NEWMONT CORP (NEM) Stock Fundamental Analysis
NYSE:NEM - New York Stock Exchange, Inc. - US6516391066 - Common Stock - Currency: USD
Overall NEM gets a fundamental rating of 7 out of 10. We evaluated NEM against 154 industry peers in the Metals & Mining industry. NEM has an excellent profitability rating, but there are some minor concerns on its financial health. NEM is valued quite cheap, while showing a decent growth score. This is a good combination! This makes NEM very considerable for value investing!
1. Profitability
1.1 Basic Checks
In the past year NEM was profitable.
In the past year NEM had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: NEM reported negative net income in multiple years.
Each year in the past 5 years NEM had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 9.13%, NEM belongs to the best of the industry, outperforming 88.96% of the companies in the same industry.
The Return On Equity of NEM (16.22%) is better than 90.26% of its industry peers.
With an excellent Return On Invested Capital value of 9.63%, NEM belongs to the best of the industry, outperforming 85.06% of the companies in the same industry.
NEM had an Average Return On Invested Capital over the past 3 years of 4.19%. This is significantly below the industry average of 11.67%.
The last Return On Invested Capital (9.63%) for NEM is above the 3 year average (4.19%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.13% | ||
| ROE | 16.22% | ||
| ROIC | 9.63% |
ROA(3y)0.11%
ROA(5y)2.01%
ROE(3y)0.13%
ROE(5y)3.59%
ROIC(3y)4.19%
ROIC(5y)4.42%
1.3 Margins
NEM has a Profit Margin of 25.77%. This is amongst the best in the industry. NEM outperforms 93.51% of its industry peers.
NEM's Profit Margin has declined in the last couple of years.
NEM has a better Operating Margin (35.28%) than 89.61% of its industry peers.
In the last couple of years the Operating Margin of NEM has grown nicely.
Looking at the Gross Margin, with a value of 54.43%, NEM belongs to the top of the industry, outperforming 89.61% of the companies in the same industry.
In the last couple of years the Gross Margin of NEM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 35.28% | ||
| PM (TTM) | 25.77% | ||
| GM | 54.43% |
OM growth 3Y24.65%
OM growth 5Y14.78%
PM growth 3Y23.39%
PM growth 5Y-9.05%
GM growth 3Y-2.15%
GM growth 5Y2.2%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so NEM is still creating some value.
The number of shares outstanding for NEM has been reduced compared to 1 year ago.
Compared to 5 years ago, NEM has more shares outstanding
The debt/assets ratio for NEM has been reduced compared to a year ago.
2.2 Solvency
NEM has an Altman-Z score of 2.54. This is not the best score and indicates that NEM is in the grey zone with still only limited risk for bankruptcy at the moment.
NEM has a Altman-Z score (2.54) which is comparable to the rest of the industry.
NEM has a debt to FCF ratio of 1.78. This is a very positive value and a sign of high solvency as it would only need 1.78 years to pay back of all of its debts.
NEM has a Debt to FCF ratio of 1.78. This is amongst the best in the industry. NEM outperforms 83.77% of its industry peers.
A Debt/Equity ratio of 0.25 indicates that NEM is not too dependend on debt financing.
NEM has a Debt to Equity ratio (0.25) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.78 | ||
| Altman-Z | 2.54 |
ROIC/WACC1.02
WACC9.44%
2.3 Liquidity
A Current Ratio of 1.98 indicates that NEM should not have too much problems paying its short term obligations.
The Current ratio of NEM (1.98) is comparable to the rest of the industry.
NEM has a Quick Ratio of 1.56. This is a normal value and indicates that NEM is financially healthy and should not expect problems in meeting its short term obligations.
NEM has a Quick ratio of 1.56. This is comparable to the rest of the industry: NEM outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.98 | ||
| Quick Ratio | 1.56 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 140.23% over the past year.
The Earnings Per Share has been growing by 21.58% on average over the past years. This is a very strong growth
Looking at the last year, NEM shows a very strong growth in Revenue. The Revenue has grown by 49.51%.
NEM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.91% yearly.
EPS 1Y (TTM)140.23%
EPS 3Y5.66%
EPS 5Y21.58%
EPS Q2Q%127.27%
Revenue 1Y (TTM)49.51%
Revenue growth 3Y15.19%
Revenue growth 5Y13.91%
Sales Q2Q%24.53%
3.2 Future
Based on estimates for the next years, NEM will show a decrease in Earnings Per Share. The EPS will decrease by -9.00% on average per year.
Based on estimates for the next years, NEM will show a decrease in Revenue. The Revenue will decrease by -5.25% on average per year.
EPS Next Y37.23%
EPS Next 2Y19.33%
EPS Next 3Y11.63%
EPS Next 5Y-9%
Revenue Next Year8.07%
Revenue Next 2Y3.59%
Revenue Next 3Y2.17%
Revenue Next 5Y-5.25%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.53, NEM is valued correctly.
NEM's Price/Earnings ratio is rather cheap when compared to the industry. NEM is cheaper than 87.66% of the companies in the same industry.
NEM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.41.
A Price/Forward Earnings ratio of 12.26 indicates a correct valuation of NEM.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NEM indicates a somewhat cheap valuation: NEM is cheaper than 73.38% of the companies listed in the same industry.
NEM is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.53 | ||
| Fwd PE | 12.26 |
4.2 Price Multiples
NEM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NEM is cheaper than 82.47% of the companies in the same industry.
NEM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. NEM is cheaper than 88.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.11 | ||
| EV/EBITDA | 7.42 |
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.
NEM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.39
PEG (5Y)0.67
EPS Next 2Y19.33%
EPS Next 3Y11.63%
5. Dividend
5.1 Amount
NEM has a Yearly Dividend Yield of 1.67%. Purely for dividend investing, there may be better candidates out there.
NEM's Dividend Yield is a higher than the industry average which is at 2.90.
Compared to the average S&P500 Dividend Yield of 2.35, NEM is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.67% |
5.2 History
The dividend of NEM decreases each year by -5.40%.
NEM has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-5.4%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
22.47% of the earnings are spent on dividend by NEM. This is a low number and sustainable payout ratio.
The Dividend Rate of NEM has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP22.47%
EPS Next 2Y19.33%
EPS Next 3Y11.63%
NYSE:NEM (7/14/2025, 3:48:08 PM)
60.745
+0.61 (+1.02%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners75.44%
Inst Owner Change0.01%
Ins Owners0.07%
Ins Owner Change3.05%
Market Cap67.61B
Analysts80
Price Target66.83 (10.02%)
Short Float %2.2%
Short Ratio1.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.67% |
Yearly Dividend1
Dividend Growth(5Y)-5.4%
DP22.47%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)33.24%
Min EPS beat(2)28.27%
Max EPS beat(2)38.22%
EPS beat(4)3
Avg EPS beat(4)18.75%
Min EPS beat(4)-6.75%
Max EPS beat(4)38.22%
EPS beat(8)5
Avg EPS beat(8)11.51%
EPS beat(12)6
Avg EPS beat(12)4.48%
EPS beat(16)8
Avg EPS beat(16)2.25%
Revenue beat(2)2
Avg Revenue beat(2)7.29%
Min Revenue beat(2)6.03%
Max Revenue beat(2)8.55%
Revenue beat(4)3
Avg Revenue beat(4)4.51%
Min Revenue beat(4)-2.42%
Max Revenue beat(4)8.55%
Revenue beat(8)5
Avg Revenue beat(8)2.04%
Revenue beat(12)6
Avg Revenue beat(12)0.46%
Revenue beat(16)7
Avg Revenue beat(16)-0.56%
PT rev (1m)1.2%
PT rev (3m)20.11%
EPS NQ rev (1m)18.67%
EPS NQ rev (3m)11.53%
EPS NY rev (1m)6.86%
EPS NY rev (3m)49.92%
Revenue NQ rev (1m)4.18%
Revenue NQ rev (3m)3.31%
Revenue NY rev (1m)3.2%
Revenue NY rev (3m)7.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.53 | ||
| Fwd PE | 12.26 | ||
| P/S | 3.44 | ||
| P/FCF | 15.11 | ||
| P/OCF | 8.61 | ||
| P/B | 2.16 | ||
| P/tB | 2.36 | ||
| EV/EBITDA | 7.42 |
EPS(TTM)4.18
EY6.88%
EPS(NY)4.96
Fwd EY8.16%
FCF(TTM)4.02
FCFY6.62%
OCF(TTM)7.06
OCFY11.62%
SpS17.67
BVpS28.08
TBVpS25.69
PEG (NY)0.39
PEG (5Y)0.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.13% | ||
| ROE | 16.22% | ||
| ROCE | 13.85% | ||
| ROIC | 9.63% | ||
| ROICexc | 10.63% | ||
| ROICexgc | 11.29% | ||
| OM | 35.28% | ||
| PM (TTM) | 25.77% | ||
| GM | 54.43% | ||
| FCFM | 22.75% |
ROA(3y)0.11%
ROA(5y)2.01%
ROE(3y)0.13%
ROE(5y)3.59%
ROIC(3y)4.19%
ROIC(5y)4.42%
ROICexc(3y)4.56%
ROICexc(5y)4.97%
ROICexgc(3y)4.86%
ROICexgc(5y)5.36%
ROCE(3y)6.03%
ROCE(5y)6.37%
ROICexcg growth 3Y27.94%
ROICexcg growth 5Y23.87%
ROICexc growth 3Y29.12%
ROICexc growth 5Y24.33%
OM growth 3Y24.65%
OM growth 5Y14.78%
PM growth 3Y23.39%
PM growth 5Y-9.05%
GM growth 3Y-2.15%
GM growth 5Y2.2%
F-Score7
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.78 | ||
| Debt/EBITDA | 0.83 | ||
| Cap/Depr | 134.31% | ||
| Cap/Sales | 17.17% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.06% | ||
| Profit Quality | 88.28% | ||
| Current Ratio | 1.98 | ||
| Quick Ratio | 1.56 | ||
| Altman-Z | 2.54 |
F-Score7
WACC9.44%
ROIC/WACC1.02
Cap/Depr(3y)118.69%
Cap/Depr(5y)96.77%
Cap/Sales(3y)19.56%
Cap/Sales(5y)16.7%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)140.23%
EPS 3Y5.66%
EPS 5Y21.58%
EPS Q2Q%127.27%
EPS Next Y37.23%
EPS Next 2Y19.33%
EPS Next 3Y11.63%
EPS Next 5Y-9%
Revenue 1Y (TTM)49.51%
Revenue growth 3Y15.19%
Revenue growth 5Y13.91%
Sales Q2Q%24.53%
Revenue Next Year8.07%
Revenue Next 2Y3.59%
Revenue Next 3Y2.17%
Revenue Next 5Y-5.25%
EBIT growth 1Y506.64%
EBIT growth 3Y43.59%
EBIT growth 5Y30.75%
EBIT Next Year88.5%
EBIT Next 3Y22.8%
EBIT Next 5Y3.64%
FCF growth 1Y468.62%
FCF growth 3Y2.44%
FCF growth 5Y15.01%
OCF growth 1Y161.16%
OCF growth 3Y13.31%
OCF growth 5Y16.78%