NEW GOLD INC (NGD.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:NGD - CA6445351068 - Common Stock
17.59 CAD
+0.2 (+1.15%)
Taking everything into account, NGD scores 6 out of 10 in our fundamental rating. NGD was compared to 817 industry peers in the Metals & Mining industry. While NGD has a great profitability rating, there are quite some concerns on its financial health. NGD has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination!
1. Profitability
1.1 Basic Checks
- NGD had positive earnings in the past year.
- NGD had a positive operating cash flow in the past year.
- The reported net income has been mixed in the past 5 years: NGD reported negative net income in multiple years.
- Each year in the past 5 years NGD had a positive operating cash flow.
1.2 Ratios
- NGD's Return On Assets of 10.52% is amongst the best of the industry. NGD outperforms 93.64% of its industry peers.
- Looking at the Return On Equity, with a value of 20.11%, NGD belongs to the top of the industry, outperforming 95.84% of the companies in the same industry.
- NGD's Return On Invested Capital of 15.96% is amongst the best of the industry. NGD outperforms 97.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.52% | ||
| ROE | 20.11% | ||
| ROIC | 15.96% |
ROA(3y)-0.23%
ROA(5y)0.29%
ROE(3y)-1.79%
ROE(5y)-0.14%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- NGD's Profit Margin of 20.07% is amongst the best of the industry. NGD outperforms 94.00% of its industry peers.
- In the last couple of years the Profit Margin of NGD has declined.
- NGD's Operating Margin of 36.13% is amongst the best of the industry. NGD outperforms 95.59% of its industry peers.
- NGD's Operating Margin has improved in the last couple of years.
- NGD has a better Gross Margin (86.65%) than 99.39% of its industry peers.
- NGD's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 36.13% | ||
| PM (TTM) | 20.07% | ||
| GM | 86.65% |
OM growth 3Y2.5%
OM growth 5YN/A
PM growth 3Y-16.2%
PM growth 5YN/A
GM growth 3Y1.61%
GM growth 5Y2.32%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so NGD is still creating some value.
- NGD has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, NGD has more shares outstanding
- NGD has a worse debt/assets ratio than last year.
2.2 Solvency
- NGD has an Altman-Z score of 5.20. This indicates that NGD is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 5.20, NGD is in line with its industry, outperforming 53.00% of the companies in the same industry.
- NGD has a debt to FCF ratio of 4.95. This is a neutral value as NGD would need 4.95 years to pay back of all of its debts.
- The Debt to FCF ratio of NGD (4.95) is better than 91.06% of its industry peers.
- A Debt/Equity ratio of 0.32 indicates that NGD is not too dependend on debt financing.
- The Debt to Equity ratio of NGD (0.32) is worse than 69.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 4.95 | ||
| Altman-Z | 5.2 |
ROIC/WACC1.66
WACC9.64%
2.3 Liquidity
- NGD has a Current Ratio of 0.88. This is a bad value and indicates that NGD is not financially healthy enough and could expect problems in meeting its short term obligations.
- NGD's Current ratio of 0.88 is on the low side compared to the rest of the industry. NGD is outperformed by 62.30% of its industry peers.
- NGD has a Quick Ratio of 0.88. This is a bad value and indicates that NGD is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of NGD (0.48) is worse than 68.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
- NGD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 309.09%, which is quite impressive.
- Measured over the past years, NGD shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.55% on average per year.
- NGD shows a strong growth in Revenue. In the last year, the Revenue has grown by 44.19%.
- The Revenue has been growing slightly by 7.95% on average over the past years.
EPS 1Y (TTM)309.09%
EPS 3Y16.55%
EPS 5YN/A
EPS Q2Q%212.5%
Revenue 1Y (TTM)44.19%
Revenue growth 3Y7.44%
Revenue growth 5Y7.95%
Sales Q2Q%83.53%
3.2 Future
- NGD is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 32.56% yearly.
- Based on estimates for the next years, NGD will show a quite strong growth in Revenue. The Revenue will grow by 17.05% on average per year.
EPS Next Y226.54%
EPS Next 2Y147.86%
EPS Next 3Y77.1%
EPS Next 5Y32.56%
Revenue Next Year59.88%
Revenue Next 2Y58.66%
Revenue Next 3Y32.94%
Revenue Next 5Y17.05%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 28.37, NGD can be considered very expensive at the moment.
- 91.80% of the companies in the same industry are more expensive than NGD, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, NGD is valued at the same level.
- NGD is valuated reasonably with a Price/Forward Earnings ratio of 10.95.
- NGD's Price/Forward Earnings ratio is rather cheap when compared to the industry. NGD is cheaper than 93.76% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. NGD is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.37 | ||
| Fwd PE | 10.95 |
4.2 Price Multiples
- 93.51% of the companies in the same industry are more expensive than NGD, based on the Enterprise Value to EBITDA ratio.
- 90.94% of the companies in the same industry are more expensive than NGD, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 126.01 | ||
| EV/EBITDA | 14.87 |
4.3 Compensation for Growth
- NGD's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- NGD has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as NGD's earnings are expected to grow with 77.10% in the coming years.
PEG (NY)0.13
PEG (5Y)N/A
EPS Next 2Y147.86%
EPS Next 3Y77.1%
5. Dividend
5.1 Amount
- No dividends for NGD!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NEW GOLD INC / NGD.CA FAQ
What is the ChartMill fundamental rating of NEW GOLD INC (NGD.CA) stock?
ChartMill assigns a fundamental rating of 6 / 10 to NGD.CA.
Can you provide the valuation status for NEW GOLD INC?
ChartMill assigns a valuation rating of 8 / 10 to NEW GOLD INC (NGD.CA). This can be considered as Undervalued.
Can you provide the profitability details for NEW GOLD INC?
NEW GOLD INC (NGD.CA) has a profitability rating of 7 / 10.
What are the PE and PB ratios of NEW GOLD INC (NGD.CA) stock?
The Price/Earnings (PE) ratio for NEW GOLD INC (NGD.CA) is 28.37 and the Price/Book (PB) ratio is 8.16.
How financially healthy is NEW GOLD INC?
The financial health rating of NEW GOLD INC (NGD.CA) is 3 / 10.