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NCM

Newcrest MiningASX:NCM Stock Report

Market Cap

AU$20.5b

7D

0.9%

1Y

-18.1%

Updated

27 Oct, 2021

Data

Company Financials +
NCM fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance5/6
Financial Health5/6
Dividends4/6

NCM Overview

Newcrest Mining Limited, together with its subsidiaries, engages in the exploration, mine development, mine operation, and sale of gold and gold/copper concentrates.

Newcrest Mining Competitors

Northern Star Resources

ASX:NST

AU$11.0b

Evolution Mining

ASX:EVN

AU$6.9b

Perseus Mining

ASX:PRU

AU$2.0b

Regis Resources

ASX:RRL

AU$1.6b

Price History & Performance

Summary of all time highs, changes and price drops for Newcrest Mining
Historical stock prices
Current Share PriceAU$25.05
52 Week HighAU$21.85
52 Week LowAU$31.14
Beta0.44
1 Month Change9.72%
3 Month Change-5.15%
1 Year Change-18.14%
3 Year Change21.54%
5 Year Change7.56%
Change since IPO438.71%

Recent News & Updates

Sep 30
A Look At The Intrinsic Value Of Newcrest Mining Limited (ASX:NCM)

A Look At The Intrinsic Value Of Newcrest Mining Limited (ASX:NCM)

Does the September share price for Newcrest Mining Limited ( ASX:NCM ) reflect what it's really worth? Today, we will...

Sep 18
Is Newcrest Mining (ASX:NCM) Using Too Much Debt?

Is Newcrest Mining (ASX:NCM) Using Too Much Debt?

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Aug 17
Newcrest Mining (ASX:NCM) Is Doing The Right Things To Multiply Its Share Price

Newcrest Mining (ASX:NCM) Is Doing The Right Things To Multiply Its Share Price

There are a few key trends to look for if we want to identify the next multi-bagger. In a perfect world, we'd like to...

Jul 12
With EPS Growth And More, Newcrest Mining (ASX:NCM) Is Interesting

With EPS Growth And More, Newcrest Mining (ASX:NCM) Is Interesting

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Jun 17
Are Investors Undervaluing Newcrest Mining Limited (ASX:NCM) By 42%?

Are Investors Undervaluing Newcrest Mining Limited (ASX:NCM) By 42%?

Today we will run through one way of estimating the intrinsic value of Newcrest Mining Limited ( ASX:NCM ) by...

Shareholder Returns

NCMAU Metals and MiningAU Market
7D0.9%-0.06%0.4%
1Y-18.1%15.4%24.3%

Return vs Industry: NCM underperformed the Australian Metals and Mining industry which returned 15.6% over the past year.

Return vs Market: NCM underperformed the Australian Market which returned 24.4% over the past year.

Price Volatility

Is NCM's price volatile compared to industry and market?
NCM volatility
NCM Beta0.44
Industry Beta0.97
Market Beta1

Stable Share Price: NCM is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: NCM's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1966n/aSandeep Biswashttps://www.newcrest.com

Newcrest Mining Limited, together with its subsidiaries, engages in the exploration, mine development, mine operation, and sale of gold and gold/copper concentrates. It is also involved in the exploration and production of silver deposits. The company primarily owns and operates mines and projects located in Cadia, Telfer, and Havieron, Australia; Lihir and Wafi-Golpu, Papua New Guinea; Red Chris in British Columbia, Canada; and Fruta Del Norte, Ecuador.

Newcrest Mining Fundamentals Summary

How do Newcrest Mining's earnings and revenue compare to its market cap?
NCM fundamental statistics
Market CapUS$15.37b
Earnings (TTM)US$1.16b
Revenue (TTM)US$4.58b

13.2x

P/E Ratio

3.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NCM income statement (TTM)
RevenueUS$4.58b
Cost of RevenueUS$2.81b
Gross ProfitUS$1.77b
ExpensesUS$607.00m
EarningsUS$1.16b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Oct 28, 2021

Earnings per share (EPS)1.43
Gross Margin38.70%
Net Profit Margin25.44%
Debt/Equity Ratio16.1%

How did NCM perform over the long term?

See historical performance and comparison

Dividends

2.9%

Current Dividend Yield

39%

Payout Ratio

Valuation

Is Newcrest Mining undervalued compared to its fair value and its price relative to the market?

13.17x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NCM (A$25.12) is trading above our estimate of fair value (A$22.75)

Significantly Below Fair Value: NCM is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NCM is good value based on its PE Ratio (13.2x) compared to the Australian Metals and Mining industry average (14.6x).

PE vs Market: NCM is good value based on its PE Ratio (13.2x) compared to the Australian market (20x).


Price to Earnings Growth Ratio

PEG Ratio: NCM's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: NCM is good value based on its PB Ratio (1.5x) compared to the AU Metals and Mining industry average (2.6x).


Future Growth

How is Newcrest Mining forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

-11.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NCM's earnings are forecast to decline over the next 3 years (-11% per year).

Earnings vs Market: NCM's earnings are forecast to decline over the next 3 years (-11% per year).

High Growth Earnings: NCM's earnings are forecast to decline over the next 3 years.

Revenue vs Market: NCM's revenue is expected to decline over the next 3 years (-1.2% per year).

High Growth Revenue: NCM's revenue is forecast to decline over the next 3 years (-1.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NCM's Return on Equity is forecast to be low in 3 years time (5.7%).


Past Performance

How has Newcrest Mining performed over the past 5 years?

29.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NCM has high quality earnings.

Growing Profit Margin: NCM's current net profit margins (25.4%) are higher than last year (16.5%).


Past Earnings Growth Analysis

Earnings Trend: NCM's earnings have grown significantly by 29.2% per year over the past 5 years.

Accelerating Growth: NCM's earnings growth over the past year (79.9%) exceeds its 5-year average (29.2% per year).

Earnings vs Industry: NCM earnings growth over the past year (79.9%) exceeded the Metals and Mining industry 35.3%.


Return on Equity

High ROE: NCM's Return on Equity (11.5%) is considered low.


Financial Health

How is Newcrest Mining's financial position?


Financial Position Analysis

Short Term Liabilities: NCM's short term assets ($2.8B) exceed its short term liabilities ($951.0M).

Long Term Liabilities: NCM's short term assets ($2.8B) do not cover its long term liabilities ($3.6B).


Debt to Equity History and Analysis

Debt Level: NCM's debt to equity ratio (16.1%) is considered satisfactory.

Reducing Debt: NCM's debt to equity ratio has reduced from 30.3% to 16.1% over the past 5 years.

Debt Coverage: NCM's debt is well covered by operating cash flow (140.8%).

Interest Coverage: NCM's interest payments on its debt are well covered by EBIT (26.3x coverage).


Balance Sheet


Dividend

What is Newcrest Mining current dividend yield, its reliability and sustainability?

2.93%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NCM's dividend (2.92%) is higher than the bottom 25% of dividend payers in the Australian market (2.23%).

High Dividend: NCM's dividend (2.92%) is low compared to the top 25% of dividend payers in the Australian market (5.32%).


Stability and Growth of Payments

Stable Dividend: NCM's dividend payments have been volatile in the past 10 years.

Growing Dividend: NCM's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (38.6%), NCM's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NCM's dividends in 3 years are forecast to be well covered by earnings (28.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.9yrs

Average management tenure


CEO

Sandeep Biswas (59 yo)

7.25yrs

Tenure

US$7,735,000

Compensation

Mr. Sandeep Biswas, B.E., has been the Managing Director and Chief Executive Officer of Newcrest Mining Limited since July 4, 2014 and has been its Executive Director since joining it on January 01, 2014....


CEO Compensation Analysis

Compensation vs Market: Sandeep's total compensation ($USD7.74M) is above average for companies of similar size in the Australian market ($USD3.64M).

Compensation vs Earnings: Sandeep's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: NCM's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

Experienced Board: NCM's board of directors are considered experienced (6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Newcrest Mining Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Newcrest Mining Limited
  • Ticker: NCM
  • Exchange: ASX
  • Founded: 1966
  • Industry: Gold
  • Sector: Materials
  • Market Cap: AU$20.483b
  • Shares outstanding: 815.41m
  • Website: https://www.newcrest.com

Number of Employees


Location

  • Newcrest Mining Limited
  • 600 St. Kilda Road
  • Level 8
  • Melbourne
  • Victoria
  • 3004
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/27 07:05
End of Day Share Price2021/10/27 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.