NEWMONT CORP (NEM) Stock Fundamental Analysis
USA - NYSE:NEM - US6516391066 - Common Stock
83.37 USD
-5.54 (-6.23%)
83.13 USD
-0.24 (-0.29%)
Overall NEM gets a fundamental rating of 7 out of 10. We evaluated NEM against 155 industry peers in the Metals & Mining industry. Both the health and profitability get an excellent rating, making NEM a very profitable company, without any liquidiy or solvency issues. 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.
In the past year NEM had a positive cash flow from operations.
In multiple years NEM reported negative net income over the last 5 years.
In the past 5 years NEM always reported a positive cash flow from operatings.
1.2 Ratios
NEM has a better Return On Assets (11.38%) than 92.26% of its industry peers.
NEM has a Return On Equity of 19.55%. This is amongst the best in the industry. NEM outperforms 93.55% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.01%, NEM belongs to the top of the industry, outperforming 86.45% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for NEM is significantly below the industry average of 12.29%.
The last Return On Invested Capital (11.01%) for NEM is above the 3 year average (4.19%), which is a sign of increasing profitability.
| 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
NEM's Profit Margin of 30.49% is amongst the best of the industry. NEM outperforms 94.19% of its industry peers.
NEM's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 38.86%, NEM belongs to the best of the industry, outperforming 90.97% of the companies in the same industry.
NEM's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 57.21%, NEM belongs to the top of the industry, outperforming 90.32% of the companies in the same industry.
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
NEM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for NEM has been reduced compared to 1 year ago.
NEM has more shares outstanding than it did 5 years ago.
NEM has a better debt/assets ratio than last year.
2.2 Solvency
NEM has an Altman-Z score of 3.55. This indicates that NEM is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.55, NEM is in line with its industry, outperforming 54.19% of the companies in the same industry.
NEM has a debt to FCF ratio of 1.36. This is a very positive value and a sign of high solvency as it would only need 1.36 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 1.36, NEM belongs to the best of the industry, outperforming 86.45% of the companies in the same industry.
NEM has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
NEM has a Debt to Equity ratio (0.23) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.36 | ||
| Altman-Z | 3.55 |
ROIC/WACC1.27
WACC8.68%
2.3 Liquidity
A Current Ratio of 2.23 indicates that NEM has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.23, NEM is in line with its industry, outperforming 47.10% of the companies in the same industry.
A Quick Ratio of 1.74 indicates that NEM should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.74, NEM is in line with its industry, outperforming 53.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.23 | ||
| Quick Ratio | 1.74 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 124.42% over the past year.
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
The Earnings Per Share is expected to grow by 4.43% on average over the next years.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 14.40, which indicates a correct valuation of NEM.
Compared to the rest of the industry, the Price/Earnings ratio of NEM indicates a rather cheap valuation: NEM is cheaper than 88.39% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.91, NEM is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 12.22, the valuation of NEM can be described as correct.
71.61% 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 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
Based on the Enterprise Value to EBITDA ratio, NEM is valued a bit cheaper than 77.42% of the companies 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.
The excellent profitability rating of NEM may justify a higher PE ratio.
NEM's earnings are expected to grow with 24.86% in the coming years. This may justify a more expensive valuation.
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%.
NEM's Dividend Yield is a higher than the industry average which is at 2.42.
Compared to an average S&P500 Dividend Yield of 2.34, NEM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
5.2 History
The dividend of NEM decreases each year by -5.40%.
NEM has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-5.4%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
17.99% of the earnings are spent on dividend by NEM. This is a low number and 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%.