Essential Facts About Newmont

Newmont shares fell by -2.4% during the day's morning session, and are now trading at a price of $42.79. Is it time to buy the dip? To better answer that question, it's essential to check if the market is valuing the company's shares fairly in terms of its earnings and equity levels.

Newmont's Valuation Is in Line With Its Sector Averages:

Newmont Corporation engages in the production and exploration of gold. The company belongs to the Basic Materials sector, which has an average price to earnings (P/E) ratio of 10.03 and an average price to book (P/B) ratio of 2.08. In contrast, Newmont has a trailing 12 month P/E ratio of -61.1 and a P/B ratio of 1.75.

Newmont has moved -32.7% over the last year compared to 17.1% for the S&P 500 — a difference of -50.0%. Newmont has a 52 week high of $66.24 and a 52 week low of $37.45.

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 Expense (MM) -301 -308 -274 -227
Net Interest Expense (MM) -$301 -$308 -$274 -$227
Depreciation & Amort. (MM) -$1,960 -$2,300 -$2,323 -$2,185
Earnings Per Share $3.81 $3.51 $1.46 -$0.7
EPS Growth n/a -7.87% -58.4% -147.95%
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.

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.