NEWMONT CORP (NEM) Stock Fundamental Analysis
NYSE:NEM - New York Stock Exchange, Inc. - US6516391066 - Common Stock - Currency: USD
NEM gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 157 industry peers in the Metals & Mining industry. While NEM has a great profitability rating, there are some minor concerns on its financial health. NEM may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make NEM suitable for value investing!
1. Profitability
1.1 Basic Checks
NEM had positive earnings in the past year.
In the past year NEM had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: NEM reported negative net income in multiple years.
Each year in the past 5 years NEM had a positive operating cash flow.
1.2 Ratios
The Return On Assets of NEM (11.38%) is better than 90.45% of its industry peers.
With an excellent Return On Equity value of 19.55%, NEM belongs to the best of the industry, outperforming 90.45% of the companies in the same industry.
With an excellent Return On Invested Capital value of 11.01%, NEM belongs to the best of the industry, outperforming 86.62% 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 11.71%.
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
NEM has a Profit Margin of 30.49%. This is amongst the best in the industry. NEM outperforms 94.90% of its industry peers.
NEM's Profit Margin has declined in the last couple of years.
NEM has a better Operating Margin (38.86%) than 92.36% of its industry peers.
In the last couple of years the Operating Margin of NEM has grown nicely.
NEM has a Gross Margin of 57.21%. This is amongst the best in the industry. NEM outperforms 90.45% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so NEM is still 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 2.79 indicates that NEM is not a great score, but indicates only limited risk for bankruptcy at the moment.
NEM's Altman-Z score of 2.79 is in line compared to the rest of the industry. NEM outperforms 53.50% of its industry peers.
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.
NEM's Debt to FCF ratio of 1.36 is amongst the best of the industry. NEM outperforms 86.62% of its industry peers.
A Debt/Equity ratio of 0.23 indicates that NEM is not too dependend on debt financing.
The Debt to Equity ratio of NEM (0.23) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.36 | ||
| Altman-Z | 2.79 |
ROIC/WACC1.17
WACC9.37%
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 comparable to the rest of the industry.
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 comparable to the rest of the 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 129.58% 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.
The Revenue has grown by 38.38% in the past year. This is a very strong growth!
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)129.58%
EPS 3Y5.66%
EPS 5Y21.58%
EPS Q2Q%98.61%
Revenue 1Y (TTM)38.38%
Revenue growth 3Y15.19%
Revenue growth 5Y13.91%
Sales Q2Q%20.79%
3.2 Future
NEM is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -9.00% yearly.
The Revenue is expected to decrease by -5.25% on average over the next years.
EPS Next Y37.23%
EPS Next 2Y19.33%
EPS Next 3Y11.63%
EPS Next 5Y-9%
Revenue Next Year11.96%
Revenue Next 2Y5.6%
Revenue Next 3Y3.54%
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.
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
The Price/Earnings ratio is 12.70, which indicates a correct valuation of NEM.
Based on the Price/Earnings ratio, NEM is valued cheaper than 87.90% of the companies in the same industry.
When comparing the Price/Earnings ratio of NEM to the average of the S&P500 Index (27.25), we can say NEM is valued rather cheaply.
The Price/Forward Earnings ratio is 12.53, which indicates a correct valuation of NEM.
Based on the Price/Forward Earnings ratio, NEM is valued a bit cheaper than the industry average as 66.88% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 36.80. NEM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.7 | ||
| Fwd PE | 12.53 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NEM is valued cheaply inside the industry as 85.35% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, NEM is valued cheaper than 90.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.22 | ||
| EV/EBITDA | 6.52 |
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.
PEG (NY)0.34
PEG (5Y)0.59
EPS Next 2Y19.33%
EPS Next 3Y11.63%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.60%, NEM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.88, NEM pays a bit more dividend than its industry peers.
NEM's Dividend Yield is slightly below the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.6% |
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
17.99% of the earnings are spent on dividend by NEM. This is a low number and sustainable payout ratio.
NEM's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP17.99%
EPS Next 2Y19.33%
EPS Next 3Y11.63%
62.1
-0.21 (-0.34%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners75.44%
Inst Owner Change0.52%
Ins Owners0.07%
Ins Owner Change3.05%
Market Cap68.21B
Analysts80
Price Target69.77 (12.35%)
Short Float %1.71%
Short Ratio1.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.6% |
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)4.39%
PT rev (3m)11.93%
EPS NQ rev (1m)23.95%
EPS NQ rev (3m)16.49%
EPS NY rev (1m)7%
EPS NY rev (3m)18.38%
Revenue NQ rev (1m)4.64%
Revenue NQ rev (3m)3.77%
Revenue NY rev (1m)2.76%
Revenue NY rev (3m)5.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.7 | ||
| Fwd PE | 12.53 | ||
| P/S | 3.31 | ||
| P/FCF | 12.22 | ||
| P/OCF | 7.72 | ||
| P/B | 2.12 | ||
| P/tB | 2.32 | ||
| EV/EBITDA | 6.52 |
EPS(TTM)4.89
EY7.87%
EPS(NY)4.96
Fwd EY7.98%
FCF(TTM)5.08
FCFY8.18%
OCF(TTM)8.04
OCFY12.95%
SpS18.74
BVpS29.23
TBVpS26.81
PEG (NY)0.34
PEG (5Y)0.59
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%
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-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 | 2.79 |
F-Score9
WACC9.37%
ROIC/WACC1.17
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)129.58%
EPS 3Y5.66%
EPS 5Y21.58%
EPS Q2Q%98.61%
EPS Next Y37.23%
EPS Next 2Y19.33%
EPS Next 3Y11.63%
EPS Next 5Y-9%
Revenue 1Y (TTM)38.38%
Revenue growth 3Y15.19%
Revenue growth 5Y13.91%
Sales Q2Q%20.79%
Revenue Next Year11.96%
Revenue Next 2Y5.6%
Revenue Next 3Y3.54%
Revenue Next 5Y-5.25%
EBIT growth 1Y286.99%
EBIT growth 3Y43.59%
EBIT growth 5Y30.75%
EBIT Next Year88.5%
EBIT Next 3Y22.8%
EBIT Next 5Y3.64%
FCF growth 1Y1700%
FCF growth 3Y2.44%
FCF growth 5Y15.01%
OCF growth 1Y236.2%
OCF growth 3Y13.31%
OCF growth 5Y16.78%