NEWMONT CORP (NEM)
US6516391066 - Common Stock
Overall NEM gets a fundamental rating of 5 out of 10. We evaluated NEM against 157 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
NEM had positive earnings in the past year.
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.
In the past 5 years NEM always reported a positive cash flow from operatings.
1.2 Ratios
NEM has a Return On Assets (-2.16%) which is comparable to the rest of the industry.
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 62.42% 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 8.31%.
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
The Operating Margin of NEM (18.20%) is better than 74.52% of its industry peers.
NEM's Operating Margin has declined in the last couple of years.
NEM's Gross Margin of 47.75% is amongst the best of the industry. NEM outperforms 87.90% of its industry peers.
NEM's Gross Margin has been stable in the last couple of years.
| 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
NEM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
NEM has a worse debt/assets ratio than last year.
2.2 Solvency
NEM has an Altman-Z score of 1.67. This is a bad value and indicates that NEM is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.67, NEM is not doing good in the industry: 66.24% of the companies in the same industry are doing better.
NEM has a debt to FCF ratio of 10.33. This is a negative value and a sign of low solvency as NEM would need 10.33 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 10.33, NEM is doing good in the industry, outperforming 63.06% of the companies in the same industry.
NEM has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.30, NEM is doing worse than 63.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 10.33 | ||
| Altman-Z | 1.67 |
ROIC/WACC0.47
WACC10.55%
2.3 Liquidity
A Current Ratio of 1.96 indicates that NEM should not have too much problems paying its short term obligations.
The Current ratio of NEM (1.96) is worse than 61.15% of its industry peers.
A Quick Ratio of 1.62 indicates that NEM should not have too much problems paying its short term obligations.
NEM has a Quick ratio (1.62) which is in line with its industry peers.
| 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.
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.
The Revenue has grown by 53.66% in the past year. This is a very strong growth!
The Revenue has been growing by 10.25% on average over the past years. This is quite good.
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 13.44% on average per year.
NEM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.83% yearly.
EPS Next Y100.22%
EPS Next 2Y56.07%
EPS Next 3Y37.76%
EPS Next 5Y13.44%
Revenue Next Year60.49%
Revenue Next 2Y30.28%
Revenue Next 3Y19.19%
Revenue Next 5Y9.83%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 16.66 indicates a correct valuation of NEM.
Compared to the rest of the industry, the Price/Earnings ratio of NEM indicates a somewhat cheap valuation: NEM is cheaper than 75.16% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.65. NEM is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 11.10 indicates a reasonable 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 75.80% of the companies listed in the same industry.
NEM is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.56, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.66 | ||
| Fwd PE | 11.1 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NEM is valued a bit cheaper than the industry average as 65.61% of the companies are valued more expensively.
NEM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. NEM is cheaper than 63.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.55 | ||
| EV/EBITDA | 9.71 |
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 37.76% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.17
PEG (5Y)4.79
EPS Next 2Y56.07%
EPS Next 3Y37.76%
5. Dividend
5.1 Amount
NEM has a Yearly Dividend Yield of 2.46%.
NEM's Dividend Yield is rather good when compared to the industry average which is at 2.98. NEM pays more dividend than 84.08% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.23, NEM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.46% |
5.2 History
On average, the dividend of NEM grows each year by 20.84%, which is quite nice.
NEM has paid a dividend for at least 10 years, which is 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.
The dividend of NEM is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP-109.15%
EPS Next 2Y56.07%
EPS Next 3Y37.76%
NEWMONT CORP
NYSE:NEM (11/20/2024, 8:04:00 PM)
Premarket: 43.25 +0.26 (+0.6%)42.99
-0.19 (-0.44%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap48.94B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.46% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Revenue beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
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Revenue NQ rev (1m)
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Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.66 | ||
| Fwd PE | 11.1 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.17
PEG (5Y)4.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.16% | ||
| ROE | -4.08% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 18.2% | ||
| PM (TTM) | N/A | ||
| GM | 47.75% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.62 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)68.63%
EPS 3Y-15.66%
EPS 5Y
EPS Q2Q%
EPS Next Y100.22%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)53.66%
Revenue growth 3Y0.91%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y