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 7 out of 10 to HMY. HMY was compared to 154 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! With these ratings, HMY could be worth investigating further for value and growth and quality investing!.
1. Profitability
1.1 Basic Checks
In the past year HMY was profitable.
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.
In the past 5 years HMY always reported a positive cash flow from operatings.
1.2 Ratios
HMY has a Return On Assets of 15.28%. This is amongst the best in the industry. HMY outperforms 94.81% of its industry peers.
HMY's Return On Equity of 22.97% is amongst the best of the industry. HMY outperforms 92.86% of its industry peers.
HMY has a Return On Invested Capital of 21.39%. This is amongst the best in the industry. HMY outperforms 98.70% of its industry peers.
HMY had an Average Return On Invested Capital over the past 3 years of 12.70%. This is in line with the industry average of 11.67%.
The 3 year average ROIC (12.70%) for HMY is below the current ROIC(21.39%), indicating increased profibility in the last year.
| 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
HMY has a Profit Margin of 15.68%. This is amongst the best in the industry. HMY outperforms 84.42% of its industry peers.
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 79.22% 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 70.78% 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.
The number of shares outstanding for HMY has been increased compared to 1 year ago.
Compared to 5 years ago, HMY has more shares outstanding
Compared to 1 year ago, HMY has an improved debt to assets ratio.
2.2 Solvency
HMY has an Altman-Z score of 6.22. This indicates that HMY is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of HMY (6.22) is better than 77.92% 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.
HMY has a better Debt to FCF ratio (0.22) than 94.16% of its industry peers.
A Debt/Equity ratio of 0.04 indicates that HMY is not too dependend on debt financing.
HMY's Debt to Equity ratio of 0.04 is fine compared to the rest of the industry. HMY outperforms 69.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.22 | ||
| Altman-Z | 6.22 |
ROIC/WACC1.47
WACC14.52%
2.3 Liquidity
A Current Ratio of 1.84 indicates that HMY should not have too much problems paying its short term obligations.
HMY has a worse Current ratio (1.84) than 61.04% of its industry peers.
A Quick Ratio of 1.46 indicates that HMY should not have too much problems paying its short term obligations.
HMY's Quick ratio of 1.46 is in line compared to the rest of the industry. HMY outperforms 48.70% of 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
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.
HMY shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.84%.
The Revenue has been growing by 17.93% on average over the past years. This is quite good.
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
Based on estimates for the next years, HMY will show a very strong growth in Earnings Per Share. The EPS will grow by 31.05% on average per year.
The Revenue is expected to grow by 11.50% on average over the next years. This is quite good.
EPS Next Y57.49%
EPS Next 2Y43.35%
EPS Next 3Y31.05%
EPS Next 5YN/A
Revenue Next Year19.53%
Revenue Next 2Y17.11%
Revenue Next 3Y11.5%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 14.72, which indicates a correct valuation of HMY.
HMY's Price/Earnings ratio is rather cheap when compared to the industry. HMY is cheaper than 83.12% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.21, HMY is valued a bit cheaper.
HMY is valuated cheaply with a Price/Forward Earnings ratio of 6.78.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HMY indicates a rather cheap valuation: HMY is cheaper than 87.66% of the companies listed in the same industry.
HMY's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.72 | ||
| Fwd PE | 6.78 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HMY is valued cheaper than 84.42% of the companies in the same industry.
HMY's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HMY is cheaper than 84.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.27 | ||
| EV/EBITDA | 6.71 |
4.3 Compensation for Growth
HMY'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 HMY may justify a higher PE ratio.
HMY's earnings are expected to grow with 31.05% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.26
PEG (5Y)N/A
EPS Next 2Y43.35%
EPS Next 3Y31.05%
5. Dividend
5.1 Amount
HMY has a Yearly Dividend Yield of 1.31%.
Compared to an average industry Dividend Yield of 2.98, HMY pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, HMY's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
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
14.98% of the earnings are spent on dividend by HMY. This is a low number and 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 2Y43.35%
EPS Next 3Y31.05%
13.98
+0.01 (+0.07%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners47.94%
Inst Owner Change-8.7%
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap8.70B
Analysts47.69
Price Target15.05 (7.65%)
Short Float %2.71%
Short Ratio2.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
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)21.05%
PT rev (3m)40.94%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)5.46%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.72 | ||
| Fwd PE | 6.78 | ||
| P/S | 2.3 | ||
| P/FCF | 16.27 | ||
| P/OCF | 8.21 | ||
| P/B | 3.37 | ||
| P/tB | 3.38 | ||
| EV/EBITDA | 6.71 |
EPS(TTM)0.95
EY6.8%
EPS(NY)2.06
Fwd EY14.74%
FCF(TTM)0.86
FCFY6.15%
OCF(TTM)1.7
OCFY12.18%
SpS6.07
BVpS4.14
TBVpS4.14
PEG (NY)0.26
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 | 6.22 |
F-Score8
WACC14.52%
ROIC/WACC1.47
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 Y57.49%
EPS Next 2Y43.35%
EPS Next 3Y31.05%
EPS Next 5YN/A
Revenue 1Y (TTM)16.84%
Revenue growth 3Y13.72%
Revenue growth 5Y17.93%
Sales Q2Q%18.23%
Revenue Next Year19.53%
Revenue Next 2Y17.11%
Revenue Next 3Y11.5%
Revenue Next 5YN/A
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%