NEWMONT CORP (NEM) Stock Fundamental Analysis
USA - NYSE:NEM - US6516391066 - Common Stock
81.62 USD
+0.65 (+0.8%)
80.8 USD
-0.82 (-1%)
We assign a fundamental rating of 7 out of 10 to NEM. NEM was compared to 154 industry peers in the Metals & Mining industry. NEM scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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.
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 each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 13.14%, NEM belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
With an excellent Return On Equity value of 21.63%, NEM belongs to the best of the industry, outperforming 93.51% of the companies in the same industry.
NEM has a better Return On Invested Capital (13.04%) than 90.91% 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 12.55%.
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
The Profit Margin of NEM (33.42%) is better than 95.45% of its industry peers.
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 94.16% of the companies in the same industry.
In the last couple of years the Operating Margin of NEM has grown nicely.
NEM has a better Gross Margin (60.71%) than 92.86% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so NEM is still creating some value.
The number of shares outstanding for NEM has been reduced compared to 1 year ago.
NEM has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, NEM has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.63 indicates that NEM is not in any danger for bankruptcy at the moment.
NEM has a Altman-Z score (3.63) which is in line with 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 88.31% 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 in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.9 | ||
| Altman-Z | 3.63 |
ROIC/WACC1.47
WACC8.89%
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 41.56% of its industry peers.
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 has a Quick ratio of 1.56. This is comparable to the rest of the industry: NEM outperforms 49.35% of its industry peers.
| 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.
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%.
NEM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.91% yearly.
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 4.43% on average over the next years.
Based on estimates for the next years, NEM will show a decrease in Revenue. The Revenue will decrease by -1.53% on average per year.
EPS Next Y66.86%
EPS Next 2Y39.99%
EPS Next 3Y24.86%
EPS Next 5Y4.43%
Revenue Next Year16.77%
Revenue Next 2Y10.98%
Revenue Next 3Y7.18%
Revenue Next 5Y-1.53%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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 14.10, NEM is valued correctly.
NEM's Price/Earnings ratio is rather cheap when compared to the industry. NEM is cheaper than 87.66% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.51, NEM is valued a bit cheaper.
The Price/Forward Earnings ratio is 11.97, which indicates a very decent valuation of NEM.
Based on the Price/Forward Earnings ratio, NEM is valued a bit cheaper than the industry average as 77.27% of the companies are valued more expensively.
NEM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.53, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.1 | ||
| Fwd PE | 11.97 |
4.2 Price Multiples
85.71% of the companies in the same industry are more expensive than NEM, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, NEM is valued cheaply inside the industry as 90.91% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.32 | ||
| EV/EBITDA | 7.45 |
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.
NEM's earnings are expected to grow with 24.86% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.21
PEG (5Y)0.65
EPS Next 2Y39.99%
EPS Next 3Y24.86%
5. Dividend
5.1 Amount
NEM has a Yearly Dividend Yield of 1.21%. Purely for dividend investing, there may be better candidates out there.
NEM's Dividend Yield is a higher than the industry average which is at 2.61.
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 | 1.21% |
5.2 History
The dividend of NEM decreases each year by -5.40%.
NEM has been paying a dividend for at least 10 years, so it has 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 2Y39.99%
EPS Next 3Y24.86%
81.62
+0.65 (+0.8%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners80.06%
Inst Owner Change0.12%
Ins Owners0.07%
Ins Owner Change-0.7%
Market Cap89.66B
Revenue(TTM)21.50B
Net Income(TTM)7.19B
Analysts80
Price Target107.01 (31.11%)
Short Float %1.96%
Short Ratio1.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
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)34.46%
PT rev (3m)53.38%
EPS NQ rev (1m)22.56%
EPS NQ rev (3m)32.74%
EPS NY rev (1m)3.93%
EPS NY rev (3m)21.59%
Revenue NQ rev (1m)10.45%
Revenue NQ rev (3m)13.16%
Revenue NY rev (1m)1.34%
Revenue NY rev (3m)4.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.1 | ||
| Fwd PE | 11.97 | ||
| P/S | 4.17 | ||
| P/FCF | 14.32 | ||
| P/OCF | 9.57 | ||
| P/B | 2.7 | ||
| P/tB | 2.93 | ||
| EV/EBITDA | 7.45 |
EPS(TTM)5.79
EY7.09%
EPS(NY)6.82
Fwd EY8.36%
FCF(TTM)5.7
FCFY6.98%
OCF(TTM)8.52
OCFY10.44%
SpS19.58
BVpS30.25
TBVpS27.83
PEG (NY)0.21
PEG (5Y)0.65
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 | 3.63 |
F-Score9
WACC8.89%
ROIC/WACC1.47
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 Y66.86%
EPS Next 2Y39.99%
EPS Next 3Y24.86%
EPS Next 5Y4.43%
Revenue 1Y (TTM)26.59%
Revenue growth 3Y15.19%
Revenue growth 5Y13.91%
Sales Q2Q%19.96%
Revenue Next Year16.77%
Revenue Next 2Y10.98%
Revenue Next 3Y7.18%
Revenue Next 5Y-1.53%
EBIT growth 1Y201.16%
EBIT growth 3Y43.59%
EBIT growth 5Y30.75%
EBIT Next Year113.95%
EBIT Next 3Y30.46%
EBIT Next 5Y9.79%
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 66.86% 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%.