Newmont logged a 2.1% change during today's afternoon session, and is now trading at a price of $72.56 per share.
Newmont returned gains of 34.9% last year, with its stock price reaching a high of $72.57 and a low of $36.86. Over the same period, the stock outperformed the S&P 500 index by 20.5%. More recently, the company's 50-day average price was $62.68. Newmont Corporation engages in the production and exploration of gold properties. Based in Denver, CO, the Large-Cap Basic Materials company has 22,200 full time employees. Newmont has offered a 1.4% dividend yield over the last 12 months.
Increasing Revenues but Narrowing Margins:
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $9,740 | $11,497 | $12,222 | $11,915 | $11,812 | $18,682 |
| Operating Margins | 38% | 27% | 9% | 0% | -17% | 24% |
| Net Margins | 28% | 25% | 10% | -4% | -21% | 18% |
| Net Income (M) | $2,805 | $2,829 | $1,166 | -$429 | -$2,494 | $3,348 |
| Net Interest Expense (M) | -$301 | -$308 | -$274 | -$227 | -$243 | -$375 |
| Depreciation & Amort. (M) | $1,960 | $2,300 | $2,323 | $2,185 | $2,108 | $2,576 |
| Diluted Shares (M) | 820 | 806 | 801 | 795 | 841 | 1,148 |
| Earnings Per Share | $3.81 | $3.51 | $1.46 | -$0.54 | -$2.97 | $2.92 |
| EPS Growth | n/a | -7.87% | -58.4% | -136.99% | -450.0% | 198.32% |
| Avg. Price | $32.07 | $52.03 | $55.97 | $65.3 | $41.39 | $72.4 |
| P/E Ratio | 8.4 | 14.78 | 38.34 | -120.93 | -13.94 | 24.79 |
| Free Cash Flow (M) | $1,403 | $3,580 | $2,626 | $1,089 | $97 | $2,961 |
| CAPEX (M) | $1,463 | $1,302 | $1,653 | $2,131 | $2,666 | $3,402 |
| EV / EBITDA | 3.72 | 7.82 | 13.27 | 25.51 | 502.95 | 12.34 |
| Total Debt (M) | $6,166 | $6,080 | $5,711 | $5,571 | $8,874 | $8,476 |
| Net Debt / EBITDA | 0.69 | 0.1 | 0.21 | 1.26 | 76.26 | 0.68 |
| Current Ratio | 2.63 | 2.52 | 2.9 | 2.23 | 1.25 | 1.63 |
Newmont has rapidly growing revenues and increasing reinvestment in the business, generally positive cash flows, and a decent current ratio of 1.63. However, the firm suffers from declining EPS growth and a highly leveraged balance sheet. Finally, we note that Newmont has decent operating margins with a negative growth trend.
a Decline in Expected Earnings Clouds Its Value Outlook but Trading Above Its Fair Price:
Newmont has a trailing twelve month P/E ratio of 11.4, compared to an average of 20.25 for the Basic Materials sector. Based on its EPS guidance of $3.83, the company has a forward P/E ratio of 16.4. The 0.1% compound average growth rate of Newmont's historical and projected earnings per share yields a PEG ratio of 151.76. This suggests that these shares are overvalued. The market is placing a fair value on Newmont's equity, since its P/B ratio of 2.49 is comparable to its sector average of 2.31. The company's shares are currently trading 75.3% below their Graham number.
There's an Analyst Consensus of Little Upside Potential for Newmont:
The 19 analysts following Newmont have set target prices ranging from $58.0 to $87.0 per share, for an average of $72.33 with a buy rating. The company is trading 0.3% away from its average target price, indicating that there is an analyst consensus of little upside potential.
Newmont has an average amount of shares sold short because 2.3% of the company's shares are sold short. Institutions own 80.0% of the company's shares, and the insider ownership rate stands at 0.26%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 12% stake in the company is worth $9,793,066,673.
