NEWMONT CORP (NEM) Stock Fundamental Analysis
USA - NYSE:NEM - US6516391066 - Common Stock
82 USD
-5.51 (-6.3%)
82.28 USD
+0.28 (+0.34%)
NEM gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 154 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 may be a bit undervalued, certainly considering the very reasonable score on growth This makes NEM very considerable for value and quality 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.
The reported net income has been mixed in the past 5 years: NEM reported negative net income in multiple 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 13.14%, NEM belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
Looking at the Return On Equity, with a value of 21.63%, NEM belongs to the top of the industry, outperforming 93.51% of the companies in the same industry.
NEM has a better Return On Invested Capital (13.04%) than 90.26% 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 12.85%.
The last Return On Invested Capital (13.04%) for NEM is above the 3 year average (4.19%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.14% | ||
| ROE | 21.63% | ||
| ROIC | 13.04% |
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 33.42% is amongst the best of the industry. NEM outperforms 95.45% of its industry peers.
In the last couple of years the Profit Margin of NEM has declined.
NEM's Operating Margin of 43.31% is amongst the best of the industry. NEM outperforms 92.86% of its industry peers.
NEM's Operating Margin has improved in the last couple of years.
NEM's Gross Margin of 60.71% is amongst the best of the industry. NEM outperforms 92.21% of its industry peers.
NEM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 43.31% | ||
| PM (TTM) | 33.42% | ||
| GM | 60.71% |
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.
NEM has less shares outstanding than it did 1 year ago.
NEM has more shares outstanding than it did 5 years ago.
The debt/assets ratio for NEM has been reduced compared to a year ago.
2.2 Solvency
NEM has an Altman-Z score of 3.83. This indicates that NEM is financially healthy and has little risk of bankruptcy at the moment.
NEM has a Altman-Z score of 3.83. This is comparable to the rest of the industry: NEM outperforms 57.14% of its industry peers.
NEM has a debt to FCF ratio of 0.90. This is a very positive value and a sign of high solvency as it would only need 0.90 years to pay back of all of its debts.
NEM has a better Debt to FCF ratio (0.90) than 88.31% of its industry peers.
A Debt/Equity ratio of 0.17 indicates that NEM is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.17, NEM perfoms like the industry average, outperforming 51.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.9 | ||
| Altman-Z | 3.83 |
ROIC/WACC1.41
WACC9.22%
2.3 Liquidity
A Current Ratio of 2.04 indicates that NEM has no problem at all paying its short term obligations.
NEM has a Current ratio of 2.04. This is comparable to the rest of the industry: NEM outperforms 40.26% of its industry peers.
A Quick Ratio of 1.56 indicates that NEM should not have too much problems paying its short term obligations.
NEM has a Quick ratio (1.56) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.04 | ||
| Quick Ratio | 1.56 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 124.42% over the past year.
Measured over the past years, NEM shows a very strong growth in Earnings Per Share. The EPS has been growing by 21.58% on average per year.
The Revenue has grown by 26.59% in the past year. This is a very strong growth!
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)26.59%
Revenue growth 3Y15.19%
Revenue growth 5Y13.91%
Sales Q2Q%19.96%
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 11.66% yearly.
NEM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.61% yearly.
EPS Next Y80.42%
EPS Next 2Y48.29%
EPS Next 3Y34.96%
EPS Next 5Y11.66%
Revenue Next Year19%
Revenue Next 2Y14.22%
Revenue Next 3Y11.13%
Revenue Next 5Y1.61%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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
With a Price/Earnings ratio of 14.16, NEM is valued correctly.
Based on the Price/Earnings ratio, NEM is valued cheaper than 88.31% of the companies in the same industry.
When comparing the Price/Earnings ratio of NEM to the average of the S&P500 Index (25.07), we can say NEM is valued slightly cheaper.
With a Price/Forward Earnings ratio of 10.71, the valuation of NEM can be described as very reasonable.
NEM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. NEM is cheaper than 75.32% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of NEM to the average of the S&P500 Index (34.08), we can say NEM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.16 | ||
| Fwd PE | 10.71 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NEM is valued cheaply inside the industry as 81.17% of the companies are valued more expensively.
90.91% of the companies in the same industry are more expensive than NEM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.38 | ||
| EV/EBITDA | 8.05 |
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 34.96% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.18
PEG (5Y)0.66
EPS Next 2Y48.29%
EPS Next 3Y34.96%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.11%, NEM has a reasonable but not impressive dividend return.
NEM's Dividend Yield is a higher than the industry average which is at 2.63.
With a Dividend Yield of 1.11, NEM pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
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
15.53% of the earnings are spent on dividend by NEM. This is a low number and sustainable payout ratio.
DP15.53%
EPS Next 2Y48.29%
EPS Next 3Y34.96%
82
-5.51 (-6.3%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners80.06%
Inst Owner Change2.16%
Ins Owners0.07%
Ins Owner Change-3.26%
Market Cap90.07B
Revenue(TTM)21.50B
Net Income(TTM)7.19B
Analysts81.48
Price Target107.01 (30.5%)
Short Float %1.9%
Short Ratio1.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
Yearly Dividend1
Dividend Growth(5Y)-5.4%
DP15.53%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)19.37%
Min EPS beat(2)18.31%
Max EPS beat(2)20.44%
EPS beat(4)4
Avg EPS beat(4)26.31%
Min EPS beat(4)18.31%
Max EPS beat(4)38.22%
EPS beat(8)7
Avg EPS beat(8)21.79%
EPS beat(12)8
Avg EPS beat(12)12.12%
EPS beat(16)9
Avg EPS beat(16)5.58%
Revenue beat(2)2
Avg Revenue beat(2)6.38%
Min Revenue beat(2)5.52%
Max Revenue beat(2)7.24%
Revenue beat(4)4
Avg Revenue beat(4)6.83%
Min Revenue beat(4)5.52%
Max Revenue beat(4)8.55%
Revenue beat(8)7
Avg Revenue beat(8)6.7%
Revenue beat(12)8
Avg Revenue beat(12)2.27%
Revenue beat(16)9
Avg Revenue beat(16)1.03%
PT rev (1m)26.33%
PT rev (3m)43.6%
EPS NQ rev (1m)15.08%
EPS NQ rev (3m)33.46%
EPS NY rev (1m)12.37%
EPS NY rev (3m)31.47%
Revenue NQ rev (1m)7.9%
Revenue NQ rev (3m)14.11%
Revenue NY rev (1m)3.27%
Revenue NY rev (3m)6.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.16 | ||
| Fwd PE | 10.71 | ||
| P/S | 4.19 | ||
| P/FCF | 14.38 | ||
| P/OCF | 9.62 | ||
| P/B | 2.71 | ||
| P/tB | 2.95 | ||
| EV/EBITDA | 8.05 |
EPS(TTM)5.79
EY7.06%
EPS(NY)7.65
Fwd EY9.33%
FCF(TTM)5.7
FCFY6.95%
OCF(TTM)8.52
OCFY10.4%
SpS19.58
BVpS30.25
TBVpS27.83
PEG (NY)0.18
PEG (5Y)0.66
Graham Number62.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.14% | ||
| ROE | 21.63% | ||
| ROCE | 18.77% | ||
| ROIC | 13.04% | ||
| ROICexc | 14.83% | ||
| ROICexgc | 15.79% | ||
| OM | 43.31% | ||
| PM (TTM) | 33.42% | ||
| GM | 60.71% | ||
| FCFM | 29.12% |
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 Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.9 | ||
| Debt/EBITDA | 0.47 | ||
| Cap/Depr | 121.89% | ||
| Cap/Sales | 14.43% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 78.97% | ||
| Profit Quality | 87.13% | ||
| Current Ratio | 2.04 | ||
| Quick Ratio | 1.56 | ||
| Altman-Z | 3.83 |
F-Score9
WACC9.22%
ROIC/WACC1.41
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 Y80.42%
EPS Next 2Y48.29%
EPS Next 3Y34.96%
EPS Next 5Y11.66%
Revenue 1Y (TTM)26.59%
Revenue growth 3Y15.19%
Revenue growth 5Y13.91%
Sales Q2Q%19.96%
Revenue Next Year19%
Revenue Next 2Y14.22%
Revenue Next 3Y11.13%
Revenue Next 5Y1.61%
EBIT growth 1Y201.16%
EBIT growth 3Y43.59%
EBIT growth 5Y30.75%
EBIT Next Year113.95%
EBIT Next 3Y30.46%
EBIT Next 5Y16.07%
FCF growth 1Y718.56%
FCF growth 3Y2.44%
FCF growth 5Y15.01%
OCF growth 1Y196.61%
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 9 / 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 80.42% 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 15.53%.