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
Rewards
Risk Analysis
Earnings are forecast to decline by an average of 6.6% per year for the next 3 years
Snowflake Analysis
Excellent balance sheet with solid track record.
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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
| NCM | Industry | Market | |
|---|---|---|---|
| 7 Day | 6.6% | 1.8% | 1.5% |
| 30 Day | 9.3% | -1.7% | 2.6% |
| 90 Day | -2.1% | -3.9% | 2.5% |
| 1 Year | 5.7%4.1% | 61.0%53.1% | 39.8%35.6% |
| 3 Year | 37.9%32.8% | 73.5%49.3% | 35.1%18.7% |
| 5 Year | 59.7%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
1 week ago | Simply Wall St
What Type Of Shareholders Own The Most Number of Newcrest Mining Limited (ASX:NCM) Shares?3 weeks ago | Simply Wall St
Have Insiders Sold Newcrest Mining Limited (ASX:NCM) Shares Recently?3 weeks ago | Simply Wall St
Should You Be Adding Newcrest Mining (ASX:NCM) To Your Watchlist Today?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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/10 08:10 |
| End of Day Share Price | 2021/04/09 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/06/30 |
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.