NEWMONT CORP (NEM)
US6516391066 - Common Stock
Taking everything into account, NEM scores 5 out of 10 in our fundamental rating. NEM was compared to 157 industry peers in the Metals & Mining industry. NEM has only an average score on both its financial health and profitability. NEM is growing strongly while it is still valued neutral. This is a good combination!
1. Profitability
1.1 Basic Checks
NEM had positive earnings in the past year.
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
NEM has a worse Return On Assets (-3.55%) than 62.42% of its industry peers.
Looking at the Return On Equity, with a value of -6.73%, NEM is doing worse than 64.33% of the companies in the same industry.
NEM has a Return On Invested Capital of 3.27%. This is comparable to the rest of the industry: NEM outperforms 56.05% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NEM is significantly below the industry average of 8.22%.
The last Return On Invested Capital (3.27%) for NEM is above the 3 year average (2.97%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.55% | ||
| ROE | -6.73% | ||
| ROIC | 3.27% |
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 better Operating Margin (13.90%) than 70.70% of its industry peers.
NEM's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 46.65%, NEM belongs to the best of the industry, outperforming 86.62% of the companies in the same industry.
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 | 13.9% | ||
| PM (TTM) | N/A | ||
| GM | 46.65% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NEM is destroying value.
NEM has more shares outstanding than it did 1 year ago.
The number of shares outstanding for NEM has been increased compared to 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 1.97. This is not the best score and indicates that NEM is in the grey zone with still only limited risk for bankruptcy at the moment.
NEM's Altman-Z score of 1.97 is on the low side compared to the rest of the industry. NEM is outperformed by 64.33% of its industry peers.
NEM has a debt to FCF ratio of 23.59. This is a negative value and a sign of low solvency as NEM would need 23.59 years to pay back of all of its debts.
NEM's Debt to FCF ratio of 23.59 is fine compared to the rest of the industry. NEM outperforms 60.51% of its industry peers.
NEM has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
NEM has a worse Debt to Equity ratio (0.31) than 64.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 23.59 | ||
| Altman-Z | 1.97 |
ROIC/WACC0.36
WACC9.14%
2.3 Liquidity
NEM has a Current Ratio of 2.11. This indicates that NEM is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.11, NEM is in line with its industry, outperforming 43.95% of the companies in the same industry.
A Quick Ratio of 1.73 indicates that NEM should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.73, NEM perfoms like the industry average, outperforming 53.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.11 | ||
| Quick Ratio | 1.73 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 47.92% over the past year.
The Earnings Per Share has been growing slightly by 3.48% on average over the past years.
NEM shows a strong growth in Revenue. In the last year, the Revenue has grown by 32.86%.
NEM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.25% yearly.
EPS 1Y (TTM)47.92%
EPS 3Y-15.66%
EPS 5Y3.48%
EPS Q2Q%118.18%
Revenue 1Y (TTM)32.86%
Revenue growth 3Y0.91%
Revenue growth 5Y10.25%
Sales Q2Q%64.07%
3.2 Future
The Earnings Per Share is expected to grow by 13.44% on average over the next years. This is quite good.
NEM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.83% yearly.
EPS Next Y90.55%
EPS Next 2Y54.42%
EPS Next 3Y36.45%
EPS Next 5Y13.44%
Revenue Next Year58.29%
Revenue Next 2Y31.2%
Revenue Next 3Y20.01%
Revenue Next 5Y9.83%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
NEM is valuated quite expensively with a Price/Earnings ratio of 27.50.
Based on the Price/Earnings ratio, NEM is valued a bit cheaper than 63.06% of the companies in the same industry.
When comparing the Price/Earnings ratio of NEM to the average of the S&P500 Index (31.46), we can say NEM is valued inline with the index average.
NEM is valuated correctly with a Price/Forward Earnings ratio of 15.45.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NEM indicates a somewhat cheap valuation: NEM is cheaper than 60.51% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of NEM to the average of the S&P500 Index (22.63), we can say NEM is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.5 | ||
| Fwd PE | 15.45 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as NEM.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NEM indicates a somewhat cheap valuation: NEM is cheaper than 60.51% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 171.88 | ||
| EV/EBITDA | 16.19 |
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.
NEM's earnings are expected to grow with 36.45% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.3
PEG (5Y)7.9
EPS Next 2Y54.42%
EPS Next 3Y36.45%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.77%, NEM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.78, NEM pays a bit more dividend than its industry peers.
NEM's Dividend Yield is comparable with the S&P500 average which is at 2.18.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
5.2 History
The dividend of NEM is nicely growing with an annual growth rate of 20.84%!
NEM has paid a dividend for at least 10 years, which is 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.
NEM's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP-68.59%
EPS Next 2Y54.42%
EPS Next 3Y36.45%
NEWMONT CORP
NYSE:NEM (10/22/2024, 1:29:06 PM)
58.57
+1 (+1.74%)
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 Cap67.20B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
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Revenue NQ rev (1m)
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Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.5 | ||
| Fwd PE | 15.45 | ||
| 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)0.3
PEG (5Y)7.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.55% | ||
| ROE | -6.73% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.9% | ||
| PM (TTM) | N/A | ||
| GM | 46.65% | ||
| 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 Turnover0.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.11 | ||
| Quick Ratio | 1.73 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)47.92%
EPS 3Y-15.66%
EPS 5Y
EPS Q2Q%
EPS Next Y90.55%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)32.86%
Revenue growth 3Y0.91%
Revenue growth 5Y
Sales 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