HARMONY GOLD MNG-SPON ADR (HMY) Stock Fundamental Analysis
NYSE:HMY - New York Stock Exchange, Inc. - US4132163001 - ADR - Currency: USD
HMY gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 157 industry peers in the Metals & Mining industry. HMY scores excellent points on both the profitability and health parts. This is a solid base for a good stock. An interesting combination arises when we look at growth and value: HMY is growing strongly while it also seems undervalued. These ratings would make HMY suitable for value and growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year HMY was profitable.
HMY had a positive operating cash flow in the past year.
In multiple years HMY reported negative net income over the last 5 years.
HMY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HMY has a Return On Assets of 15.28%. This is amongst the best in the industry. HMY outperforms 94.90% of its industry peers.
HMY's Return On Equity of 22.97% is amongst the best of the industry. HMY outperforms 93.63% of its industry peers.
With an excellent Return On Invested Capital value of 21.39%, HMY belongs to the best of the industry, outperforming 98.09% 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
HMY has a Profit Margin of 15.68%. This is amongst the best in the industry. HMY outperforms 84.08% of its industry peers.
In the last couple of years the Profit Margin of HMY has grown nicely.
HMY has a better Operating Margin (25.71%) than 78.34% of its industry peers.
In the last couple of years the Operating Margin of HMY has grown nicely.
HMY has a better Gross Margin (30.55%) than 70.70% 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
HMY has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for HMY has been increased compared to 1 year ago.
The number of shares outstanding for HMY has been increased compared to 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 6.41 indicates that HMY is not in any danger for bankruptcy at the moment.
HMY has a better Altman-Z score (6.41) than 77.71% 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.
HMY has a Debt to FCF ratio of 0.22. This is amongst the best in the industry. HMY outperforms 93.63% 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 68.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.22 | ||
| Altman-Z | 6.41 |
ROIC/WACC1.45
WACC14.73%
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 Current ratio of 1.84. This is in the lower half of the industry: HMY underperforms 61.15% 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 of 1.46. This is comparable to the rest of the industry: HMY outperforms 47.77% 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 | 1.84 | ||
| Quick Ratio | 1.46 |
3. Growth
3.1 Past
HMY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.64%, which is quite good.
HMY shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.22% yearly.
The Revenue has grown by 16.84% in the past year. This is quite good.
The Revenue has been growing by 17.93% on average over the past years. This is quite good.
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
Based on estimates for the next years, HMY will show a very strong growth in Earnings Per Share. The EPS will grow by 31.05% on average per year.
The Revenue is expected to grow by 13.42% 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 Year19.04%
Revenue Next 2Y20.27%
Revenue Next 3Y13.42%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
HMY is valuated correctly with a Price/Earnings ratio of 15.46.
Based on the Price/Earnings ratio, HMY is valued cheaper than 80.89% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.82. HMY is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 7.11, the valuation of HMY can be described as very cheap.
HMY's Price/Forward Earnings ratio is rather cheap when compared to the industry. HMY is cheaper than 88.53% of the companies in the same industry.
HMY's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.46 | ||
| Fwd PE | 7.11 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HMY is valued cheaply inside the industry as 83.44% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, HMY is valued cheaper than 84.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.05 | ||
| EV/EBITDA | 7.05 |
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 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 1.33%. Purely for dividend investing, there may be better candidates out there.
HMY's Dividend Yield is a higher than the industry average which is at 2.94.
Compared to an average S&P500 Dividend Yield of 2.39, HMY's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
5.2 History
The dividend of HMY is nicely growing with an annual growth rate of 47.94%!
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
14.98% of the earnings are spent on dividend by HMY. This is a low number and sustainable payout ratio.
HMY's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP14.98%
EPS Next 2Y43.35%
EPS Next 3Y31.05%
14.22
+0.76 (+5.65%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners47.94%
Inst Owner Change0.61%
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap8.85B
Analysts47.69
Price Target14.68 (3.23%)
Short Float %1.67%
Short Ratio2.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
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)-2.46%
PT rev (3m)23.59%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.41%
Revenue NY rev (3m)-0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.46 | ||
| Fwd PE | 7.11 | ||
| P/S | 2.42 | ||
| P/FCF | 17.05 | ||
| P/OCF | 8.6 | ||
| P/B | 3.54 | ||
| P/tB | 3.54 | ||
| EV/EBITDA | 7.05 |
EPS(TTM)0.92
EY6.47%
EPS(NY)2
Fwd EY14.07%
FCF(TTM)0.83
FCFY5.86%
OCF(TTM)1.65
OCFY11.62%
SpS5.89
BVpS4.02
TBVpS4.02
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 | 6.41 |
F-Score8
WACC14.73%
ROIC/WACC1.45
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 Year19.04%
Revenue Next 2Y20.27%
Revenue Next 3Y13.42%
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%