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 155 industry peers in the Metals & Mining industry. NGD has an excellent profitability rating, but there are concerns on its financial health. NGD is evaluated to be cheap and growing strongly. This does not happen too often!
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.
NGD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.11%, NGD is in the better half of the industry, outperforming 79.35% of the companies in the same industry.
With an excellent Return On Equity value of 12.52%, NGD belongs to the best of the industry, outperforming 83.23% of the companies in the same industry.
NGD has a better Return On Invested Capital (7.97%) than 74.84% 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's Profit Margin of 13.74% is amongst the best of the industry. NGD outperforms 81.29% of its industry peers.
In the last couple of years the Profit Margin of NGD has declined.
NGD has a better Operating Margin (20.45%) than 74.84% of its industry peers.
In the last couple of years the Operating Margin of NGD has grown nicely.
Looking at the Gross Margin, with a value of 80.58%, NGD belongs to the top of the industry, outperforming 98.71% of the companies in the same industry.
NGD's Gross Margin has improved in the last couple of years.
| 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.
NGD has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, NGD has more shares outstanding
NGD has a worse debt/assets ratio than last year.
2.2 Solvency
NGD has an Altman-Z score of 1.29. This is a bad value and indicates that NGD is not financially healthy and even has some risk of bankruptcy.
NGD has a worse Altman-Z score (1.29) than 72.26% 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.
Looking at the Debt to FCF ratio, with a value of 3.18, NGD is in the better half of the industry, outperforming 74.84% of the companies in the same industry.
NGD has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.
NGD's Debt to Equity ratio of 0.49 is on the low side compared to the rest of the industry. NGD is outperformed by 77.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 3.18 | ||
| Altman-Z | 1.29 |
ROIC/WACC0.89
WACC8.98%
2.3 Liquidity
A Current Ratio of 1.68 indicates that NGD should not have too much problems paying its short term obligations.
With a Current ratio value of 1.68, NGD is not doing good in the industry: 67.10% of the companies in the same industry are doing better.
A Quick Ratio of 1.16 indicates that NGD should not have too much problems paying its short term obligations.
The Quick ratio of NGD (1.16) is worse than 61.94% 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%.
The Revenue has been growing slightly by 7.95% on average over the past years.
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 quite strong growth in Revenue. The Revenue will grow by 12.73% 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 5Y12.73%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 24.74, which indicates a rather expensive current valuation of NGD.
Based on the Price/Earnings ratio, NGD is valued a bit cheaper than the industry average as 70.97% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.30, NGD is valued at the same level.
NGD is valuated cheaply with a Price/Forward Earnings ratio of 6.84.
Based on the Price/Forward Earnings ratio, NGD is valued cheaper than 89.68% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, NGD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.74 | ||
| Fwd PE | 6.84 |
4.2 Price Multiples
NGD's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. NGD is cheaper than 73.55% of the companies in the same industry.
78.06% 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 | 23.19 | ||
| EV/EBITDA | 9.19 |
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.
NGD's earnings are expected to grow with 50.66% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.24
PEG (5Y)N/A
EPS Next 2Y90.12%
EPS Next 3Y50.66%
5. Dividend
5.1 Amount
No dividends for NGD!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
4.7
0 (0%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners64.48%
Inst Owner Change0%
Ins Owners3.76%
Ins Owner ChangeN/A
Market Cap3.72B
Analysts78.46
Price Target3.56 (-24.26%)
Short Float %2.01%
Short Ratio0.56
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)74.05%
Min EPS beat(2)17.03%
Max EPS beat(2)131.06%
EPS beat(4)4
Avg EPS beat(4)63.35%
Min EPS beat(4)13.15%
Max EPS beat(4)131.06%
EPS beat(8)7
Avg EPS beat(8)102.23%
EPS beat(12)9
Avg EPS beat(12)62.01%
EPS beat(16)11
Avg EPS beat(16)51.21%
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)6.03%
PT rev (3m)-3.53%
EPS NQ rev (1m)-0.54%
EPS NQ rev (3m)15%
EPS NY rev (1m)0%
EPS NY rev (3m)15.04%
Revenue NQ rev (1m)9%
Revenue NQ rev (3m)35.83%
Revenue NY rev (1m)0%
Revenue NY rev (3m)10.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.74 | ||
| Fwd PE | 6.84 | ||
| P/S | 3.95 | ||
| P/FCF | 23.19 | ||
| P/OCF | 8.35 | ||
| P/B | 3.6 | ||
| P/tB | 3.6 | ||
| EV/EBITDA | 9.19 |
EPS(TTM)0.19
EY4.04%
EPS(NY)0.69
Fwd EY14.61%
FCF(TTM)0.2
FCFY4.31%
OCF(TTM)0.56
OCFY11.98%
SpS1.19
BVpS1.31
TBVpS1.31
PEG (NY)0.24
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 | 1.29 |
F-Score7
WACC8.98%
ROIC/WACC0.89
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 5Y12.73%
EBIT growth 1Y244.37%
EBIT growth 3Y10.12%
EBIT growth 5YN/A
EBIT Next Year336.51%
EBIT Next 3Y93.28%
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%