Newmont
Market Cap
US$45.7b
Last Updated
2021/02/24 23:29 UTC
Data Sources
Company Financials +
Executive Summary
Newmont Corporation engages in the production and exploration of gold. More Details
Rewards
Risk Analysis
Earnings are forecast to decline by an average of 2.9% per year for the next 3 years
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
| NEM | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.2% | 6.6% | -2.5% |
| 30 Day | -7.4% | 9.5% | 0.1% |
| 90 Day | -1.2% | 24.5% | 4.5% |
| 1 Year | 17.6%15.5% | 73.6%69.5% | 37.1%34.1% |
| 3 Year | 60.9%49.4% | 37.5%28.1% | 58.0%47.9% |
| 5 Year | 136.7%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
2 years ago | Simply Wall St
How Much Did Newmont Mining Corporation's (NYSE:NEM) CEO Pocket Last Year?2 years ago | Simply Wall St
Could The Newmont Mining Corporation (NYSE:NEM) Ownership Structure Tell Us Something Useful?2 years 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?
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 1.33yrs | US$7.33m | 0.020% $ 9.3m | |
| Executive VP & CFO | 4.33yrs | US$4.82m | 0.0062% $ 2.8m | |
| Executive VP & COO | 1.67yrs | US$4.92m | 0.010% $ 4.7m | |
| Executive Vice President of Strategic Development | 12.33yrs | US$5.86m | 0.032% $ 14.8m | |
| Executive VP and Chief Sustainability & External Affairs Officer | 11.08yrs | US$4.09m | 0.015% $ 7.0m | |
| Vice President of Investments & Value Management | 3.25yrs | no data | no data | |
| VP, Controller & Chief Accounting Officer | 4.67yrs | no data | 0.0037% $ 1.7m | |
| Executive VP & CTO | 1.67yrs | no data | 0.0019% $ 872.5k | |
| VP & Chief Information Officer | 1.83yrs | no data | no data | |
| Executive VP & General Counsel | 1.67yrs | no data | 0.0043% $ 2.0m | |
| Chief Integrity & Compliance Officer | no data | no data | no data | |
| Vice President of Investor Relations & Corporate Communications | no data | no data | no data |
2.5yrs
Average Tenure
52yo
Average Age
Experienced Management: NEM's management team is considered experienced (2.5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 1.33yrs | US$7.33m | 0.020% $ 9.3m | |
| Independent Director | 0.83yr | no data | 0.00033% $ 150.8k | |
| Non Executive Director | 0.42yr | no data | 0.00019% $ 86.8k | |
| Independent Non-Executive Chairman of the Board | 4.83yrs | US$605.00k | 0.0066% $ 3.0m | |
| Senior Independent Director | 4.08yrs | US$322.00k | 0.0066% $ 3.0m | |
| Independent Director | 10.08yrs | US$325.95k | 0.0031% $ 1.4m | |
| Independent Vice Chairman | 0.83yr | US$297.00k | 0.0035% $ 1.6m | |
| Independent Director | 2.83yrs | US$287.00k | 0.0014% $ 639.5k | |
| Independent Director | 5.33yrs | US$287.00k | 0.0035% $ 1.6m | |
| Independent Director | 1.67yrs | US$222.50k | 0.00040% $ 182.7k | |
| Independent Director | 10.08yrs | US$305.75k | 0.0051% $ 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| NEM | NYSE (New York Stock Exchange) | Yes | Common Shares | US | USD | Jan 1968 |
| NEM | BVL (Bolsa de Valores de Lima) | Yes | Common Shares | PE | USD | Jan 1968 |
| NMM | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | 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 3 REP 1 | 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. 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 | 2021/02/24 23:29 |
| End of Day Share Price | 2021/02/24 00:00 |
| Earnings | 2020/12/31 |
| 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.