NEW GOLD INC (NGD) Stock Fundamental Analysis
NYSEARCA:NGD - NYSE Arca - CA6445351068 - Common Stock - Currency: USD
NGD gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 154 industry peers in the Metals & Mining industry. While NGD belongs to the best of the industry regarding profitability, 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
In the past year NGD was profitable.
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
With a decent Return On Assets value of 6.11%, NGD is doing good in the industry, outperforming 79.22% of the companies in the same industry.
The Return On Equity of NGD (12.52%) is better than 82.47% of its industry peers.
NGD has a better Return On Invested Capital (7.97%) than 74.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.11% | ||
| ROE | 12.52% | ||
| ROIC | 7.97% |
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
NGD has a better Profit Margin (13.74%) than 83.12% of its industry peers.
NGD's Profit Margin has declined in the last couple of years.
NGD has a Operating Margin of 20.45%. This is in the better half of the industry: NGD outperforms 75.97% of its industry peers.
In the last couple of years the Operating Margin of NGD has grown nicely.
With an excellent Gross Margin value of 80.58%, NGD belongs to the best of the industry, outperforming 99.35% of the companies in the same industry.
In the last couple of years the Gross Margin of NGD has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.45% | ||
| PM (TTM) | 13.74% | ||
| GM | 80.58% |
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 below the Cost of Capital (WACC), so NGD is destroying value.
Compared to 1 year ago, NGD has more shares outstanding
NGD has more shares outstanding than it did 5 years ago.
The debt/assets ratio for NGD is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.09, we must say that NGD is in the distress zone and has some risk of bankruptcy.
NGD has a Altman-Z score of 1.09. This is in the lower half of the industry: NGD underperforms 71.43% of its industry peers.
The Debt to FCF ratio of NGD is 3.18, which is a good value as it means it would take NGD, 3.18 years of fcf income to pay off all of its debts.
NGD has a better Debt to FCF ratio (3.18) than 74.03% of its industry peers.
A Debt/Equity ratio of 0.49 indicates that NGD is not too dependend on debt financing.
The Debt to Equity ratio of NGD (0.49) is worse than 75.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 3.18 | ||
| Altman-Z | 1.09 |
ROIC/WACC0.87
WACC9.11%
2.3 Liquidity
NGD has a Current Ratio of 1.68. This is a normal value and indicates that NGD is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.68, NGD is not doing good in the industry: 65.58% of the companies in the same industry are doing better.
NGD has a Quick Ratio of 1.16. This is a normal value and indicates that NGD is financially healthy and should not expect problems in meeting its short term obligations.
NGD's Quick ratio of 1.16 is on the low side compared to the rest of the industry. NGD is outperformed by 60.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.68 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
NGD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 216.67%, which is quite impressive.
Measured over the past years, NGD shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.55% on average per year.
Looking at the last year, NGD shows a very strong growth in Revenue. The Revenue has grown by 21.17%.
NGD shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.95% yearly.
EPS 1Y (TTM)216.67%
EPS 3Y16.55%
EPS 5YN/A
EPS Q2Q%0%
Revenue 1Y (TTM)21.17%
Revenue growth 3Y7.44%
Revenue growth 5Y7.95%
Sales Q2Q%8.85%
3.2 Future
The Earnings Per Share is expected to grow by 44.49% on average over the next years. This is a very strong growth
Based on estimates for the next years, NGD will show a very strong growth in Revenue. The Revenue will grow by 22.65% on average per year.
EPS Next Y103.33%
EPS Next 2Y90.12%
EPS Next 3Y50.66%
EPS Next 5Y44.49%
Revenue Next Year36.74%
Revenue Next 2Y39.44%
Revenue Next 3Y22.65%
Revenue Next 5YN/A
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
With a Price/Earnings ratio of 22.37, NGD is valued on the expensive side.
Based on the Price/Earnings ratio, NGD is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
NGD's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.03.
A Price/Forward Earnings ratio of 6.19 indicates a rather cheap valuation of NGD.
Based on the Price/Forward Earnings ratio, NGD is valued cheaper than 91.56% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.94. NGD is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.37 | ||
| Fwd PE | 6.19 |
4.2 Price Multiples
71.43% of the companies in the same industry are more expensive than NGD, based on the Enterprise Value to EBITDA ratio.
79.87% of the companies in the same industry are more expensive than NGD, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.97 | ||
| EV/EBITDA | 8.37 |
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 decent profitability rating of NGD may justify a higher PE ratio.
NGD's earnings are expected to grow with 50.66% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.22
PEG (5Y)N/A
EPS Next 2Y90.12%
EPS Next 3Y50.66%
5. Dividend
5.1 Amount
NGD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
4.25
+0.14 (+3.41%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners61.98%
Inst Owner Change8.75%
Ins Owners3.78%
Ins Owner ChangeN/A
Market Cap3.36B
Analysts78.18
Price Target4.37 (2.82%)
Short Float %1.9%
Short Ratio0.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)77.38%
Min EPS beat(2)17.03%
Max EPS beat(2)137.72%
EPS beat(4)4
Avg EPS beat(4)65.02%
Min EPS beat(4)13.15%
Max EPS beat(4)137.72%
EPS beat(8)7
Avg EPS beat(8)103.06%
EPS beat(12)9
Avg EPS beat(12)62.57%
EPS beat(16)11
Avg EPS beat(16)51.63%
Revenue beat(2)1
Avg Revenue beat(2)10.96%
Min Revenue beat(2)-2.37%
Max Revenue beat(2)24.28%
Revenue beat(4)2
Avg Revenue beat(4)5.21%
Min Revenue beat(4)-2.37%
Max Revenue beat(4)24.28%
Revenue beat(8)5
Avg Revenue beat(8)3.19%
Revenue beat(12)7
Avg Revenue beat(12)1.09%
Revenue beat(16)10
Avg Revenue beat(16)0.85%
PT rev (1m)18.37%
PT rev (3m)27.42%
EPS NQ rev (1m)16.66%
EPS NQ rev (3m)-0.92%
EPS NY rev (1m)0%
EPS NY rev (3m)2%
Revenue NQ rev (1m)24.62%
Revenue NQ rev (3m)-6.07%
Revenue NY rev (1m)10.61%
Revenue NY rev (3m)0.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.37 | ||
| Fwd PE | 6.19 | ||
| P/S | 3.57 | ||
| P/FCF | 20.97 | ||
| P/OCF | 7.55 | ||
| P/B | 3.25 | ||
| P/tB | 3.25 | ||
| EV/EBITDA | 8.37 |
EPS(TTM)0.19
EY4.47%
EPS(NY)0.69
Fwd EY16.16%
FCF(TTM)0.2
FCFY4.77%
OCF(TTM)0.56
OCFY13.25%
SpS1.19
BVpS1.31
TBVpS1.31
PEG (NY)0.22
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.11% | ||
| ROE | 12.52% | ||
| ROCE | 10.09% | ||
| ROIC | 7.97% | ||
| ROICexc | 9% | ||
| ROICexgc | 9% | ||
| OM | 20.45% | ||
| PM (TTM) | 13.74% | ||
| GM | 80.58% | ||
| FCFM | 17.04% |
ROA(3y)-0.23%
ROA(5y)0.29%
ROE(3y)-1.79%
ROE(5y)-0.14%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y11.53%
ROICexcg growth 5YN/A
ROICexc growth 3Y11.53%
ROICexc growth 5YN/A
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%
F-Score7
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 3.18 | ||
| Debt/EBITDA | 1.16 | ||
| Cap/Depr | 117.42% | ||
| Cap/Sales | 30.29% | ||
| Interest Coverage | 4.73 | ||
| Cash Conversion | 102.34% | ||
| Profit Quality | 123.96% | ||
| Current Ratio | 1.68 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z | 1.09 |
F-Score7
WACC9.11%
ROIC/WACC0.87
Cap/Depr(3y)123.96%
Cap/Depr(5y)128.72%
Cap/Sales(3y)37.2%
Cap/Sales(5y)37.79%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)216.67%
EPS 3Y16.55%
EPS 5YN/A
EPS Q2Q%0%
EPS Next Y103.33%
EPS Next 2Y90.12%
EPS Next 3Y50.66%
EPS Next 5Y44.49%
Revenue 1Y (TTM)21.17%
Revenue growth 3Y7.44%
Revenue growth 5Y7.95%
Sales Q2Q%8.85%
Revenue Next Year36.74%
Revenue Next 2Y39.44%
Revenue Next 3Y22.65%
Revenue Next 5YN/A
EBIT growth 1Y244.37%
EBIT growth 3Y10.12%
EBIT growth 5YN/A
EBIT Next Year297.8%
EBIT Next 3Y88.86%
EBIT Next 5Y56.11%
FCF growth 1Y265.53%
FCF growth 3Y16.79%
FCF growth 5Y64.19%
OCF growth 1Y142.83%
OCF growth 3Y6.66%
OCF growth 5Y8.31%