NEW GOLD INC (NGD.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:NGD - CA6445351068 - Common Stock
17.59 CAD
+0.2 (+1.15%)
NGD gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 820 industry peers in the Metals & Mining industry. NGD has an excellent profitability rating, but there are concerns on its financial health. NGD is evaluated to be cheap and growing strongly. This does not happen too often!
1. Profitability
1.1 Basic Checks
- In the past year NGD was profitable.
- 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.
- In the past 5 years NGD always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 10.52%, NGD belongs to the top of the industry, outperforming 93.54% of the companies in the same industry.
- The Return On Equity of NGD (20.11%) is better than 95.85% of its industry peers.
- NGD has a better Return On Invested Capital (15.96%) than 97.07% 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 has a Profit Margin of 20.07%. This is amongst the best in the industry. NGD outperforms 94.02% of its industry peers.
- In the last couple of years the Profit Margin of NGD has declined.
- With an excellent Operating Margin value of 36.13%, NGD belongs to the best of the industry, outperforming 95.61% of the companies in the same industry.
- NGD's Operating Margin has improved in the last couple of years.
- With an excellent Gross Margin value of 86.65%, NGD belongs to the best of the industry, outperforming 99.39% of the companies in the same industry.
- 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), NGD is creating some value.
- NGD has more shares outstanding than it did 1 year ago.
- NGD has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for NGD is higher compared to a year ago.
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.
- NGD has a Altman-Z score (5.20) which is in line with its industry peers.
- The Debt to FCF ratio of NGD is 4.95, which is a neutral value as it means it would take NGD, 4.95 years of fcf income to pay off all of its debts.
- NGD has a better Debt to FCF ratio (4.95) than 90.98% 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 69.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 4.95 | ||
| Altman-Z | 5.2 |
ROIC/WACC1.63
WACC9.81%
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.
- With a Current ratio value of 0.88, NGD is not doing good in the industry: 62.20% of the companies in the same industry are doing better.
- A Quick Ratio of 0.48 indicates that NGD may have some problems paying its short term obligations.
- NGD has a worse Quick ratio (0.48) than 68.41% 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.
- The Earnings Per Share has been growing by 16.55% on average over the past years. This is quite good.
- 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
- Based on estimates for the next years, NGD will show a very strong growth in Earnings Per Share. The EPS will grow by 32.56% on average per year.
- NGD is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.05% yearly.
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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- 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.
- Based on the Price/Earnings ratio, NGD is valued cheaply inside the industry as 91.71% of the companies are valued more expensively.
- 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.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of NGD indicates a rather cheap valuation: NGD is cheaper than 93.78% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. NGD is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.37 | ||
| Fwd PE | 10.95 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NGD indicates a rather cheap valuation: NGD is cheaper than 93.54% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, NGD is valued cheaper than 90.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 126.01 | ||
| EV/EBITDA | 14.87 |
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.
- The decent profitability rating of NGD 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.