HARMONY GOLD MNG-SPON ADR (HMY) Stock Fundamental Analysis
NYSE:HMY - New York Stock Exchange, Inc. - US4132163001 - ADR - Currency: USD
Overall HMY gets a fundamental rating of 7 out of 10. We evaluated HMY against 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. An interesting combination arises when we look at growth and value: HMY is growing strongly while it also seems undervalued. These ratings could make HMY a good candidate for value and growth and quality investing.
1. Profitability
1.1 Basic Checks
HMY had positive earnings in the past year.
HMY had a positive operating cash flow in the past year.
In multiple years HMY reported negative net income over the last 5 years.
Each year in the past 5 years HMY had a positive operating cash flow.
1.2 Ratios
HMY's Return On Assets of 15.28% is amongst the best of the industry. HMY outperforms 94.81% of its industry peers.
HMY has a Return On Equity of 22.97%. This is amongst the best in the industry. HMY outperforms 93.51% of its industry peers.
Looking at the Return On Invested Capital, with a value of 21.39%, HMY belongs to the top of the industry, outperforming 98.70% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for HMY is in line with the industry average of 11.67%.
The last Return On Invested Capital (21.39%) for HMY is above the 3 year average (12.70%), which is a sign of increasing profitability.
| 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 84.42% of the companies in the same industry.
HMY's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 25.71%, HMY is in the better half of the industry, outperforming 79.22% of the companies in the same industry.
In the last couple of years the Operating Margin of HMY has grown nicely.
HMY's Gross Margin of 30.55% is fine compared to the rest of the industry. HMY outperforms 70.78% of its industry peers.
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.
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 6.45. This indicates that HMY is financially healthy and has little risk of bankruptcy at the moment.
HMY's Altman-Z score of 6.45 is fine compared to the rest of the industry. HMY outperforms 78.57% of its industry peers.
HMY has a debt to FCF ratio of 0.22. This is a very positive value and a sign of high solvency as it would only need 0.22 years to pay back of all of its debts.
HMY has a better Debt to FCF ratio (0.22) than 94.16% of its industry peers.
A Debt/Equity ratio of 0.04 indicates that HMY is not too dependend on debt financing.
HMY has a Debt to Equity ratio of 0.04. This is in the better half of the industry: HMY outperforms 69.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.22 | ||
| Altman-Z | 6.45 |
ROIC/WACC1.39
WACC15.35%
2.3 Liquidity
A Current Ratio of 1.84 indicates that HMY should not have too much problems paying its short term obligations.
HMY has a worse Current ratio (1.84) than 61.69% of its industry peers.
HMY has a Quick Ratio of 1.46. 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 Quick ratio (1.46) which is comparable to the rest of the industry.
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 | 1.84 | ||
| Quick Ratio | 1.46 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.64% over the past year.
Measured over the past years, HMY shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.22% on average per year.
HMY shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.84%.
Measured over the past years, HMY shows a quite strong growth in Revenue. The Revenue has been growing by 17.93% on average per year.
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
HMY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.50% yearly.
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.
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
The Price/Earnings ratio is 15.55, which indicates a correct valuation of HMY.
HMY's Price/Earnings ratio is rather cheap when compared to the industry. HMY is cheaper than 84.42% of the companies in the same industry.
HMY is valuated rather cheaply when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 7.16, which indicates a rather cheap valuation of HMY.
Based on the Price/Forward Earnings ratio, HMY is valued cheaper than 87.66% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.19. HMY is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.55 | ||
| Fwd PE | 7.16 |
4.2 Price Multiples
HMY's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HMY is cheaper than 84.42% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HMY indicates a rather cheap valuation: HMY is cheaper than 85.06% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.19 | ||
| EV/EBITDA | 7.11 |
4.3 Compensation for Growth
HMY's 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 31.05% in the coming years.
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 1.27%.
HMY's Dividend Yield is a higher than the industry average which is at 2.90.
With a Dividend Yield of 1.27, HMY pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
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.
The dividend of HMY decreased 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%
14.62
+0.24 (+1.67%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners47.94%
Inst Owner Change0%
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap9.09B
Analysts47.69
Price Target15.05 (2.94%)
Short Float %2.71%
Short Ratio2.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
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)-1.87%
PT rev (3m)32.63%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)7.72%
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 | 15.55 | ||
| Fwd PE | 7.16 | ||
| P/S | 2.43 | ||
| P/FCF | 17.19 | ||
| P/OCF | 8.67 | ||
| P/B | 3.56 | ||
| P/tB | 3.57 | ||
| EV/EBITDA | 7.11 |
EPS(TTM)0.94
EY6.43%
EPS(NY)2.04
Fwd EY13.96%
FCF(TTM)0.85
FCFY5.82%
OCF(TTM)1.69
OCFY11.53%
SpS6.01
BVpS4.1
TBVpS4.1
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 | 6.45 |
F-Score8
WACC15.35%
ROIC/WACC1.39
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%