Now trading at a price of $40.38, Newmont has moved -0.7% so far today.
Newmont returned losses of -8.0% last year, with its stock price reaching a high of $55.41 and a low of $37.45. Over the same period, the stock underperformed the S&P 500 index by -18.0%. As of April 2023, the company's 50-day average price was $42.57. 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 4.3% dividend yield over the last 12 months.
Increasing Revenues but Narrowing Margins:
|Net Income (MM)||$2,829||$1,166||-$429|
|Net Interest Expense (MM)||-$308||-$274||-$227|
|Depreciation & Amort. (MM)||-$2,300||-$2,323||-$2,185|
|Earnings Per Share||$3.51||$1.46||-$0.7|
|Diluted Shares (MM)||806||800||795|
|Free Cash Flow (MM)||$6,184||$5,932||$5,351|
|Capital Expenditures (MM)||-$1,302||-$1,653||-$2,131|
|Net Current Assets (MM)||-$8,985||-$11,007||-$12,434|
|Long Term Debt (MM)||$7,038||$6,475||$6,399|
|Net Debt / EBITDA||0.46||0.63||2.37|
Newmont has stable revenues and increasing reinvestment in the business, a steady stream of strong cash flows, and an excellent current ratio. The company also benefits from wider gross margins than its peer group, decent operating margins with a negative growth trend, and healthy leverage. However, the firm has 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 $3.35, the company has a forward P/E ratio of 12.7. 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 1.67. In comparison, the sector average is 2.08. In conclusion, Newmont's impressive cash flow trend, decent P/B ratio, and reasonable use of leverage demonstrate that the company may still be fairly valued — despite its elevated earnings multiple.
Newmont Has an Average Rating of Hold:
The 3 analysts following Newmont have set target prices ranging from $53.45 to $94.43 per share, for an average of $76.89 with a hold rating. As of April 2023, the company is trading -44.6% 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 3.4% of the company's shares are sold short. Institutions own 82.1% 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 $3,836,592,385.