NEWMONT CORP (NEM)
US6516391066 - Common Stock
Taking everything into account, NEM scores 5 out of 10 in our fundamental rating. NEM was compared to 156 industry peers in the Metals & Mining industry. While NEM is still in line with the averages on profitability rating, there are concerns on its financial health. An interesting combination arises when we look at growth and value: NEM is growing strongly while it also seems undervalued.
1. Profitability
1.1 Basic Checks
In the past year NEM was profitable.
NEM had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: NEM reported negative net income in multiple years.
In the past 5 years NEM always reported a positive cash flow from operatings.
1.2 Ratios
NEM has a Return On Assets of -2.16%. This is comparable to the rest of the industry: NEM outperforms 46.15% of its industry peers.
NEM has a Return On Equity (-4.08%) which is in line with its industry peers.
With a decent Return On Invested Capital value of 4.91%, NEM is doing good in the industry, outperforming 60.90% of the companies in the same industry.
NEM had an Average Return On Invested Capital over the past 3 years of 2.97%. This is significantly below the industry average of 8.89%.
The 3 year average ROIC (2.97%) for NEM is below the current ROIC(4.91%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.16% | ||
| ROE | -4.08% | ||
| ROIC | 4.91% |
ROA(3y)-0.91%
ROA(5y)2.22%
ROE(3y)-1.84%
ROE(5y)3.98%
ROIC(3y)2.97%
ROIC(5y)3.77%
1.3 Margins
With a decent Operating Margin value of 18.20%, NEM is doing good in the industry, outperforming 73.72% of the companies in the same industry.
In the last couple of years the Operating Margin of NEM has declined.
Looking at the Gross Margin, with a value of 47.75%, NEM belongs to the top of the industry, outperforming 87.82% of the companies in the same industry.
In the last couple of years the Gross Margin of NEM has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.2% | ||
| PM (TTM) | N/A | ||
| GM | 47.75% |
OM growth 3Y-40.38%
OM growth 5Y-18.23%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-8.44%
GM growth 5Y-0.13%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NEM is destroying value.
The number of shares outstanding for NEM has been increased compared to 1 year ago.
Compared to 5 years ago, NEM has more shares outstanding
The debt/assets ratio for NEM is higher compared to a year ago.
2.2 Solvency
NEM has an Altman-Z score of 1.52. This is a bad value and indicates that NEM is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.52, NEM is doing worse than 64.10% of the companies in the same industry.
The Debt to FCF ratio of NEM is 10.33, which is on the high side as it means it would take NEM, 10.33 years of fcf income to pay off all of its debts.
NEM's Debt to FCF ratio of 10.33 is fine compared to the rest of the industry. NEM outperforms 61.54% of its industry peers.
A Debt/Equity ratio of 0.30 indicates that NEM is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.30, NEM is not doing good in the industry: 64.10% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 10.33 | ||
| Altman-Z | 1.52 |
ROIC/WACC0.46
WACC10.62%
2.3 Liquidity
NEM has a Current Ratio of 1.96. This is a normal value and indicates that NEM is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.96, NEM is in line with its industry, outperforming 42.31% of the companies in the same industry.
A Quick Ratio of 1.62 indicates that NEM should not have too much problems paying its short term obligations.
The Quick ratio of NEM (1.62) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.62 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 68.63% over the past year.
The Earnings Per Share has been growing slightly by 3.48% on average over the past years.
NEM shows a strong growth in Revenue. In the last year, the Revenue has grown by 53.66%.
NEM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.25% yearly.
EPS 1Y (TTM)68.63%
EPS 3Y-15.66%
EPS 5Y3.48%
EPS Q2Q%125%
Revenue 1Y (TTM)53.66%
Revenue growth 3Y0.91%
Revenue growth 5Y10.25%
Sales Q2Q%84.72%
3.2 Future
NEM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.68% yearly.
The Revenue is expected to grow by 9.64% on average over the next years. This is quite good.
EPS Next Y100.98%
EPS Next 2Y56.56%
EPS Next 3Y36.45%
EPS Next 5Y16.68%
Revenue Next Year60.75%
Revenue Next 2Y30.15%
Revenue Next 3Y19.65%
Revenue Next 5Y9.64%
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 accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 14.84, which indicates a correct valuation of NEM.
NEM's Price/Earnings ratio is a bit cheaper when compared to the industry. NEM is cheaper than 76.28% of the companies in the same industry.
NEM is valuated rather cheaply when we compare the Price/Earnings ratio to 27.73, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 9.82 indicates a reasonable valuation of NEM.
NEM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. NEM is cheaper than 75.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of NEM to the average of the S&P500 Index (22.83), we can say NEM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.84 | ||
| Fwd PE | 9.82 |
4.2 Price Multiples
NEM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. NEM is cheaper than 66.03% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NEM indicates a somewhat cheap valuation: NEM is cheaper than 62.82% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.47 | ||
| EV/EBITDA | 8.51 |
4.3 Compensation for Growth
NEM's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as NEM's earnings are expected to grow with 36.45% in the coming years.
PEG (NY)0.15
PEG (5Y)4.26
EPS Next 2Y56.56%
EPS Next 3Y36.45%
5. Dividend
5.1 Amount
NEM has a Yearly Dividend Yield of 2.70%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of NEM has falen by -29.72%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 2.98, NEM pays a better dividend. On top of this NEM pays more dividend than 84.62% of the companies listed in the same industry.
NEM's Dividend Yield is a higher than the S&P500 average which is at 2.24.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.7% |
5.2 History
On average, the dividend of NEM grows each year by 20.84%, which is quite nice.
NEM has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)20.84%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
The earnings of NEM are negative and hence is the payout ratio. NEM will probably not be able to sustain this dividend level.
NEM's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP-109.15%
EPS Next 2Y56.56%
EPS Next 3Y36.45%
NEWMONT CORP
NYSE:NEM (12/20/2024, 8:26:47 PM)
After market: 38.4004 +0.12 (+0.31%)38.28
+1.26 (+3.4%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners73.14%
Inst Owner Change0.93%
Ins Owners0.09%
Ins Owner Change-4.66%
Market Cap43.58B
Analysts77.5
Price Target57.91 (51.28%)
Short Float %1.47%
Short Ratio1.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.7% |
Dividend Growth(5Y)20.84%
DP-109.15%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.25%
Min EPS beat(2)-6.75%
Max EPS beat(2)15.25%
EPS beat(4)3
Avg EPS beat(4)17.27%
Min EPS beat(4)-6.75%
Max EPS beat(4)52.77%
EPS beat(8)4
Avg EPS beat(8)5.03%
EPS beat(12)5
Avg EPS beat(12)-1.33%
EPS beat(16)7
Avg EPS beat(16)-1.6%
Revenue beat(2)1
Avg Revenue beat(2)1.74%
Min Revenue beat(2)-2.42%
Max Revenue beat(2)5.89%
Revenue beat(4)3
Avg Revenue beat(4)6.56%
Min Revenue beat(4)-2.42%
Max Revenue beat(4)13.58%
Revenue beat(8)4
Avg Revenue beat(8)-0.01%
Revenue beat(12)5
Avg Revenue beat(12)-0.91%
Revenue beat(16)5
Avg Revenue beat(16)-2.41%
PT rev (1m)-6.66%
PT rev (3m)2.02%
EPS NQ rev (1m)-2.1%
EPS NQ rev (3m)32.89%
EPS NY rev (1m)0.38%
EPS NY rev (3m)5.47%
Revenue NQ rev (1m)-0.96%
Revenue NQ rev (3m)5.22%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)1.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.84 | ||
| Fwd PE | 9.82 | ||
| P/S | 2.57 | ||
| P/FCF | 49.47 | ||
| P/OCF | 10.07 | ||
| P/B | 1.47 | ||
| P/tB | 1.61 | ||
| EV/EBITDA | 8.51 |
EPS(TTM)2.58
EY6.74%
EPS(NY)3.9
Fwd EY10.18%
FCF(TTM)0.77
FCFY2.02%
OCF(TTM)3.8
OCFY9.93%
SpS14.92
BVpS26.1
TBVpS23.71
PEG (NY)0.15
PEG (5Y)4.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.16% | ||
| ROE | -4.08% | ||
| ROCE | 6.21% | ||
| ROIC | 4.91% | ||
| ROICexc | 5.23% | ||
| ROICexgc | 5.55% | ||
| OM | 18.2% | ||
| PM (TTM) | N/A | ||
| GM | 47.75% | ||
| FCFM | 5.19% |
ROA(3y)-0.91%
ROA(5y)2.22%
ROE(3y)-1.84%
ROE(5y)3.98%
ROIC(3y)2.97%
ROIC(5y)3.77%
ROICexc(3y)3.35%
ROICexc(5y)4.29%
ROICexgc(3y)3.62%
ROICexgc(5y)4.65%
ROCE(3y)3.76%
ROCE(5y)4.77%
ROICexcg growth 3Y-47.2%
ROICexcg growth 5Y-26.67%
ROICexc growth 3Y-46.79%
ROICexc growth 5Y-27.64%
OM growth 3Y-40.38%
OM growth 5Y-18.23%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-8.44%
GM growth 5Y-0.13%
F-Score4
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 10.33 | ||
| Debt/EBITDA | 1.59 | ||
| Cap/Depr | 134.23% | ||
| Cap/Sales | 20.29% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.47% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.62 | ||
| Altman-Z | 1.52 |
F-Score4
WACC10.62%
ROIC/WACC0.46
Cap/Depr(3y)98.39%
Cap/Depr(5y)85.28%
Cap/Sales(3y)17.99%
Cap/Sales(5y)16.07%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)68.63%
EPS 3Y-15.66%
EPS 5Y3.48%
EPS Q2Q%125%
EPS Next Y100.98%
EPS Next 2Y56.56%
EPS Next 3Y36.45%
EPS Next 5Y16.68%
Revenue 1Y (TTM)53.66%
Revenue growth 3Y0.91%
Revenue growth 5Y10.25%
Sales Q2Q%84.72%
Revenue Next Year60.75%
Revenue Next 2Y30.15%
Revenue Next 3Y19.65%
Revenue Next 5Y9.64%
EBIT growth 1Y182.12%
EBIT growth 3Y-39.84%
EBIT growth 5Y-9.85%
EBIT Next Year297.64%
EBIT Next 3Y67.53%
EBIT Next 5Y33.85%
FCF growth 1Y-44.35%
FCF growth 3Y-69.96%
FCF growth 5Y-34.34%
OCF growth 1Y23.34%
OCF growth 3Y-17.28%
OCF growth 5Y8.62%