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NEW GOLD INC (NGD) Stock Fundamental Analysis

NYSEARCA:NGD - American Stock Exchange - CA6445351068 - Common Stock - Currency: USD

3.03  +0.14 (+4.84%)

Premarket: 3.08 +0.05 (+1.65%)

Fundamental Rating

5

Overall NGD gets a fundamental rating of 5 out of 10. We evaluated NGD against 150 industry peers in the Metals & Mining industry. There are concerns on the financial health of NGD while its profitability can be described as average. An interesting combination arises when we look at growth and value: NGD is growing strongly while it also seems undervalued.


Dividend Valuation Growth Profitability Health

5

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.
NGD had negative earnings in 4 of the past 5 years.
NGD had a positive operating cash flow in each of the past 5 years.
NGD Yearly Net Income VS EBIT VS OCF VS FCFNGD Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 -500M -1B

1.2 Ratios

NGD's Return On Assets of 1.01% is in line compared to the rest of the industry. NGD outperforms 58.04% of its industry peers.
NGD has a Return On Equity (2.02%) which is comparable to the rest of the industry.
NGD's Return On Invested Capital of 4.67% is in line compared to the rest of the industry. NGD outperforms 59.44% of its industry peers.
Industry RankSector Rank
ROA 1.01%
ROE 2.02%
ROIC 4.67%
ROA(3y)-0.04%
ROA(5y)-1.41%
ROE(3y)-0.14%
ROE(5y)-3.62%
ROIC(3y)N/A
ROIC(5y)N/A
NGD Yearly ROA, ROE, ROICNGD Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 -50 -100

1.3 Margins

The Profit Margin of NGD (2.33%) is better than 65.03% of its industry peers.
NGD's Operating Margin of 12.25% is fine compared to the rest of the industry. NGD outperforms 69.93% of its industry peers.
NGD's Operating Margin has improved in the last couple of years.
NGD has a Gross Margin of 78.70%. This is amongst the best in the industry. NGD outperforms 99.30% of its industry peers.
NGD's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
NGD Yearly Profit, Operating, Gross MarginsNGD Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50 -50 -100 -150 -200

3

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
Compared to 1 year ago, NGD has an improved debt to assets ratio.
NGD Yearly Shares OutstandingNGD Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M
NGD Yearly Total Debt VS Total AssetsNGD Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B

2.2 Solvency

Based on the Altman-Z score of 0.39, we must say that NGD is in the distress zone and has some risk of bankruptcy.
NGD's Altman-Z score of 0.39 is on the low side compared to the rest of the industry. NGD is outperformed by 81.12% of its industry peers.
The Debt to FCF ratio of NGD is 4.62, which is a neutral value as it means it would take NGD, 4.62 years of fcf income to pay off all of its debts.
NGD has a better Debt to FCF ratio (4.62) than 69.93% of its industry peers.
A Debt/Equity ratio of 0.45 indicates that NGD is not too dependend on debt financing.
The Debt to Equity ratio of NGD (0.45) is worse than 74.83% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.45
Debt/FCF 4.62
Altman-Z 0.39
ROIC/WACC0.47
WACC10.03%
NGD Yearly LT Debt VS Equity VS FCFNGD Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M 1B 1.5B 2B

2.3 Liquidity

NGD has a Current Ratio of 1.42. This is a normal value and indicates that NGD is financially healthy and should not expect problems in meeting its short term obligations.
NGD's Current ratio of 1.42 is on the low side compared to the rest of the industry. NGD is outperformed by 76.92% 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.
Looking at the Quick ratio, with a value of 0.84, NGD is doing worse than 78.32% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.42
Quick Ratio 0.84
NGD Yearly Current Assets VS Current LiabilitesNGD Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M

8

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 57.14% over the past year.
The Earnings Per Share has been growing by 32.64% on average over the past years. This is a very strong growth
NGD shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.85%.
Measured over the past years, NGD shows a small growth in Revenue. The Revenue has been growing by 5.40% on average per year.
EPS 1Y (TTM)57.14%
EPS 3Y32.64%
EPS 5YN/A
EPS Q2Q%166.67%
Revenue 1Y (TTM)14.85%
Revenue growth 3Y6.92%
Revenue growth 5Y5.4%
Sales Q2Q%25.19%

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 69.51% on average per year.
Based on estimates for the next years, NGD will show a quite strong growth in Revenue. The Revenue will grow by 16.86% on average per year.
EPS Next Y183.16%
EPS Next 2Y132.61%
EPS Next 3Y108.59%
EPS Next 5Y69.51%
Revenue Next Year20.25%
Revenue Next 2Y27.12%
Revenue Next 3Y24.85%
Revenue Next 5Y16.86%

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.
NGD Yearly Revenue VS EstimatesNGD Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 500M 1B 1.5B
NGD Yearly EPS VS EstimatesNGD Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0 0.2 0.4 0.6 0.8

7

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 27.55, which means the current valuation is very expensive for NGD.
Based on the Price/Earnings ratio, NGD is valued a bit cheaper than the industry average as 62.24% of the companies are valued more expensively.
NGD's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.47.
NGD is valuated cheaply with a Price/Forward Earnings ratio of 8.00.
89.51% of the companies in the same industry are more expensive than NGD, based on the Price/Forward Earnings ratio.
NGD is valuated cheaply when we compare the Price/Forward Earnings ratio to 92.74, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 27.55
Fwd PE 8
NGD Price Earnings VS Forward Price EarningsNGD Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NGD indicates a somewhat cheap valuation: NGD is cheaper than 69.93% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, NGD is valued a bit cheaper than the industry average as 74.13% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 24.6
EV/EBITDA 7.42
NGD Per share dataNGD EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0.2 0.4 0.6 0.8 1

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.
A more expensive valuation may be justified as NGD's earnings are expected to grow with 108.59% in the coming years.
PEG (NY)0.15
PEG (5Y)N/A
EPS Next 2Y132.61%
EPS Next 3Y108.59%

0

5. Dividend

5.1 Amount

NGD does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

NEW GOLD INC

NYSEARCA:NGD (2/4/2025, 8:04:00 PM)

Premarket: 3.08 +0.05 (+1.65%)

3.03

+0.14 (+4.84%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)10-29 2024-10-29/amc
Earnings (Next)02-19 2025-02-19/amc
Inst Owners61.49%
Inst Owner Change-1.84%
Ins Owners4.81%
Ins Owner ChangeN/A
Market Cap2.40B
Analysts73.85
Price Target3.43 (13.2%)
Short Float %0.91%
Short Ratio0.76
Dividend
Industry RankSector 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)1.79%
PT rev (3m)10.25%
EPS NQ rev (1m)-13.54%
EPS NQ rev (3m)-8.81%
EPS NY rev (1m)-4.27%
EPS NY rev (3m)11.65%
Revenue NQ rev (1m)-8.48%
Revenue NQ rev (3m)-10.42%
Revenue NY rev (1m)-1.78%
Revenue NY rev (3m)-2.51%
Valuation
Industry RankSector Rank
PE 27.55
Fwd PE 8
P/S 2.78
P/FCF 24.6
P/OCF 6.77
P/B 2.4
P/tB 2.4
EV/EBITDA 7.42
EPS(TTM)0.11
EY3.63%
EPS(NY)0.38
Fwd EY12.5%
FCF(TTM)0.12
FCFY4.06%
OCF(TTM)0.45
OCFY14.76%
SpS1.09
BVpS1.26
TBVpS1.26
PEG (NY)0.15
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 1.01%
ROE 2.02%
ROCE 5.91%
ROIC 4.67%
ROICexc 5.06%
ROICexgc 5.06%
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 RankSector 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 0.39
F-Score6
WACC10.03%
ROIC/WACC0.47
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)57.14%
EPS 3Y32.64%
EPS 5YN/A
EPS Q2Q%166.67%
EPS Next Y183.16%
EPS Next 2Y132.61%
EPS Next 3Y108.59%
EPS Next 5Y69.51%
Revenue 1Y (TTM)14.85%
Revenue growth 3Y6.92%
Revenue growth 5Y5.4%
Sales Q2Q%25.19%
Revenue Next Year20.25%
Revenue Next 2Y27.12%
Revenue Next 3Y24.85%
Revenue Next 5Y16.86%
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%