What Are the Fundamentals Of NEM?

Now trading at a price of $41.75, Newmont has moved -0.4% so far today.

Newmont returned losses of -38.7% last year, with its stock price reaching a high of $68.57 and a low of $37.45. Over the same period, the stock underperformed the S&P 500 index by -41.0%. As of April 2023, the company's 50-day average price was $46.9. Newmont Corporation engages in the production and exploration of gold. Based in Denver, CO, the large-cap Basic Materials company has 14,600 full time employees. Newmont has offered a 4.5% dividend yield over the last 12 months.

Growing Revenues With Increasing Reinvestment in the Business:

2019-12-31 2020-12-31 2021-12-31 2022-12-31
Revenue (MM) $9,740 $11,497 $12,222 $11,915
Gross Margins 26.5% 36.4% 36.5% 27.4%
Operating Margins 16.2% 26.6% 16.3% 13.5%
Net Margins 28.8% 24.61% 9.54% -3.6%
Net Income (MM) $2,805 $2,829 $1,166 -$429
Net Interest Income -$301,000 -$308,000 -$274,000 -$227,000
Depreciation & Amort. -$1,960,000 -$2,300,000 -$2,323,000 -$2,185,000
Earnings Per Share $3.81 $3.51 $1.46 -$0.69
EPS Growth n/a -7.87% -58.4% -147.26%
Diluted Shares (MM) 737 806 801 795
Free Cash Flow (MM) $1,403 $3,580 $2,626 $1,089
Capital Expenditures (MM) -$1,463 -$1,302 -$1,653 -$2,131
Net Current Assets (MM) -$11,285 -$8,985 -$11,007 -$12,434
Current Ratio 2.63 2.52 2.9 2.23
Long Term Debt (MM) $6,138 $5,480 $5,565 $5,571
Net Debt / EBITDA 0.68 0.1 0.16 1.14

Newmont benefits from growing revenues and increasing reinvestment in the business, an excellent current ratio, and decent operating margins with a stable trend. The company's financial statements show generally positive cash flows and healthy leverage. However, the firm suffers from slimmer gross margins than its peers and declining EPS growth.

Newmont does not have a meaningful trailing P/E ratio since its earnings per share are currently in the red. Based on its EPS guidance of $3.56, the company has a forward P/E ratio of 13.2. In comparison, the average P/E ratio for the Basic Materials sector is 10.03. On the other hand, the market is undervaluing Newmont in terms of its equity because its P/B ratio is 1.71. In comparison, the sector average is 2.08.

Newmont Has an Average Rating of Hold:

The 3 analysts following Newmont have set target prices ranging from $57.39 to $93.0 per share, for an average of $77.31 with a hold rating. As of April 2023, the company is trading -39.3% away from its average target price, indicating that there is an analyst consensus of strong upside potential.

Newmont has an average amount of shares sold short because 2.4% of the company's shares are sold short. Institutions own 81.6% of the company's shares, and the insider ownership rate stands at 0.11%, suggesting a small amount of insider investors. The largest shareholder is Blackrock Inc., whose 12% stake in the company is worth $3,967,250,330.

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.