ASX:NCM

Stock Analysis Report

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.

Snowflake

Solid track record with excellent balance sheet.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.5%

NCM

1.1%

AU Metals and Mining

0.3%

AU Market


1 Year Return

46.8%

NCM

18.9%

AU Metals and Mining

18.1%

AU Market

Return vs Industry: NCM exceeded the Australian Metals and Mining industry which returned 18.9% over the past year.

Return vs Market: NCM exceeded the Australian Market which returned 18.1% over the past year.


Shareholder returns

NCMIndustryMarket
7 Day-0.5%1.1%0.3%
30 Day-5.0%3.9%0.8%
90 Day-10.2%2.9%3.3%
1 Year48.3%46.8%27.6%18.9%23.9%18.1%
3 Year60.1%55.1%53.8%32.5%37.1%18.4%
5 Year204.8%193.9%82.1%38.7%53.7%19.5%

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?

28.83x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NCM (A$30.95) is trading above our estimate of fair value (A$7.04)

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


Price To Earnings Ratio

PE vs Industry: NCM is poor value based on its PE Ratio (28.8x) compared to the Metals and Mining industry average (12.4x).

PE vs Market: NCM is poor value based on its PE Ratio (28.8x) compared to the Australian market (18.7x).


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 overvalued based on its PB Ratio (2.1x) compared to the AU Metals and Mining industry average (1.4x).


Next Steps

Future Growth

How is Newcrest Mining forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

-2.4%

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 (-2.4% per year).

Earnings vs Market: NCM's earnings are forecast to decline over the next 3 years (-2.4% 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 (-0.6% per year).

High Growth Revenue: NCM's revenue is forecast to decline over the next 3 years (-0.6% 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 (6.6%).


Next Steps

Past Performance

How has Newcrest Mining performed over the past 5 years?

62.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NCM has high quality earnings.

Growing Profit Margin: NCM's current net profit margins (15%) are higher than last year (5.7%).


Past Earnings Growth Analysis

Earnings Trend: NCM has become profitable over the past 5 years, growing earnings by 62.1% per year.

Accelerating Growth: NCM's earnings growth over the past year (177.7%) exceeds its 5-year average (62.1% per year).

Earnings vs Industry: NCM earnings growth over the past year (177.7%) exceeded the Metals and Mining industry 7.8%.


Return on Equity

High ROE: NCM's Return on Equity (7.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Newcrest Mining's financial position?


Financial Position Analysis

Short Term Liabilities: NCM's short term assets ($2.4B) exceeds its short term liabilities ($812.0M)

Long Term Liabilities: NCM's short term assets ($2.4B) do not cover its long term liabilities (3.4B)


Debt to Equity History and Analysis

Debt Level: NCM's debt to equity ratio (26.1%) is considered satisfactory.

Reducing Debt: NCM's debt to equity ratio has reduced from 52.9% to 26.1% over the past 5 years.

Debt Coverage: NCM's debt is well covered by operating cash flow (74.5%).

Interest Coverage: NCM's interest payments on its debt are well covered by EBIT (13.3x coverage).


Balance Sheet

Inventory Level: NCM has a high level of physical assets or inventory.

Debt Coverage by Assets: NCM's debt is covered by short term assets (assets are 1.2x debt).


Next Steps

Dividend

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

1.04%

Current Dividend Yield


Dividend Yield vs Market

company1.0%marketbottom25%2.4%markettop25%5.6%industryaverage4.7%forecastin3Years1.0%

Current dividend yield vs market & industry

Notable Dividend: NCM's dividend (1.04%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.37%).

High Dividend: NCM's dividend (1.04%) is low compared to the top 25% of dividend payers in the Australian market (5.65%).


Stability and Growth of Payments

Stable Dividend: NCM is not paying a notable dividend for the Australian market, therefore no need to check if payments are stable.

Growing Dividend: NCM is not paying a notable dividend for the Australian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: NCM is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NCM's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

What is the CEO of Newcrest Mining's salary, the management and board of directors tenure and is there insider trading?

2.7yrs

Average management tenure


CEO

Sandeep Biswas (57yo)

5.3yrs

Tenure

US$6,305,000

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 ($USD6.31M) is above average for companies of similar size in the Australian market ($USD3.78M).

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


Management Age and Tenure

2.7yrs

Average Tenure

57yo

Average Age

Experienced Management: NCM's management team is considered experienced (2.7 years average tenure).


Board Age and Tenure

5.0yrs

Average Tenure

62yo

Average Age

Experienced Board: NCM's board of directors are considered experienced (5 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$380,56101 Nov 19
Gerard Bond
EntityIndividual
Role
Member of the Board of Directors
Finance Director
Shares11,728
Max PriceUS$32.45
SellUS$1,153,78001 Nov 19
Sandeep Biswas
EntityIndividual
Role
Chief Executive Officer
MD, CEO & Director
Shares35,545
Max PriceUS$32.46
BuyUS$3,90303 Oct 19
Philip Aiken
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares107
Max PriceUS$36.48
SellUS$2,137,38523 Aug 19
Gerard Bond
EntityIndividual
Role
Member of the Board of Directors
Finance Director
Shares61,322
Max PriceUS$35.30
BuyUS$10523 Aug 19
Sandeep Biswas
EntityIndividual
Role
Chief Executive Officer
MD, CEO & Director
Shares187,988
Max PriceUS$0.001
SellUS$292,01101 Jul 19
Orbis Oeic - Global Cautious Fund
EntityCompany
Shares13,395
Max PriceUS$21.80
SellUS$231,851,28101 Jul 19
Orbis Investment Management Limited
EntityCompany
Shares9,014,429
Max PriceUS$55.98
BuyUS$36,553,56601 Jul 19
Orbis Investment Management Limited
EntityCompany
Shares1,311,562
Max PriceUS$30.28
SellUS$8,275,56105 Mar 19
First State Investments International Limited
EntityCompany
Shares339,516
Max PriceUS$24.37
BuyUS$69,502,52405 Mar 19
First Sentier Investors (Australia) IM Ltd
EntityCompany
Shares2,948,980
Max PriceUS$24.77
SellUS$60,479,33905 Mar 19
First Sentier Investors (Australia) IM Ltd
EntityCompany
Shares2,474,787
Max PriceUS$24.86
SellUS$5,514,03105 Mar 19
Realindex Investments Pty Limited
EntityCompany
Shares245,645
Max PriceUS$22.45
BuyUS$3,908,75005 Mar 19
Realindex Investments Pty Limited
EntityCompany
Shares175,246
Max PriceUS$22.30
BuyUS$1,570,14305 Mar 19
First State Investments International Limited
EntityCompany
Shares77,503
Max PriceUS$20.26
BuyUS$12,933,10228 Feb 19
Van Eck Associates Corporation
EntityCompany
Shares549,122
Max PriceUS$24.95
SellUS$165,723,15428 Feb 19
Van Eck Associates Corporation
EntityCompany
Shares7,756,915
Max PriceUS$21.75
BuyUS$5,86528 Feb 19
SailingStone Capital Partners LLC
EntityCompany
Shares260
Max PriceUS$22.56
SellUS$204,14428 Feb 19
SailingStone Capital Partners LLC
EntityCompany
Shares9,484
Max PriceUS$21.53
SellUS$686,72521 Dec 18
Gerard Bond
EntityIndividual
Role
Member of the Board of Directors
Finance Director
Shares32,018
Max PriceUS$21.45
SellUS$2,579,47721 Dec 18
Sandeep Biswas
EntityIndividual
Role
Chief Executive Officer
MD, CEO & Director
Shares120,266
Max PriceUS$21.45
BuyUS$14,156,98126 Nov 18
First Sentier Investors (Australia) IM Ltd
EntityCompany
Shares672,812
Max PriceUS$21.04
BuyUS$7,023,98326 Nov 18
Realindex Investments Pty Limited
EntityCompany
Shares342,973
Max PriceUS$20.48
BuyUS$3,132,71226 Nov 18
First State Investments International Limited
EntityCompany
Shares148,867
Max PriceUS$21.04

Ownership Breakdown

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


Management Team

  • Mike Nossal (60yo)

    Chief Development Officer

    • Tenure: 4.3yrs
    • Compensation: US$2.02m
  • Francesca Lee (63yo)

    Chief Legal

    • Tenure: 5.7yrs
    • Compensation: US$1.28m
  • Sandeep Biswas (57yo)

    MD, CEO & Director

    • Tenure: 5.3yrs
    • Compensation: US$6.31m
  • Gerard Bond (51yo)

    Finance Director

    • Tenure: 7.8yrs
    • Compensation: US$2.03m
  • Craig Jones (48yo)

    Chief Operating Officer (Papua New Guinea)

    • Tenure: 0.8yrs
    • Compensation: US$1.62m
  • nee Badrick Kerr

    Treasurer & Head of Insurance

    • Tenure: 0yrs
  • Phil Stephenson

    Chief Operating Officer (Australia

    • Tenure: 0.8yrs
    • Compensation: US$1.48m
  • Ian Kemish

    Chief People & Sustainability Officer

    • Tenure: 1.1yrs
    • Compensation: US$1.26m
  • Chris Maitland

    Head of Investor Relations & Media

    • Tenure: 0yrs
  • Bob Thiele

    Acting Chief Technical & Projects Officer

    • Tenure: 0.8yrs

Board Members

  • Phil Aiken (70yo)

    Independent Non-Executive Director

    • Tenure: 6.6yrs
    • Compensation: US$190.00k
  • Peter Tomsett (61yo)

    Independent Non-Executive Director

    • Tenure: 1.2yrs
    • Compensation: US$149.00k
  • Peter Algernon Hay (69yo)

    Independent Non-Executive Chairman

    • Tenure: 5.8yrs
    • Compensation: US$437.00k
  • Roger Higgins (68yo)

    Independent Non-Executive Director

    • Tenure: 4.1yrs
    • Compensation: US$180.00k
  • Vickki McFadden (60yo)

    Independent Non-Executive Director

    • Tenure: 3.1yrs
    • Compensation: US$198.00k
  • Sandeep Biswas (57yo)

    MD, CEO & Director

    • Tenure: 5.3yrs
    • Compensation: US$6.31m
  • Xiaoling Liu (63yo)

    Independent Non-Executive Director

    • Tenure: 4.2yrs
    • Compensation: US$178.00k
  • Gerard Bond (51yo)

    Finance Director

    • Tenure: 7.8yrs
    • Compensation: US$2.03m

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$23.738b
  • Shares outstanding: 766.98m
  • Website: https://www.newcrest.com.au

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NCMG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
NCMASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
NMADB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
NCMSWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFJan 1992
NCMCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992
NCMG.YOTCPK (Pink Sheets LLC)SPON ADR EACH REP 1 ORD SHSUSUSDSep 1995
NMAADB (Deutsche Boerse AG)SPON ADR EACH REP 1 ORD SHSDEEURSep 1995

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 Analysis2019/11/21 10:30
End of Day Share Price2019/11/21 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.