NEWMONT CORP (NEM) Stock Fundamental Analysis
USA - NYSE:NEM - US6516391066 - Common Stock
87.09 USD
-0.71 (-0.81%)
86.525 USD
-0.56 (-0.65%)
Taking everything into account, NEM scores 7 out of 10 in our fundamental rating. NEM was compared to 154 industry peers in the Metals & Mining industry. Both the health and profitability get an excellent rating, making NEM a very profitable company, without any liquidiy or solvency issues. A decent growth rate in combination with a cheap valuation! Better keep an eye on NEM. These ratings could make NEM a good candidate for value and quality 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.
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 better Return On Assets (13.14%) than 92.86% of its industry peers.
NEM has a Return On Equity of 21.63%. This is amongst the best in the industry. NEM outperforms 93.51% of its industry peers.
NEM's Return On Invested Capital of 13.04% is amongst the best of the industry. NEM outperforms 90.26% 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 12.85%.
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 95.45% of the companies in the same industry.
NEM's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 43.31%, NEM belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
In the last couple of years the Operating Margin of NEM has grown nicely.
NEM has a Gross Margin of 60.71%. This is amongst the best in the industry. NEM outperforms 92.21% 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
NEM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
NEM has less shares outstanding than it did 1 year ago.
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
An Altman-Z score of 3.84 indicates that NEM is not in any danger for bankruptcy at the moment.
With a Altman-Z score value of 3.84, NEM perfoms like the industry average, outperforming 56.49% of the companies in the same industry.
The Debt to FCF ratio of NEM is 0.90, which is an excellent value as it means it would take NEM, only 0.90 years of fcf income to pay off all of its debts.
NEM has a better Debt to FCF ratio (0.90) than 88.31% of its industry peers.
NEM has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
NEM's Debt to Equity ratio of 0.17 is in line compared to the rest of the industry. NEM outperforms 51.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.9 | ||
| Altman-Z | 3.84 |
ROIC/WACC1.4
WACC9.3%
2.3 Liquidity
A Current Ratio of 2.04 indicates that NEM has no problem at all paying its short term obligations.
NEM's Current ratio of 2.04 is in line compared to the rest of the industry. NEM outperforms 40.26% of its industry peers.
A Quick Ratio of 1.56 indicates that NEM should not have too much problems paying its short term obligations.
The Quick ratio of NEM (1.56) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.04 | ||
| Quick Ratio | 1.56 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 124.42% 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
NEM shows a strong growth in Revenue. In the last year, the Revenue has grown by 26.59%.
The Revenue has been growing by 13.91% on average over the past years. This is quite good.
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 1.61% on average over the next years.
EPS Next Y80.42%
EPS Next 2Y48.29%
EPS Next 3Y34.96%
EPS Next 5Y11.66%
Revenue Next Year19%
Revenue Next 2Y14.22%
Revenue Next 3Y11.13%
Revenue Next 5Y1.61%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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 15.04, NEM is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of NEM indicates a rather cheap valuation: NEM is cheaper than 88.31% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.56. NEM is valued slightly cheaper when compared to this.
NEM is valuated reasonably with a Price/Forward Earnings ratio of 11.38.
Based on the Price/Forward Earnings ratio, NEM is valued a bit cheaper than 75.32% of the companies in the same industry.
NEM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.62.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.04 | ||
| Fwd PE | 11.38 |
4.2 Price Multiples
NEM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NEM is cheaper than 81.82% of the companies in the same industry.
90.26% of the companies in the same industry are more expensive than NEM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.28 | ||
| EV/EBITDA | 8.08 |
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.
A more expensive valuation may be justified as NEM's earnings are expected to grow with 34.96% in the coming years.
PEG (NY)0.19
PEG (5Y)0.7
EPS Next 2Y48.29%
EPS Next 3Y34.96%
5. Dividend
5.1 Amount
NEM has a Yearly Dividend Yield of 1.11%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.63, NEM pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, NEM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
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
NEM pays out 15.53% of its income as dividend. This is a sustainable payout ratio.
DP15.53%
EPS Next 2Y48.29%
EPS Next 3Y34.96%
87.09
-0.71 (-0.81%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners80.06%
Inst Owner Change2.16%
Ins Owners0.07%
Ins Owner Change-3.26%
Market Cap95.66B
Revenue(TTM)21.50B
Net Income(TTM)7.19B
Analysts81.48
Price Target107.01 (22.87%)
Short Float %1.96%
Short Ratio1.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
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)26.33%
PT rev (3m)43.6%
EPS NQ rev (1m)15.08%
EPS NQ rev (3m)33.46%
EPS NY rev (1m)12.37%
EPS NY rev (3m)31.47%
Revenue NQ rev (1m)7.9%
Revenue NQ rev (3m)14.11%
Revenue NY rev (1m)3.27%
Revenue NY rev (3m)6.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.04 | ||
| Fwd PE | 11.38 | ||
| P/S | 4.45 | ||
| P/FCF | 15.28 | ||
| P/OCF | 10.22 | ||
| P/B | 2.88 | ||
| P/tB | 3.13 | ||
| EV/EBITDA | 8.08 |
EPS(TTM)5.79
EY6.65%
EPS(NY)7.65
Fwd EY8.79%
FCF(TTM)5.7
FCFY6.55%
OCF(TTM)8.52
OCFY9.79%
SpS19.58
BVpS30.25
TBVpS27.83
PEG (NY)0.19
PEG (5Y)0.7
Graham Number62.77
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 | 3.84 |
F-Score9
WACC9.3%
ROIC/WACC1.4
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 Y80.42%
EPS Next 2Y48.29%
EPS Next 3Y34.96%
EPS Next 5Y11.66%
Revenue 1Y (TTM)26.59%
Revenue growth 3Y15.19%
Revenue growth 5Y13.91%
Sales Q2Q%19.96%
Revenue Next Year19%
Revenue Next 2Y14.22%
Revenue Next 3Y11.13%
Revenue Next 5Y1.61%
EBIT growth 1Y201.16%
EBIT growth 3Y43.59%
EBIT growth 5Y30.75%
EBIT Next Year113.95%
EBIT Next 3Y30.46%
EBIT Next 5Y16.07%
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 9 / 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 80.42% 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%.