NEWMONT CORP (NEM) Stock Fundamental Analysis
NYSE:NEM - New York Stock Exchange, Inc. - US6516391066 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to NEM. NEM was compared to 150 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. NEM is valued correctly, but it does not seem to be growing.
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.
NEM had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
NEM has a Return On Assets of -2.16%. This is comparable to the rest of the industry: NEM outperforms 48.25% of its industry peers.
The Return On Equity of NEM (-4.08%) is comparable to the rest of the industry.
The Return On Invested Capital of NEM (4.91%) is better than 61.54% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NEM is significantly below the industry average of 8.84%.
The last Return On Invested Capital (4.91%) for NEM is above the 3 year average (2.97%), which is a sign of increasing profitability.
| 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
NEM's Operating Margin of 18.20% is fine compared to the rest of the industry. NEM outperforms 74.83% 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 87.41% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NEM is destroying value.
There is no outstanding debt for NEM. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
Based on the Altman-Z score of 1.80, we must say that NEM is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.80, NEM is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
The Debt to FCF ratio of NEM is 10.33, which is on the high side as it means it would take NEM, 10.33 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 10.33, NEM is doing good in the industry, outperforming 62.94% of the companies in the same industry.
A Debt/Equity ratio of 0.30 indicates that NEM is not too dependend on debt financing.
NEM has a worse Debt to Equity ratio (0.30) than 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 10.33 | ||
| Altman-Z | 1.8 |
ROIC/WACC0.48
WACC10.25%
2.3 Liquidity
NEM has a Current Ratio of 1.96. This is a normal value and indicates that NEM is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of NEM (1.96) is comparable to the rest of the industry.
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 of 1.62. This is comparable to the rest of the industry: NEM outperforms 54.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.62 |
3. Growth
3.1 Past
NEM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 118.87%, 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.
EPS 1Y (TTM)118.87%
EPS 3Y5.66%
EPS 5Y21.58%
EPS Q2Q%180%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%42.84%
3.2 Future
The Earnings Per Share is expected to decrease by -6.18% on average over the next years.
NEM is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -3.31% yearly.
EPS Next Y13.58%
EPS Next 2Y11.25%
EPS Next 3Y14.49%
EPS Next 5Y-6.18%
Revenue Next Year5.59%
Revenue Next 2Y4.07%
Revenue Next 3Y5.56%
Revenue Next 5Y-3.31%
3.3 Evolution
The EPS 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
Based on the Price/Earnings ratio of 13.03, the valuation of NEM can be described as correct.
NEM's Price/Earnings ratio is rather cheap when compared to the industry. NEM is cheaper than 86.01% of the companies in the same industry.
NEM is valuated cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
NEM is valuated reasonably with a Price/Forward Earnings ratio of 11.47.
Based on the Price/Forward Earnings ratio, NEM is valued a bit cheaper than the industry average as 74.83% of the companies are valued more expensively.
NEM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.03 | ||
| Fwd PE | 11.47 |
4.2 Price Multiples
NEM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. NEM is cheaper than 62.24% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, NEM is valued a bit cheaper than the industry average as 61.54% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 58.58 | ||
| EV/EBITDA | 10.73 |
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.
A more expensive valuation may be justified as NEM's earnings are expected to grow with 14.49% in the coming years.
PEG (NY)0.96
PEG (5Y)0.6
EPS Next 2Y11.25%
EPS Next 3Y14.49%
5. Dividend
5.1 Amount
NEM has a Yearly Dividend Yield of 2.08%.
Compared to an average industry Dividend Yield of 3.16, NEM pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.29, NEM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.08% |
5.2 History
On average, the dividend of NEM grows each year by 20.84%, which is quite nice.
NEM has been paying a dividend for at least 10 years, so it has 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.
DP-109.15%
EPS Next 2Y11.25%
EPS Next 3Y14.49%
45.33
-2.76 (-5.74%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners73.14%
Inst Owner Change0.13%
Ins Owners0.09%
Ins Owner Change-4.24%
Market Cap51.61B
Analysts78.33
Price Target56 (23.54%)
Short Float %1.45%
Short Ratio1.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.08% |
Yearly Dividend1.46
Dividend Growth(5Y)20.84%
DP-109.15%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.25%
Min EPS beat(2)-6.75%
Max EPS beat(2)15.25%
EPS beat(4)3
Avg EPS beat(4)17.27%
Min EPS beat(4)-6.75%
Max EPS beat(4)52.77%
EPS beat(8)4
Avg EPS beat(8)5.03%
EPS beat(12)5
Avg EPS beat(12)-1.33%
EPS beat(16)7
Avg EPS beat(16)-1.6%
Revenue beat(2)1
Avg Revenue beat(2)1.74%
Min Revenue beat(2)-2.42%
Max Revenue beat(2)5.89%
Revenue beat(4)3
Avg Revenue beat(4)6.56%
Min Revenue beat(4)-2.42%
Max Revenue beat(4)13.58%
Revenue beat(8)4
Avg Revenue beat(8)-0.01%
Revenue beat(12)5
Avg Revenue beat(12)-0.91%
Revenue beat(16)5
Avg Revenue beat(16)-2.41%
PT rev (1m)-3.78%
PT rev (3m)-10.36%
EPS NQ rev (1m)-0.43%
EPS NQ rev (3m)-2.53%
EPS NY rev (1m)-0.73%
EPS NY rev (3m)-0.08%
Revenue NQ rev (1m)0.31%
Revenue NQ rev (3m)-0.65%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.03 | ||
| Fwd PE | 11.47 | ||
| P/S | 3.04 | ||
| P/FCF | 58.58 | ||
| P/OCF | 11.92 | ||
| P/B | 1.74 | ||
| P/tB | 1.91 | ||
| EV/EBITDA | 10.73 |
EPS(TTM)3.48
EY7.68%
EPS(NY)3.95
Fwd EY8.72%
FCF(TTM)0.77
FCFY1.71%
OCF(TTM)3.8
OCFY8.39%
SpS14.92
BVpS26.1
TBVpS23.71
PEG (NY)0.96
PEG (5Y)0.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.16% | ||
| ROE | -4.08% | ||
| ROCE | 6.21% | ||
| ROIC | 4.91% | ||
| ROICexc | 5.23% | ||
| ROICexgc | 5.55% | ||
| OM | 18.2% | ||
| PM (TTM) | N/A | ||
| GM | 47.75% | ||
| FCFM | 5.19% |
ROA(3y)-0.91%
ROA(5y)2.22%
ROE(3y)-1.84%
ROE(5y)3.98%
ROIC(3y)2.97%
ROIC(5y)3.77%
ROICexc(3y)3.35%
ROICexc(5y)4.29%
ROICexgc(3y)3.62%
ROICexgc(5y)4.65%
ROCE(3y)3.76%
ROCE(5y)4.77%
ROICexcg growth 3Y-47.2%
ROICexcg growth 5Y-26.67%
ROICexc growth 3Y-46.79%
ROICexc growth 5Y-27.64%
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%
F-Score4
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 10.33 | ||
| Debt/EBITDA | 1.59 | ||
| Cap/Depr | 134.23% | ||
| Cap/Sales | 20.29% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.47% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.62 | ||
| Altman-Z | 1.8 |
F-Score4
WACC10.25%
ROIC/WACC0.48
Cap/Depr(3y)98.39%
Cap/Depr(5y)85.28%
Cap/Sales(3y)17.99%
Cap/Sales(5y)16.07%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)118.87%
EPS 3Y5.66%
EPS 5Y21.58%
EPS Q2Q%180%
EPS Next Y13.58%
EPS Next 2Y11.25%
EPS Next 3Y14.49%
EPS Next 5Y-6.18%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%42.84%
Revenue Next Year5.59%
Revenue Next 2Y4.07%
Revenue Next 3Y5.56%
Revenue Next 5Y-3.31%
EBIT growth 1Y182.12%
EBIT growth 3Y-39.84%
EBIT growth 5Y-9.85%
EBIT Next Year299.13%
EBIT Next 3Y69.88%
EBIT Next 5Y28%
FCF growth 1Y-44.35%
FCF growth 3Y-69.96%
FCF growth 5Y-34.34%
OCF growth 1Y23.34%
OCF growth 3Y-17.28%
OCF growth 5Y8.62%