NYSE:NEM is an undervalued gem with solid fundamentals.

Take a closer look at NEWMONT CORP (NYSE:NEM), a remarkable value stock uncovered by our stock screener. NYSE:NEM excels in fundamentals and maintains a very reasonable valuation. Let's break it down further.

Evaluating Valuation: NYSE:NEM

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:NEM scores a 8 out of 10:

• Based on the Price/Earnings ratio, NEM is valued cheaply inside the industry as 86.62% of the companies are valued more expensively.
• NEM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.62.
• Based on the Price/Forward Earnings ratio of 11.47, the valuation of NEM can be described as reasonable.
• Based on the Price/Forward Earnings ratio, NEM is valued a bit cheaper than the industry average as 76.06% of the companies are valued more expensively.
• NEM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.70.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NEM indicates a somewhat cheap valuation: NEM is cheaper than 74.65% of the companies listed in the same industry.
• NEM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. NEM is cheaper than 81.69% of the companies in the same industry.
• NEM's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• The excellent profitability rating of NEM may justify a higher PE ratio.
• NEM's earnings are expected to grow with 14.49% in the coming years. This may justify a more expensive valuation.

Understanding NYSE:NEM's Profitability

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:NEM was assigned a score of 8 for profitability:

• NEM has a better Return On Assets (5.94%) than 79.58% of its industry peers.
• NEM's Return On Equity of 11.19% is amongst the best of the industry. NEM outperforms 80.28% of its industry peers.
• The Return On Invested Capital of NEM (8.36%) is better than 80.28% of its industry peers.
• The last Return On Invested Capital (8.36%) for NEM is above the 3 year average (4.18%), which is a sign of increasing profitability.
• With an excellent Profit Margin value of 17.92%, NEM belongs to the best of the industry, outperforming 88.03% of the companies in the same industry.
• NEM has a Operating Margin of 31.44%. This is amongst the best in the industry. NEM outperforms 88.73% of its industry peers.
• In the last couple of years the Operating Margin of NEM has grown nicely.
• NEM's Gross Margin of 52.02% is amongst the best of the industry. NEM outperforms 89.44% of its industry peers.
• NEM's Gross Margin has improved in the last couple of years.

Assessing Health Metrics for NYSE:NEM

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:NEM has earned a 5 out of 10:

• The Debt to FCF ratio of NEM is 3.03, which is a good value as it means it would take NEM, 3.03 years of fcf income to pay off all of its debts.
• The Debt to FCF ratio of NEM (3.03) is better than 76.76% of its industry peers.
• NEM has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.

How We Gauge Growth for NYSE:NEM

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:NEM boasts a 5 out of 10:

• The Earnings Per Share has grown by an impressive 118.87% over the past year.
• The Earnings Per Share has been growing by 21.58% on average over the past years. This is a very strong growth
• NEM shows a strong growth in Revenue. In the last year, the Revenue has grown by 58.16%.
• Measured over the past years, NEM shows a quite strong growth in Revenue. The Revenue has been growing by 13.91% on average per year.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

For an up to date full fundamental analysis you can check the fundamental report of NEM

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.