NEWMONT CORP (NEM)

US6516391066 - Common Stock

47.51  +0.34 (+0.72%)

After market: 47.5 -0.01 (-0.02%)

Fundamental Rating

4

Taking everything into account, NEM scores 4 out of 10 in our fundamental rating. NEM was compared to 156 industry peers in the Metals & Mining industry. NEM may be in some trouble as it scores bad on both profitability and health. NEM has a correct valuation and a medium growth rate.



3

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 worse Return On Assets (-4.83%) than 62.18% of its industry peers.
Looking at the Return On Equity, with a value of -9.26%, NEM is doing worse than 63.46% of the companies in the same industry.
NEM's Return On Invested Capital of 1.81% is in line compared to the rest of the industry. NEM outperforms 50.00% of its industry peers.
NEM had an Average Return On Invested Capital over the past 3 years of 2.97%. This is significantly below the industry average of 9.02%.
Industry RankSector Rank
ROA -4.83%
ROE -9.26%
ROIC 1.81%
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 of 8.70%. This is in the better half of the industry: NEM outperforms 62.18% of its industry peers.
NEM's Operating Margin has declined in the last couple of years.
NEM has a better Gross Margin (44.34%) than 84.62% of its industry peers.
NEM's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 8.7%
PM (TTM) N/A
GM 44.34%
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

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.
The number of shares outstanding for NEM has been increased compared to 1 year ago.
The number of shares outstanding for NEM has been increased compared to 5 years ago.
NEM has a worse debt/assets ratio than last year.

2.2 Solvency

Based on the Altman-Z score of 1.61, we must say that NEM is in the distress zone and has some risk of bankruptcy.
NEM has a Altman-Z score of 1.61. This is in the lower half of the industry: NEM underperforms 64.10% of its industry peers.
NEM has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.32, NEM is doing worse than 64.10% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.32
Debt/FCF N/A
Altman-Z 1.61
ROIC/WACC0.23
WACC8.05%

2.3 Liquidity

A Current Ratio of 2.15 indicates that NEM has no problem at all paying its short term obligations.
The Current ratio of NEM (2.15) is comparable to the rest of the industry.
A Quick Ratio of 1.77 indicates that NEM should not have too much problems paying its short term obligations.
NEM has a Quick ratio (1.77) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 2.15
Quick Ratio 1.77

6

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 10.83% over the past year.
The Earnings Per Share has been growing slightly by 3.48% on average over the past years.
Looking at the last year, NEM shows a quite strong growth in Revenue. The Revenue has grown by 13.70% in the last year.
Measured over the past years, NEM shows a quite strong growth in Revenue. The Revenue has been growing by 10.25% on average per year.
EPS 1Y (TTM)10.83%
EPS 3Y-15.66%
EPS 5Y3.48%
EPS Q2Q%37.5%
Revenue 1Y (TTM)13.7%
Revenue growth 3Y0.91%
Revenue growth 5Y10.25%
Sales Q2Q%50.17%

3.2 Future

NEM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.44% yearly.
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 Y62.89%
EPS Next 2Y41.26%
EPS Next 3Y25.69%
EPS Next 5Y13.44%
Revenue Next Year52.08%
Revenue Next 2Y27.77%
Revenue Next 3Y17.28%
Revenue Next 5Y9.83%

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 stable: in the next years the growth will be about the same than in the last years.

4

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 27.30, which means the current valuation is very expensive for NEM.
NEM's Price/Earnings ratio is a bit cheaper when compared to the industry. NEM is cheaper than 62.82% of the companies in the same industry.
When comparing the Price/Earnings ratio of NEM to the average of the S&P500 Index (29.15), we can say NEM is valued inline with the index average.
NEM is valuated correctly with a Price/Forward Earnings ratio of 14.97.
60.90% of the companies in the same industry are more expensive than NEM, based on the Price/Forward Earnings ratio.
NEM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.65, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 27.3
Fwd PE 14.97

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NEM is on the same level as its industry peers.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 17.96

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.
NEM's earnings are expected to grow with 25.69% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.43
PEG (5Y)7.85
EPS Next 2Y41.26%
EPS Next 3Y25.69%

4

5. Dividend

5.1 Amount

NEM has a Yearly Dividend Yield of 2.12%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.68, NEM pays a better dividend. On top of this NEM pays more dividend than 80.77% of the companies listed in the same industry.
NEM's Dividend Yield is comparable with the S&P500 average which is at 2.35.
Industry RankSector Rank
Dividend Yield 2.12%

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

NEM has negative earnings and hence a negative payout ratio. The dividend may be in danger.
The dividend of NEM is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP-51.78%
EPS Next 2Y41.26%
EPS Next 3Y25.69%

NEWMONT CORP

NYSE:NEM (7/12/2024, 7:04:00 PM)

After market: 47.5 -0.01 (-0.02%)

47.51

+0.34 (+0.72%)

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 Cap54.79B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 2.12%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
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 RankSector Rank
PE 27.3
Fwd PE 14.97
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)0.43
PEG (5Y)7.85
Profitability
Industry RankSector Rank
ROA -4.83%
ROE -9.26%
ROCE
ROIC
ROICexc
ROICexgc
OM 8.7%
PM (TTM) N/A
GM 44.34%
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 Turnover0.24
Health
Industry RankSector Rank
Debt/Equity 0.32
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 2.15
Quick Ratio 1.77
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)10.83%
EPS 3Y-15.66%
EPS 5Y
EPS Q2Q%
EPS Next Y62.89%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)13.7%
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