NEW GOLD INC (NGD) Stock Fundamental Analysis
NYSEARCA:NGD - NYSE Arca - CA6445351068 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to NGD. NGD was compared to 154 industry peers in the Metals & Mining industry. While NGD has a great profitability rating, there are quite some 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
In the past year NGD was profitable.
NGD had a positive operating cash flow in the past year.
In multiple years NGD reported negative net income over the last 5 years.
Each year in the past 5 years NGD had a positive operating cash flow.
1.2 Ratios
NGD has a better Return On Assets (6.11%) than 79.87% of its industry peers.
With an excellent Return On Equity value of 12.52%, NGD belongs to the best of the industry, outperforming 83.12% of the companies in the same industry.
With a decent Return On Invested Capital value of 7.97%, NGD is doing good in the industry, outperforming 74.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.11% | ||
| ROE | 12.52% | ||
| ROIC | 7.97% |
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 better Profit Margin (13.74%) than 81.82% of its industry peers.
NGD's Profit Margin has declined in the last couple of years.
The Operating Margin of NGD (20.45%) is better than 74.68% of its industry peers.
In the last couple of years the Operating Margin of NGD has grown nicely.
With an excellent Gross Margin value of 80.58%, NGD belongs to the best of the industry, outperforming 98.70% of the companies in the same industry.
In the last couple of years the Gross Margin of NGD has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.45% | ||
| PM (TTM) | 13.74% | ||
| GM | 80.58% |
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
NGD has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
NGD has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, NGD has more shares outstanding
The debt/assets ratio for NGD is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.31, we must say that NGD is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.31, NGD is doing worse than 68.83% of the companies in the same industry.
The Debt to FCF ratio of NGD is 3.18, which is a good value as it means it would take NGD, 3.18 years of fcf income to pay off all of its debts.
NGD has a better Debt to FCF ratio (3.18) than 75.32% of its industry peers.
A Debt/Equity ratio of 0.49 indicates that NGD is not too dependend on debt financing.
NGD has a Debt to Equity ratio of 0.49. This is in the lower half of the industry: NGD underperforms 77.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 3.18 | ||
| Altman-Z | 1.31 |
ROIC/WACC0.98
WACC8.16%
2.3 Liquidity
A Current Ratio of 1.68 indicates that NGD should not have too much problems paying its short term obligations.
NGD's Current ratio of 1.68 is on the low side compared to the rest of the industry. NGD is outperformed by 66.23% of its industry peers.
NGD has a Quick Ratio of 1.16. This is a normal value and indicates that NGD is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of NGD (1.16) is worse than 61.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.68 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
NGD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 216.67%, 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 21.17%.
NGD shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.95% yearly.
EPS 1Y (TTM)216.67%
EPS 3Y16.55%
EPS 5YN/A
EPS Q2Q%0%
Revenue 1Y (TTM)21.17%
Revenue growth 3Y7.44%
Revenue growth 5Y7.95%
Sales Q2Q%8.85%
3.2 Future
The Earnings Per Share is expected to grow by 44.49% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 12.73% on average over the next years. This is quite good.
EPS Next Y103.33%
EPS Next 2Y90.12%
EPS Next 3Y50.66%
EPS Next 5Y44.49%
Revenue Next Year36.74%
Revenue Next 2Y39.44%
Revenue Next 3Y22.65%
Revenue Next 5Y12.73%
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
A Price/Earnings ratio of 26.05 indicates a quite expensive valuation of NGD.
Compared to the rest of the industry, the Price/Earnings ratio of NGD indicates a somewhat cheap valuation: NGD is cheaper than 68.83% of the companies listed in the same industry.
NGD is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.15, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 7.21, the valuation of NGD can be described as very cheap.
Based on the Price/Forward Earnings ratio, NGD is valued cheaply inside the industry as 87.01% of the companies are valued more expensively.
NGD's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.60.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.05 | ||
| Fwd PE | 7.21 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NGD is valued a bit cheaper than the industry average as 70.78% of the companies are valued more expensively.
NGD's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. NGD is cheaper than 77.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.42 | ||
| EV/EBITDA | 9.28 |
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.
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 50.66% in the coming years.
PEG (NY)0.25
PEG (5Y)N/A
EPS Next 2Y90.12%
EPS Next 3Y50.66%
5. Dividend
5.1 Amount
No dividends for NGD!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
4.95
+0.2 (+4.21%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners64.48%
Inst Owner Change8.73%
Ins Owners3.76%
Ins Owner ChangeN/A
Market Cap3.92B
Analysts78.46
Price Target3.56 (-28.08%)
Short Float %1.81%
Short Ratio0.52
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)74.05%
Min EPS beat(2)17.03%
Max EPS beat(2)131.06%
EPS beat(4)4
Avg EPS beat(4)63.35%
Min EPS beat(4)13.15%
Max EPS beat(4)131.06%
EPS beat(8)7
Avg EPS beat(8)102.23%
EPS beat(12)9
Avg EPS beat(12)62.01%
EPS beat(16)11
Avg EPS beat(16)51.21%
Revenue beat(2)1
Avg Revenue beat(2)10.96%
Min Revenue beat(2)-2.37%
Max Revenue beat(2)24.28%
Revenue beat(4)2
Avg Revenue beat(4)5.21%
Min Revenue beat(4)-2.37%
Max Revenue beat(4)24.28%
Revenue beat(8)5
Avg Revenue beat(8)3.19%
Revenue beat(12)7
Avg Revenue beat(12)1.09%
Revenue beat(16)10
Avg Revenue beat(16)0.85%
PT rev (1m)-18.51%
PT rev (3m)-0.05%
EPS NQ rev (1m)0%
EPS NQ rev (3m)23.33%
EPS NY rev (1m)0%
EPS NY rev (3m)15.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)12.73%
Revenue NY rev (1m)0%
Revenue NY rev (3m)10.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.05 | ||
| Fwd PE | 7.21 | ||
| P/S | 4.16 | ||
| P/FCF | 24.42 | ||
| P/OCF | 8.79 | ||
| P/B | 3.79 | ||
| P/tB | 3.79 | ||
| EV/EBITDA | 9.28 |
EPS(TTM)0.19
EY3.84%
EPS(NY)0.69
Fwd EY13.87%
FCF(TTM)0.2
FCFY4.1%
OCF(TTM)0.56
OCFY11.38%
SpS1.19
BVpS1.31
TBVpS1.31
PEG (NY)0.25
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.11% | ||
| ROE | 12.52% | ||
| ROCE | 10.09% | ||
| ROIC | 7.97% | ||
| ROICexc | 9% | ||
| ROICexgc | 9% | ||
| OM | 20.45% | ||
| PM (TTM) | 13.74% | ||
| GM | 80.58% | ||
| FCFM | 17.04% |
ROA(3y)-0.23%
ROA(5y)0.29%
ROE(3y)-1.79%
ROE(5y)-0.14%
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 3Y11.53%
ROICexcg growth 5YN/A
ROICexc growth 3Y11.53%
ROICexc growth 5YN/A
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%
F-Score7
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 3.18 | ||
| Debt/EBITDA | 1.16 | ||
| Cap/Depr | 117.42% | ||
| Cap/Sales | 30.29% | ||
| Interest Coverage | 4.73 | ||
| Cash Conversion | 102.34% | ||
| Profit Quality | 123.96% | ||
| Current Ratio | 1.68 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z | 1.31 |
F-Score7
WACC8.16%
ROIC/WACC0.98
Cap/Depr(3y)123.96%
Cap/Depr(5y)128.72%
Cap/Sales(3y)37.2%
Cap/Sales(5y)37.79%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)216.67%
EPS 3Y16.55%
EPS 5YN/A
EPS Q2Q%0%
EPS Next Y103.33%
EPS Next 2Y90.12%
EPS Next 3Y50.66%
EPS Next 5Y44.49%
Revenue 1Y (TTM)21.17%
Revenue growth 3Y7.44%
Revenue growth 5Y7.95%
Sales Q2Q%8.85%
Revenue Next Year36.74%
Revenue Next 2Y39.44%
Revenue Next 3Y22.65%
Revenue Next 5Y12.73%
EBIT growth 1Y244.37%
EBIT growth 3Y10.12%
EBIT growth 5YN/A
EBIT Next Year336.51%
EBIT Next 3Y93.28%
EBIT Next 5Y56.11%
FCF growth 1Y265.53%
FCF growth 3Y16.79%
FCF growth 5Y64.19%
OCF growth 1Y142.83%
OCF growth 3Y6.66%
OCF growth 5Y8.31%