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Market Cap

AU$21.8b

Last Updated

2021/04/10 08:10 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Excellent balance sheet with solid track record.


Similar Companies

Share Price & News

How has Newcrest Mining's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NCM is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: NCM's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

6.6%

NCM

1.8%

AU Metals and Mining

1.5%

AU Market


1 Year Return

4.1%

NCM

53.1%

AU Metals and Mining

35.6%

AU Market

Return vs Industry: NCM underperformed the Australian Metals and Mining industry which returned 53.1% over the past year.

Return vs Market: NCM underperformed the Australian Market which returned 35.6% over the past year.


Shareholder returns

NCMIndustryMarket
7 Day6.6%1.8%1.5%
30 Day9.3%-1.7%2.6%
90 Day-2.1%-3.9%2.5%
1 Year5.7%4.1%61.0%53.1%39.8%35.6%
3 Year37.9%32.8%73.5%49.3%35.1%18.7%
5 Year59.7%51.1%180.9%127.2%67.0%34.3%

Long-Term Price Volatility Vs. Market

How volatile is Newcrest Mining's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

36.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NCM (A$26.7) is trading below our estimate of fair value (A$42.17)

Significantly Below Fair Value: NCM is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NCM is poor value based on its PE Ratio (16.9x) compared to the AU Metals and Mining industry average (12.2x).

PE vs Market: NCM is good value based on its PE Ratio (16.9x) compared to the Australian market (20.2x).


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 (1.7x) compared to the AU Metals and Mining industry average (2.5x).


Future Growth

How is Newcrest Mining forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

-6.6%

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 (-6.6% per year).

Earnings vs Market: NCM's earnings are forecast to decline over the next 3 years (-6.6% 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 (7.5%).


Past Performance

How has Newcrest Mining performed over the past 5 years?

22.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NCM has high quality earnings.

Growing Profit Margin: NCM's current net profit margins (22.4%) are higher than last year (14.7%).


Past Earnings Growth Analysis

Earnings Trend: NCM's earnings have grown significantly by 22.8% per year over the past 5 years.

Accelerating Growth: NCM's earnings growth over the past year (72%) exceeds its 5-year average (22.8% per year).

Earnings vs Industry: NCM earnings growth over the past year (72%) exceeded the Metals and Mining industry 26.1%.


Return on Equity

High ROE: NCM's Return on Equity (10%) 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 ($804.0M).

Long Term Liabilities: NCM's short term assets ($2.8B) do not cover its long term liabilities ($4.0B).


Debt to Equity History and Analysis

Debt Level: NCM's debt to equity ratio (20.9%) is considered satisfactory.

Reducing Debt: NCM's debt to equity ratio has reduced from 40.3% to 20.9% over the past 5 years.

Debt Coverage: NCM's debt is well covered by operating cash flow (100.1%).

Interest Coverage: NCM's interest payments on its debt are well covered by EBIT (20.4x coverage).


Balance Sheet


Dividend

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

1.60%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NCM's dividend (1.59%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (1.99%).

High Dividend: NCM's dividend (1.59%) is low compared to the top 25% of dividend payers in the Australian market (5.39%).


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 (27%), 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 (23.3% payout ratio).


Next Steps

Management

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

1.4yrs

Average management tenure


CEO

Sandeep Biswas (58 yo)

6.75yrs

Tenure

US$5,742,000

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 ($USD5.74M) is above average for companies of similar size in the Australian market ($USD3.43M).

Compensation vs Earnings: Sandeep's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: NCM's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

Experienced Board: NCM's board of directors are considered experienced (6.4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: NCM insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.3%.


Top Shareholders

Company Information

Newcrest Mining Limited's company bio, 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$21.778b
  • Shares outstanding: 815.67m
  • Website: https://www.newcrest.com

Number of Employees


Location

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

Listings


Biography

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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/10 08:10
End of Day Share Price2021/04/09 00:00
Earnings2020/12/31
Annual Earnings2020/06/30


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.