Newmont
Market Cap
US$37.4b
Last Updated
2020/03/31 00:12 UTC
Data Sources
Company Financials +
Executive Summary
Newmont Corporation engages in the production and exploration of gold, copper, silver, zinc, and lead.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -4.6% per year for the next 3 years
Snowflake Analysis
Excellent balance sheet with proven track record and pays a dividend.
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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-2.4%
NEM
1.0%
US Metals and Mining
7.2%
US Market
1 Year Return
29.4%
NEM
-28.5%
US Metals and Mining
-10.4%
US Market
Return vs Industry: NEM exceeded the US Metals and Mining industry which returned -28.5% over the past year.
Return vs Market: NEM exceeded the US Market which returned -10.4% over the past year.
Shareholder returns
| NEM | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.4% | 1.0% | 7.2% |
| 30 Day | 3.9% | -17.6% | -12.6% |
| 90 Day | 6.7% | -32.2% | -19.4% |
| 1 Year | 34.5%29.4% | -26.4%-28.5% | -8.5%-10.4% |
| 3 Year | 44.6%35.6% | -24.5%-28.8% | 15.8%8.3% |
| 5 Year | 125.1%109.1% | -3.6%-11.5% | 35.8%21.0% |
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 year ago | Simply Wall St
How Much Did Newmont Mining Corporation's (NYSE:NEM) CEO Pocket Last Year?1 year ago | Simply Wall St
Could The Newmont Mining Corporation (NYSE:NEM) Ownership Structure Tell Us Something Useful?1 year ago | Simply Wall St
Estimating The Fair Value Of Newmont Mining Corporation (NYSE:NEM)Valuation
Is Newmont undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: NEM ($46.36) is trading below our estimate of fair value ($152.85)
Significantly Below Fair Value: NEM is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: NEM is poor value based on its PE Ratio (11.8x) compared to the Metals and Mining industry average (8.4x).
PE vs Market: NEM is good value based on its PE Ratio (11.8x) compared to the US market (13.1x).
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 overvalued based on its PB Ratio (1.7x) compared to the US Metals and Mining industry average (1.1x).
Next Steps
Future Growth
How is Newmont forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?
-4.6%
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 (-4.6% per year).
Earnings vs Market: NEM's earnings are forecast to decline over the next 3 years (-4.6% per year).
High Growth Earnings: NEM's earnings are forecast to decline over the next 3 years.
Revenue vs Market: NEM's revenue (6.6% per year) is forecast to grow slower than the US market (7.2% per year).
High Growth Revenue: NEM's revenue (6.6% 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 (9.3%).
Next Steps
Past Performance
How has Newmont performed over the past 5 years?
44.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NEM has a large one-off gain of $2.2B impacting its December 31 2019 financial results.
Growing Profit Margin: NEM's current net profit margins (29.5%) are higher than last year (3.9%).
Past Earnings Growth Analysis
Earnings Trend: NEM has become profitable over the past 5 years, growing earnings by 44.5% per year.
Accelerating Growth: NEM's earnings growth over the past year (927.5%) exceeds its 5-year average (44.5% per year).
Earnings vs Industry: NEM earnings growth over the past year (927.5%) exceeded the Metals and Mining industry -26.9%.
Return on Equity
High ROE: NEM's Return on Equity (13.2%) is considered low.
Next Steps
Financial Health
How is Newmont's financial position?
Financial Position Analysis
Short Term Liabilities: NEM's short term assets ($6.3B) exceed its short term liabilities ($2.4B).
Long Term Liabilities: NEM's short term assets ($6.3B) do not cover its long term liabilities ($15.2B).
Debt to Equity History and Analysis
Debt Level: NEM's debt to equity ratio (27.4%) is considered satisfactory.
Reducing Debt: NEM's debt to equity ratio has reduced from 50.7% to 27.4% over the past 5 years.
Balance Sheet
Inventory Level: NEM has a high level of physical assets or inventory.
Debt Coverage by Assets: NEM's debt is covered by short term assets (assets are 1x 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: NEM is profitable, therefore cash runway is not a concern.
Forecast Cash Runway: NEM is profitable, therefore cash runway is not a concern.
Next Steps
Dividend
What is Newmont's current dividend yield, its reliability and sustainability?
2.16%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: NEM's dividend (2.16%) is higher than the bottom 25% of dividend payers in the US market (1.95%).
High Dividend: NEM's dividend (2.16%) is low compared to the top 25% of dividend payers in the US market (5.4%).
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 low payout ratio (14.3%), NEM's dividend payments are thoroughly covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: NEM's dividends in 3 years are forecast to be covered by earnings (52.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.5yrs
Average management tenure
CEO
Tom Palmer (51yo)
0.42
Tenure
US$7,332,204
Compensation
Mr. Thomas Ronald Palmer, also known as Tom, has been Chief Executive Officer and Director of Newmont Corporation (formerly known as Newmont Goldcorp Corporation) since October 1, 2019 and is its Presiden ...
CEO Compensation Analysis
Compensation vs Market: Tom's total compensation ($USD7.33M) is below average for companies of similar size in the US market ($USD11.74M).
Compensation vs Earnings: Tom's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Former President | 0.42yr | US$7.33m | 0.036% $13.5m | |
| Executive VP & CFO | 3.42yrs | US$4.82m | 0.012% $4.4m | |
| Executive VP & COO | 0.67yr | US$4.92m | no data | |
| Executive Vice President of Strategic Development | 11.42yrs | US$5.86m | 0.039% $14.4m | |
| Executive VP and Chief Sustainability & External Affairs Officer | 10.17yrs | US$4.09m | 0.022% $8.2m | |
| Executive Advisor | 0.42yr | US$16.55m | 0.091% $34.0m | |
| Vice President of Investments & Value Management | 2.25yrs | no data | no data | |
| VP, Controller & Chief Accounting Officer | 3.67yrs | no data | 0.0054% $2.0m | |
| Executive VP & CTO | 0.67yr | no data | 0.0035% $1.3m | |
| VP & Chief Information Officer | 0.83yr | no data | no data |
1.5yrs
Average Tenure
51yo
Average Age
Experienced Management: NEM's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Former President | 0.42yr | US$7.33m | 0.036% $13.5m | |
| Independent Non-Executive Chairman of the Board | 3.83yrs | US$605.00k | no data | |
| Senior Independent Director | 3.17yrs | US$322.00k | no data | |
| Independent Director | 9.17yrs | US$325.95k | 0.0031% $1.2m | |
| Vice Chairman | 4.42yrs | US$297.00k | no data | |
| Independent Director | 1.83yrs | US$287.00k | no data | |
| Independent Director | 4.42yrs | US$287.00k | no data | |
| Independent Director | 8.17yrs | US$287.00k | 0.0029% $1.1m | |
| Independent Director | 9.17yrs | US$305.75k | no data | |
| Independent Director | 2.67yrs | US$285.00k | no data |
4.1yrs
Average Tenure
63yo
Average Age
Experienced Board: NEM's board of directors are considered experienced (4.1 years average tenure).
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 been diluted in the past year, with total shares outstanding growing by 37.9%.
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$37.441b
- Shares outstanding: 807.62m
- Website: https://www.newmont.com
Number of Employees
Location
- Newmont Corporation
- 6363 South Fiddler’s Green Circle
- Suite 800
- Greenwood Village
- Colorado
- 80111
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| NEM | NYSE (New York Stock Exchange) | Yes | Common Shares | US | USD | Jan 1968 |
| NMM | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Jan 1968 |
| NEM | SWX (SIX Swiss Exchange) | Yes | Common Shares | CH | CHF | Jan 1968 |
| NMM | XTRA (XETRA Trading Platform) | Yes | Common Shares | DE | EUR | Jan 1968 |
| NEM | SNSE (Santiago Stock Exchange) | Yes | Common Shares | CL | USD | Jan 1968 |
| NEM * | BMV (Bolsa Mexicana de Valores) | Yes | Common Shares | MX | MXN | Jan 1968 |
| 0R28 | LSE (London Stock Exchange) | Yes | Common Shares | GB | USD | Jan 1968 |
| NEWM | WBAG (Wiener Boerse AG) | Yes | Common Shares | AT | EUR | Jan 1968 |
| NMM | ETLX (Eurotlx) | Yes | Common Shares | IT | EUR | Jan 1968 |
| NGT | TSX (The Toronto Stock Exchange) | Yes | Common Shares | CA | CAD | Jan 1968 |
| NEM | BASE (Buenos Aires Stock Exchange) | CEDEAR EACH REPR 1 COM USD1.60 | AR | ARS | Jan 2004 | |
| N1EM34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH REPR 1 COM | BR | BRL | Dec 2019 |
Biography
Newmont Corporation engages in the production and exploration of gold, copper, silver, zinc, and lead. The company has operations and/or assets in the United States, Canada, Mexico, Dominican Republic, Peru, Suriname, Argentina, Chile, Australia, and Ghana. As of December 31, 2019, it had proven and probable gold reserves of 100.2 million ounces and land position of 68,300 square kilometers. Newmont Corporation was founded in 1916 and is headquartered in Greenwood Village, Colorado.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/31 00:12 |
| End of Day Share Price | 2020/03/30 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.