NYSE:NEM

Stock Analysis Report

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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

NEMIndustryMarket
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 Year73.1%59.2%45.1%35.5%61.0%51.0%
5 Year56.0%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

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/23 02:24
End of Day Share Price2021/07/22 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.