TSX:NGD

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Mediocre balance sheet 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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.3%

NGD

3.7%

CA Metals and Mining

3.0%

CA Market


1 Year Return

-33.9%

NGD

-8.2%

CA Metals and Mining

-24.5%

CA Market

Return vs Industry: NGD underperformed the Canadian Metals and Mining industry which returned -10.2% over the past year.

Return vs Market: NGD underperformed the Canadian Market which returned -24.6% over the past year.


Shareholder returns

NGDIndustryMarket
7 Day1.3%3.7%3.0%
30 Day-33.9%-12.5%-21.2%
90 Day-33.3%-13.1%-24.4%
1 Year-33.9%-33.9%-7.6%-8.2%-22.0%-24.5%
3 Year-80.7%-80.7%-17.2%-18.7%-13.9%-21.9%
5 Year-82.4%-82.4%9.0%5.9%-2.0%-16.6%

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

Valuation

Is New Gold undervalued compared to its fair value and its price relative to the market?

0.39x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate NGD's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate NGD's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: NGD is unprofitable, so we can't compare its PE Ratio to the 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 (0.4x) compared to the CA Metals and Mining industry average (1.2x).


Next Steps

Future Growth

How is New Gold forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

84.6%

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 (1.4%).

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 (0.9% per year) is forecast to grow slower than the Canadian market (3.5% per year).

High Growth Revenue: NGD's revenue (0.9% 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 (9.7%).


Next Steps

Past Performance

How has New Gold performed over the past 5 years?

-18.4%

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 -18.4% 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 (16.5%).


Return on Equity

High ROE: NGD has a negative Return on Equity (-7.65%), as it is currently unprofitable.


Next Steps

Financial Health

How is New Gold's financial position?


Financial Position Analysis

Short Term Liabilities: NGD's short term assets ($228.7M) exceed its short term liabilities ($171.9M).

Long Term Liabilities: NGD's short term assets ($228.7M) do not cover its long term liabilities ($1.0B).


Debt to Equity History and Analysis

Debt Level: NGD's debt to equity ratio (74.3%) is considered high.

Reducing Debt: NGD's debt to equity ratio has increased from 38.5% to 74.3% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: NGD's debt is not covered by short term assets (assets are 0.3x debt).


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 8.5% per year.


Next Steps

Dividend

What is New Gold's 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 payouts.

High Dividend: Unable to evaluate NGD's dividend yield against the top 25% of dividend payers, as the company has not reported any 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?

1.5yrs

Average management tenure


CEO

Renaud Adams (49yo)

1.58s

Tenure

US$851,259

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 ($USD851.26K) is about average for companies of similar size in the Canadian market ($USD1.20M).

Compensation vs Earnings: Insufficient data to compare Renaud's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Renaud Adams
President1.58yrsUS$851.26k0.089% $468.0k
Robert Chausse
Executive VP & CFO1.42yrsUS$372.34k0.074% $390.0k
Anne Day
Vice President of Investor Relations1.58yrsUS$331.67k0.020% $105.3k
Sean Keating
VP, General Counsel & Corporate Secretary0.42yrno data0.00022% $1.2k
Michele Libera
Director of Explorationno datano datano data
John Ritter
General Manager of New Afton1.5yrsno datano data
Eric Vinet
VP & GM of Rainy Riverno datano datano data
Shauntese Constantinoff
Senior External Project Relations Advisorno datano datano data

1.5yrs

Average Tenure

Experienced Management: NGD's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Renaud Adams
President1.58yrsUS$851.26k0.089% $468.0k
James Gowans
Independent Director1.75yrsUS$109.16k0.0044% $23.4k
Ian Pearce
Independent Chair3.25yrsUS$227.68k0.0040% $21.2k
Margaret Mulligan
Independent Director2yrsUS$135.06kno data
Marilyn Schonberner
Independent Director2.83yrsUS$154.36kno data
Gillian Davidson
Independent Director2yrsUS$135.06kno data
Nicholas Chirekos
Independent Director0.92yrno datano data

2.0yrs

Average Tenure

60yo

Average Age

Experienced Board: NGD's board of directors are not considered experienced ( 2 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: 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 been diluted in the past year, with total shares outstanding growing by 5.6%.


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$527.247m
  • Shares outstanding: 675.96m
  • Website: https://www.newgold.com

Number of Employees


Location

  • New Gold Inc.
  • Brookfield Place
  • 181 Bay Street
  • Toronto
  • Ontario
  • M5J 2T3
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NGDAMEX (NYSE MKT LLC)YesCommon SharesUSUSDDec 1999
NGDTSX (The Toronto Stock Exchange)YesCommon SharesCACADDec 1999
32NDB (Deutsche Boerse AG)YesCommon SharesDEEURDec 1999
0V90LSE (London Stock Exchange)YesCommon SharesGBCADDec 1999

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 operating properties include the Rainy River project located in Ontario, Canada; the New Afton project located near Kamloops, British Columbia, Canada; and the Cerro San Pedro mine located in the state of San Luis Potosí, Mexico. It also holds interests in the Blackwater project located to the Southwest of Prince George, British Columbia, Canada. The company was founded in 1980 and is headquartered in Toronto, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 00:51
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.