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NGD

New Gold TSX:NGD Stock Report

Last Price

CA$1.45

Market Cap

CA$961.8m

7D

-0.7%

1Y

-33.8%

Updated

06 Jul, 2022

Data

Company Financials +
NGD fundamental analysis
Snowflake Score
Valuation6/6
Future Growth3/6
Past Performance2/6
Financial Health4/6
Dividends0/6

NGD Stock Overview

New Gold Inc., an intermediate gold mining company, engages in the exploration, development, and operation of mineral properties.

New Gold Competitors

Price History & Performance

Summary of all time highs, changes and price drops for New Gold
Historical stock prices
Current Share PriceCA$1.45
52 Week HighCA$2.57
52 Week LowCA$1.29
Beta1.9
1 Month Change-14.71%
3 Month Change-35.56%
1 Year Change-33.79%
3 Year Change2.84%
5 Year Change-62.04%
Change since IPO-81.97%

Recent News & Updates

Apr 25
These 4 Measures Indicate That New Gold (TSE:NGD) Is Using Debt Reasonably Well

These 4 Measures Indicate That New Gold (TSE:NGD) Is Using Debt Reasonably Well

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

NGDCA Metals and MiningCA Market
7D-0.7%-6.9%-2.1%
1Y-33.8%-21.5%-5.7%

Return vs Industry: NGD underperformed the Canadian Metals and Mining industry which returned -20.8% over the past year.

Return vs Market: NGD underperformed the Canadian Market which returned -5.3% over the past year.

Price Volatility

Is NGD's price volatile compared to industry and market?
NGD volatility
NGD Average Weekly Movement9.2%
Metals and Mining Industry Average Movement11.1%
Market Average Movement10.1%
10% most volatile stocks in CA Market17.6%
10% least volatile stocks in CA Market4.4%

Stable Share Price: NGD is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: NGD's weekly volatility (9%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1980n/aRenaud Adamshttps://www.newgold.com

New Gold Inc., an intermediate gold mining company, engages in the exploration, development, and operation of mineral properties. It primarily explores for gold, silver, and copper deposits. The company’s principal operating properties include 100% interests in the Rainy River mine located in Ontario, Canada; and New Afton mine situated in British Columbia, Canada.

New Gold Fundamentals Summary

How do New Gold's earnings and revenue compare to its market cap?
NGD fundamental statistics
Market CapUS$736.19m
Earnings (TTM)US$117.70m
Revenue (TTM)US$755.30m

6.4x

P/E Ratio

1.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NGD income statement (TTM)
RevenueUS$755.30m
Cost of RevenueUS$379.40m
Gross ProfitUS$375.90m
Other ExpensesUS$258.20m
EarningsUS$117.70m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.17
Gross Margin49.77%
Net Profit Margin15.58%
Debt/Equity Ratio52.7%

How did NGD perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is NGD undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NGD?

Other financial metrics that can be useful for relative valuation.

NGD key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1x
Enterprise Value/EBITDA2.3x
PEG Ratio0.3x

Price to Earnings Ratio vs Peers

How does NGD's PE Ratio compare to its peers?

NGD PE Ratio vs Peers
The above table shows the PE ratio for NGD vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average22.5x
TXG Torex Gold Resources
4.4x-32.8%CA$801.8m
DPM Dundee Precious Metals
4.4x-7.9%CA$1.2b
MMX Maverix Metals
46.3x19.6%CA$776.5m
SSL Sandstorm Gold
34.7x19.4%CA$1.4b
NGD New Gold
6.4x25.2%CA$961.8m

Price-To-Earnings vs Peers: NGD is good value based on its Price-To-Earnings Ratio (6.4x) compared to the peer average (22.5x).


Price to Earnings Ratio vs Industry

How does NGD's PE Ratio compare vs other companies in the CA Metals and Mining Industry?

Price-To-Earnings vs Industry: NGD is good value based on its Price-To-Earnings Ratio (6.4x) compared to the Canadian Metals and Mining industry average (9.6x)


Price to Earnings Ratio vs Fair Ratio

What is NGD's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NGD PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6.4x
Fair PE Ratio16.8x

Price-To-Earnings vs Fair Ratio: NGD is good value based on its Price-To-Earnings Ratio (6.4x) compared to the estimated Fair Price-To-Earnings Ratio (16.8x).


Share Price vs Fair Value

What is the Fair Price of NGD when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NGD (CA$1.45) is trading below our estimate of fair value (CA$5.69)

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


Price to Earnings Growth Ratio

PEG Ratio: NGD is good value based on its PEG Ratio (0.3x)


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Future Growth

How is New Gold forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


25.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NGD's forecast earnings growth (25.2% per year) is above the savings rate (1.6%).

Earnings vs Market: NGD's earnings (25.2% per year) are forecast to grow faster than the Canadian market (7.3% per year).

High Growth Earnings: NGD's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NGD's revenue (5.8% per year) is forecast to grow slower than the Canadian market (6.5% per year).

High Growth Revenue: NGD's revenue (5.8% 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 (1.5%).


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Past Performance

How has New Gold performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


24.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NGD has a large one-off gain of $131.4M impacting its March 31 2022 financial results.

Growing Profit Margin: NGD became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: NGD has become profitable over the past 5 years, growing earnings by 24.9% per year.

Accelerating Growth: NGD has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: NGD has become profitable in the last year, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-6%).


Return on Equity

High ROE: NGD's Return on Equity (12.6%) is considered low.


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Financial Health

How is New Gold's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: NGD's short term assets ($637.9M) exceed its short term liabilities ($146.1M).

Long Term Liabilities: NGD's short term assets ($637.9M) do not cover its long term liabilities ($1.4B).


Debt to Equity History and Analysis

Debt Level: NGD has more cash than its total debt.

Reducing Debt: NGD's debt to equity ratio has increased from 38.8% to 52.7% over the past 5 years.

Debt Coverage: NGD's debt is well covered by operating cash flow (68.8%).

Interest Coverage: NGD's interest payments on its debt are well covered by EBIT (5.9x coverage).


Balance Sheet


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Dividend

What is New Gold current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

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.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as NGD has not reported any payouts.


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Management

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

3.2yrs

Average management tenure


CEO

Renaud Adams (52 yo)

3.83yrs

Tenure

US$2,320,378

Compensation

Mr. Renaud Adams, P.Eng., has been Director of Monarch Mining Corporation since June 30, 2022. He has been President, Chief Executive Officer and Director of New Gold Inc. since September 12, 2018. Mr. Ada...


CEO Compensation Analysis

Compensation vs Market: Renaud's total compensation ($USD2.32M) is above average for companies of similar size in the Canadian market ($USD1.58M).

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


Leadership Team

Experienced Management: NGD's management team is considered experienced (3.2 years average tenure).


Board Members

Experienced Board: NGD's board of directors are considered experienced (4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: NGD 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

New Gold Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: New Gold Inc.
  • Ticker: NGD
  • Exchange: TSX
  • Founded: 1980
  • Industry: Gold
  • Sector: Materials
  • Implied Market Cap: CA$961.761m
  • Shares outstanding: 682.10m
  • Website: https://www.newgold.com

Number of Employees


Location

  • New Gold Inc.
  • Brookfield Place
  • Suite 3320
  • Toronto
  • Ontario
  • M5J 2T3
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/07/06 00:00
End of Day Share Price2022/07/06 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.