DB:NGR

Stock Analysis Report

NovaGold Resources

Executive Summary

NovaGold Resources Inc. primarily explores for and develops gold mineral properties in Canada and the United States.

Snowflake

Fundamentals

Adequate balance sheet with weak fundamentals.


Similar Companies

Share Price & News

How has NovaGold Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-10.4%

NGR

6.7%

DE Metals and Mining

4.1%

DE Market


1 Year Return

50.3%

NGR

-35.3%

DE Metals and Mining

2.4%

DE Market

Return vs Industry: NGR exceeded the German Metals and Mining industry which returned -35.3% over the past year.

Return vs Market: NGR exceeded the German Market which returned 2.4% over the past year.


Shareholder returns

NGRIndustryMarket
7 Day-10.4%6.7%4.1%
30 Day0.1%-0.1%1.7%
90 Day-1.2%10.9%3.7%
1 Year50.3%50.3%-34.3%-35.3%5.6%2.4%
3 Year34.1%34.1%-32.9%-35.2%19.2%8.9%
5 Year140.4%140.4%-18.6%-23.2%43.2%23.7%

Price Volatility Vs. Market

How volatile is NovaGold Resources's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is NovaGold Resources undervalued compared to its fair value and its price relative to the market?

13.73x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: Insufficient data to calculate NGR's fair value to establish if it is undervalued.

Significantly Undervalued: Insufficient data to calculate NGR's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: NGR is unprofitable, so we can't compare its PE Ratio to the Metals and Mining industry average.

PE vs Market: NGR is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate NGR's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: NGR is overvalued based on its PB Ratio (13.7x) compared to the DE Metals and Mining industry average (4.1x).


Next Steps

  • Explore potentially undervalued companies in the Materials industry.

Future Growth

How is NovaGold Resources forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-24.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NGR is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: NGR is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: NGR is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: Insufficient data to determine if NGR's revenue is forecast to grow faster than the German market.

High Growth Revenue: Insufficient data to determine if NGR's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if NGR's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has NovaGold Resources performed over the past 5 years?

6.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: NGR is unprofitable, but has reduced losses over the past 5 years at a rate of 6.9% per year.

Accelerating Growth: Unable to compare NGR's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: NGR is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-5.2%).


Return on Equity

High ROE: NGR has a negative Return on Equity (-18.11%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: NGR is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: NGR is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is NovaGold Resources's financial position?


Financial Position Analysis

Short Term Liabilities: NGR's short term assets ($154.7M) exceeds its short term liabilities ($3.0M)

Long Term Liabilities: NGR's short term assets (154.7M) exceeds its long term liabilities (102.6M)


Debt to Equity History and Analysis

Debt Level: NGR's debt to equity ratio (70.7%) is considered high

Reducing Debt: NGR's debt to equity ratio has increased from 20.9% to 70.7% over the past 5 years.


Balance Sheet

Inventory Level: NGR has a low level of unsold assets or inventory.

Debt Coverage by Assets: NGR's debt is covered by short term assets (assets are 1.516110x 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: NGR has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: NGR has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of -6.8% each year


Next Steps

Dividend

What is NovaGold Resources's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage1.9%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate NGR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

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

Stable Dividend: Insufficient data to determine if NGR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if NGR'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 NGR's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

6.7yrs

Average management tenure


CEO

Greg Lang (64yo)

7.8yrs

Tenure

US$4,601,424

Compensation

Mr. Gregory A. Lang, also known as Greg, has been the Chief Executive Officer and President of NovaGold Resources Inc. since January 9, 2012 and has been its Director since 2012. Mr. Lang has over 35 years ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Greg's total compensation is reasonable compared to companies of similar size in the German market.

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


Management Age and Tenure

6.7yrs

Average Tenure

62yo

Average Age

Experienced Management: NGR's management team is seasoned and experienced (6.7 years average tenure).


Board Age and Tenure

7.5yrs

Average Tenure

64yo

Average Age

Experienced Board: NGR's board of directors are considered experienced (7.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$22,93304 Dec 18
Diane Garrett
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares7,000
Max PriceUS$3.28

Ownership Breakdown


Management Team

  • Dave Ottewell (58yo)

    VP & CFO

    • Tenure: 6.9yrs
    • Compensation: US$1.75m
  • David Deisley (62yo)

    Consultant

    • Tenure: 0.8yrs
    • Compensation: US$1.61m
  • Melanie Hennessey

    Vice President of Corporate Communications

    • Tenure: 7.6yrs
  • Greg Lang (64yo)

    President

    • Tenure: 7.8yrs
    • Compensation: US$4.60m
  • Richard Williams

    Vice President of Engineering & Development

    • Tenure: 6.5yrs
  • Tricia Pannier

    Corporate Secretary

    • Tenure: 2.8yrs
  • Allison Pettit

    Manager of Investor Relations

    • Tenure: 0yrs

Board Members

  • Igor Levental (64yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: US$227.71k
  • Tony Walsh (67yo)

    Independent Lead Director

    • Tenure: 1.4yrs
    • Compensation: US$228.62k
  • Thomas Kaplan (56yo)

    Chairman of The Board

    • Tenure: 7.9yrs
    • Compensation: US$313.46k
  • Kalidas Madhavpeddi (64yo)

    Independent Director

    • Tenure: 12.8yrs
    • Compensation: US$215.91k
  • Clynt Nauman (70yo)

    Independent Director

    • Tenure: 20.8yrs
    • Compensation: US$205.21k
  • Diane Garrett (59yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$197.49k
  • Sharon Dowdall (66yo)

    Independent Director

    • Tenure: 7.5yrs
    • Compensation: US$228.12k
  • Ethan Schutt

    Independent Director

    • Tenure: 0.4yrs
  • Greg Lang (64yo)

    President

    • Tenure: 7.8yrs
    • Compensation: US$4.60m

Company Information

NovaGold Resources Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: NovaGold Resources Inc.
  • Ticker: NGR
  • Exchange: DB
  • Founded: 1984
  • Industry: Gold
  • Sector: Materials
  • Market Cap: CA$2.615b
  • Listing Market Cap: CA$1.795b
  • Shares outstanding: 326.92m
  • Website: https://www.novagold.com

Number of Employees


Location

  • NovaGold Resources Inc.
  • 789 West Pender Street
  • Suite 720
  • Vancouver
  • British Columbia
  • V6C 1H2
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NGTSX (The Toronto Stock Exchange)YesCommon SharesCACADJun 1987
NGAMEX (NYSE MKT LLC)YesCommon SharesUSUSDJun 1987
NGRDB (Deutsche Boerse AG)YesCommon SharesDEEURJun 1987
NG NBMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNJun 1987

Biography

NovaGold Resources Inc. primarily explores for and develops gold mineral properties in Canada and the United States. Its principal asset is the Donlin Gold property covering an area of 71,420 acres located ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 20:30
End of Day Share Price2019/10/16 00:00
Earnings2019/08/31
Annual Earnings2018/11/30


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.