NEW GOLD INC (NGD) Stock Fundamental Analysis
NYSEARCA:NGD - NYSE Arca - CA6445351068 - Common Stock - Currency: USD
Overall NGD gets a fundamental rating of 5 out of 10. We evaluated NGD against 157 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. An interesting combination arises when we look at growth and value: NGD is growing strongly while it also seems undervalued.
1. Profitability
1.1 Basic Checks
In the past year NGD was profitable.
NGD had a positive operating cash flow in the past year.
In multiple years NGD reported negative net income over the last 5 years.
Each year in the past 5 years NGD had a positive operating cash flow.
1.2 Ratios
NGD has a Return On Assets of 5.89%. This is in the better half of the industry: NGD outperforms 78.98% of its industry peers.
Looking at the Return On Equity, with a value of 13.15%, NGD belongs to the top of the industry, outperforming 84.08% of the companies in the same industry.
NGD has a Return On Invested Capital of 11.01%. This is amongst the best in the industry. NGD outperforms 87.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.89% | ||
| ROE | 13.15% | ||
| ROIC | 11.01% |
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
With an excellent Profit Margin value of 14.04%, NGD belongs to the best of the industry, outperforming 81.53% of the companies in the same industry.
In the last couple of years the Profit Margin of NGD has declined.
NGD has a Operating Margin of 27.28%. This is amongst the best in the industry. NGD outperforms 80.89% of its industry peers.
NGD's Operating Margin has improved in the last couple of years.
The Gross Margin of NGD (83.76%) is better than 99.36% of its industry peers.
In the last couple of years the Gross Margin of NGD has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.28% | ||
| PM (TTM) | 14.04% | ||
| GM | 83.76% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), NGD is creating some value.
The number of shares outstanding for NGD has been increased compared to 1 year ago.
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
NGD has an Altman-Z score of 0.90. This is a bad value and indicates that NGD is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of NGD (0.90) is worse than 76.43% of its industry peers.
NGD has a Debt/Equity ratio of 0.50. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of NGD (0.50) is worse than 78.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.9 |
ROIC/WACC1.25
WACC8.83%
2.3 Liquidity
A Current Ratio of 0.89 indicates that NGD may have some problems paying its short term obligations.
NGD has a Current ratio of 0.89. This is amonst the worse of the industry: NGD underperforms 85.99% of its industry peers.
A Quick Ratio of 0.62 indicates that NGD may have some problems paying its short term obligations.
With a Quick ratio value of 0.62, NGD is not doing good in the industry: 84.71% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
NGD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 366.67%, 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 27.24%.
Measured over the past years, NGD shows a small growth in Revenue. The Revenue has been growing by 7.95% on average per year.
EPS 1Y (TTM)366.67%
EPS 3Y16.55%
EPS 5YN/A
EPS Q2Q%450%
Revenue 1Y (TTM)27.24%
Revenue growth 3Y7.44%
Revenue growth 5Y7.95%
Sales Q2Q%41.34%
3.2 Future
NGD is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 44.49% yearly.
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 Year45.06%
Revenue Next 2Y44.81%
Revenue Next 3Y25.76%
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
With a Price/Earnings ratio of 15.21, NGD is valued correctly.
82.17% of the companies in the same industry are more expensive than NGD, based on the Price/Earnings ratio.
NGD is valuated rather cheaply when we compare the Price/Earnings ratio to 26.82, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 6.20, the valuation of NGD can be described as very cheap.
NGD's Price/Forward Earnings ratio is rather cheap when compared to the industry. NGD is cheaper than 91.72% of the companies in the same industry.
NGD's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.21 | ||
| Fwd PE | 6.2 |
4.2 Price Multiples
81.53% of the companies in the same industry are more expensive than NGD, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.18 |
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)0.15
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 |
4.26
+0.07 (+1.67%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners64.48%
Inst Owner Change-0.7%
Ins Owners3.76%
Ins Owner ChangeN/A
Market Cap3.37B
Analysts78.46
Price Target5.19 (21.83%)
Short Float %2.1%
Short Ratio0.72
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)67.89%
Min EPS beat(2)4.72%
Max EPS beat(2)131.06%
EPS beat(4)4
Avg EPS beat(4)61.24%
Min EPS beat(4)4.72%
Max EPS beat(4)131.06%
EPS beat(8)7
Avg EPS beat(8)102.11%
EPS beat(12)9
Avg EPS beat(12)61.78%
EPS beat(16)11
Avg EPS beat(16)50.02%
Revenue beat(2)1
Avg Revenue beat(2)9.71%
Min Revenue beat(2)-4.85%
Max Revenue beat(2)24.28%
Revenue beat(4)1
Avg Revenue beat(4)3.79%
Min Revenue beat(4)-4.85%
Max Revenue beat(4)24.28%
Revenue beat(8)4
Avg Revenue beat(8)2.57%
Revenue beat(12)7
Avg Revenue beat(12)2.03%
Revenue beat(16)9
Avg Revenue beat(16)0.46%
PT rev (1m)45.57%
PT rev (3m)25.35%
EPS NQ rev (1m)12.43%
EPS NQ rev (3m)30%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)8.06%
Revenue NQ rev (3m)34.67%
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.21 | ||
| Fwd PE | 6.2 | ||
| P/S | 3.27 | ||
| P/FCF | N/A | ||
| P/OCF | 6.63 | ||
| P/B | 3.06 | ||
| P/tB | 3.06 | ||
| EV/EBITDA | 7.18 |
EPS(TTM)0.28
EY6.57%
EPS(NY)0.69
Fwd EY16.12%
FCF(TTM)-0.1
FCFYN/A
OCF(TTM)0.64
OCFY15.08%
SpS1.3
BVpS1.39
TBVpS1.39
PEG (NY)0.15
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.89% | ||
| ROE | 13.15% | ||
| ROCE | 13.94% | ||
| ROIC | 11.01% | ||
| ROICexc | 12.45% | ||
| ROICexgc | 12.45% | ||
| OM | 27.28% | ||
| PM (TTM) | 14.04% | ||
| GM | 83.76% | ||
| FCFM | N/A |
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 Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.05 | ||
| Cap/Depr | 245.02% | ||
| Cap/Sales | 56.71% | ||
| Interest Coverage | 6.72 | ||
| Cash Conversion | 97.69% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.62 | ||
| Altman-Z | 0.9 |
F-Score7
WACC8.83%
ROIC/WACC1.25
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)366.67%
EPS 3Y16.55%
EPS 5YN/A
EPS Q2Q%450%
EPS Next Y103.33%
EPS Next 2Y90.12%
EPS Next 3Y50.66%
EPS Next 5Y44.49%
Revenue 1Y (TTM)27.24%
Revenue growth 3Y7.44%
Revenue growth 5Y7.95%
Sales Q2Q%41.34%
Revenue Next Year45.06%
Revenue Next 2Y44.81%
Revenue Next 3Y25.76%
Revenue Next 5Y12.73%
EBIT growth 1Y327.01%
EBIT growth 3Y10.12%
EBIT growth 5YN/A
EBIT Next Year336.51%
EBIT Next 3Y93.28%
EBIT Next 5Y56.11%
FCF growth 1Y-4.63%
FCF growth 3Y16.79%
FCF growth 5Y64.19%
OCF growth 1Y151.09%
OCF growth 3Y6.66%
OCF growth 5Y8.31%