NYSE:NEM

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Newmont Corporation engages in the production and exploration of gold, copper, silver, zinc, and lead. More Details


Snowflake Analysis

Excellent balance sheet average 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 +/- 5% a week.

Volatility Over Time: NEM's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

1.6%

NEM

3.9%

US Metals and Mining

1.5%

US Market


1 Year Return

49.3%

NEM

32.1%

US Metals and Mining

22.3%

US Market

Return vs Industry: NEM exceeded the US Metals and Mining industry which returned 30.7% over the past year.

Return vs Market: NEM exceeded the US Market which returned 22.1% over the past year.


Shareholder returns

NEMIndustryMarket
7 Day1.6%3.9%1.5%
30 Day-8.7%12.6%8.8%
90 Day-9.0%16.1%10.8%
1 Year51.0%49.3%35.1%32.1%25.1%22.3%
3 Year79.6%67.9%32.6%23.9%49.5%39.6%
5 Year235.9%210.7%163.3%138.3%105.8%83.3%

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?

13.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NEM ($59.44) is trading below our estimate of fair value ($68.87)

Significantly Below Fair Value: NEM is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: NEM is poor value based on its PE Ratio (20x) compared to the US Metals and Mining industry average (19.5x).

PE vs Market: NEM is poor value based on its PE Ratio (20x) compared to the US market (19.4x).


Price to Earnings Growth Ratio

PEG Ratio: NEM is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: NEM is overvalued based on its PB Ratio (2.1x) compared to the US Metals and Mining industry average (1.6x).


Next Steps

Future Growth

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

7.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NEM's forecast earnings growth (7.4% per year) is above the savings rate (2.2%).

Earnings vs Market: NEM's earnings (7.4% per year) are forecast to grow slower than the US market (21.9% per year).

High Growth Earnings: NEM's earnings are forecast to grow, but not significantly.

Revenue vs Market: NEM's revenue (4.5% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: NEM's revenue (4.5% 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 (12.6%).


Next Steps

Past Performance

How has Newmont performed over the past 5 years?

78.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NEM has high quality earnings.

Growing Profit Margin: NEM's current net profit margins (21.6%) are lower than last year (26.5%).


Past Earnings Growth Analysis

Earnings Trend: NEM's earnings have grown significantly by 78.4% per year over the past 5 years.

Accelerating Growth: NEM's earnings growth over the past year (2.3%) is below its 5-year average (78.4% per year).

Earnings vs Industry: NEM earnings growth over the past year (2.3%) exceeded the Metals and Mining industry -12.4%.


Return on Equity

High ROE: NEM's Return on Equity (10.2%) is considered low.


Next Steps

Financial Health

How is Newmont's financial position?


Financial Position Analysis

Short Term Liabilities: NEM's short term assets ($7.7B) exceed its short term liabilities ($2.7B).

Long Term Liabilities: NEM's short term assets ($7.7B) do not cover its long term liabilities ($14.2B).


Debt to Equity History and Analysis

Debt Level: NEM's debt to equity ratio (25.5%) is considered satisfactory.

Reducing Debt: NEM's debt to equity ratio has reduced from 43.5% to 25.5% over the past 5 years.

Debt Coverage: NEM's debt is well covered by operating cash flow (73%).

Interest Coverage: NEM's interest payments on its debt are well covered by EBIT (10x coverage).


Balance Sheet


Next Steps

Dividend

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

2.69%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: NEM's dividend (2.69%) is higher than the bottom 25% of dividend payers in the US market (1.49%).

High Dividend: NEM's dividend (2.69%) is low compared to the top 25% of dividend payers in the US market (4.1%).


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 (35%), 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 well covered by earnings (39.9% payout ratio).


Next Steps

Management

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

3.1yrs

Average management tenure


CEO

Tom Palmer (52 yo)

1.17yrs

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 ($USD7.33M) is below average for companies of similar size in the US market ($USD10.98M).

Compensation vs Earnings: Tom's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Thomas Palmer
President1.17yrsUS$7.33m0.022%
$ 10.6m
Nancy Buese
Executive VP & CFO4.17yrsUS$4.82m0.0075%
$ 3.6m
Robert Atkinson
Executive VP & COO1.5yrsUS$4.92m0.011%
$ 5.2m
Randy Engel
Executive Vice President of Strategic Development12.17yrsUS$5.86m0.034%
$ 16.3m
Stephen Gottesfeld
Executive VP and Chief Sustainability & External Affairs Officer10.92yrsUS$4.09m0.015%
$ 7.3m
David McLaren
Vice President of Investments & Value Management3.08yrsno datano data
John Kitlen
VP, Controller & Chief Accounting Officer4.5yrsno data0.0045%
$ 2.1m
Dean Gehring
Executive VP & CTO1.5yrsno data0.0019%
$ 911.8k
Luis Canepari
VP & Chief Information Officer1.67yrsno datano data
Jessica Largent
Vice President of Investor Relations3.08yrsno datano data
Nancy Lipson
Executive VP & General Counsel1.5yrsno data0.0043%
$ 2.1m
Scott Sullivan
Chief Integrity & Compliance Officerno datano datano data

3.1yrs

Average Tenure

52yo

Average Age

Experienced Management: NEM's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Thomas Palmer
President1.17yrsUS$7.33m0.022%
$ 10.6m
Maura Clark
Independent Director0.67yrno data0.00032%
$ 153.6k
Susan Story
Non Executive Director0.25yrno data0.00018%
$ 86.4k
Noreen Doyle
Independent Non-Executive Chairman of the Board4.67yrsUS$605.00k0.0066%
$ 3.2m
Veronica Hagen
Senior Independent Director3.92yrsUS$322.00k0.0066%
$ 3.2m
Bruce Brook
Independent Director9.92yrsUS$325.95k0.0031%
$ 1.5m
Gregory Boyce
Independent Vice Chairman0.67yrUS$297.00k0.0035%
$ 1.7m
René Médori
Independent Director2.67yrsUS$287.00k0.0014%
$ 667.1k
Julio Quintana
Independent Director5.17yrsUS$287.00k0.0035%
$ 1.7m
Matthew Coon-Come
Independent Director1.5yrsUS$222.50k0.00039%
$ 187.2k
Jane Nelson
Independent Director9.92yrsUS$305.75k0.0051%
$ 2.4m

2.7yrs

Average Tenure

63yo

Average Age

Experienced Board: NEM's board of directors are not considered experienced ( 2.7 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$47.992b
  • Shares outstanding: 806.45m
  • 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

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, copper, silver, zinc, and lead. The company has operations and/or assets in the United States, Canada, Mexico, Dominican Republic, Per...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/04 23:01
End of Day Share Price2020/12/04 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.