HARMONY GOLD MNG-SPON ADR (HMY) Stock Fundamental Analysis
USA - NYSE:HMY - US4132163001 - ADR
20.2 USD
+0.24 (+1.2%)
19.03 USD
-1.17 (-5.79%)
We assign a fundamental rating of 7 out of 10 to HMY. HMY was compared to 155 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. An interesting combination arises when we look at growth and value: HMY is growing strongly while it also seems undervalued. With these ratings, HMY could be worth investigating further for value and growth 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.
Of the past 5 years HMY 4 years were profitable.
HMY had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 15.28%, HMY belongs to the best of the industry, outperforming 95.48% of the companies in the same industry.
Looking at the Return On Equity, with a value of 22.97%, HMY belongs to the top of the industry, outperforming 94.84% of the companies in the same industry.
With an excellent Return On Invested Capital value of 20.62%, HMY belongs to the best of the industry, outperforming 97.42% of the companies in the same industry.
HMY had an Average Return On Invested Capital over the past 3 years of 17.52%. This is significantly above the industry average of 12.30%.
The 3 year average ROIC (17.52%) for HMY is below the current ROIC(20.62%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.28% | ||
| ROE | 22.97% | ||
| ROIC | 20.62% |
ROA(3y)13.73%
ROA(5y)9.87%
ROE(3y)21.58%
ROE(5y)15.51%
ROIC(3y)17.52%
ROIC(5y)14%
1.3 Margins
HMY has a Profit Margin of 15.68%. This is amongst the best in the industry. HMY outperforms 81.29% of its industry peers.
The Operating Margin of HMY (25.71%) is better than 77.42% of its industry peers.
In the last couple of years the Operating Margin of HMY has grown nicely.
Looking at the Gross Margin, with a value of 30.55%, HMY is in the better half of the industry, outperforming 69.03% of the companies in the same industry.
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 3Y43.91%
OM growth 5Y28.4%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y39.66%
GM growth 5Y23.45%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), HMY is creating some value.
Compared to 1 year ago, HMY has more shares outstanding
HMY has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, HMY has an improved debt to assets ratio.
2.2 Solvency
HMY has an Altman-Z score of 7.88. This indicates that HMY is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 7.88, HMY is doing good in the industry, outperforming 74.19% of the companies in the same industry.
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 95.48% of the companies in the same industry.
A Debt/Equity ratio of 0.04 indicates that HMY is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.04, HMY is in the better half of the industry, outperforming 65.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.22 | ||
| Altman-Z | 7.88 |
ROIC/WACC1.45
WACC14.23%
2.3 Liquidity
HMY has a Current Ratio of 1.84. This is a normal value and indicates that HMY is financially healthy and should not expect problems in meeting its short term obligations.
HMY has a Current ratio of 1.84. This is in the lower half of the industry: HMY underperforms 61.29% of its industry peers.
HMY has a Quick Ratio of 1.46. This is a normal value and indicates that HMY is financially healthy and should not expect problems in meeting its short term obligations.
HMY has a Quick ratio (1.46) which is in line with its industry peers.
The current and quick ratio evaluation for HMY is rather negative, while it does have 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
HMY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 66.97%, which is quite impressive.
HMY shows a strong growth in Revenue. In the last year, the Revenue has grown by 20.39%.
The Revenue has been growing by 20.37% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)66.97%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%147.07%
Revenue 1Y (TTM)20.39%
Revenue growth 3Y20.11%
Revenue growth 5Y20.37%
Sales Q2Q%22.66%
3.2 Future
HMY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.20% yearly.
HMY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.04% yearly.
EPS Next Y50.6%
EPS Next 2Y25.08%
EPS Next 3Y23.2%
EPS Next 5YN/A
Revenue Next Year21.56%
Revenue Next 2Y11.94%
Revenue Next 3Y15.04%
Revenue Next 5YN/A
3.3 Evolution
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
HMY is valuated correctly with a Price/Earnings ratio of 15.07.
Based on the Price/Earnings ratio, HMY is valued cheaper than 90.97% of the companies in the same industry.
HMY is valuated rather cheaply when we compare the Price/Earnings ratio to 27.69, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 7.28, the valuation of HMY can be described as very cheap.
Based on the Price/Forward Earnings ratio, HMY is valued cheaper than 96.77% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HMY to the average of the S&P500 Index (23.18), we can say HMY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.07 | ||
| Fwd PE | 7.28 |
4.2 Price Multiples
HMY's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HMY is cheaper than 80.65% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HMY is valued cheaper than 84.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.99 | ||
| EV/EBITDA | 9.63 |
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.
A more expensive valuation may be justified as HMY's earnings are expected to grow with 23.20% in the coming years.
PEG (NY)0.3
PEG (5Y)N/A
EPS Next 2Y25.08%
EPS Next 3Y23.2%
5. Dividend
5.1 Amount
With a yearly dividend of 0.99%, HMY is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.42, HMY pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, HMY's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
5.2 History
On average, the dividend of HMY grows each year by 47.94%, which is quite nice.
HMY has paid a dividend for at least 10 years, which is 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.
The dividend of HMY is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP14.98%
EPS Next 2Y25.08%
EPS Next 3Y23.2%
20.2
+0.24 (+1.2%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners54.96%
Inst Owner Change-0.37%
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap12.62B
Analysts50.77
Price Target16.25 (-19.55%)
Short Float %1.49%
Short Ratio1.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
Yearly Dividend0.14
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)7.92%
PT rev (3m)10.67%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)5.09%
EPS NY rev (3m)31.04%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.33%
Revenue NY rev (3m)5.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.07 | ||
| Fwd PE | 7.28 | ||
| P/S | 3.26 | ||
| P/FCF | 22.99 | ||
| P/OCF | 11.6 | ||
| P/B | 4.77 | ||
| P/tB | 4.77 | ||
| EV/EBITDA | 9.63 |
EPS(TTM)1.34
EY6.63%
EPS(NY)2.77
Fwd EY13.73%
FCF(TTM)0.88
FCFY4.35%
OCF(TTM)1.74
OCFY8.62%
SpS6.2
BVpS4.24
TBVpS4.23
PEG (NY)0.3
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.28% | ||
| ROE | 22.97% | ||
| ROCE | 28.96% | ||
| ROIC | 20.62% | ||
| ROICexc | 24.48% | ||
| ROICexgc | 24.49% | ||
| OM | 25.71% | ||
| PM (TTM) | 15.68% | ||
| GM | 30.55% | ||
| FCFM | 14.16% |
ROA(3y)13.73%
ROA(5y)9.87%
ROE(3y)21.58%
ROE(5y)15.51%
ROIC(3y)17.52%
ROIC(5y)14%
ROICexc(3y)20.25%
ROICexc(5y)15.88%
ROICexgc(3y)20.26%
ROICexgc(5y)15.9%
ROCE(3y)24.6%
ROCE(5y)19.67%
ROICexcg growth 3Y57.48%
ROICexcg growth 5Y38.67%
ROICexc growth 3Y57.54%
ROICexc growth 5Y39.15%
OM growth 3Y43.91%
OM growth 5Y28.4%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y39.66%
GM growth 5Y23.45%
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 | 7.88 |
F-Score8
WACC14.23%
ROIC/WACC1.45
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)66.97%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%147.07%
EPS Next Y50.6%
EPS Next 2Y25.08%
EPS Next 3Y23.2%
EPS Next 5YN/A
Revenue 1Y (TTM)20.39%
Revenue growth 3Y20.11%
Revenue growth 5Y20.37%
Sales Q2Q%22.66%
Revenue Next Year21.56%
Revenue Next 2Y11.94%
Revenue Next 3Y15.04%
Revenue Next 5YN/A
EBIT growth 1Y40.71%
EBIT growth 3Y72.85%
EBIT growth 5Y54.55%
EBIT Next Year84.01%
EBIT Next 3Y35.47%
EBIT Next 5YN/A
FCF growth 1Y57.98%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y35.75%
OCF growth 3YN/A
OCF growth 5YN/A