What Are the Fundamentals Of NEM?

Newmont logged a 0.2% change during today's morning session, and is now trading at a price of $47.96 per share.

Newmont shares moved -35.7% over the last 52 weeks, with a high of $75.66 and a low of $37.45. During this time, the stock lagged the S&P 500 index by -32.0%. As of January 2022, the company's 50-day average price is $46.93. Newmont Corporation engages in the production and exploration of gold. The large-cap Basic Materials company has 14,600 full time employees and is based in Denver, CO. Newmont has returned a 4.3% dividend yield over the last 12 months.

Snapshot of the Company's Decent Operating Margins:

2019-12-31 2020-12-31 2021-12-31 2022-12-31
Revenue (MM) $9,740 $11,497 $12,222 $11,915
Revenue Growth n/a 18.04% 6.31% -2.51%
Gross Margins 26.5% 36.4% 36.5% 27.4%
Gross Margins Growth n/a 37.36% 0.27% -24.93%
Operating Margins 16.2% 26.6% 16.3% 13.5%
Operating Margins Growth n/a 64.2% -38.72% -17.18%
Net Margins 28.8% 24.61% 9.54% -3.6%
Net Margins Growth n/a -14.55% -61.24% -137.74%
Earnings Per Share $3.81 $3.51 $1.46 -$0.58
EPS Growth n/a -7.87% -58.4% -139.73%
Diluted Shares (MM) 737 806 801 795
Free Cash Flow (MM) $1,403 $3,580 $2,626 $1,089
FCF Growth n/a 155.17% -26.65% -58.53%
Capital Expenditures (MM) -$1,463 -$1,302 -$1,653 -$2,131
Net Debt / EBITDA 0.68 0.1 0.16 1.14

Newmont has negative earnings for the current period, so its trailing twelve month P/E ratio is not meaningful. But based on its EPS guidance of 3.05, the company has a forward P/E ratio of 15.7. In contrast, the Basic Materials sector's average P/E ratio is 10.03.

On the other hand, Newmont is possibly undervalued in terms of its net assets because its P/B ratio is 2.0 compared to its sector average of 2.08.

Newmont Is the Subject of Mixed Market Indicators:

3 analysts are following Newmont and have set target prices ranging from $55.03 to $86.05 per share. On average, they have given the company a rating of buy. At the current price of $47.96, NEM is trading -35.62% away from its average analyst target price of $74.5 per share, implying an analyst consensus of strong upside potential for the stock.

The company has an average amount of shares sold short since 2.6% of the company's shares are tied to short positions. Institutions own 81.6% of Newmont's shares, while the insider ownership rate stands at 0.11%. The biggest shareholder is Blackrock Inc. with a 12% stake in the company worth approximately $4,418,306,330.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.