NYSE:NEM

Stock Analysis Report

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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 less volatile than 75% 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

0.2%

NEM

6.6%

US Metals and Mining

-2.5%

US Market


1 Year Return

15.5%

NEM

69.5%

US Metals and Mining

34.1%

US Market

Return vs Industry: NEM underperformed the US Metals and Mining industry which returned 69.5% over the past year.

Return vs Market: NEM underperformed the US Market which returned 34.1% over the past year.


Shareholder returns

NEMIndustryMarket
7 Day0.2%6.6%-2.5%
30 Day-7.4%9.5%0.1%
90 Day-1.2%24.5%4.5%
1 Year17.6%15.5%73.6%69.5%37.1%34.1%
3 Year60.9%49.4%37.5%28.1%58.0%47.9%
5 Year136.7%117.5%178.5%152.8%131.9%106.2%

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?

17.21x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NEM ($57.08) is trading above our estimate of fair value ($33.73)

Significantly Below Fair Value: NEM is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NEM is good value based on its PE Ratio (17.2x) compared to the US Metals and Mining industry average (21.9x).

PE vs Market: NEM is good value based on its PE Ratio (17.2x) compared to the US market (21.5x).


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 (2x) compared to the US Metals and Mining industry average (2.2x).


Next Steps

Future Growth

How is Newmont forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

-2.9%

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 (-2.9% per year).

Earnings vs Market: NEM's earnings are forecast to decline over the next 3 years (-2.9% per year).

High Growth Earnings: NEM's earnings are forecast to decline over the next 3 years.

Revenue vs Market: NEM's revenue (1.1% per year) is forecast to grow slower than the US market (10.5% per year).

High Growth Revenue: NEM's revenue (1.1% per year) is forecast to grow slower than 20% 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 (6.8%).


Next Steps

Past Performance

How has Newmont performed over the past 5 years?

77.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NEM has high quality earnings.

Growing Profit Margin: NEM's current net profit margins (23.2%) are lower than last year (29.6%).


Past Earnings Growth Analysis

Earnings Trend: NEM has become profitable over the past 5 years, growing earnings by 77.3% 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 (-7.6%) over the past year, making it difficult to compare to the Metals and Mining industry average (-5%).


Return on Equity

High ROE: NEM's Return on Equity (11%) is considered low.


Next Steps

Financial Health

How is Newmont's financial position?


Financial Position Analysis

Short Term Liabilities: NEM's short term assets ($8.5B) exceed its short term liabilities ($3.4B).

Long Term Liabilities: NEM's short term assets ($8.5B) do not cover its long term liabilities ($14.1B).


Debt to Equity History and Analysis

Debt Level: NEM's debt to equity ratio (25.3%) is considered satisfactory.

Reducing Debt: NEM's debt to equity ratio has reduced from 41% to 25.3% over the past 5 years.

Debt Coverage: NEM's debt is well covered by operating cash flow (80.9%).

Interest Coverage: NEM's interest payments on its debt are well covered by EBIT (11.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Newmont current dividend yield, its reliability and sustainability?

3.85%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: NEM's dividend (3.85%) is higher than the bottom 25% of dividend payers in the US market (1.34%).

High Dividend: NEM's dividend (3.85%) is in the top 25% of dividend payers in the US market (3.75%)


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 reasonably low payout ratio (43.7%), NEM's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NEM's dividends in 3 years are forecast to be covered by earnings (59.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.5yrs

Average management tenure


CEO

Tom Palmer (52 yo)

1.33yrs

Tenure

US$7,332,204

Compensation

Mr. Thomas Ronald Palmer, also known as Tom, has been the Chief Executive Officer and Director of Newmont Corporation (formerly, Newmont Goldcorp Corporation) since October 1, 2019 and has been its Preside...


CEO Compensation Analysis

Compensation vs Market: Tom's total compensation ($USD7.33M) is below average for companies of similar size in the US market ($USD10.54M).

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

NamePositionTenureCompensationOwnership
Thomas Palmer
President1.33yrsUS$7.33m0.020%
$ 9.3m
Nancy Buese
Executive VP & CFO4.33yrsUS$4.82m0.0062%
$ 2.8m
Robert Atkinson
Executive VP & COO1.67yrsUS$4.92m0.010%
$ 4.7m
Randy Engel
Executive Vice President of Strategic Development12.33yrsUS$5.86m0.032%
$ 14.8m
Stephen Gottesfeld
Executive VP and Chief Sustainability & External Affairs Officer11.08yrsUS$4.09m0.015%
$ 7.0m
David McLaren
Vice President of Investments & Value Management3.25yrsno datano data
John Kitlen
VP, Controller & Chief Accounting Officer4.67yrsno data0.0037%
$ 1.7m
Dean Gehring
Executive VP & CTO1.67yrsno data0.0019%
$ 872.5k
Luis Canepari
VP & Chief Information Officer1.83yrsno datano data
Nancy Lipson
Executive VP & General Counsel1.67yrsno data0.0043%
$ 2.0m
Scott Sullivan
Chief Integrity & Compliance Officerno datano datano data
Eric Colby
Vice President of Investor Relations & Corporate Communicationsno datano datano data

2.5yrs

Average Tenure

52yo

Average Age

Experienced Management: NEM's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Thomas Palmer
President1.33yrsUS$7.33m0.020%
$ 9.3m
Maura Clark
Independent Director0.83yrno data0.00033%
$ 150.8k
Susan Story
Non Executive Director0.42yrno data0.00019%
$ 86.8k
Noreen Doyle
Independent Non-Executive Chairman of the Board4.83yrsUS$605.00k0.0066%
$ 3.0m
Veronica Hagen
Senior Independent Director4.08yrsUS$322.00k0.0066%
$ 3.0m
Bruce Brook
Independent Director10.08yrsUS$325.95k0.0031%
$ 1.4m
Gregory Boyce
Independent Vice Chairman0.83yrUS$297.00k0.0035%
$ 1.6m
René Médori
Independent Director2.83yrsUS$287.00k0.0014%
$ 639.5k
Julio Quintana
Independent Director5.33yrsUS$287.00k0.0035%
$ 1.6m
Matthew Coon-Come
Independent Director1.67yrsUS$222.50k0.00040%
$ 182.7k
Jane Nelson
Independent Director10.08yrsUS$305.75k0.0051%
$ 2.3m

2.8yrs

Average Tenure

63yo

Average Age

Experienced Board: NEM's board of directors are not considered experienced ( 2.8 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.


Recent Insider Transactions

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$45.682b
  • Shares outstanding: 800.31m
  • Website: https://www.newmont.com

Number of Employees


Location

  • Newmont Corporation
  • 6900 East Layton Avenue
  • Suite 700
  • Denver
  • Colorado
  • 80237
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NEMNYSE (New York Stock Exchange)YesCommon SharesUSUSDJan 1968
NEMBVL (Bolsa de Valores de Lima)YesCommon SharesPEUSDJan 1968
NMMDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1968
NMMXTRA (XETRA Trading Platform)YesCommon SharesDEEURJan 1968
NEMSNSE (Santiago Stock Exchange)YesCommon SharesCLUSDJan 1968
NEM *BMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNJan 1968
0R28LSE (London Stock Exchange)YesCommon SharesGBUSDJan 1968
NEWMWBAG (Wiener Boerse AG)YesCommon SharesATEURJan 1968
NMMETLX (Eurotlx)YesCommon SharesITEURJan 1968
NGTTSX (The Toronto Stock Exchange)YesCommon SharesCACADJan 1968
NEMBASE (Buenos Aires Stock Exchange)CEDEAR EACH 3 REP 1ARARSJan 2004
N1EM34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COMBRBRLDec 2019

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 Analysis2021/02/24 23:29
End of Day Share Price2021/02/24 00:00
Earnings2020/12/31
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.