NEW GOLD INC (NGD.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:NGD - CA6445351068 - Common Stock
17.14 CAD
+0.02 (+0.12%)
Taking everything into account, NGD scores 6 out of 10 in our fundamental rating. NGD was compared to 820 industry peers in the Metals & Mining industry. NGD has an excellent profitability rating, but there are concerns on its financial health. NGD has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination!
1. Profitability
1.1 Basic Checks
- NGD had positive earnings in the past year.
- In the past year NGD had a positive cash flow from operations.
- The reported net income has been mixed in the past 5 years: NGD reported negative net income in multiple years.
- In the past 5 years NGD always reported a positive cash flow from operatings.
1.2 Ratios
- NGD has a Return On Assets of 10.52%. This is amongst the best in the industry. NGD outperforms 93.54% of its industry peers.
- NGD has a better Return On Equity (20.11%) than 95.85% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 15.96%, NGD belongs to the top of the industry, outperforming 97.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.52% | ||
| ROE | 20.11% | ||
| ROIC | 15.96% |
ROA(3y)-0.23%
ROA(5y)0.29%
ROE(3y)-1.79%
ROE(5y)-0.14%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- The Profit Margin of NGD (20.07%) is better than 94.02% of its industry peers.
- NGD's Profit Margin has declined in the last couple of years.
- NGD's Operating Margin of 36.13% is amongst the best of the industry. NGD outperforms 95.61% of its industry peers.
- NGD's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 86.65%, NGD belongs to the top of the industry, outperforming 99.39% of the companies in the same industry.
- NGD's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 36.13% | ||
| PM (TTM) | 20.07% | ||
| GM | 86.65% |
OM growth 3Y2.5%
OM growth 5YN/A
PM growth 3Y-16.2%
PM growth 5YN/A
GM growth 3Y1.61%
GM growth 5Y2.32%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so NGD is still creating some value.
- NGD has more shares outstanding than it did 1 year ago.
- NGD has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, NGD has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 5.10 indicates that NGD is not in any danger for bankruptcy at the moment.
- NGD has a Altman-Z score (5.10) which is comparable to the rest of the industry.
- NGD has a debt to FCF ratio of 4.95. This is a neutral value as NGD would need 4.95 years to pay back of all of its debts.
- NGD has a Debt to FCF ratio of 4.95. This is amongst the best in the industry. NGD outperforms 90.98% of its industry peers.
- NGD has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
- With a Debt to Equity ratio value of 0.32, NGD is not doing good in the industry: 69.02% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 4.95 | ||
| Altman-Z | 5.1 |
ROIC/WACC1.63
WACC9.81%
2.3 Liquidity
- NGD has a Current Ratio of 0.88. This is a bad value and indicates that NGD is not financially healthy enough and could expect problems in meeting its short term obligations.
- NGD has a worse Current ratio (0.88) than 62.20% of its industry peers.
- NGD has a Quick Ratio of 0.88. This is a bad value and indicates that NGD is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.48, NGD is doing worse than 68.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
- NGD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 309.09%, which is quite impressive.
- The Earnings Per Share has been growing by 16.55% on average over the past years. This is quite good.
- The Revenue has grown by 44.19% in the past year. This is a very strong growth!
- NGD shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.95% yearly.
EPS 1Y (TTM)309.09%
EPS 3Y16.55%
EPS 5YN/A
EPS Q2Q%212.5%
Revenue 1Y (TTM)44.19%
Revenue growth 3Y7.44%
Revenue growth 5Y7.95%
Sales Q2Q%83.53%
3.2 Future
- Based on estimates for the next years, NGD will show a very strong growth in Earnings Per Share. The EPS will grow by 32.56% on average per year.
- NGD is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.05% yearly.
EPS Next Y226.54%
EPS Next 2Y147.86%
EPS Next 3Y77.1%
EPS Next 5Y32.56%
Revenue Next Year59.88%
Revenue Next 2Y58.66%
Revenue Next 3Y32.94%
Revenue Next 5Y17.05%
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 accelerating.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 27.65 indicates a quite expensive valuation of NGD.
- Based on the Price/Earnings ratio, NGD is valued cheaply inside the industry as 92.07% of the companies are valued more expensively.
- NGD's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.82.
- A Price/Forward Earnings ratio of 10.74 indicates a reasonable valuation of NGD.
- NGD's Price/Forward Earnings ratio is rather cheap when compared to the industry. NGD is cheaper than 93.90% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.95. NGD is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.65 | ||
| Fwd PE | 10.74 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, NGD is valued cheaper than 93.66% of the companies in the same industry.
- NGD's Price/Free Cash Flow ratio is rather cheap when compared to the industry. NGD is cheaper than 90.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 123.55 | ||
| EV/EBITDA | 14.59 |
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.
- NGD has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as NGD's earnings are expected to grow with 77.10% in the coming years.
PEG (NY)0.12
PEG (5Y)N/A
EPS Next 2Y147.86%
EPS Next 3Y77.1%
5. Dividend
5.1 Amount
- No dividends for NGD!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NEW GOLD INC / NGD.CA FAQ
What is the ChartMill fundamental rating of NEW GOLD INC (NGD.CA) stock?
ChartMill assigns a fundamental rating of 6 / 10 to NGD.CA.
Can you provide the valuation status for NEW GOLD INC?
ChartMill assigns a valuation rating of 8 / 10 to NEW GOLD INC (NGD.CA). This can be considered as Undervalued.
Can you provide the profitability details for NEW GOLD INC?
NEW GOLD INC (NGD.CA) has a profitability rating of 7 / 10.
What are the PE and PB ratios of NEW GOLD INC (NGD.CA) stock?
The Price/Earnings (PE) ratio for NEW GOLD INC (NGD.CA) is 27.65 and the Price/Book (PB) ratio is 8.
How financially healthy is NEW GOLD INC?
The financial health rating of NEW GOLD INC (NGD.CA) is 3 / 10.