NEWMONT CORP (NEM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NEM - US6516391066 - Common Stock
98.03 USD
-1.66 (-1.67%)
99.34 USD
+1.31 (+1.34%)
Taking everything into account, NEM scores 7 out of 10 in our fundamental rating. NEM was compared to 156 industry peers in the Metals & Mining industry. NEM gets an excellent profitability rating and is at the same time showing great financial health properties. A decent growth rate in combination with a cheap valuation! Better keep an eye on NEM. With these ratings, NEM could be worth investigating further for value and quality investing!.
1. Profitability
1.1 Basic Checks
NEM had positive earnings in the past year.
NEM had a positive operating cash flow in the past year.
In multiple years NEM reported negative net income over the last 5 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 13.14%. This is amongst the best in the industry. NEM outperforms 92.31% of its industry peers.
Looking at the Return On Equity, with a value of 21.63%, NEM belongs to the top of the industry, outperforming 92.95% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 13.04%, NEM belongs to the top of the industry, outperforming 88.46% 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 13.25%.
The 3 year average ROIC (4.19%) for NEM is below the current ROIC(13.04%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.14% | ||
| ROE | 21.63% | ||
| ROIC | 13.04% |
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
Looking at the Profit Margin, with a value of 33.42%, NEM belongs to the top of the industry, outperforming 95.51% of the companies in the same industry.
In the last couple of years the Profit Margin of NEM has declined.
With an excellent Operating Margin value of 43.31%, NEM belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
In the last couple of years the Operating Margin of NEM has grown nicely.
The Gross Margin of NEM (60.71%) is better than 92.31% of its industry peers.
NEM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 43.31% | ||
| PM (TTM) | 33.42% | ||
| GM | 60.71% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), NEM is creating some value.
Compared to 1 year ago, NEM has less shares outstanding
Compared to 5 years ago, NEM has more shares outstanding
Compared to 1 year ago, NEM has an improved debt to assets ratio.
2.2 Solvency
NEM has an Altman-Z score of 4.13. This indicates that NEM is financially healthy and has little risk of bankruptcy at the moment.
NEM has a Altman-Z score of 4.13. This is comparable to the rest of the industry: NEM outperforms 57.69% of its industry peers.
NEM has a debt to FCF ratio of 0.90. This is a very positive value and a sign of high solvency as it would only need 0.90 years to pay back of all of its debts.
NEM has a better Debt to FCF ratio (0.90) than 87.18% of its industry peers.
A Debt/Equity ratio of 0.17 indicates that NEM is not too dependend on debt financing.
NEM has a Debt to Equity ratio (0.17) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.9 | ||
| Altman-Z | 4.13 |
ROIC/WACC1.32
WACC9.89%
2.3 Liquidity
A Current Ratio of 2.04 indicates that NEM has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.04, NEM is doing worse than 60.90% of the companies in the same 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's Quick ratio of 1.56 is in line compared to the rest of the industry. NEM outperforms 51.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.04 | ||
| Quick Ratio | 1.56 |
3. Growth
3.1 Past
NEM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 124.42%, which is quite impressive.
NEM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 21.58% yearly.
Looking at the last year, NEM shows a very strong growth in Revenue. The Revenue has grown by 26.59%.
Measured over the past years, NEM shows a quite strong growth in Revenue. The Revenue has been growing by 13.91% on average per year.
EPS 1Y (TTM)124.42%
EPS 3Y5.66%
EPS 5Y21.58%
EPS Q2Q%111.11%
Revenue 1Y (TTM)26.59%
Revenue growth 3Y15.19%
Revenue growth 5Y13.91%
Sales Q2Q%19.96%
3.2 Future
The Earnings Per Share is expected to grow by 11.66% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.88% on average over the next years.
EPS Next Y81.44%
EPS Next 2Y46.85%
EPS Next 3Y34.11%
EPS Next 5Y11.66%
Revenue Next Year19.18%
Revenue Next 2Y14.29%
Revenue Next 3Y10.94%
Revenue Next 5Y3.88%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 16.93 indicates a correct valuation of NEM.
Based on the Price/Earnings ratio, NEM is valued cheaper than 88.46% 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 26.43.
Based on the Price/Forward Earnings ratio of 13.06, the valuation of NEM can be described as correct.
Based on the Price/Forward Earnings ratio, NEM is valued a bit cheaper than the industry average as 73.72% of the companies are valued more expensively.
NEM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.66, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.93 | ||
| Fwd PE | 13.06 |
4.2 Price Multiples
NEM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NEM is cheaper than 80.13% 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 89.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.08 | ||
| EV/EBITDA | 8.97 |
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 has an outstanding profitability rating, which may justify a higher PE ratio.
NEM's earnings are expected to grow with 34.11% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.21
PEG (5Y)0.78
EPS Next 2Y46.85%
EPS Next 3Y34.11%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.01%, NEM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.03, NEM pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.01, NEM pays less dividend than the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
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
15.53% of the earnings are spent on dividend by NEM. This is a low number and sustainable payout ratio.
DP15.53%
EPS Next 2Y46.85%
EPS Next 3Y34.11%
98.03
-1.66 (-1.67%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners80.35%
Inst Owner Change2.14%
Ins Owners0.06%
Ins Owner Change-1.57%
Market Cap106.98B
Revenue(TTM)21.50B
Net Income(TTM)7.19B
Analysts81.48
Price Target105.99 (8.12%)
Short Float %2.05%
Short Ratio2.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
Yearly Dividend1
Dividend Growth(5Y)-5.4%
DP15.53%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)19.37%
Min EPS beat(2)18.31%
Max EPS beat(2)20.44%
EPS beat(4)4
Avg EPS beat(4)26.31%
Min EPS beat(4)18.31%
Max EPS beat(4)38.22%
EPS beat(8)7
Avg EPS beat(8)21.79%
EPS beat(12)8
Avg EPS beat(12)12.12%
EPS beat(16)9
Avg EPS beat(16)5.58%
Revenue beat(2)2
Avg Revenue beat(2)6.38%
Min Revenue beat(2)5.52%
Max Revenue beat(2)7.24%
Revenue beat(4)4
Avg Revenue beat(4)6.83%
Min Revenue beat(4)5.52%
Max Revenue beat(4)8.55%
Revenue beat(8)7
Avg Revenue beat(8)6.7%
Revenue beat(12)8
Avg Revenue beat(12)2.27%
Revenue beat(16)9
Avg Revenue beat(16)1.03%
PT rev (1m)-0.95%
PT rev (3m)33.18%
EPS NQ rev (1m)1.99%
EPS NQ rev (3m)31.6%
EPS NY rev (1m)0.57%
EPS NY rev (3m)14.78%
Revenue NQ rev (1m)0.99%
Revenue NQ rev (3m)14.08%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)3.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.93 | ||
| Fwd PE | 13.06 | ||
| P/S | 4.97 | ||
| P/FCF | 17.08 | ||
| P/OCF | 11.42 | ||
| P/B | 3.22 | ||
| P/tB | 3.5 | ||
| EV/EBITDA | 8.97 |
EPS(TTM)5.79
EY5.91%
EPS(NY)7.5
Fwd EY7.66%
FCF(TTM)5.74
FCFY5.85%
OCF(TTM)8.58
OCFY8.75%
SpS19.7
BVpS30.45
TBVpS28.01
PEG (NY)0.21
PEG (5Y)0.78
Graham Number62.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.14% | ||
| ROE | 21.63% | ||
| ROCE | 18.77% | ||
| ROIC | 13.04% | ||
| ROICexc | 14.83% | ||
| ROICexgc | 15.79% | ||
| OM | 43.31% | ||
| PM (TTM) | 33.42% | ||
| GM | 60.71% | ||
| FCFM | 29.12% |
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%
ROICexgc growth 3Y27.94%
ROICexgc 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-Score9
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.9 | ||
| Debt/EBITDA | 0.47 | ||
| Cap/Depr | 121.89% | ||
| Cap/Sales | 14.43% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 78.97% | ||
| Profit Quality | 87.13% | ||
| Current Ratio | 2.04 | ||
| Quick Ratio | 1.56 | ||
| Altman-Z | 4.13 |
F-Score9
WACC9.89%
ROIC/WACC1.32
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)124.42%
EPS 3Y5.66%
EPS 5Y21.58%
EPS Q2Q%111.11%
EPS Next Y81.44%
EPS Next 2Y46.85%
EPS Next 3Y34.11%
EPS Next 5Y11.66%
Revenue 1Y (TTM)26.59%
Revenue growth 3Y15.19%
Revenue growth 5Y13.91%
Sales Q2Q%19.96%
Revenue Next Year19.18%
Revenue Next 2Y14.29%
Revenue Next 3Y10.94%
Revenue Next 5Y3.88%
EBIT growth 1Y201.16%
EBIT growth 3Y43.59%
EBIT growth 5Y30.75%
EBIT Next Year138.58%
EBIT Next 3Y43.84%
EBIT Next 5Y18.93%
FCF growth 1Y718.56%
FCF growth 3Y2.44%
FCF growth 5Y15.01%
OCF growth 1Y196.61%
OCF growth 3Y13.31%
OCF growth 5Y16.78%
NEWMONT CORP / NEM FAQ
Can you provide the ChartMill fundamental rating for NEWMONT CORP?
ChartMill assigns a fundamental rating of 7 / 10 to NEM.
What is the valuation status for NEM stock?
ChartMill assigns a valuation rating of 8 / 10 to NEWMONT CORP (NEM). This can be considered as Undervalued.
Can you provide the profitability details for NEWMONT CORP?
NEWMONT CORP (NEM) has a profitability rating of 8 / 10.
Can you provide the expected EPS growth for NEM stock?
The Earnings per Share (EPS) of NEWMONT CORP (NEM) is expected to grow by 81.44% in the next year.
Is the dividend of NEWMONT CORP sustainable?
The dividend rating of NEWMONT CORP (NEM) is 4 / 10 and the dividend payout ratio is 15.53%.