Newmont
Market Cap
US$48.3b
Last Updated
2021/07/23 02:24 UTC
Data Sources
Company Financials +
Executive Summary
Newmont Corporation engages in the production and exploration of gold. More Details
Snowflake Analysis
Excellent balance sheet established dividend payer.
Similar Companies
Share Price & News
How has Newmont's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: NEM is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: NEM's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
-5.2%
NEM
-1.9%
US Metals and Mining
0.4%
US Market
1 Year Return
-8.5%
NEM
51.7%
US Metals and Mining
36.9%
US Market
Return vs Industry: NEM underperformed the US Metals and Mining industry which returned 51.8% over the past year.
Return vs Market: NEM underperformed the US Market which returned 35.1% over the past year.
Shareholder returns
| NEM | Industry | Market | |
|---|---|---|---|
| 7 Day | -5.2% | -1.9% | 0.4% |
| 30 Day | -4.3% | -1.9% | 1.6% |
| 90 Day | -8.4% | -1.9% | 2.7% |
| 1 Year | -5.9%-8.5% | 55.0%51.7% | 39.1%36.9% |
| 3 Year | 73.1%59.2% | 45.1%35.5% | 61.0%51.0% |
| 5 Year | 56.0%41.1% | 82.8%67.4% | 122.5%97.8% |
Long-Term Price Volatility Vs. Market
How volatile is Newmont's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
What Kind Of Investors Own Most Of Newmont Corporation (NYSE:NEM)?1 month ago | Simply Wall St
Does Newmont's (NYSE:NEM) Share Price Gain of 68% Match Its Business Performance?1 month ago | Simply Wall St
Should You Buy Newmont Corporation (NYSE:NEM) For Its Upcoming Dividend?Valuation
Is Newmont undervalued compared to its fair value and its price relative to the market?
20.41x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: NEM ($60.21) is trading above our estimate of fair value ($39.71)
Significantly Below Fair Value: NEM is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: NEM is poor value based on its PE Ratio (20.4x) compared to the US Metals and Mining industry average (14.9x).
PE vs Market: NEM is poor value based on its PE Ratio (20.4x) compared to the US market (18.9x).
Price to Earnings Growth Ratio
PEG Ratio: NEM's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: NEM is good value based on its PB Ratio (2.1x) compared to the US Metals and Mining industry average (2.5x).
Future Growth
How is Newmont forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
-1.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NEM's earnings are forecast to decline over the next 3 years (-1.5% per year).
Earnings vs Market: NEM's earnings are forecast to decline over the next 3 years (-1.5% per year).
High Growth Earnings: NEM's earnings are forecast to decline over the next 3 years.
Revenue vs Market: NEM's revenue is expected to decline over the next 3 years (-1.2% per year).
High Growth Revenue: NEM's revenue is forecast to decline over the next 3 years (-1.2% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: NEM's Return on Equity is forecast to be low in 3 years time (7.5%).
Past Performance
How has Newmont performed over the past 5 years?
72.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NEM has high quality earnings.
Growing Profit Margin: NEM's current net profit margins (20.1%) are lower than last year (34.2%).
Past Earnings Growth Analysis
Earnings Trend: NEM has become profitable over the past 5 years, growing earnings by 72.1% per year.
Accelerating Growth: NEM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: NEM had negative earnings growth (-34.3%) over the past year, making it difficult to compare to the Metals and Mining industry average (57.6%).
Return on Equity
High ROE: NEM's Return on Equity (9.8%) is considered low.
Financial Health
How is Newmont's financial position?
Financial Position Analysis
Short Term Liabilities: NEM's short term assets ($8.4B) exceed its short term liabilities ($3.5B).
Long Term Liabilities: NEM's short term assets ($8.4B) do not cover its long term liabilities ($13.6B).
Debt to Equity History and Analysis
Debt Level: NEM's debt to equity ratio (25.1%) is considered satisfactory.
Reducing Debt: NEM's debt to equity ratio has reduced from 39.9% to 25.1% over the past 5 years.
Debt Coverage: NEM's debt is well covered by operating cash flow (79.4%).
Interest Coverage: NEM's interest payments on its debt are well covered by EBIT (12.9x coverage).
Balance Sheet
Dividend
What is Newmont current dividend yield, its reliability and sustainability?
3.65%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: NEM's dividend (3.65%) is higher than the bottom 25% of dividend payers in the US market (1.31%).
High Dividend: NEM's dividend (3.65%) is in the top 25% of dividend payers in the US market (3.52%)
Stability and Growth of Payments
Stable Dividend: NEM's dividend payments have been volatile in the past 10 years.
Growing Dividend: NEM's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (59.3%), NEM's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: NEM's dividends in 3 years are forecast to be covered by earnings (64.5% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.1yrs
Average management tenure
CEO
Tom Palmer (53 yo)
1.75yrs
Tenure
US$12,202,285
Compensation
Mr. Thomas Ronald Palmer, also known as Tom, has been Chief Executive Officer and Director of Newmont Corporation (formerly, Newmont Goldcorp Corporation) since October 1, 2019 and has been its President s...
CEO Compensation Analysis
Compensation vs Market: Tom's total compensation ($USD12.20M) is about average for companies of similar size in the US market ($USD11.26M).
Compensation vs Earnings: Tom's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
Experienced Management: NEM's management team is considered experienced (2.1 years average tenure).
Board Members
Experienced Board: NEM's board of directors are not considered experienced ( 1.8 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
Newmont Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Newmont Corporation
- Ticker: NEM
- Exchange: NYSE
- Founded: 1916
- Industry: Gold
- Sector: Materials
- Market Cap: US$48.328b
- Shares outstanding: 802.67m
- Website: https://www.newmont.com
Number of Employees
Location
- Newmont Corporation
- 6900 East Layton Avenue
- Suite 700
- Denver
- Colorado
- 80237
- United States
Listings
Biography
Newmont Corporation engages in the production and exploration of gold. It also explores for copper, silver, zinc, and lead. The company has operations and/or assets in the United States, Canada, Mexico, Do...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/07/23 02:24 |
| End of Day Share Price | 2021/07/22 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.