NEWMONT CORP (NEM) Stock Fundamental Analysis
USA - NYSE:NEM - US6516391066 - Common Stock
83.37 USD
-5.54 (-6.23%)
83.1434 USD
-0.23 (-0.27%)
We assign a fundamental rating of 7 out of 10 to NEM. NEM was compared to 155 industry peers in the Metals & Mining industry. NEM scores excellent points on both the profitability and health parts. This is a solid base for a good stock. NEM is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings could make NEM a good candidate for value and quality investing.
1. Profitability
1.1 Basic Checks
In the past year NEM was profitable.
NEM had a positive operating cash flow in the past year.
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 Return On Assets of 11.38%. This is amongst the best in the industry. NEM outperforms 92.26% of its industry peers.
With an excellent Return On Equity value of 19.55%, NEM belongs to the best of the industry, outperforming 93.55% of the companies in the same industry.
NEM has a better Return On Invested Capital (11.01%) than 86.45% of its industry peers.
NEM had an Average Return On Invested Capital over the past 3 years of 4.19%. This is significantly below the industry average of 12.29%.
The 3 year average ROIC (4.19%) for NEM is below the current ROIC(11.01%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.38% | ||
| ROE | 19.55% | ||
| ROIC | 11.01% |
ROA(3y)0.11%
ROA(5y)2.01%
ROE(3y)0.13%
ROE(5y)3.59%
ROIC(3y)4.19%
ROIC(5y)4.42%
1.3 Margins
The Profit Margin of NEM (30.49%) is better than 94.19% of its industry peers.
NEM's Profit Margin has declined in the last couple of years.
NEM's Operating Margin of 38.86% is amongst the best of the industry. NEM outperforms 90.97% of its industry peers.
NEM's Operating Margin has improved in the last couple of years.
NEM has a better Gross Margin (57.21%) than 90.32% of its industry peers.
NEM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.86% | ||
| PM (TTM) | 30.49% | ||
| GM | 57.21% |
OM growth 3Y24.65%
OM growth 5Y14.78%
PM growth 3Y23.39%
PM growth 5Y-9.05%
GM growth 3Y-2.15%
GM growth 5Y2.2%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), NEM is creating some value.
The number of shares outstanding for NEM has been reduced compared to 1 year ago.
Compared to 5 years ago, NEM has more shares outstanding
The debt/assets ratio for NEM has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.55 indicates that NEM is not in any danger for bankruptcy at the moment.
With a Altman-Z score value of 3.55, NEM perfoms like the industry average, outperforming 54.19% of the companies in the same industry.
The Debt to FCF ratio of NEM is 1.36, which is an excellent value as it means it would take NEM, only 1.36 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.36, NEM belongs to the top of the industry, outperforming 86.45% of the companies in the same industry.
A Debt/Equity ratio of 0.23 indicates that NEM is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.23, NEM perfoms like the industry average, outperforming 42.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.36 | ||
| Altman-Z | 3.55 |
ROIC/WACC1.27
WACC8.68%
2.3 Liquidity
NEM has a Current Ratio of 2.23. This indicates that NEM is financially healthy and has no problem in meeting its short term obligations.
NEM has a Current ratio (2.23) which is in line with its industry peers.
NEM has a Quick Ratio of 1.74. This is a normal value and indicates that NEM is financially healthy and should not expect problems in meeting its short term obligations.
NEM has a Quick ratio (1.74) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.23 | ||
| Quick Ratio | 1.74 |
3. Growth
3.1 Past
NEM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 124.42%, which is quite impressive.
The Earnings Per Share has been growing by 21.58% on average over the past years. This is a very strong growth
Looking at the last year, NEM shows a very strong growth in Revenue. The Revenue has grown by 58.16%.
The Revenue has been growing by 13.91% on average over the past years. This is quite good.
EPS 1Y (TTM)124.42%
EPS 3Y5.66%
EPS 5Y21.58%
EPS Q2Q%111.11%
Revenue 1Y (TTM)58.16%
Revenue growth 3Y15.19%
Revenue growth 5Y13.91%
Sales Q2Q%19.96%
3.2 Future
Based on estimates for the next years, NEM will show a small growth in Earnings Per Share. The EPS will grow by 4.43% on average per year.
NEM is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.53% yearly.
EPS Next Y66.86%
EPS Next 2Y39.99%
EPS Next 3Y24.86%
EPS Next 5Y4.43%
Revenue Next Year16.77%
Revenue Next 2Y10.98%
Revenue Next 3Y7.18%
Revenue Next 5Y-1.53%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 14.40 indicates a correct valuation of NEM.
Based on the Price/Earnings ratio, NEM is valued cheaper than 88.39% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.91. NEM is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 12.22, the valuation of NEM can be described as correct.
NEM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. NEM is cheaper than 71.61% of the companies in the same industry.
NEM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.92, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.4 | ||
| Fwd PE | 12.22 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NEM indicates a somewhat cheap valuation: NEM is cheaper than 77.42% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, NEM is valued cheaply inside the industry as 87.74% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.41 | ||
| EV/EBITDA | 9.32 |
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 has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as NEM's earnings are expected to grow with 24.86% in the coming years.
PEG (NY)0.22
PEG (5Y)0.67
EPS Next 2Y39.99%
EPS Next 3Y24.86%
5. Dividend
5.1 Amount
NEM has a Yearly Dividend Yield of 1.15%.
Compared to an average industry Dividend Yield of 2.42, NEM pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.15, NEM pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
5.2 History
The dividend of NEM decreases each year by -5.40%.
NEM has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-5.4%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
NEM pays out 17.99% of its income as dividend. This is a sustainable payout ratio.
DP17.99%
EPS Next 2Y39.99%
EPS Next 3Y24.86%
83.37
-5.54 (-6.23%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners80.06%
Inst Owner Change-0.5%
Ins Owners0.07%
Ins Owner Change0.35%
Market Cap91.58B
Revenue(TTM)18.68B
Net Income(TTM)6.28B
Analysts80
Price Target84.71 (1.61%)
Short Float %2.1%
Short Ratio2.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
Yearly Dividend1
Dividend Growth(5Y)-5.4%
DP17.99%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)29.33%
Min EPS beat(2)20.44%
Max EPS beat(2)38.22%
EPS beat(4)3
Avg EPS beat(4)20.05%
Min EPS beat(4)-6.75%
Max EPS beat(4)38.22%
EPS beat(8)6
Avg EPS beat(8)17.26%
EPS beat(12)7
Avg EPS beat(12)8.52%
EPS beat(16)8
Avg EPS beat(16)3.21%
Revenue beat(2)2
Avg Revenue beat(2)6.64%
Min Revenue beat(2)6.03%
Max Revenue beat(2)7.24%
Revenue beat(4)3
Avg Revenue beat(4)4.85%
Min Revenue beat(4)-2.42%
Max Revenue beat(4)8.55%
Revenue beat(8)6
Avg Revenue beat(8)4.16%
Revenue beat(12)7
Avg Revenue beat(12)1.12%
Revenue beat(16)8
Avg Revenue beat(16)0.1%
PT rev (1m)6.44%
PT rev (3m)21.41%
EPS NQ rev (1m)2.75%
EPS NQ rev (3m)16.43%
EPS NY rev (1m)1.57%
EPS NY rev (3m)17%
Revenue NQ rev (1m)0.54%
Revenue NQ rev (3m)3.62%
Revenue NY rev (1m)0.44%
Revenue NY rev (3m)6.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.4 | ||
| Fwd PE | 12.22 | ||
| P/S | 4.45 | ||
| P/FCF | 16.41 | ||
| P/OCF | 10.37 | ||
| P/B | 2.85 | ||
| P/tB | 3.11 | ||
| EV/EBITDA | 9.32 |
EPS(TTM)5.79
EY6.94%
EPS(NY)6.82
Fwd EY8.18%
FCF(TTM)5.08
FCFY6.09%
OCF(TTM)8.04
OCFY9.64%
SpS18.74
BVpS29.23
TBVpS26.81
PEG (NY)0.22
PEG (5Y)0.67
Graham Number61.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.38% | ||
| ROE | 19.55% | ||
| ROCE | 15.84% | ||
| ROIC | 11.01% | ||
| ROICexc | 12.68% | ||
| ROICexgc | 13.49% | ||
| OM | 38.86% | ||
| PM (TTM) | 30.49% | ||
| GM | 57.21% | ||
| FCFM | 27.11% |
ROA(3y)0.11%
ROA(5y)2.01%
ROE(3y)0.13%
ROE(5y)3.59%
ROIC(3y)4.19%
ROIC(5y)4.42%
ROICexc(3y)4.56%
ROICexc(5y)4.97%
ROICexgc(3y)4.86%
ROICexgc(5y)5.36%
ROCE(3y)6.03%
ROCE(5y)6.37%
ROICexgc growth 3Y27.94%
ROICexgc growth 5Y23.87%
ROICexc growth 3Y29.12%
ROICexc growth 5Y24.33%
OM growth 3Y24.65%
OM growth 5Y14.78%
PM growth 3Y23.39%
PM growth 5Y-9.05%
GM growth 3Y-2.15%
GM growth 5Y2.2%
F-Score9
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.36 | ||
| Debt/EBITDA | 0.71 | ||
| Cap/Depr | 128.39% | ||
| Cap/Sales | 15.8% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.86% | ||
| Profit Quality | 88.9% | ||
| Current Ratio | 2.23 | ||
| Quick Ratio | 1.74 | ||
| Altman-Z | 3.55 |
F-Score9
WACC8.68%
ROIC/WACC1.27
Cap/Depr(3y)118.69%
Cap/Depr(5y)96.77%
Cap/Sales(3y)19.56%
Cap/Sales(5y)16.7%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)124.42%
EPS 3Y5.66%
EPS 5Y21.58%
EPS Q2Q%111.11%
EPS Next Y66.86%
EPS Next 2Y39.99%
EPS Next 3Y24.86%
EPS Next 5Y4.43%
Revenue 1Y (TTM)58.16%
Revenue growth 3Y15.19%
Revenue growth 5Y13.91%
Sales Q2Q%19.96%
Revenue Next Year16.77%
Revenue Next 2Y10.98%
Revenue Next 3Y7.18%
Revenue Next 5Y-1.53%
EBIT growth 1Y286.99%
EBIT growth 3Y43.59%
EBIT growth 5Y30.75%
EBIT Next Year113.95%
EBIT Next 3Y30.46%
EBIT Next 5Y9.79%
FCF growth 1Y1700%
FCF growth 3Y2.44%
FCF growth 5Y15.01%
OCF growth 1Y236.2%
OCF growth 3Y13.31%
OCF growth 5Y16.78%
NEWMONT CORP / NEM FAQ
Can you provide the ChartMill fundamental rating for NEWMONT CORP?
ChartMill assigns a fundamental rating of 7 / 10 to NEM.
What is the valuation status for NEM stock?
ChartMill assigns a valuation rating of 8 / 10 to NEWMONT CORP (NEM). This can be considered as Undervalued.
Can you provide the profitability details for NEWMONT CORP?
NEWMONT CORP (NEM) has a profitability rating of 8 / 10.
Can you provide the expected EPS growth for NEM stock?
The Earnings per Share (EPS) of NEWMONT CORP (NEM) is expected to grow by 66.86% in the next year.
Is the dividend of NEWMONT CORP sustainable?
The dividend rating of NEWMONT CORP (NEM) is 4 / 10 and the dividend payout ratio is 17.99%.