NEWMONT CORP (NEM) Stock Fundamental Analysis
USA - NYSE:NEM - US6516391066 - Common Stock
81.72 USD
+3.4 (+4.34%)
81.87 USD
+0.15 (+0.18%)
We assign a fundamental rating of 7 out of 10 to NEM. 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. This makes NEM very considerable 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.
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
NEM has a Return On Assets of 11.38%. This is amongst the best in the industry. NEM outperforms 92.31% of its industry peers.
The Return On Equity of NEM (19.55%) is better than 91.67% of its industry peers.
NEM has a better Return On Invested Capital (11.01%) than 85.26% of its industry peers.
NEM had an Average Return On Invested Capital over the past 3 years of 4.19%. This is significantly below the industry average of 12.92%.
The 3 year average ROIC (4.19%) for NEM is below the current ROIC(11.01%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.38% | ||
| ROE | 19.55% | ||
| ROIC | 11.01% |
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 30.49%, NEM belongs to the top of the industry, outperforming 94.23% of the companies in the same industry.
NEM's Profit Margin has declined in the last couple of years.
NEM has a Operating Margin of 38.86%. This is amongst the best in the industry. NEM outperforms 91.03% of its industry peers.
In the last couple of years the Operating Margin of NEM has grown nicely.
NEM's Gross Margin of 57.21% is amongst the best of the industry. NEM outperforms 91.03% of its industry peers.
In the last couple of years the Gross Margin of NEM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.86% | ||
| PM (TTM) | 30.49% | ||
| GM | 57.21% |
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.
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
Compared to 1 year ago, NEM has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.25 indicates that NEM is not in any danger for bankruptcy at the moment.
NEM's Altman-Z score of 3.25 is in line compared to the rest of the industry. NEM outperforms 55.13% of its industry peers.
The Debt to FCF ratio of NEM is 1.36, which is an excellent value as it means it would take NEM, only 1.36 years of fcf income to pay off all of its debts.
NEM has a better Debt to FCF ratio (1.36) than 85.90% of its industry peers.
NEM has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
NEM has a Debt to Equity ratio (0.23) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.36 | ||
| Altman-Z | 3.25 |
ROIC/WACC1.19
WACC9.24%
2.3 Liquidity
A Current Ratio of 2.23 indicates that NEM has no problem at all paying its short term obligations.
NEM's Current ratio of 2.23 is in line compared to the rest of the industry. NEM outperforms 48.72% of its industry peers.
A Quick Ratio of 1.74 indicates that NEM should not have too much problems paying its short term obligations.
NEM's Quick ratio of 1.74 is in line compared to the rest of the industry. NEM outperforms 54.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.23 | ||
| Quick Ratio | 1.74 |
3. Growth
3.1 Past
NEM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 129.58%, 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.
The Revenue has grown by 38.38% in the past year. This is a very strong growth!
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)129.58%
EPS 3Y5.66%
EPS 5Y21.58%
EPS Q2Q%98.61%
Revenue 1Y (TTM)38.38%
Revenue growth 3Y15.19%
Revenue growth 5Y13.91%
Sales Q2Q%20.79%
3.2 Future
Based on estimates for the next years, NEM will show a small growth in Earnings Per Share. The EPS will grow by 0.77% on average per year.
The Revenue is expected to grow by 0.54% on average over the next years.
EPS Next Y58.07%
EPS Next 2Y25.79%
EPS Next 3Y14.21%
EPS Next 5Y0.77%
Revenue Next Year14.72%
Revenue Next 2Y7.02%
Revenue Next 3Y4.74%
Revenue Next 5Y0.54%
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
A Price/Earnings ratio of 16.71 indicates a correct valuation of NEM.
Compared to the rest of the industry, the Price/Earnings ratio of NEM indicates a rather cheap valuation: NEM is cheaper than 85.90% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.38, NEM is valued a bit cheaper.
With a Price/Forward Earnings ratio of 14.84, NEM is valued correctly.
Based on the Price/Forward Earnings ratio, NEM is valued a bit cheaper than 67.31% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.86. NEM is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.71 | ||
| Fwd PE | 14.84 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NEM is valued cheaper than 80.77% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, NEM is valued cheaply inside the industry as 88.46% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.09 | ||
| EV/EBITDA | 8.21 |
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 14.21% in the coming years.
PEG (NY)0.29
PEG (5Y)0.77
EPS Next 2Y25.79%
EPS Next 3Y14.21%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.26%, NEM has a reasonable but not impressive dividend return.
NEM's Dividend Yield is a higher than the industry average which is at 2.51.
Compared to an average S&P500 Dividend Yield of 2.38, NEM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
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
17.99% of the earnings are spent on dividend by NEM. This is a low number and sustainable payout ratio.
DP17.99%
EPS Next 2Y25.79%
EPS Next 3Y14.21%
81.72
+3.4 (+4.34%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners77.19%
Inst Owner Change3.81%
Ins Owners0.08%
Ins Owner Change0.26%
Market Cap89.77B
Analysts80
Price Target79.58 (-2.62%)
Short Float %1.92%
Short Ratio1.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
Yearly Dividend1
Dividend Growth(5Y)-5.4%
DP17.99%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)29.33%
Min EPS beat(2)20.44%
Max EPS beat(2)38.22%
EPS beat(4)3
Avg EPS beat(4)20.05%
Min EPS beat(4)-6.75%
Max EPS beat(4)38.22%
EPS beat(8)6
Avg EPS beat(8)17.26%
EPS beat(12)7
Avg EPS beat(12)8.52%
EPS beat(16)8
Avg EPS beat(16)3.21%
Revenue beat(2)2
Avg Revenue beat(2)6.64%
Min Revenue beat(2)6.03%
Max Revenue beat(2)7.24%
Revenue beat(4)3
Avg Revenue beat(4)4.85%
Min Revenue beat(4)-2.42%
Max Revenue beat(4)8.55%
Revenue beat(8)6
Avg Revenue beat(8)4.16%
Revenue beat(12)7
Avg Revenue beat(12)1.12%
Revenue beat(16)8
Avg Revenue beat(16)0.1%
PT rev (1m)6.8%
PT rev (3m)20.51%
EPS NQ rev (1m)2.42%
EPS NQ rev (3m)31.99%
EPS NY rev (1m)15.19%
EPS NY rev (3m)23.08%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)8.59%
Revenue NY rev (1m)2.47%
Revenue NY rev (3m)9.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.71 | ||
| Fwd PE | 14.84 | ||
| P/S | 4.36 | ||
| P/FCF | 16.09 | ||
| P/OCF | 10.16 | ||
| P/B | 2.8 | ||
| P/tB | 3.05 | ||
| EV/EBITDA | 8.21 |
EPS(TTM)4.89
EY5.98%
EPS(NY)5.51
Fwd EY6.74%
FCF(TTM)5.08
FCFY6.22%
OCF(TTM)8.04
OCFY9.84%
SpS18.74
BVpS29.23
TBVpS26.81
PEG (NY)0.29
PEG (5Y)0.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.38% | ||
| ROE | 19.55% | ||
| ROCE | 15.84% | ||
| ROIC | 11.01% | ||
| ROICexc | 12.68% | ||
| ROICexgc | 13.49% | ||
| OM | 38.86% | ||
| PM (TTM) | 30.49% | ||
| GM | 57.21% | ||
| FCFM | 27.11% |
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-Score9
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.36 | ||
| Debt/EBITDA | 0.71 | ||
| Cap/Depr | 128.39% | ||
| Cap/Sales | 15.8% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.86% | ||
| Profit Quality | 88.9% | ||
| Current Ratio | 2.23 | ||
| Quick Ratio | 1.74 | ||
| Altman-Z | 3.25 |
F-Score9
WACC9.24%
ROIC/WACC1.19
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)129.58%
EPS 3Y5.66%
EPS 5Y21.58%
EPS Q2Q%98.61%
EPS Next Y58.07%
EPS Next 2Y25.79%
EPS Next 3Y14.21%
EPS Next 5Y0.77%
Revenue 1Y (TTM)38.38%
Revenue growth 3Y15.19%
Revenue growth 5Y13.91%
Sales Q2Q%20.79%
Revenue Next Year14.72%
Revenue Next 2Y7.02%
Revenue Next 3Y4.74%
Revenue Next 5Y0.54%
EBIT growth 1Y286.99%
EBIT growth 3Y43.59%
EBIT growth 5Y30.75%
EBIT Next Year112.69%
EBIT Next 3Y27.27%
EBIT Next 5Y10.93%
FCF growth 1Y1700%
FCF growth 3Y2.44%
FCF growth 5Y15.01%
OCF growth 1Y236.2%
OCF growth 3Y13.31%
OCF growth 5Y16.78%