HARMONY GOLD MNG-SPON ADR (HMY) Stock Fundamental Analysis
NYSE:HMY - US4132163001 - ADR
13.28 USD
+0.67 (+5.31%)
13.2809 USD
+0 (+0.01%)
HMY gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 155 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. HMY is evaluated to be cheap and growing strongly. This does not happen too often! 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.
The reported net income has been mixed in the past 5 years: HMY reported negative net income in multiple years.
Each year in the past 5 years HMY had a positive operating cash flow.
1.2 Ratios
HMY has a better Return On Assets (15.28%) than 95.48% of its industry peers.
With an excellent Return On Equity value of 22.97%, HMY belongs to the best of the industry, outperforming 94.84% of the companies in the same industry.
With an excellent Return On Invested Capital value of 21.39%, HMY belongs to the best of the industry, outperforming 98.06% 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 12.86%.
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 81.29% of its industry peers.
In the last couple of years the Profit Margin of HMY has grown nicely.
The Operating Margin of HMY (25.71%) is better than 76.77% of its industry peers.
HMY's Operating Margin has improved in the last couple of years.
HMY has a better Gross Margin (30.55%) than 69.03% of its industry peers.
In the last couple of years the Gross Margin of HMY has grown nicely.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HMY is still creating some value.
Compared to 1 year ago, HMY has more shares outstanding
Compared to 5 years ago, HMY has more shares outstanding
Compared to 1 year ago, HMY has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.79 indicates that HMY is not in any danger for bankruptcy at the moment.
HMY has a Altman-Z score of 5.79. This is in the better half of the industry: HMY outperforms 75.48% 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 Debt to FCF ratio of 0.22. This is amongst the best in the industry. HMY outperforms 94.84% 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.
HMY has a Debt to Equity ratio of 0.04. This is in the better half of the industry: HMY outperforms 67.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.22 | ||
| Altman-Z | 5.79 |
ROIC/WACC1.4
WACC15.32%
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.
With a Current ratio value of 1.84, HMY is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
A Quick Ratio of 1.46 indicates that HMY should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.46, HMY is in line with its industry, outperforming 49.03% of the companies in the same 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
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.
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.
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 39.01% 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 14.10% yearly.
EPS Next Y77.43%
EPS Next 2Y60.06%
EPS Next 3Y39.01%
EPS Next 5YN/A
Revenue Next Year19.46%
Revenue Next 2Y21.29%
Revenue Next 3Y14.1%
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
With a Price/Earnings ratio of 13.98, HMY is valued correctly.
Based on the Price/Earnings ratio, HMY is valued cheaper than 88.39% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.08, HMY is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 5.12, the valuation of HMY can be described as very cheap.
Based on the Price/Forward Earnings ratio, HMY is valued cheaply inside the industry as 98.71% of the companies are valued more expensively.
HMY's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.72.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.98 | ||
| Fwd PE | 5.12 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HMY is valued cheaper than 88.39% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HMY is valued cheaper than 88.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.32 | ||
| EV/EBITDA | 5.97 |
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.
HMY has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as HMY's earnings are expected to grow with 39.01% in the coming years.
PEG (NY)0.18
PEG (5Y)N/A
EPS Next 2Y60.06%
EPS Next 3Y39.01%
5. Dividend
5.1 Amount
HMY has a Yearly Dividend Yield of 1.26%.
HMY's Dividend Yield is a higher than the industry average which is at 2.59.
Compared to an average S&P500 Dividend Yield of 2.34, HMY's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
5.2 History
On average, the dividend of HMY grows each year by 47.94%, which is quite nice.
HMY has paid a dividend for at least 10 years, which is 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 2Y60.06%
EPS Next 3Y39.01%
13.28
+0.67 (+5.31%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners47.94%
Inst Owner Change7.05%
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap8.26B
Analysts47.69
Price Target15.26 (14.91%)
Short Float %1.36%
Short Ratio1.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
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)3.93%
PT rev (3m)22.72%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)12.66%
EPS NY rev (3m)12.66%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.98 | ||
| Fwd PE | 5.12 | ||
| P/S | 2.17 | ||
| P/FCF | 15.32 | ||
| P/OCF | 7.73 | ||
| P/B | 3.18 | ||
| P/tB | 3.18 | ||
| EV/EBITDA | 5.97 |
EPS(TTM)0.95
EY7.15%
EPS(NY)2.59
Fwd EY19.52%
FCF(TTM)0.87
FCFY6.53%
OCF(TTM)1.72
OCFY12.94%
SpS6.12
BVpS4.18
TBVpS4.18
PEG (NY)0.18
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 | 5.79 |
F-Score8
WACC15.32%
ROIC/WACC1.4
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 Y77.43%
EPS Next 2Y60.06%
EPS Next 3Y39.01%
EPS Next 5YN/A
Revenue 1Y (TTM)16.84%
Revenue growth 3Y13.72%
Revenue growth 5Y17.93%
Sales Q2Q%18.23%
Revenue Next Year19.46%
Revenue Next 2Y21.29%
Revenue Next 3Y14.1%
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%