TSX:NGD

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Reasonable growth potential with imperfect balance sheet.


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

1.7%

NGD

5.9%

CA Metals and Mining

0.8%

CA Market


1 Year Return

9.6%

NGD

37.8%

CA Metals and Mining

-11.3%

CA Market

Return vs Industry: NGD underperformed the Canadian Metals and Mining industry which returned 37.8% over the past year.

Return vs Market: NGD exceeded the Canadian Market which returned -11.3% over the past year.


Shareholder returns

NGDIndustryMarket
7 Day1.7%5.9%0.8%
30 Day7.0%18.2%1.8%
90 Day72.6%31.8%9.5%
1 Year9.6%9.6%38.8%37.8%-8.2%-11.3%
3 Year-52.8%-52.8%37.8%35.5%4.1%-5.8%
5 Year-34.9%-34.9%107.5%101.9%21.6%3.2%

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?

0.97x

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 CA 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 (1x) compared to the CA Metals and Mining industry average (2.4x).


Next Steps

Future Growth

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

59.5%

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 (1.7%).

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 (9.8% per year) is forecast to grow faster than the Canadian market (5.5% per year).

High Growth Revenue: NGD's revenue (9.8% 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 (7.2%).


Next Steps

Past Performance

How has New Gold performed over the past 5 years?

-17.2%

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 -17.2% 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 (18.3%).


Return on Equity

High ROE: NGD has a negative Return on Equity (-9.42%), 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 ($526.0M) exceed its short term liabilities ($172.1M).

Long Term Liabilities: NGD's short term assets ($526.0M) do not cover its long term liabilities ($1.3B).


Debt to Equity History and Analysis

Debt Level: NGD's debt to equity ratio (79.9%) is considered high.

Reducing Debt: NGD's debt to equity ratio has increased from 39.1% to 79.9% 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: NGD has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if NGD has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

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?

1.8yrs

Average management tenure


CEO

Renaud Adams (50yo)

1.83yrs

Tenure

US$2,456,860

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 ($USD2.46M) is above average for companies of similar size in the Canadian market ($USD1.66M).

Compensation vs Earnings: Renaud's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Renaud Adams
President1.83yrsUS$2.46m0.089% $1.1m
Robert Chausse
Executive VP & CFO1.67yrsUS$1.25m0.074% $915.0k
Anne Day
Vice President of Investor Relations1.83yrsUS$602.90k0.020% $247.0k
Eric Vinet
VP & GM of Rainy Riverno dataUS$850.59kno data
Sean Keating
VP, General Counsel & Corporate Secretary0.67yrno data0.00022% $2.7k
Michele Libera
Director of Explorationno datano datano data
John Ritter
General Manager of New Afton1.75yrsno datano data
Shauntese Constantinoff
Senior External Project Relations Advisorno datano datano data

1.8yrs

Average Tenure

Experienced Management: NGD's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Renaud Adams
President1.83yrsUS$2.46m0.089% $1.1m
James Gowans
Independent Director2yrsUS$150.73k0.0044% $54.9k
Ian Pearce
Independent Chairman3.5yrsUS$222.32k0.0040% $49.7k
Margaret Mulligan
Independent Director2.25yrsUS$143.19kno data
Marilyn Schonberner
Independent Director3.08yrsUS$158.26kno data
Gillian Davidson
Independent Director2.25yrsUS$150.73kno data
Nicholas Chirekos
Independent Director1.17yrsUS$120.02kno data

2.3yrs

Average Tenure

61yo

Average Age

Experienced Board: NGD's board of directors are not considered experienced ( 2.3 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 16.7%.


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:
  • Industry: Gold
  • Sector: Materials
  • Market Cap: CA$1.237b
  • Shares outstanding: 676.01m
  • Website: https://www.newgold.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NGDAMEX (NYSE MKT LLC)YesCommon SharesUSUSDNov 2004
NGDTSX (The Toronto Stock Exchange)YesCommon SharesCACADNov 2004
32NDB (Deutsche Boerse AG)YesCommon SharesDEEURNov 2004
0V90LSE (London Stock Exchange)YesCommon SharesGBCADNov 2004

Biography

New Gold Inc., an intermediate gold mining company, engages in the development and operation of mineral properties. It explores for gold, silver, and copper deposits. The company’s principal operating properties include 100% interests in the Rainy River gold-silver mine located in Ontario, Canada; and New Afton gold-copper mine located in British Columbia, Canada. It also holds 100% interests in the Blackwater gold-silver project located in British Columbia, Canada; and operates the Cerro San Pedro gold-silver mine in Mexico. New Gold Inc. 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 Analysis2020/07/13 06:46
End of Day Share Price2020/07/10 00:00
Earnings2020/03/31
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.