NEWMONT CORP (NEM) Stock Fundamental Analysis
NYSE:NEM - New York Stock Exchange, Inc. - US6516391066 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to NEM. NEM was compared to 154 industry peers in the Metals & Mining industry. NEM scores excellent on profitability, but there are some minor concerns on its financial health. NEM may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, NEM could be worth investigating further 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.
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
The Return On Assets of NEM (9.13%) is better than 87.66% of its industry peers.
Looking at the Return On Equity, with a value of 16.22%, NEM belongs to the top of the industry, outperforming 88.96% of the companies in the same industry.
NEM has a Return On Invested Capital of 9.63%. This is amongst the best in the industry. NEM outperforms 86.36% of its industry peers.
NEM had an Average Return On Invested Capital over the past 3 years of 4.19%. This is below the industry average of 8.53%.
The 3 year average ROIC (4.19%) for NEM is below the current ROIC(9.63%), indicating increased profibility in the last year.
| 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 92.86% of its industry peers.
In the last couple of years the Profit Margin of NEM has declined.
NEM's Operating Margin of 35.28% is amongst the best of the industry. NEM outperforms 92.21% of its industry peers.
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) below the Cost of Capital (WACC), NEM is destroying value.
The number of shares outstanding for NEM has been reduced compared to 1 year ago.
The number of shares outstanding for NEM has been increased compared to 5 years ago.
NEM has a better debt/assets ratio than last year.
2.2 Solvency
NEM has an Altman-Z score of 2.30. This is not the best score and indicates that NEM is in the grey zone with still only limited risk for bankruptcy at the moment.
NEM has a Altman-Z score (2.30) which is in line with its industry peers.
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.
With an excellent Debt to FCF ratio value of 1.78, NEM belongs to the best of the industry, outperforming 83.12% of the companies in the same industry.
A Debt/Equity ratio of 0.25 indicates that NEM is not too dependend on debt financing.
NEM's Debt to Equity ratio of 0.25 is in line compared to the rest of the industry. NEM outperforms 42.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.78 | ||
| Altman-Z | 2.3 |
ROIC/WACC1
WACC9.64%
2.3 Liquidity
A Current Ratio of 1.98 indicates that NEM should not have too much problems paying its short term obligations.
NEM's Current ratio of 1.98 is in line compared to the rest of the industry. NEM outperforms 44.81% 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.
NEM has a Quick ratio of 1.56. This is comparable to the rest of the industry: NEM outperforms 53.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.98 | ||
| Quick Ratio | 1.56 |
3. Growth
3.1 Past
NEM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 140.23%, which is quite impressive.
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 49.51%.
Measured over the past years, NEM shows a quite strong growth in Revenue. The Revenue has been growing by 13.91% on average per year.
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
NEM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.54% yearly.
NEM is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -5.25% yearly.
EPS Next Y15.92%
EPS Next 2Y12.13%
EPS Next 3Y6.13%
EPS Next 5Y3.54%
Revenue Next Year2.03%
Revenue Next 2Y1.02%
Revenue Next 3Y0.8%
Revenue Next 5Y-5.25%
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.
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
Based on the Price/Earnings ratio of 12.33, the valuation of NEM can be described as correct.
89.61% of the companies in the same industry are more expensive than NEM, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of NEM to the average of the S&P500 Index (28.22), we can say NEM is valued rather cheaply.
NEM is valuated reasonably with a Price/Forward Earnings ratio of 11.78.
75.97% of the companies in the same industry are more expensive than NEM, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.86, NEM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.33 | ||
| Fwd PE | 11.78 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NEM is valued cheaper than 81.17% of the companies 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 87.66% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.82 | ||
| EV/EBITDA | 6.41 |
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.
The excellent profitability rating of NEM may justify a higher PE ratio.
PEG (NY)0.77
PEG (5Y)0.57
EPS Next 2Y12.13%
EPS Next 3Y6.13%
5. Dividend
5.1 Amount
NEM has a Yearly Dividend Yield of 1.94%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.93, NEM pays a bit more dividend than its industry peers.
NEM's Dividend Yield is slightly below the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
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
22.47% of the earnings are spent on dividend by NEM. This is a low number and sustainable payout ratio.
DP22.47%
EPS Next 2Y12.13%
EPS Next 3Y6.13%
51.53
+0.04 (+0.08%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners73.84%
Inst Owner Change-0.19%
Ins Owners0.08%
Ins Owner Change0.88%
Market Cap57.35B
Analysts80
Price Target62.33 (20.96%)
Short Float %2.1%
Short Ratio1.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
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)33.01%
Min EPS beat(2)28.27%
Max EPS beat(2)37.75%
EPS beat(4)3
Avg EPS beat(4)18.63%
Min EPS beat(4)-6.75%
Max EPS beat(4)37.75%
EPS beat(8)5
Avg EPS beat(8)11.45%
EPS beat(12)6
Avg EPS beat(12)4.44%
EPS beat(16)8
Avg EPS beat(16)2.23%
Revenue beat(2)2
Avg Revenue beat(2)8.06%
Min Revenue beat(2)7.58%
Max Revenue beat(2)8.55%
Revenue beat(4)3
Avg Revenue beat(4)4.9%
Min Revenue beat(4)-2.42%
Max Revenue beat(4)8.55%
Revenue beat(8)5
Avg Revenue beat(8)2.24%
Revenue beat(12)6
Avg Revenue beat(12)0.59%
Revenue beat(16)7
Avg Revenue beat(16)-0.47%
PT rev (1m)12.02%
PT rev (3m)12.08%
EPS NQ rev (1m)26.16%
EPS NQ rev (3m)1.01%
EPS NY rev (1m)26.64%
EPS NY rev (3m)-0.03%
Revenue NQ rev (1m)11.03%
Revenue NQ rev (3m)4.21%
Revenue NY rev (1m)7.36%
Revenue NY rev (3m)-3.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.33 | ||
| Fwd PE | 11.78 | ||
| P/S | 2.92 | ||
| P/FCF | 12.82 | ||
| P/OCF | 7.3 | ||
| P/B | 1.84 | ||
| P/tB | 2.01 | ||
| EV/EBITDA | 6.41 |
EPS(TTM)4.18
EY8.11%
EPS(NY)4.38
Fwd EY8.49%
FCF(TTM)4.02
FCFY7.8%
OCF(TTM)7.06
OCFY13.69%
SpS17.67
BVpS28.08
TBVpS25.69
PEG (NY)0.77
PEG (5Y)0.57
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 | 2.3 |
F-Score7
WACC9.64%
ROIC/WACC1
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 Y15.92%
EPS Next 2Y12.13%
EPS Next 3Y6.13%
EPS Next 5Y3.54%
Revenue 1Y (TTM)49.51%
Revenue growth 3Y15.19%
Revenue growth 5Y13.91%
Sales Q2Q%24.53%
Revenue Next Year2.03%
Revenue Next 2Y1.02%
Revenue Next 3Y0.8%
Revenue Next 5Y-5.25%
EBIT growth 1Y506.64%
EBIT growth 3Y43.59%
EBIT growth 5Y30.75%
EBIT Next Year68.24%
EBIT Next 3Y19.81%
EBIT Next 5Y6.02%
FCF growth 1Y468.62%
FCF growth 3Y2.44%
FCF growth 5Y15.01%
OCF growth 1Y161.16%
OCF growth 3Y13.31%
OCF growth 5Y16.78%