Newmont logged a -0.1% change during today's afternoon session, and is now trading at a price of $38.8 per share.
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 -23.0%. As of April 2023, the company's 50-day average price was $40.97. 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.
Shareholders Are Confronted With a Declining EPS Growth Trend:
2021-02-18 | 2022-02-24 | 2023-02-23 | |
---|---|---|---|
Revenue (MM) | $11,497 | $12,222 | $11,915 |
Gross Margins | 56.0% | 56.0% | 46.0% |
Operating Margins | 28% | 16% | 13% |
Net Margins | 25.0% | 10.0% | -4.0% |
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 | -$0.54 |
EPS Growth | n/a | -58.4% | -136.99% |
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 | 0.34 | 0.39 | 0.95 |
Newmont has an excellent current ratio and wider gross margins than its peer group. Additionally, the company's financial statements display decent operating margins with a negative growth trend and healthy leverage. However, the firm has declining EPS growth. Finally, we note that Newmont has weak revenue growth and a flat capital expenditure trend and irregular cash flows.
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 $3.54, the company has a forward P/E ratio of 11.6. 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 1.6. 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 $52.98 to $93.61 per share, for an average of $76.22 with a hold rating. As of April 2023, the company is trading -46.2% 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 4.0% 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 13% stake in the company is worth $3,858,028,686.