HARMONY GOLD MNG-SPON ADR (HMY) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HMY - US4132163001 - ADR
23.57 USD
+0.12 (+0.51%)
23.46 USD
-0.11 (-0.47%)
Overall HMY gets a fundamental rating of 7 out of 10. We evaluated HMY against 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 is evaluated to be cheap and growing strongly. This does not happen too often! These ratings could make HMY a good candidate 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.
- HMY had positive earnings in 4 of the past 5 years.
- Each year in the past 5 years HMY had a positive operating cash flow.
1.2 Ratios
- With an excellent Return On Assets value of 18.56%, HMY belongs to the best of the industry, outperforming 97.40% of the companies in the same industry.
- With an excellent Return On Equity value of 29.82%, HMY belongs to the best of the industry, outperforming 96.10% of the companies in the same industry.
- The Return On Invested Capital of HMY (22.66%) is better than 97.40% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for HMY is significantly above the industry average of 10.32%.
- The 3 year average ROIC (17.58%) for HMY is below the current ROIC(22.66%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.56% | ||
| ROE | 29.82% | ||
| ROIC | 22.66% |
ROA(3y)13.73%
ROA(5y)9.87%
ROE(3y)21.58%
ROE(5y)15.51%
ROIC(3y)17.58%
ROIC(5y)14.04%
1.3 Margins
- The Profit Margin of HMY (19.47%) is better than 83.12% of its industry peers.
- The Operating Margin of HMY (28.04%) is better than 79.87% of its industry peers.
- HMY's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 33.10%, HMY is in the better half of the industry, outperforming 69.48% of the companies in the same industry.
- HMY's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.04% | ||
| PM (TTM) | 19.47% | ||
| GM | 33.1% |
OM growth 3Y44.29%
OM growth 5Y28.6%
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
- 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
- An Altman-Z score of 7.10 indicates that HMY is not in any danger for bankruptcy at the moment.
- HMY's Altman-Z score of 7.10 is fine compared to the rest of the industry. HMY outperforms 70.13% of its industry peers.
- The Debt to FCF ratio of HMY is 0.18, which is an excellent value as it means it would take HMY, only 0.18 years of fcf income to pay off all of its debts.
- With an excellent Debt to FCF ratio value of 0.18, HMY belongs to the best of the industry, outperforming 93.51% 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.
- The Debt to Equity ratio of HMY (0.04) is better than 69.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.18 | ||
| Altman-Z | 7.1 |
ROIC/WACC1.44
WACC15.72%
2.3 Liquidity
- A Current Ratio of 1.72 indicates that HMY should not have too much problems paying its short term obligations.
- HMY has a Current ratio of 1.72. This is in the lower half of the industry: HMY underperforms 64.29% of its industry peers.
- HMY has a Quick Ratio of 1.41. This is a normal value and indicates that HMY is financially healthy and should not expect problems in meeting its short term obligations.
- HMY's Quick ratio of 1.41 is in line compared to the rest of the industry. HMY outperforms 46.10% 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 | 1.72 | ||
| Quick Ratio | 1.41 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 66.97% over the past year.
- Looking at the last year, HMY shows a very strong growth in Revenue. 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%147.05%
Revenue 1Y (TTM)20.39%
Revenue growth 3Y20.11%
Revenue growth 5Y20.37%
Sales Q2Q%22.66%
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 30.32% on average per year.
- HMY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.76% yearly.
EPS Next Y61.88%
EPS Next 2Y46.38%
EPS Next 3Y30.32%
EPS Next 5YN/A
Revenue Next Year37.12%
Revenue Next 2Y25.48%
Revenue Next 3Y14.76%
Revenue Next 5YN/A
3.3 Evolution
- 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
- With a Price/Earnings ratio of 16.37, HMY is valued correctly.
- HMY's Price/Earnings ratio is rather cheap when compared to the industry. HMY is cheaper than 93.51% of the companies in the same industry.
- When comparing the Price/Earnings ratio of HMY to the average of the S&P500 Index (27.25), we can say HMY is valued slightly cheaper.
- With a Price/Forward Earnings ratio of 7.37, the valuation of HMY can be described as very cheap.
- Based on the Price/Forward Earnings ratio, HMY is valued cheaper than 95.45% of the companies in the same industry.
- HMY is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.37 | ||
| Fwd PE | 7.37 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA 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/Free Cash Flow ratio is rather cheap when compared to the industry. HMY is cheaper than 90.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.02 | ||
| EV/EBITDA | 8.81 |
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.
- A more expensive valuation may be justified as HMY's earnings are expected to grow with 30.32% in the coming years.
PEG (NY)0.26
PEG (5Y)N/A
EPS Next 2Y46.38%
EPS Next 3Y30.32%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.05%, HMY has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 1.02, HMY pays a bit more dividend than its industry peers.
- With a Dividend Yield of 1.05, HMY pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
5.2 History
- 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)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
- 14.60% of the earnings are spent on dividend by HMY. This is a low number and sustainable payout ratio.
DP14.6%
EPS Next 2Y46.38%
EPS Next 3Y30.32%
HARMONY GOLD MNG-SPON ADR / HMY FAQ
Can you provide the ChartMill fundamental rating for HARMONY GOLD MNG-SPON ADR?
ChartMill assigns a fundamental rating of 7 / 10 to HMY.
What is the valuation status for HMY stock?
ChartMill assigns a valuation rating of 9 / 10 to HARMONY GOLD MNG-SPON ADR (HMY). This can be considered as Undervalued.
What is the profitability of HMY stock?
HARMONY GOLD MNG-SPON ADR (HMY) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for HMY stock?
The Price/Earnings (PE) ratio for HARMONY GOLD MNG-SPON ADR (HMY) is 16.37 and the Price/Book (PB) ratio is 4.93.
Can you provide the dividend sustainability for HMY stock?
The dividend rating of HARMONY GOLD MNG-SPON ADR (HMY) is 4 / 10 and the dividend payout ratio is 14.6%.