HARMONY GOLD MNG-SPON ADR (HMY) Stock Fundamental Analysis
USA - NYSE:HMY - US4132163001 - ADR
14.99 USD
-0.04 (-0.27%)
15.05 USD
+0.06 (+0.4%)
We assign a fundamental rating of 7 out of 10 to HMY. HMY was compared to 156 industry peers in the Metals & Mining industry. HMY scores excellent points on both the profitability and health parts. This is a solid base for a good stock. HMY has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination! These ratings would make HMY suitable for value and growth and quality investing!
1. Profitability
1.1 Basic Checks
HMY had positive earnings in the past year.
In the past year HMY had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: HMY reported negative net income in multiple years.
Each year in the past 5 years HMY had a positive operating cash flow.
1.2 Ratios
HMY has a better Return On Assets (15.28%) than 96.15% of its industry peers.
HMY has a Return On Equity of 22.97%. This is amongst the best in the industry. HMY outperforms 94.87% of its industry peers.
The Return On Invested Capital of HMY (21.39%) is better than 98.08% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HMY is in line with the industry average of 12.92%.
The last Return On Invested Capital (21.39%) for HMY is above the 3 year average (12.70%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.28% | ||
| ROE | 22.97% | ||
| ROIC | 21.39% |
ROA(3y)6.79%
ROA(5y)5.77%
ROE(3y)10.48%
ROE(5y)8.8%
ROIC(3y)12.7%
ROIC(5y)10.76%
1.3 Margins
With an excellent Profit Margin value of 15.68%, HMY belongs to the best of the industry, outperforming 81.41% of the companies in the same industry.
In the last couple of years the Profit Margin of HMY has grown nicely.
HMY has a Operating Margin of 25.71%. This is in the better half of the industry: HMY outperforms 77.56% of its industry peers.
In the last couple of years the Operating Margin of HMY has grown nicely.
HMY's Gross Margin of 30.55% is fine compared to the rest of the industry. HMY outperforms 68.59% of its industry peers.
In the last couple of years the Gross Margin of HMY has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.71% | ||
| PM (TTM) | 15.68% | ||
| GM | 30.55% |
OM growth 3Y13.59%
OM growth 5Y39.42%
PM growth 3Y4.7%
PM growth 5YN/A
GM growth 3Y14.56%
GM growth 5Y27.88%
2. Health
2.1 Basic Checks
HMY has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
HMY has more shares outstanding than it did 1 year ago.
HMY has more shares outstanding than it did 5 years ago.
The debt/assets ratio for HMY has been reduced compared to a year ago.
2.2 Solvency
HMY has an Altman-Z score of 6.41. This indicates that HMY is financially healthy and has little risk of bankruptcy at the moment.
HMY has a Altman-Z score of 6.41. This is in the better half of the industry: HMY outperforms 75.64% of its industry peers.
The Debt to FCF ratio of HMY is 0.22, which is an excellent value as it means it would take HMY, only 0.22 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.22, HMY belongs to the top of the industry, outperforming 94.87% of the companies in the same industry.
HMY has a Debt/Equity ratio of 0.04. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.04, HMY is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.22 | ||
| Altman-Z | 6.41 |
ROIC/WACC1.42
WACC15.02%
2.3 Liquidity
A Current Ratio of 1.84 indicates that HMY should not have too much problems paying its short term obligations.
The Current ratio of HMY (1.84) is comparable to the rest of the industry.
A Quick Ratio of 1.46 indicates that HMY should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.46, HMY perfoms like the industry average, outperforming 49.36% of the companies in the same industry.
HMY does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.46 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.64% over the past year.
HMY shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.22% yearly.
Looking at the last year, HMY shows a quite strong growth in Revenue. The Revenue has grown by 16.84% in the last year.
HMY shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.93% yearly.
EPS 1Y (TTM)16.64%
EPS 3Y18.22%
EPS 5YN/A
EPS Q2Q%31.87%
Revenue 1Y (TTM)16.84%
Revenue growth 3Y13.72%
Revenue growth 5Y17.93%
Sales Q2Q%18.23%
3.2 Future
The Earnings Per Share is expected to grow by 39.01% on average over the next years. This is a very strong growth
Based on estimates for the next years, HMY will show a quite strong growth in Revenue. The Revenue will grow by 13.44% on average per year.
EPS Next Y77.43%
EPS Next 2Y60.06%
EPS Next 3Y39.01%
EPS Next 5YN/A
Revenue Next Year19.46%
Revenue Next 2Y20.31%
Revenue Next 3Y13.76%
Revenue Next 5Y13.44%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 15.45, HMY is valued correctly.
HMY's Price/Earnings ratio is rather cheap when compared to the industry. HMY is cheaper than 87.18% of the companies in the same industry.
When comparing the Price/Earnings ratio of HMY to the average of the S&P500 Index (27.20), we can say HMY is valued slightly cheaper.
A Price/Forward Earnings ratio of 5.69 indicates a rather cheap valuation of HMY.
98.72% of the companies in the same industry are more expensive than HMY, based on the Price/Forward Earnings ratio.
HMY's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.71.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.45 | ||
| Fwd PE | 5.69 |
4.2 Price Multiples
86.54% of the companies in the same industry are more expensive than HMY, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, HMY is valued cheaply inside the industry as 87.82% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.03 | ||
| EV/EBITDA | 7.04 |
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 HMY may justify a higher PE ratio.
HMY's earnings are expected to grow with 39.01% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.2
PEG (5Y)N/A
EPS Next 2Y60.06%
EPS Next 3Y39.01%
5. Dividend
5.1 Amount
HMY has a Yearly Dividend Yield of 1.44%. Purely for dividend investing, there may be better candidates out there.
HMY's Dividend Yield is a higher than the industry average which is at 2.51.
HMY's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.44% |
5.2 History
The dividend of HMY is nicely growing with an annual growth rate of 47.94%!
HMY has been paying a dividend for at least 10 years, so it has a reliable track record.
HMY has decreased its dividend in the last 3 years.
Dividend Growth(5Y)47.94%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
HMY pays out 14.98% of its income as dividend. This is a sustainable payout ratio.
HMY's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP14.98%
EPS Next 2Y60.06%
EPS Next 3Y39.01%
14.99
-0.04 (-0.27%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners47.94%
Inst Owner Change7.05%
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap9.32B
Analysts49.23
Price Target15.05 (0.4%)
Short Float %1.4%
Short Ratio1.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.44% |
Yearly Dividend0.13
Dividend Growth(5Y)47.94%
DP14.98%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-4.96%
PT rev (3m)-1.84%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)12.66%
EPS NY rev (3m)12.66%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.35%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.45 | ||
| Fwd PE | 5.69 | ||
| P/S | 2.41 | ||
| P/FCF | 17.03 | ||
| P/OCF | 8.59 | ||
| P/B | 3.53 | ||
| P/tB | 3.53 | ||
| EV/EBITDA | 7.04 |
EPS(TTM)0.97
EY6.47%
EPS(NY)2.63
Fwd EY17.57%
FCF(TTM)0.88
FCFY5.87%
OCF(TTM)1.74
OCFY11.64%
SpS6.21
BVpS4.24
TBVpS4.24
PEG (NY)0.2
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.28% | ||
| ROE | 22.97% | ||
| ROCE | 28.96% | ||
| ROIC | 21.39% | ||
| ROICexc | 25.39% | ||
| ROICexgc | 25.4% | ||
| OM | 25.71% | ||
| PM (TTM) | 15.68% | ||
| GM | 30.55% | ||
| FCFM | 14.16% |
ROA(3y)6.79%
ROA(5y)5.77%
ROE(3y)10.48%
ROE(5y)8.8%
ROIC(3y)12.7%
ROIC(5y)10.76%
ROICexc(3y)13.71%
ROICexc(5y)11.71%
ROICexgc(3y)13.72%
ROICexgc(5y)11.76%
ROCE(3y)17.19%
ROCE(5y)14.57%
ROICexcg growth 3Y21.3%
ROICexcg growth 5Y51.35%
ROICexc growth 3Y21.65%
ROICexc growth 5Y51.84%
OM growth 3Y13.59%
OM growth 5Y39.42%
PM growth 3Y4.7%
PM growth 5YN/A
GM growth 3Y14.56%
GM growth 5Y27.88%
F-Score8
Asset Turnover0.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.22 | ||
| Debt/EBITDA | 0.09 | ||
| Cap/Depr | 199.1% | ||
| Cap/Sales | 13.91% | ||
| Interest Coverage | 55.48 | ||
| Cash Conversion | 85.85% | ||
| Profit Quality | 90.31% | ||
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.46 | ||
| Altman-Z | 6.41 |
F-Score8
WACC15.02%
ROIC/WACC1.42
Cap/Depr(3y)190.28%
Cap/Depr(5y)161.27%
Cap/Sales(3y)14.59%
Cap/Sales(5y)13.68%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)16.64%
EPS 3Y18.22%
EPS 5YN/A
EPS Q2Q%31.87%
EPS Next Y77.43%
EPS Next 2Y60.06%
EPS Next 3Y39.01%
EPS Next 5YN/A
Revenue 1Y (TTM)16.84%
Revenue growth 3Y13.72%
Revenue growth 5Y17.93%
Sales Q2Q%18.23%
Revenue Next Year19.46%
Revenue Next 2Y20.31%
Revenue Next 3Y13.76%
Revenue Next 5Y13.44%
EBIT growth 1Y40.71%
EBIT growth 3Y29.18%
EBIT growth 5Y64.42%
EBIT Next Year74.31%
EBIT Next 3Y31.76%
EBIT Next 5YN/A
FCF growth 1Y131.28%
FCF growth 3Y21.56%
FCF growth 5YN/A
OCF growth 1Y179.52%
OCF growth 3Y19.46%
OCF growth 5Y27.31%