NYSE:NEM

Stock Analysis Report

Executive Summary

Newmont Goldcorp Corporation, together with its subsidiaries, operates in the mining industry.

Snowflake

Fundamentals

Excellent balance sheet average dividend payer.


Similar Companies

Share Price & News

How has Newmont Goldcorp'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

2.9%

NEM

0.7%

US Metals and Mining

0.9%

US Market


1 Year Return

14.5%

NEM

3.3%

US Metals and Mining

16.8%

US Market

Return vs Industry: NEM exceeded the US Metals and Mining industry which returned 3.3% over the past year.

Return vs Market: NEM underperformed the US Market which returned 16.8% over the past year.


Shareholder returns

NEMIndustryMarket
7 Day2.9%0.7%0.9%
30 Day1.3%6.3%4.5%
90 Day-0.05%9.6%6.2%
1 Year19.3%14.5%6.5%3.3%19.4%16.8%
3 Year29.8%22.1%0.2%-5.0%47.5%38.0%
5 Year111.2%97.0%6.7%-1.7%62.0%44.1%

Price Volatility Vs. Market

How volatile is Newmont Goldcorp's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Newmont Goldcorp undervalued compared to its fair value and its price relative to the market?

23.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NEM ($38.47) is trading below our estimate of fair value ($50.06)

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 good value based on its PE Ratio (10.9x) compared to the Metals and Mining industry average (11.8x).

PE vs Market: NEM is good value based on its PE Ratio (10.9x) compared to the US market (18.2x).


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 (1.5x) compared to the US Metals and Mining industry average (1.3x).


Next Steps

Future Growth

How is Newmont Goldcorp forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

-10.1%

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 (-10.1% per year).

Earnings vs Market: NEM's earnings are forecast to decline over the next 3 years (-10.1% per year).

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

Revenue vs Market: NEM's revenue (10.3% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: NEM's revenue (10.3% 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 (8.7%).


Next Steps

Past Performance

How has Newmont Goldcorp performed over the past 5 years?

30.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NEM has large one-off items impacting its financial results.

Growing Profit Margin: NEM became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: NEM has become profitable over the past 5 years, growing earnings by 30% per year.

Accelerating Growth: NEM has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: NEM has become profitable in the last year, making it difficult to compare its past year earnings growth to the Metals and Mining industry (0.7%).


Return on Equity

High ROE: NEM's Return on Equity (10.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Newmont Goldcorp's financial position?


Financial Position Analysis

Short Term Liabilities: NEM's short term assets ($5.7B) exceeds its short term liabilities ($2.6B)

Long Term Liabilities: NEM's short term assets ($5.7B) do not cover its long term liabilities (15.7B)


Debt to Equity History and Analysis

Debt Level: NEM's debt to equity ratio (30.1%) is considered satisfactory.

Reducing Debt: NEM's debt to equity ratio has reduced from 51.6% to 30.1% over the past 5 years.

Debt Coverage: NEM's debt is well covered by operating cash flow (35.5%).

Interest Coverage: NEM's interest payments on its debt are well covered by EBIT (7.3x coverage).


Balance Sheet

Inventory Level: NEM has a high level of physical assets or inventory.

Debt Coverage by Assets: NEM's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

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

1.46%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Newmont Goldcorp before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.5%marketbottom25%1.4%markettop25%3.7%industryaverage2.4%forecastin3Years1.5%

Current dividend yield vs market & industry

Notable Dividend: NEM's dividend (1.46%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: NEM's dividend (1.46%) is low compared to the top 25% of dividend payers in the US market (3.68%).


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 (15.9%), 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 (26.2% payout ratio).


Next Steps

Management

What is the CEO of Newmont Goldcorp's salary, the management and board of directors tenure and is there insider trading?

1.3yrs

Average management tenure


CEO

Tom Palmer (51yo)

0.08yrs

Tenure

US$4,984,613

Compensation

Mr. Thomas Ronald Palmer, also known as Tom, has been Chief Executive Officer and Director of Newmont Goldcorp Corporation since October 1, 2019 and is its President since November 2018. Mr. Palmer serves  ...


CEO Compensation Analysis

Compensation vs Market: Tom's total compensation ($USD4.98M) is below average for companies of similar size in the US market ($USD11.07M).

Compensation vs Earnings: Tom's compensation has been consistent with company performance over the past year.


Management Age and Tenure

1.3yrs

Average Tenure

55yo

Average Age

Experienced Management: NEM's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Age and Tenure

4.1yrs

Average Tenure

63yo

Average Age

Experienced Board: NEM's board of directors are considered experienced (4.1 years average tenure).


Insider Trading

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 24.6%.


Management Team

  • Gary Goldberg (60yo)

    Executive Advisor

    • Tenure: 0.08yrs
    • Compensation: US$11.39m
  • John Kitlen (55yo)

    VP, Controller & Chief Accounting Officer

    • Tenure: 3.4yrs
  • Tom Palmer (51yo)

    President

    • Tenure: 0.08yrs
    • Compensation: US$4.98m
  • Nancy Buese (49yo)

    Executive VP & CFO

    • Tenure: 3.1yrs
    • Compensation: US$4.42m
  • Randy Engel (52yo)

    Executive Vice President of Strategic Development

    • Tenure: 11.1yrs
    • Compensation: US$3.46m
  • Rob Atkinson

    Executive VP & COO

    • Tenure: 0.4yrs
  • Scott Lawson (57yo)

    Executive VP & Chief Integration Officer

    • Tenure: 3.5yrs
    • Compensation: US$2.93m
  • Luis Canepari

    VP & Chief Information Officer

    • Tenure: 0.6yrs
  • Dean Gehring

    Executive VP & CTO

    • Tenure: 0.4yrs
  • David McLaren (59yo)

    Vice President of Investments & Value Management

    • Tenure: 2yrs

Board Members

  • Noreen Doyle (70yo)

    Non-Executive Chairman of the Board

    • Tenure: 3.6yrs
    • Compensation: US$615.00k
  • Ronee Hagen (73yo)

    Independent Director

    • Tenure: 14.1yrs
    • Compensation: US$322.00k
  • Bruce Brook (64yo)

    Independent Director

    • Tenure: 8.8yrs
    • Compensation: US$325.37k
  • Greg Boyce (65yo)

    Independent Director

    • Tenure: 4.1yrs
    • Compensation: US$302.00k
  • René Médori (62yo)

    Independent Director

    • Tenure: 1.6yrs
    • Compensation: US$246.88k
  • Julio Quintana (59yo)

    Independent Director

    • Tenure: 4.1yrs
    • Compensation: US$287.00k
  • Jude Bucknor (64yo)

    Independent Director

    • Tenure: 7.8yrs
    • Compensation: US$287.00k
  • Tom Palmer (51yo)

    President

    • Tenure: 0.08yrs
    • Compensation: US$4.98m
  • Jane Nelson (58yo)

    Independent Director

    • Tenure: 8.8yrs
    • Compensation: US$298.00k
  • Sheri Hickok (41yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$285.00k

Company Information

Newmont Goldcorp Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Newmont Goldcorp Corporation
  • Ticker: NEM
  • Exchange: NYSE
  • Founded: 1916
  • Industry: Gold
  • Sector: Materials
  • Market Cap: US$31.539b
  • Shares outstanding: 819.84m
  • Website: https://www.newmontgoldcorp.com

Number of Employees


Location

  • Newmont Goldcorp 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
NMMDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1968
NEMSWX (SIX Swiss Exchange)YesCommon SharesCHCHFJan 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
NGTTSX (The Toronto Stock Exchange)YesCommon SharesCACADJan 1968
NEMBASE (Buenos Aires Stock Exchange)CEDEAR EACH REPR 1 COM USD1.60ARARSJan 2004

Biography

Newmont Goldcorp Corporation, together with its subsidiaries, operates in the mining industry. The company primarily acquires, develops, explores for, and produces gold, copper, and silver. Its operations  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/20 23:41
End of Day Share Price2019/11/20 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.