10%. This is in the better half of the industry: HMY outperforms 69.48% of its industry peers.
- HMY's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.04% | ||
| PM (TTM) | 19.47% | ||
| GM | 33.1% |
OM growth 3Y44.29%
OM growth 5Y28.6%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y39.66%
GM growth 5Y23.45%
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.
- Compared to 1 year ago, HMY has more shares outstanding
- Compared to 5 years ago, HMY has more shares outstanding
- The debt/assets ratio for HMY has been reduced compared to a year ago.
2.2 Solvency
- HMY has an Altman-Z score of 7.20. This indicates that HMY is financially healthy and has little risk of bankruptcy at the moment.
- HMY's Altman-Z score of 7.20 is fine compared to the rest of the industry. HMY outperforms 70.13% of its industry peers.
- HMY has a debt to FCF ratio of 0.18. This is a very positive value and a sign of high solvency as it would only need 0.18 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 0.18, HMY belongs to the top of the industry, outperforming 93.51% of the companies in the same industry.
- HMY has a Debt/Equity ratio of 0.04. This is a healthy value indicating a solid balance between debt and equity.
- With a decent Debt to Equity ratio value of 0.04, HMY is doing good in the industry, outperforming 69.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.18 | ||
| Altman-Z | 7.2 |
ROIC/WACC1.44
WACC15.72%
2.3 Liquidity
- HMY has a Current Ratio of 1.72. This is a normal value and indicates that HMY is financially healthy and should not expect problems in meeting its short term obligations.
- HMY has a Current ratio of 1.72. This is in the lower half of the industry: HMY underperforms 64.29% of its industry peers.
- A Quick Ratio of 1.41 indicates that HMY should not have too much problems paying its short term obligations.
- HMY has a Quick ratio of 1.41. This is comparable to the rest of the industry: HMY outperforms 46.10% of its industry peers.
- The current and quick ratio evaluation for HMY is rather negative, while it does have 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 | 1.72 | ||
| Quick Ratio | 1.41 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 66.97% over the past year.
- The Revenue has grown by 20.39% in the past year. This is a very strong growth!
- HMY shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.37% yearly.
EPS 1Y (TTM)66.97%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%147.05%
Revenue 1Y (TTM)20.39%
Revenue growth 3Y20.11%
Revenue growth 5Y20.37%
Sales Q2Q%22.66%
3.2 Future
- The Earnings Per Share is expected to grow by 30.32% on average over the next years. This is a very strong growth
- HMY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.76% yearly.
EPS Next Y61.88%
EPS Next 2Y46.38%
EPS Next 3Y30.32%
EPS Next 5YN/A
Revenue Next Year37.12%
Revenue Next 2Y25.48%
Revenue Next 3Y14.76%
Revenue Next 5YN/A
3.3 Evolution
- The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 17.66, the valuation of HMY can be described as rather expensive.
- Based on the Price/Earnings ratio, HMY is valued cheaper than 92.86% of the companies in the same industry.
- When comparing the Price/Earnings ratio of HMY to the average of the S&P500 Index (28.82), we can say HMY is valued slightly cheaper.
- HMY is valuated cheaply with a Price/Forward Earnings ratio of 7.93.
- Based on the Price/Forward Earnings ratio, HMY is valued cheaply inside the industry as 96.10% of the companies are valued more expensively.
- HMY is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.95, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.66 | ||
| Fwd PE | 7.93 |
4.2 Price Multiples
- HMY's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HMY is cheaper than 86.36% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, HMY is valued cheaply inside the industry as 90.91% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.69 | ||
| EV/EBITDA | 9 |
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.
- A more expensive valuation may be justified as HMY's earnings are expected to grow with 30.32% in the coming years.
PEG (NY)0.29
PEG (5Y)N/A
EPS Next 2Y46.38%
EPS Next 3Y30.32%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.05%, HMY has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 1.02, HMY pays a bit more dividend than its industry peers.
- With a Dividend Yield of 1.05, HMY pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
5.2 History
- HMY has paid a dividend for at least 10 years, which is a reliable track record.
- HMY has decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
- HMY pays out 14.60% of its income as dividend. This is a sustainable payout ratio.
DP14.6%
EPS Next 2Y46.38%
EPS Next 3Y30.32%
HARMONY GOLD MNG-SPON ADR / HMY FAQ
Can you provide the ChartMill fundamental rating for HARMONY GOLD MNG-SPON ADR?
ChartMill assigns a fundamental rating of 7 / 10 to HMY.
What is the valuation status for HMY stock?
ChartMill assigns a valuation rating of 9 / 10 to HARMONY GOLD MNG-SPON ADR (HMY). This can be considered as Undervalued.
What is the profitability of HMY stock?
HARMONY GOLD MNG-SPON ADR (HMY) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for HMY stock?
The Price/Earnings (PE) ratio for HARMONY GOLD MNG-SPON ADR (HMY) is 17.66 and the Price/Book (PB) ratio is 5.3.
Can you provide the dividend sustainability for HMY stock?
The dividend rating of HARMONY GOLD MNG-SPON ADR (HMY) is 4 / 10 and the dividend payout ratio is 14.6%.