NEW GOLD INC (NGD.CA) Stock Fundamental Analysis
TSX:NGD - Toronto Stock Exchange - CA6445351068 - Common Stock - Currency: CAD
NGD gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 818 industry peers in the Metals & Mining industry. While NGD has a great profitability rating, there are quite some concerns on its financial health. NGD scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
NGD had positive earnings in the past year.
In the past year NGD had a positive cash flow from operations.
In the past 5 years NGD reported 4 times negative net income.
NGD had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
NGD has a Return On Assets of 1.01%. This is amongst the best in the industry. NGD outperforms 86.30% of its industry peers.
With an excellent Return On Equity value of 2.02%, NGD belongs to the best of the industry, outperforming 87.38% of the companies in the same industry.
NGD's Return On Invested Capital of 4.25% is amongst the best of the industry. NGD outperforms 90.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.01% | ||
| ROE | 2.02% | ||
| ROIC | 4.25% |
ROA(3y)-0.04%
ROA(5y)-1.41%
ROE(3y)-0.14%
ROE(5y)-3.62%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With an excellent Profit Margin value of 2.33%, NGD belongs to the best of the industry, outperforming 90.09% of the companies in the same industry.
The Operating Margin of NGD (12.25%) is better than 90.64% of its industry peers.
In the last couple of years the Operating Margin of NGD has grown nicely.
The Gross Margin of NGD (78.70%) is better than 98.64% of its industry peers.
NGD's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.25% | ||
| PM (TTM) | 2.33% | ||
| GM | 78.7% |
OM growth 3Y-10.19%
OM growth 5Y31.03%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.5%
GM growth 5Y-0.78%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NGD is destroying value.
NGD has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
NGD has an Altman-Z score of 0.30. This is a bad value and indicates that NGD is not financially healthy and even has some risk of bankruptcy.
NGD has a Altman-Z score (0.30) which is comparable to the rest of the industry.
NGD has a debt to FCF ratio of 4.62. This is a neutral value as NGD would need 4.62 years to pay back of all of its debts.
NGD has a better Debt to FCF ratio (4.62) than 91.32% of its industry peers.
NGD has a Debt/Equity ratio of 0.45. This is a healthy value indicating a solid balance between debt and equity.
NGD's Debt to Equity ratio of 0.45 is on the low side compared to the rest of the industry. NGD is outperformed by 79.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 4.62 | ||
| Altman-Z | 0.3 |
ROIC/WACC0.45
WACC9.5%
2.3 Liquidity
A Current Ratio of 1.42 indicates that NGD should not have too much problems paying its short term obligations.
NGD has a Current ratio of 1.42. This is comparable to the rest of the industry: NGD outperforms 43.55% of its industry peers.
NGD has a Quick Ratio of 1.42. 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 (0.84) is worse than 64.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 171.43% over the past year.
The Earnings Per Share has been growing by 16.55% on average over the past years. This is quite good.
EPS 1Y (TTM)171.43%
EPS 3Y16.55%
EPS 5YN/A
EPS Q2Q%800%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%31.63%
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 50.69% on average per year.
NGD is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.12% yearly.
EPS Next Y77.25%
EPS Next 2Y77.52%
EPS Next 3Y60.68%
EPS Next 5Y50.69%
Revenue Next Year28.63%
Revenue Next 2Y29.2%
Revenue Next 3Y16.12%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 14.89, which indicates a correct valuation of NGD.
Based on the Price/Earnings ratio, NGD is valued cheaper than 91.86% of the companies in the same industry.
NGD's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.62.
NGD is valuated reasonably with a Price/Forward Earnings ratio of 8.41.
94.03% of the companies in the same industry are more expensive than NGD, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of NGD to the average of the S&P500 Index (22.70), we can say NGD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.89 | ||
| Fwd PE | 8.41 |
4.2 Price Multiples
NGD's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NGD is cheaper than 92.54% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NGD indicates a rather cheap valuation: NGD is cheaper than 93.35% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23 | ||
| EV/EBITDA | 6.99 |
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.
NGD's earnings are expected to grow with 60.68% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.19
PEG (5Y)N/A
EPS Next 2Y77.52%
EPS Next 3Y60.68%
5. Dividend
5.1 Amount
NGD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:NGD (2/21/2025, 7:00:00 PM)
4.02
-0.26 (-6.07%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners61.98%
Inst Owner ChangeN/A
Ins Owners3.78%
Ins Owner ChangeN/A
Market Cap3.18B
Analysts73.85
Price Target5.14 (27.86%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)52.66%
Min EPS beat(2)13.15%
Max EPS beat(2)92.16%
EPS beat(4)3
Avg EPS beat(4)161.97%
Min EPS beat(4)-149.5%
Max EPS beat(4)692.08%
EPS beat(8)6
Avg EPS beat(8)86.78%
EPS beat(12)7
Avg EPS beat(12)49.22%
EPS beat(16)10
Avg EPS beat(16)43.58%
Revenue beat(2)1
Avg Revenue beat(2)-0.54%
Min Revenue beat(2)-1.89%
Max Revenue beat(2)0.81%
Revenue beat(4)2
Avg Revenue beat(4)0.44%
Min Revenue beat(4)-1.89%
Max Revenue beat(4)3.22%
Revenue beat(8)5
Avg Revenue beat(8)0.87%
Revenue beat(12)8
Avg Revenue beat(12)-0.19%
Revenue beat(16)10
Avg Revenue beat(16)-0.67%
PT rev (1m)6.03%
PT rev (3m)10.71%
EPS NQ rev (1m)-15.79%
EPS NQ rev (3m)-15.79%
EPS NY rev (1m)-8.67%
EPS NY rev (3m)6.51%
Revenue NQ rev (1m)-8.48%
Revenue NQ rev (3m)-9.82%
Revenue NY rev (1m)-0.95%
Revenue NY rev (3m)-3.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.89 | ||
| Fwd PE | 8.41 | ||
| P/S | 2.6 | ||
| P/FCF | 23 | ||
| P/OCF | 6.33 | ||
| P/B | 2.25 | ||
| P/tB | 2.25 | ||
| EV/EBITDA | 6.99 |
EPS(TTM)0.27
EY6.72%
EPS(NY)0.48
Fwd EY11.89%
FCF(TTM)0.17
FCFY4.35%
OCF(TTM)0.64
OCFY15.8%
SpS1.55
BVpS1.79
TBVpS1.79
PEG (NY)0.19
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.01% | ||
| ROE | 2.02% | ||
| ROCE | 5.91% | ||
| ROIC | 4.25% | ||
| ROICexc | 4.62% | ||
| ROICexgc | 4.62% | ||
| OM | 12.25% | ||
| PM (TTM) | 2.33% | ||
| GM | 78.7% | ||
| FCFM | 11.31% |
ROA(3y)-0.04%
ROA(5y)-1.41%
ROE(3y)-0.14%
ROE(5y)-3.62%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y-4.06%
ROICexcg growth 5Y39.14%
ROICexc growth 3Y-4.06%
ROICexc growth 5Y39.14%
OM growth 3Y-10.19%
OM growth 5Y31.03%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.5%
GM growth 5Y-0.78%
F-Score6
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 4.62 | ||
| Debt/EBITDA | 1.24 | ||
| Cap/Depr | 99.42% | ||
| Cap/Sales | 29.76% | ||
| Interest Coverage | 2.86 | ||
| Cash Conversion | 97.36% | ||
| Profit Quality | 484.58% | ||
| Current Ratio | 1.42 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 0.3 |
F-Score6
WACC9.5%
ROIC/WACC0.45
Cap/Depr(3y)129.43%
Cap/Depr(5y)127.82%
Cap/Sales(3y)38.48%
Cap/Sales(5y)39.96%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)171.43%
EPS 3Y16.55%
EPS 5YN/A
EPS Q2Q%800%
EPS Next Y77.25%
EPS Next 2Y77.52%
EPS Next 3Y60.68%
EPS Next 5Y50.69%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%31.63%
Revenue Next Year28.63%
Revenue Next 2Y29.2%
Revenue Next 3Y16.12%
Revenue Next 5YN/A
EBIT growth 1Y97.2%
EBIT growth 3Y-3.98%
EBIT growth 5Y38.11%
EBIT Next Year505.89%
EBIT Next 3Y137.18%
EBIT Next 5Y71.99%
FCF growth 1Y745.03%
FCF growth 3Y26.97%
FCF growth 5Y2.69%
OCF growth 1Y33.71%
OCF growth 3Y-0.82%
OCF growth 5Y4.31%