NEWMONT CORP (NEM)
US6516391066 - Common Stock
We assign a fundamental rating of 3 out of 10 to NEM. NEM was compared to 155 industry peers in the Metals & Mining industry. NEM has a bad profitability rating. Also its financial health evaluation is rather negative. NEM is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year NEM was profitable.
In the past year NEM had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: NEM reported negative net income in multiple years.
In the past 5 years NEM always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of -4.49%, NEM is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
With a Return On Equity value of -8.59%, NEM is not doing good in the industry: 65.81% of the companies in the same industry are doing better.
The Return On Invested Capital of NEM (1.12%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for NEM is significantly below the industry average of 9.26%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.49% | ||
| ROE | -8.59% | ||
| ROIC | 1.12% |
ROA(3y)-0.91%
ROA(5y)2.22%
ROE(3y)-1.84%
ROE(5y)3.98%
ROIC(3y)2.97%
ROIC(5y)3.77%
1.3 Margins
NEM has a Operating Margin (5.94%) which is in line with its industry peers.
NEM's Operating Margin has declined in the last couple of years.
The Gross Margin of NEM (43.29%) is better than 82.58% of its industry peers.
In the last couple of years the Gross Margin of NEM has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.94% | ||
| PM (TTM) | N/A | ||
| GM | 43.29% |
OM growth 3Y-40.38%
OM growth 5Y-18.23%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-8.44%
GM growth 5Y-0.13%
2. Health
2.1 Basic Checks
NEM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
NEM has more shares outstanding than it did 1 year ago.
NEM has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, NEM has a worse debt to assets ratio.
2.2 Solvency
NEM has an Altman-Z score of 1.22. This is a bad value and indicates that NEM is not financially healthy and even has some risk of bankruptcy.
NEM's Altman-Z score of 1.22 is on the low side compared to the rest of the industry. NEM is outperformed by 65.81% of its industry peers.
The Debt to FCF ratio of NEM is 97.28, which is on the high side as it means it would take NEM, 97.28 years of fcf income to pay off all of its debts.
NEM has a Debt to FCF ratio of 97.28. This is comparable to the rest of the industry: NEM outperforms 59.35% of its industry peers.
A Debt/Equity ratio of 0.25 indicates that NEM is not too dependend on debt financing.
The Debt to Equity ratio of NEM (0.25) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 97.28 | ||
| Altman-Z | 1.22 |
ROIC/WACC0.14
WACC8.2%
2.3 Liquidity
NEM has a Current Ratio of 1.25. This is a normal value and indicates that NEM is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.25, NEM is not doing good in the industry: 81.94% of the companies in the same industry are doing better.
A Quick Ratio of 0.81 indicates that NEM may have some problems paying its short term obligations.
With a Quick ratio value of 0.81, NEM is not doing good in the industry: 83.23% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
The earnings per share for NEM have decreased strongly by -14.52% in the last year.
The Earnings Per Share has been growing slightly by 3.48% on average over the past years.
NEM shows a decrease in Revenue. In the last year, the revenue decreased by -0.86%.
The Revenue has been growing by 10.25% on average over the past years. This is quite good.
EPS 1Y (TTM)-14.52%
EPS 3Y-15.66%
EPS 5Y3.48%
EPS growth Q2Q13.64%
Revenue 1Y (TTM)-0.86%
Revenue growth 3Y0.91%
Revenue growth 5Y10.25%
Revenue growth Q2Q23.66%
3.2 Future
Based on estimates for the next years, NEM will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.70% on average per year.
NEM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.88% yearly.
EPS Next Y29.97%
EPS Next 2Y28.4%
EPS Next 3Y17.66%
EPS Next 5Y18.7%
Revenue Next Year44.09%
Revenue Next 2Y24.57%
Revenue Next 3Y16.49%
Revenue Next 5Y13.88%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
NEM is valuated rather expensively with a Price/Earnings ratio of 24.58.
Compared to the rest of the industry, the Price/Earnings ratio of NEM indicates a somewhat cheap valuation: NEM is cheaper than 67.10% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of NEM to the average of the S&P500 Index (24.80), we can say NEM is valued inline with the index average.
The Price/Forward Earnings ratio is 18.92, which indicates a rather expensive current valuation of NEM.
Based on the Price/Forward Earnings ratio, NEM is valued a bit cheaper than the industry average as 65.16% of the companies are valued more expensively.
NEM is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.27, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.58 | ||
| Fwd PE | 18.92 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as NEM.
NEM's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 464.56 | ||
| EV/EBITDA | 18.09 |
4.3 Compensation for Growth
NEM's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as NEM's earnings are expected to grow with 17.66% in the coming years.
PEG (NY)0.82
PEG (5Y)7.06
EPS Next 2Y28.4%
EPS Next 3Y17.66%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.56%, NEM has a reasonable but not impressive dividend return.
NEM's Dividend Yield is rather good when compared to the industry average which is at 2.87. NEM pays more dividend than 85.81% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, NEM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.56% |
5.2 History
On average, the dividend of NEM grows each year by 20.84%, which is quite nice.
NEM has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)20.84%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
The earnings of NEM are negative and hence is the payout ratio. NEM will probably not be able to sustain this dividend level.
The dividend of NEM is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP-56.74%
EPS Next 2Y28.4%
EPS Next 3Y17.66%
NEWMONT CORP
NYSE:NEM (4/19/2024, 10:51:09 AM)
39.09
+0.54 (+1.4%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap45.06B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.56% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.58 | ||
| Fwd PE | 18.92 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.82
PEG (5Y)7.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.49% | ||
| ROE | -8.59% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.94% | ||
| PM (TTM) | N/A | ||
| GM | 43.29% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-14.52%
EPS 3Y-15.66%
EPS 5Y
EPS growth Q2Q
EPS Next Y29.97%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.86%
Revenue growth 3Y0.91%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y