I’ve been keeping an eye on Newmont Mining Corporation (NYSE:NEM) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe NEM has a lot to offer. Basically, it is a company with great financial health as well as a a strong history of performance. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Newmont Mining here.
Excellent balance sheet with proven track record
In the past couple of years, NEM has ramped up its bottom line by over 100%, with its latest earnings level surpassing its average level over the last five years. Not only did NEM outperformed its past performance, its growth also exceeded the Metals and Mining industry expansion, which generated a 92% earnings growth. This is an notable feat for the company. NEM’s strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This indicates that NEM has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. NEM seems to have put its debt to good use, generating operating cash levels of 0.51x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
For Newmont Mining, there are three key factors you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for NEM’s future growth? Take a look at our free research report of analyst consensus for NEM’s outlook.
- Valuation: What is NEM worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether NEM is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of NEM? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.