Executive Summary
New Gold Inc., an intermediate gold mining company, engages in the development and operation of mineral properties. More Details
Rewards
Risk Analysis
No risks detected for NGD from our risk checks.
Snowflake Analysis
Fair value with moderate growth potential.
Similar Companies
Share Price & News
How has New Gold's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: NGD is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 8% a week.
Volatility Over Time: NGD's weekly volatility (8%) has been stable over the past year.
Market Performance
7 Day Return
-6.6%
NGD
-3.8%
CA Metals and Mining
-0.9%
CA Market
1 Year Return
27.0%
NGD
11.8%
CA Metals and Mining
36.1%
CA Market
Return vs Industry: NGD exceeded the Canadian Metals and Mining industry which returned 11.8% over the past year.
Return vs Market: NGD underperformed the Canadian Market which returned 36.1% over the past year.
Shareholder returns
| NGD | Industry | Market | |
|---|---|---|---|
| 7 Day | -6.6% | -3.8% | -0.9% |
| 30 Day | -8.9% | -6.3% | 1.9% |
| 90 Day | 9.7% | 9.1% | 6.2% |
| 1 Year | 27.0%27.0% | 13.1%11.8% | 40.5%36.1% |
| 3 Year | -15.4%-15.4% | 52.6%48.9% | 31.7%19.0% |
| 5 Year | -60.0%-60.0% | 35.1%30.7% | 59.5%35.6% |
Long-Term Price Volatility Vs. Market
How volatile is New Gold's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall St
Could The New Gold Inc. (TSE:NGD) Ownership Structure Tell Us Something Useful?1 month ago | Simply Wall St
New Gold Inc. (TSE:NGD) On The Verge Of Breaking Even4 months ago | Simply Wall St
Have Insiders Been Buying New Gold Inc. (TSE:NGD) Shares This Year?Valuation
Is New Gold undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: NGD (CA$2.26) is trading below our estimate of fair value (CA$17.43)
Significantly Below Fair Value: NGD is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: NGD is unprofitable, so we can't compare its PE Ratio to the Canadian Metals and Mining industry average.
PE vs Market: NGD is unprofitable, so we can't compare its PE Ratio to the Canadian market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate NGD's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: NGD is good value based on its PB Ratio (1.5x) compared to the CA Metals and Mining industry average (2.9x).
Future Growth
How is New Gold forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
11.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NGD is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.5%).
Earnings vs Market: NGD is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: NGD's is expected to become profitable in the next 3 years.
Revenue vs Market: NGD's revenue (4% per year) is forecast to grow slower than the Canadian market (5.6% per year).
High Growth Revenue: NGD's revenue (4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: NGD's Return on Equity is forecast to be low in 3 years time (7.8%).
Past Performance
How has New Gold performed over the past 5 years?
-14.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NGD is currently unprofitable.
Growing Profit Margin: NGD is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: NGD is unprofitable, and losses have increased over the past 5 years at a rate of 14.5% per year.
Accelerating Growth: Unable to compare NGD's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: NGD is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (214.7%).
Return on Equity
High ROE: NGD has a negative Return on Equity (-4.27%), as it is currently unprofitable.
Financial Health
How is New Gold's financial position?
Financial Position Analysis
Short Term Liabilities: NGD's short term assets ($380.5M) exceed its short term liabilities ($146.8M).
Long Term Liabilities: NGD's short term assets ($380.5M) do not cover its long term liabilities ($1.2B).
Debt to Equity History and Analysis
Debt Level: NGD's debt to equity ratio (58.3%) is considered high.
Reducing Debt: NGD's debt to equity ratio has increased from 36.9% to 58.3% over the past 5 years.
Balance Sheet
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: Whilst unprofitable NGD has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
Forecast Cash Runway: NGD is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 31.8% per year.
Dividend
What is New Gold current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate NGD's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate NGD's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if NGD's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if NGD's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of NGD's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.6yrs
Average management tenure
CEO
Renaud Adams (50 yo)
2.75yrs
Tenure
US$3,377,217
Compensation
Mr. Renaud Adams, P.Eng., has been President, Chief Executive Officer and Director of New Gold Inc. since September 12, 2018. Mr. Adams has been an Independent Director of GT Gold Corp. since July 2018. He...
CEO Compensation Analysis
Compensation vs Market: Renaud's total compensation ($USD3.38M) is above average for companies of similar size in the Canadian market ($USD2.15M).
Compensation vs Earnings: Renaud's compensation has increased whilst the company is unprofitable.
Leadership Team
Experienced Management: NGD's management team is considered experienced (2.6 years average tenure).
Board Members
Experienced Board: NGD's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.
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.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
New Gold Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: New Gold Inc.
- Ticker: NGD
- Exchange: TSX
- Founded: 1980
- Industry: Gold
- Sector: Materials
- Market Cap: CA$1.566b
- Shares outstanding: 680.74m
- Website: https://www.newgold.com
Number of Employees
Location
- New Gold Inc.
- Brookfield Place
- Suite 3320
- Toronto
- Ontario
- M5J 2T3
- Canada
Listings
Biography
New Gold Inc., an intermediate gold mining company, engages in the development and operation of mineral properties. It primarily explores for gold, silver, and copper deposits. The company’s principal oper...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/06/24 04:10 |
| End of Day Share Price | 2021/06/23 00:00 |
| Earnings | 2021/03/31 |
| Annual Earnings | 2020/12/31 |
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.