NEWMONT CORP (NEM) Stock Fundamental Analysis
NYSE:NEM - New York Stock Exchange, Inc. - US6516391066 - Common Stock - Currency: USD
Overall NEM gets a fundamental rating of 7 out of 10. We evaluated NEM against 154 industry peers in the Metals & Mining industry. While NEM has a great profitability rating, there are some minor concerns on its financial health. 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 investing.
1. Profitability
1.1 Basic Checks
NEM had positive earnings in the past year.
NEM had a positive operating cash flow in the past year.
In multiple years NEM reported negative net income over the last 5 years.
NEM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 9.13%, NEM belongs to the best of the industry, outperforming 88.96% of the companies in the same industry.
The Return On Equity of NEM (16.22%) is better than 90.26% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.63%, NEM belongs to the top of the industry, outperforming 85.06% of the companies in the same industry.
NEM had an Average Return On Invested Capital over the past 3 years of 4.19%. This is significantly below the industry average of 11.67%.
The last Return On Invested Capital (9.63%) for NEM is above the 3 year average (4.19%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.13% | ||
| ROE | 16.22% | ||
| ROIC | 9.63% |
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 25.77% is amongst the best of the industry. NEM outperforms 93.51% of its industry peers.
In the last couple of years the Profit Margin of NEM has declined.
With an excellent Operating Margin value of 35.28%, NEM belongs to the best of the industry, outperforming 89.61% of the companies in the same industry.
NEM's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 54.43%, NEM belongs to the best of the industry, outperforming 89.61% of the companies in the same industry.
NEM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 35.28% | ||
| PM (TTM) | 25.77% | ||
| GM | 54.43% |
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
NEM has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.49 indicates that NEM is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.49, NEM is in line with its industry, outperforming 48.70% of the companies in the same industry.
The Debt to FCF ratio of NEM is 1.78, which is an excellent value as it means it would take NEM, only 1.78 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.78, NEM belongs to the top of the industry, outperforming 83.77% of the companies in the same industry.
NEM has a Debt/Equity ratio of 0.25. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.25, NEM is in line with its industry, outperforming 41.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.78 | ||
| Altman-Z | 2.49 |
ROIC/WACC1.02
WACC9.47%
2.3 Liquidity
NEM has a Current Ratio of 1.98. This is a normal value and indicates that NEM is financially healthy and should not expect problems in meeting its short term obligations.
NEM's Current ratio of 1.98 is in line compared to the rest of the industry. NEM outperforms 42.21% of its industry peers.
NEM has a Quick Ratio of 1.56. This is a normal value and indicates that NEM is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of NEM (1.56) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.98 | ||
| Quick Ratio | 1.56 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 140.23% over the past year.
NEM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 21.58% yearly.
Looking at the last year, NEM shows a very strong growth in Revenue. The Revenue has grown by 49.51%.
NEM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.91% yearly.
EPS 1Y (TTM)140.23%
EPS 3Y5.66%
EPS 5Y21.58%
EPS Q2Q%127.27%
Revenue 1Y (TTM)49.51%
Revenue growth 3Y15.19%
Revenue growth 5Y13.91%
Sales Q2Q%24.53%
3.2 Future
The Earnings Per Share is expected to decrease by -9.00% on average over the next years.
Based on estimates for the next years, NEM will show a decrease in Revenue. The Revenue will decrease by -5.25% on average per year.
EPS Next Y37.23%
EPS Next 2Y19.33%
EPS Next 3Y11.63%
EPS Next 5Y-9%
Revenue Next Year8.07%
Revenue Next 2Y3.59%
Revenue Next 3Y2.17%
Revenue Next 5Y-5.25%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
NEM is valuated correctly with a Price/Earnings ratio of 13.92.
Based on the Price/Earnings ratio, NEM is valued cheaply inside the industry as 87.66% of the companies are valued more expensively.
NEM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.50.
The Price/Forward Earnings ratio is 11.74, which indicates a very decent valuation of NEM.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NEM indicates a somewhat cheap valuation: NEM is cheaper than 72.73% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.44. NEM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.92 | ||
| Fwd PE | 11.74 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NEM indicates a rather cheap valuation: NEM is cheaper than 82.47% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NEM indicates a rather cheap valuation: NEM is cheaper than 88.31% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.47 | ||
| EV/EBITDA | 7.19 |
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.
The excellent profitability rating of NEM may justify a higher PE ratio.
PEG (NY)0.37
PEG (5Y)0.65
EPS Next 2Y19.33%
EPS Next 3Y11.63%
5. Dividend
5.1 Amount
NEM has a Yearly Dividend Yield of 1.72%.
NEM's Dividend Yield is a higher than the industry average which is at 2.91.
Compared to the average S&P500 Dividend Yield of 2.34, NEM is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.72% |
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
22.47% of the earnings are spent on dividend by NEM. This is a low number and sustainable payout ratio.
The Dividend Rate of NEM has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP22.47%
EPS Next 2Y19.33%
EPS Next 3Y11.63%
58.19
+0.2 (+0.34%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners75.44%
Inst Owner Change0.01%
Ins Owners0.07%
Ins Owner Change3.05%
Market Cap64.77B
Analysts80
Price Target69.77 (19.9%)
Short Float %1.84%
Short Ratio1.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.72% |
Yearly Dividend1
Dividend Growth(5Y)-5.4%
DP22.47%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)33.24%
Min EPS beat(2)28.27%
Max EPS beat(2)38.22%
EPS beat(4)3
Avg EPS beat(4)18.75%
Min EPS beat(4)-6.75%
Max EPS beat(4)38.22%
EPS beat(8)5
Avg EPS beat(8)11.51%
EPS beat(12)6
Avg EPS beat(12)4.48%
EPS beat(16)8
Avg EPS beat(16)2.25%
Revenue beat(2)2
Avg Revenue beat(2)7.29%
Min Revenue beat(2)6.03%
Max Revenue beat(2)8.55%
Revenue beat(4)3
Avg Revenue beat(4)4.51%
Min Revenue beat(4)-2.42%
Max Revenue beat(4)8.55%
Revenue beat(8)5
Avg Revenue beat(8)2.04%
Revenue beat(12)6
Avg Revenue beat(12)0.46%
Revenue beat(16)7
Avg Revenue beat(16)-0.56%
PT rev (1m)5.64%
PT rev (3m)25.38%
EPS NQ rev (1m)18.67%
EPS NQ rev (3m)11.53%
EPS NY rev (1m)7%
EPS NY rev (3m)18.38%
Revenue NQ rev (1m)4.18%
Revenue NQ rev (3m)3.31%
Revenue NY rev (1m)2.76%
Revenue NY rev (3m)7.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.92 | ||
| Fwd PE | 11.74 | ||
| P/S | 3.29 | ||
| P/FCF | 14.47 | ||
| P/OCF | 8.25 | ||
| P/B | 2.07 | ||
| P/tB | 2.27 | ||
| EV/EBITDA | 7.19 |
EPS(TTM)4.18
EY7.18%
EPS(NY)4.96
Fwd EY8.52%
FCF(TTM)4.02
FCFY6.91%
OCF(TTM)7.06
OCFY12.13%
SpS17.67
BVpS28.08
TBVpS25.69
PEG (NY)0.37
PEG (5Y)0.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.13% | ||
| ROE | 16.22% | ||
| ROCE | 13.85% | ||
| ROIC | 9.63% | ||
| ROICexc | 10.63% | ||
| ROICexgc | 11.29% | ||
| OM | 35.28% | ||
| PM (TTM) | 25.77% | ||
| GM | 54.43% | ||
| FCFM | 22.75% |
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%
ROICexcg growth 3Y27.94%
ROICexcg 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-Score7
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.78 | ||
| Debt/EBITDA | 0.83 | ||
| Cap/Depr | 134.31% | ||
| Cap/Sales | 17.17% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.06% | ||
| Profit Quality | 88.28% | ||
| Current Ratio | 1.98 | ||
| Quick Ratio | 1.56 | ||
| Altman-Z | 2.49 |
F-Score7
WACC9.47%
ROIC/WACC1.02
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)140.23%
EPS 3Y5.66%
EPS 5Y21.58%
EPS Q2Q%127.27%
EPS Next Y37.23%
EPS Next 2Y19.33%
EPS Next 3Y11.63%
EPS Next 5Y-9%
Revenue 1Y (TTM)49.51%
Revenue growth 3Y15.19%
Revenue growth 5Y13.91%
Sales Q2Q%24.53%
Revenue Next Year8.07%
Revenue Next 2Y3.59%
Revenue Next 3Y2.17%
Revenue Next 5Y-5.25%
EBIT growth 1Y506.64%
EBIT growth 3Y43.59%
EBIT growth 5Y30.75%
EBIT Next Year88.5%
EBIT Next 3Y22.8%
EBIT Next 5Y3.64%
FCF growth 1Y468.62%
FCF growth 3Y2.44%
FCF growth 5Y15.01%
OCF growth 1Y161.16%
OCF growth 3Y13.31%
OCF growth 5Y16.78%