NEWMONT MINING CORP's gross profit margin for the third quarter of its fiscal year 2014 has significantly decreased when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. NEWMONT MINING CORP has weak liquidity. Currently, the Quick Ratio is 0.94 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.
During the same period, stockholders' equity ("net worth") has decreased by 9.98% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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|Income Statement||Q3 FY14||Q3 FY13|
|Net Sales ($mil)||1746.0||2020.0|
|Net Income ($mil)||213.0||398.0|
|Balance Sheet||Q3 FY14||Q3 FY13|
|Cash & Equiv. ($mil)||1860.0||1566.0|
|Total Assets ($mil)||25121.0||26799.0|
|Total Debt ($mil)||6773.0||6536.0|
|Profitability||Q3 FY14||Q3 FY13|
|Gross Profit Margin||29.61||43.32|
|Return on Assets||-2.67||-2.51|
|Return on Equity||-6.4||-6.54|
|Debt||Q3 FY14||Q3 FY13|
|Share Data||Q3 FY14||Q3 FY13|
|Shares outstanding (mil)||498.8||497.87|
|Div / share||0.03||0.25|
|Book value / share||20.81||23.16|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||8916837.0||6050011.0|
SELL. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. Conducting a second comparison, its price-to-book ratio of 0.94 indicates a significant discount versus the S&P 500 average of 2.73 and a discount versus the industry average of 1.59. The price-to-sales ratio is below the S&P 500 average and is well below the industry average, indicating a discount. After reviewing these and other key valuation criteria, NEWMONT MINING CORP proves to trade at a discount to investment alternatives within the industry.
|NEM NM||Peers 23.16||NEM 7.73||Peers 9.34|
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.
NEM's P/E is negative making this valuation measure meaningless.
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
NEM is trading at a discount to its peers.
|NEM 18.12||Peers 18.67||NEM NA||Peers 0.57|
Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.
NEM is trading at a valuation on par with its peers.
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
Ratio not available.
|NEM 0.94||Peers 1.59||NEM 13.16||Peers -91.45|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
NEM is trading at a significant discount to its peers.
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
NEM is expected to have an earnings growth rate that significantly exceeds its peers.
|NEM 1.31||Peers 2.37||NEM -14.46||Peers 1096.72|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
NEM is trading at a significant discount to its industry on this measurement.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
NEM significantly trails its peers on the basis of sales growth
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