NEWMONT CORP (NEM) Stock Fundamental Analysis
NYSE:NEM - New York Stock Exchange, Inc. - US6516391066 - Common Stock
NEM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 154 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. NEM is not priced too expensively while it is growing strongly. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
In the past year NEM was profitable.
NEM had a positive operating cash flow in the past year.
In multiple years NEM reported negative net income over the last 5 years.
Each year in the past 5 years NEM had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of -2.16%, NEM perfoms like the industry average, outperforming 46.94% of the companies in the same industry.
Looking at the Return On Equity, with a value of -4.08%, NEM is in line with its industry, outperforming 42.86% of the companies in the same industry.
NEM has a better Return On Invested Capital (4.91%) than 61.22% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NEM is significantly below the industry average of 8.76%.
The last Return On Invested Capital (4.91%) for NEM is above the 3 year average (2.97%), which is a sign of increasing profitability.
| 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 74.83% of the companies in the same industry.
NEM's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 47.75%, NEM belongs to the top of the industry, outperforming 87.07% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NEM is destroying value.
NEM has more shares outstanding than it did 1 year ago.
NEM has more shares outstanding than it did 5 years ago.
The debt/assets ratio for NEM is higher compared to a year ago.
2.2 Solvency
NEM has an Altman-Z score of 1.64. This is a bad value and indicates that NEM is not financially healthy and even has some risk of bankruptcy.
NEM has a worse Altman-Z score (1.64) than 65.31% of its industry peers.
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.
With a Debt to FCF ratio value of 10.33, NEM perfoms like the industry average, outperforming 59.86% of the companies in the same industry.
A Debt/Equity ratio of 0.30 indicates that NEM is not too dependend on debt financing.
The Debt to Equity ratio of NEM (0.30) is worse than 64.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 10.33 | ||
| Altman-Z | 1.64 |
ROIC/WACC0.46
WACC10.7%
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.
The Current ratio of NEM (1.96) is comparable to the rest of the industry.
A Quick Ratio of 1.62 indicates that NEM should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.62, NEM is in line with its industry, outperforming 54.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.62 |
3. Growth
3.1 Past
NEM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 68.63%, which is quite impressive.
Measured over the past 5 years, NEM shows a small growth in Earnings Per Share. The EPS has been growing by 3.48% on average per year.
Looking at the last year, NEM shows a very strong growth in Revenue. The Revenue has grown by 53.66%.
Measured over the past years, NEM shows a quite strong growth in Revenue. The Revenue has been growing by 10.25% on average per year.
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
Based on estimates for the next years, NEM will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.99% on average per year.
The Revenue is expected to grow by 9.64% on average over the next years. This is quite good.
EPS Next Y101.54%
EPS Next 2Y58.29%
EPS Next 3Y37.99%
EPS Next 5Y16.99%
Revenue Next Year60.96%
Revenue Next 2Y30.23%
Revenue Next 3Y19.59%
Revenue Next 5Y9.64%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
NEM is valuated correctly with a Price/Earnings ratio of 16.15.
73.47% of the companies in the same industry are more expensive than NEM, based on the Price/Earnings ratio.
NEM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.94.
A Price/Forward Earnings ratio of 10.46 indicates a reasonable valuation of NEM.
Based on the Price/Forward Earnings ratio, NEM is valued a bit cheaper than the industry average as 74.83% of the companies are valued more expensively.
NEM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.11.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.15 | ||
| Fwd PE | 10.46 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NEM is valued a bit cheaper than the industry average as 64.63% of the companies are valued more expensively.
The rest of the industry has a similar Price/Free Cash Flow ratio as NEM.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.85 | ||
| EV/EBITDA | 9.44 |
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.
NEM's earnings are expected to grow with 37.99% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.16
PEG (5Y)4.64
EPS Next 2Y58.29%
EPS Next 3Y37.99%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.40%, NEM has a reasonable but not impressive dividend return.
In the last 3 months the price of NEM has falen by -27.68%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
NEM's Dividend Yield is rather good when compared to the industry average which is at 3.22. NEM pays more dividend than 82.99% of the companies in the same industry.
NEM's Dividend Yield is comparable with the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
5.2 History
The dividend of NEM is nicely growing with an annual growth rate of 20.84%!
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
NEM has negative earnings and hence a negative payout ratio. The dividend may be in danger.
NEM's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP-109.15%
EPS Next 2Y58.29%
EPS Next 3Y37.99%
NEWMONT CORP
NYSE:NEM (1/17/2025, 8:17:17 PM)
After market: 41.65 -0.02 (-0.05%)41.67
+0.02 (+0.05%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners73.14%
Inst Owner Change-0.2%
Ins Owners0.09%
Ins Owner Change-4.9%
Market Cap47.44B
Analysts76.67
Price Target57.8 (38.71%)
Short Float %1.72%
Short Ratio1.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
Yearly Dividend1.46
Dividend Growth(5Y)20.84%
DP-109.15%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)-0.2%
PT rev (3m)-1.53%
EPS NQ rev (1m)0%
EPS NQ rev (3m)32.89%
EPS NY rev (1m)0%
EPS NY rev (3m)5.77%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.22%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)1.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.15 | ||
| Fwd PE | 10.46 | ||
| P/S | 2.79 | ||
| P/FCF | 53.85 | ||
| P/OCF | 10.96 | ||
| P/B | 1.6 | ||
| P/tB | 1.76 | ||
| EV/EBITDA | 9.44 |
EPS(TTM)2.58
EY6.19%
EPS(NY)3.98
Fwd EY9.56%
FCF(TTM)0.77
FCFY1.86%
OCF(TTM)3.8
OCFY9.12%
SpS14.92
BVpS26.1
TBVpS23.71
PEG (NY)0.16
PEG (5Y)4.64
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 | 1.64 |
F-Score4
WACC10.7%
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 Y101.54%
EPS Next 2Y58.29%
EPS Next 3Y37.99%
EPS Next 5Y16.99%
Revenue 1Y (TTM)53.66%
Revenue growth 3Y0.91%
Revenue growth 5Y10.25%
Sales Q2Q%84.72%
Revenue Next Year60.96%
Revenue Next 2Y30.23%
Revenue Next 3Y19.59%
Revenue Next 5Y9.64%
EBIT growth 1Y182.12%
EBIT growth 3Y-39.84%
EBIT growth 5Y-9.85%
EBIT Next Year299.57%
EBIT Next 3Y70.21%
EBIT Next 5Y33.84%
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%