Newmont Corporation (NGT.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:NGT - US6516391066 - Common Stock
116 CAD
-1.24 (-1.06%)
NGT gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 820 industry peers in the Metals & Mining industry. NGT gets an excellent profitability rating and is at the same time showing great financial health properties. NGT is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings could make NGT a good candidate for value and quality investing.
1. Profitability
1.1 Basic Checks
- In the past year NGT was profitable.
- NGT had a positive operating cash flow in the past year.
- In multiple years NGT reported negative net income over the last 5 years.
- In the past 5 years NGT always reported a positive cash flow from operatings.
1.2 Ratios
- NGT's Return On Assets of 11.38% is amongst the best of the industry. NGT outperforms 93.43% of its industry peers.
- The Return On Equity of NGT (19.55%) is better than 95.38% of its industry peers.
- With an excellent Return On Invested Capital value of 11.01%, NGT belongs to the best of the industry, outperforming 95.38% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for NGT is significantly below the industry average of 12.04%.
- The last Return On Invested Capital (11.01%) for NGT is above the 3 year average (4.19%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.38% | ||
| ROE | 19.55% | ||
| ROIC | 11.01% |
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
- The Profit Margin of NGT (30.49%) is better than 96.84% of its industry peers.
- In the last couple of years the Profit Margin of NGT has declined.
- NGT has a better Operating Margin (38.86%) than 96.84% of its industry peers.
- NGT's Operating Margin has improved in the last couple of years.
- NGT has a Gross Margin of 57.21%. This is amongst the best in the industry. NGT outperforms 96.72% of its industry peers.
- In the last couple of years the Gross Margin of NGT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.86% | ||
| PM (TTM) | 30.49% | ||
| GM | 57.21% |
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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so NGT is still creating some value.
- Compared to 1 year ago, NGT has less shares outstanding
- Compared to 5 years ago, NGT has more shares outstanding
- Compared to 1 year ago, NGT has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 3.39 indicates that NGT is not in any danger for bankruptcy at the moment.
- NGT has a Altman-Z score (3.39) which is in line with its industry peers.
- NGT has a debt to FCF ratio of 1.36. This is a very positive value and a sign of high solvency as it would only need 1.36 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 1.36, NGT belongs to the top of the industry, outperforming 93.80% of the companies in the same industry.
- NGT has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
- NGT has a Debt to Equity ratio of 0.23. This is in the lower half of the industry: NGT underperforms 68.61% of its industry peers.
- Even though the debt/equity ratio score it not favorable for NGT, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.36 | ||
| Altman-Z | 3.39 |
ROIC/WACC1.21
WACC9.08%
2.3 Liquidity
- A Current Ratio of 2.23 indicates that NGT has no problem at all paying its short term obligations.
- NGT has a Current ratio (2.23) which is in line with its industry peers.
- NGT has a Quick Ratio of 1.74. This is a normal value and indicates that NGT is financially healthy and should not expect problems in meeting its short term obligations.
- NGT has a Quick ratio of 1.74. This is comparable to the rest of the industry: NGT outperforms 52.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.23 | ||
| Quick Ratio | 1.74 |
3. Growth
3.1 Past
- NGT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 129.58%, which is quite impressive.
- NGT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 21.58% yearly.
- NGT shows a strong growth in Revenue. In the last year, the Revenue has grown by 38.38%.
- NGT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.91% yearly.
EPS 1Y (TTM)129.58%
EPS 3Y5.66%
EPS 5Y21.58%
EPS Q2Q%98.61%
Revenue 1Y (TTM)38.38%
Revenue growth 3Y15.19%
Revenue growth 5Y13.91%
Sales Q2Q%20.79%
3.2 Future
- NGT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.43% yearly.
- NGT is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.53% yearly.
EPS Next Y60.56%
EPS Next 2Y28.01%
EPS Next 3Y17.7%
EPS Next 5Y4.43%
Revenue Next Year15.23%
Revenue Next 2Y8.42%
Revenue Next 3Y5.5%
Revenue Next 5Y-1.53%
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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 16.98, which indicates a correct valuation of NGT.
- Based on the Price/Earnings ratio, NGT is valued cheaper than 93.43% of the companies in the same industry.
- NGT's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
- Based on the Price/Forward Earnings ratio of 14.57, the valuation of NGT can be described as correct.
- NGT's Price/Forward Earnings ratio is rather cheap when compared to the industry. NGT is cheaper than 90.88% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, NGT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.98 | ||
| Fwd PE | 14.57 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NGT indicates a rather cheap valuation: NGT is cheaper than 95.62% of the companies listed in the same industry.
- NGT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. NGT is cheaper than 95.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.35 | ||
| EV/EBITDA | 8.71 |
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 NGT may justify a higher PE ratio.
- A more expensive valuation may be justified as NGT's earnings are expected to grow with 17.70% in the coming years.
PEG (NY)0.28
PEG (5Y)0.79
EPS Next 2Y28.01%
EPS Next 3Y17.7%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.16%, NGT has a reasonable but not impressive dividend return.
- NGT's Dividend Yield is rather good when compared to the industry average which is at 0.56. NGT pays more dividend than 97.08% of the companies in the same industry.
- NGT's Dividend Yield is slightly below the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
5.2 History
- The dividend of NGT decreases each year by -5.40%.
- NGT has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)-5.4%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 17.99% of the earnings are spent on dividend by NGT. This is a low number and sustainable payout ratio.
DP17.99%
EPS Next 2Y28.01%
EPS Next 3Y17.7%
Newmont Corporation / NGT.CA FAQ
What is the fundamental rating for NGT stock?
ChartMill assigns a fundamental rating of 7 / 10 to NGT.CA.
What is the valuation status for NGT stock?
ChartMill assigns a valuation rating of 8 / 10 to Newmont Corporation (NGT.CA). This can be considered as Undervalued.
What is the profitability of NGT stock?
Newmont Corporation (NGT.CA) has a profitability rating of 8 / 10.
What are the PE and PB ratios of Newmont Corporation (NGT.CA) stock?
The Price/Earnings (PE) ratio for Newmont Corporation (NGT.CA) is 16.98 and the Price/Book (PB) ratio is 2.84.
What is the financial health of Newmont Corporation (NGT.CA) stock?
The financial health rating of Newmont Corporation (NGT.CA) is 7 / 10.