NEW GOLD INC (NGD.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:NGD - CA6445351068 - Common Stock
17.59 CAD
+0.2 (+1.15%)
Overall NGD gets a fundamental rating of 6 out of 10. We evaluated NGD against 817 industry peers in the Metals & Mining industry. NGD has an excellent profitability rating, but there are concerns on its financial health. An interesting combination arises when we look at growth and value: NGD is growing strongly while it also seems undervalued.
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 has a Return On Assets of 10.52%. This is amongst the best in the industry. NGD outperforms 93.64% of its industry peers.
- NGD has a Return On Equity of 20.11%. This is amongst the best in the industry. NGD outperforms 95.84% of its industry peers.
- With an excellent Return On Invested Capital value of 15.96%, NGD belongs to the best of the industry, outperforming 97.18% of the companies in the same industry.
| 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 94.00% of its industry peers.
- NGD's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 36.13%, NGD belongs to the top of the industry, outperforming 95.59% of the companies in the same industry.
- NGD's Operating Margin has improved in the last couple of years.
- The Gross Margin of NGD (86.65%) is better 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
- An Altman-Z score of 5.12 indicates that NGD is not in any danger for bankruptcy at the moment.
- The Altman-Z score of NGD (5.12) is comparable to the rest of the industry.
- 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 91.06% of its industry peers.
- A Debt/Equity ratio of 0.32 indicates that NGD is not too dependend on debt financing.
- With a Debt to Equity ratio value of 0.32, NGD is not doing good in the industry: 69.40% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 4.95 | ||
| Altman-Z | 5.12 |
ROIC/WACC1.66
WACC9.64%
2.3 Liquidity
- A Current Ratio of 0.88 indicates that NGD may have some problems paying its short term obligations.
- NGD has a Current ratio of 0.88. This is in the lower half of the industry: NGD underperforms 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.
- With a Quick ratio value of 0.48, NGD is not doing good in the industry: 68.54% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 309.09% over the past year.
- 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.
- The Revenue has grown by 44.19% in the past year. This is a very strong growth!
- Measured over the past years, NGD shows a small growth in Revenue. The Revenue has been growing by 7.95% on average per year.
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.
- The Revenue is expected to grow by 17.05% on average over the next years. This is quite good.
EPS Next Y228.06%
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
- Based on the Price/Earnings ratio of 28.37, the valuation of NGD can be described as expensive.
- Based on the Price/Earnings ratio, NGD is valued cheaper than 91.68% of the companies in the same industry.
- NGD's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.21.
- NGD is valuated reasonably with a Price/Forward Earnings ratio of 10.91.
- NGD's Price/Forward Earnings ratio is rather cheap when compared to the industry. NGD is cheaper than 93.88% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, NGD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.37 | ||
| Fwd PE | 10.91 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, NGD is valued cheaper than 93.27% of the companies in the same industry.
- NGD's Price/Free Cash Flow ratio is rather cheap when compared to the industry. NGD is cheaper than 90.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 125.54 | ||
| EV/EBITDA | 14.65 |
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.
- The decent profitability rating of NGD may justify a higher PE ratio.
- NGD's earnings are expected to grow with 77.10% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.12
PEG (5Y)N/A
EPS Next 2Y147.86%
EPS Next 3Y77.1%
5. Dividend
5.1 Amount
- NGD does not give a dividend.
| 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 8.13.
How financially healthy is NEW GOLD INC?
The financial health rating of NEW GOLD INC (NGD.CA) is 3 / 10.