HARMONY GOLD MNG-SPON ADR (HMY) Stock Fundamental Analysis
NYSE:HMY - New York Stock Exchange, Inc. - US4132163001 - ADR - Currency: USD
We assign a fundamental rating of 8 out of 10 to HMY. HMY was compared to 150 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on HMY. These ratings would make HMY suitable for value and quality investing!
1. Profitability
1.1 Basic Checks
HMY had positive earnings in the past year.
HMY had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: HMY reported negative net income in multiple years.
In the past 5 years HMY always reported a positive cash flow from operatings.
1.2 Ratios
HMY has a Return On Assets of 14.20%. This is amongst the best in the industry. HMY outperforms 93.66% of its industry peers.
HMY has a Return On Equity of 21.06%. This is amongst the best in the industry. HMY outperforms 94.37% of its industry peers.
The Return On Invested Capital of HMY (19.48%) is better than 97.89% of its industry peers.
HMY had an Average Return On Invested Capital over the past 3 years of 12.70%. This is above the industry average of 8.67%.
The last Return On Invested Capital (19.48%) for HMY is above the 3 year average (12.70%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.2% | ||
| ROE | 21.06% | ||
| ROIC | 19.48% |
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
Looking at the Profit Margin, with a value of 13.99%, HMY belongs to the top of the industry, outperforming 83.10% of the companies in the same industry.
HMY's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 22.82%, HMY belongs to the best of the industry, outperforming 81.69% of the companies in the same industry.
HMY's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 27.74%, HMY is in the better half of the industry, outperforming 66.90% of the companies in the same industry.
HMY's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.82% | ||
| PM (TTM) | 13.99% | ||
| GM | 27.74% |
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.
The number of shares outstanding for HMY has been increased compared to 1 year ago.
The number of shares outstanding for HMY has been increased compared to 5 years ago.
HMY has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.52 indicates that HMY is not in any danger for bankruptcy at the moment.
The Altman-Z score of HMY (5.52) is better than 74.65% of its industry peers.
The Debt to FCF ratio of HMY is 0.25, which is an excellent value as it means it would take HMY, only 0.25 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.25, HMY belongs to the top of the industry, outperforming 93.66% 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.
HMY has a Debt to Equity ratio of 0.04. This is in the better half of the industry: HMY outperforms 69.01% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.25 | ||
| Altman-Z | 5.52 |
ROIC/WACC1.19
WACC16.43%
2.3 Liquidity
A Current Ratio of 1.56 indicates that HMY should not have too much problems paying its short term obligations.
The Current ratio of HMY (1.56) is worse than 70.42% of its industry peers.
HMY has a Quick Ratio of 1.07. This is a normal value and indicates that HMY is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.07, HMY is doing worse than 64.08% 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 | 1.56 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
HMY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 75.94%, which is quite impressive.
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 very strong growth in Revenue. The Revenue has grown by 24.56%.
Measured over the past years, HMY shows a quite strong growth in Revenue. The Revenue has been growing by 17.93% on average per year.
EPS 1Y (TTM)75.94%
EPS 3Y18.22%
EPS 5YN/A
EPS Q2Q%-13.45%
Revenue 1Y (TTM)24.56%
Revenue growth 3Y13.72%
Revenue growth 5Y17.93%
Sales Q2Q%15.18%
3.2 Future
Based on estimates for the next years, HMY will show a very strong growth in Earnings Per Share. The EPS will grow by 20.55% on average per year.
The Revenue is expected to grow by 5.97% on average over the next years.
EPS Next Y47.74%
EPS Next 2Y28.68%
EPS Next 3Y20.55%
EPS Next 5YN/A
Revenue Next Year14.22%
Revenue Next 2Y11.03%
Revenue Next 3Y5.97%
Revenue Next 5YN/A
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 stable.
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
Based on the Price/Earnings ratio of 13.16, the valuation of HMY can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of HMY indicates a rather cheap valuation: HMY is cheaper than 84.51% of the companies listed in the same industry.
HMY's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.75.
The Price/Forward Earnings ratio is 6.85, which indicates a rather cheap valuation of HMY.
90.85% of the companies in the same industry are more expensive than HMY, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.44. HMY is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.16 | ||
| Fwd PE | 6.85 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HMY is valued a bit cheaper than the industry average as 76.76% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HMY indicates a rather cheap valuation: HMY is cheaper than 85.21% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.81 | ||
| EV/EBITDA | 5.96 |
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.
HMY has an outstanding profitability rating, which may justify a higher PE ratio.
HMY's earnings are expected to grow with 20.55% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.28
PEG (5Y)N/A
EPS Next 2Y28.68%
EPS Next 3Y20.55%
5. Dividend
5.1 Amount
HMY has a Yearly Dividend Yield of 1.28%.
Compared to an average industry Dividend Yield of 3.21, HMY pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.28, HMY pays less dividend than the S&P500 average, which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
5.2 History
On average, the dividend of HMY grows each year by 47.94%, which is quite nice.
HMY has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of HMY decreased in the last 3 years.
Dividend Growth(5Y)47.94%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
16.73% of the earnings are spent on dividend by HMY. This is a low number and sustainable payout ratio.
HMY's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP16.73%
EPS Next 2Y28.68%
EPS Next 3Y20.55%
10
+0.05 (+0.5%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners53.57%
Inst Owner Change-3.83%
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap6.22B
Analysts48.57
Price Target9.41 (-5.9%)
Short Float %2.26%
Short Ratio1.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
Yearly Dividend0.13
Dividend Growth(5Y)47.94%
DP16.73%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
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)0%
PT rev (3m)4.13%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.34%
EPS NY rev (3m)7.74%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)1.82%
Revenue NY rev (3m)2.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.16 | ||
| Fwd PE | 6.85 | ||
| P/S | 1.87 | ||
| P/FCF | 15.81 | ||
| P/OCF | 7.33 | ||
| P/B | 2.81 | ||
| P/tB | 2.81 | ||
| EV/EBITDA | 5.96 |
EPS(TTM)0.76
EY7.6%
EPS(NY)1.46
Fwd EY14.6%
FCF(TTM)0.63
FCFY6.32%
OCF(TTM)1.36
OCFY13.65%
SpS5.35
BVpS3.56
TBVpS3.55
PEG (NY)0.28
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.2% | ||
| ROE | 21.06% | ||
| ROCE | 26.37% | ||
| ROIC | 19.48% | ||
| ROICexc | 21.37% | ||
| ROICexgc | 21.38% | ||
| OM | 22.82% | ||
| PM (TTM) | 13.99% | ||
| GM | 27.74% | ||
| FCFM | 11.82% |
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 Turnover1.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.25 | ||
| Debt/EBITDA | 0.1 | ||
| Cap/Depr | 180.91% | ||
| Cap/Sales | 13.68% | ||
| Interest Coverage | 27.62 | ||
| Cash Conversion | 83.93% | ||
| Profit Quality | 84.45% | ||
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z | 5.52 |
F-Score8
WACC16.43%
ROIC/WACC1.19
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)75.94%
EPS 3Y18.22%
EPS 5YN/A
EPS Q2Q%-13.45%
EPS Next Y47.74%
EPS Next 2Y28.68%
EPS Next 3Y20.55%
EPS Next 5YN/A
Revenue 1Y (TTM)24.56%
Revenue growth 3Y13.72%
Revenue growth 5Y17.93%
Sales Q2Q%15.18%
Revenue Next Year14.22%
Revenue Next 2Y11.03%
Revenue Next 3Y5.97%
Revenue Next 5YN/A
EBIT growth 1Y76.14%
EBIT growth 3Y29.18%
EBIT growth 5Y64.42%
EBIT Next Year61.79%
EBIT Next 3Y18.75%
EBIT Next 5YN/A
FCF growth 1Y214.21%
FCF growth 3Y21.56%
FCF growth 5YN/A
OCF growth 1Y57.32%
OCF growth 3Y19.46%
OCF growth 5Y27.31%