Newmont Mining Corp

Find Ratings Reports
NEM : NYSE : Basic Materials
$38.11 up 0.33 | 0.87%
Today's Range: 37.75 - 38.15
Avg. Daily Volume: 4766200.0
09/19/17 - 3:59 PM ET

Financial Analysis


NEWMONT MINING CORP's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not. NEWMONT MINING CORP is extremely liquid. Currently, the Quick Ratio is 2.23 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 4.33% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)1875.01669.0
EBITDA ($mil)725.0620.0
EBIT ($mil)373.0318.0
Net Income ($mil)177.023.0


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)3166.02965.0
Total Assets ($mil)21142.024703.0
Total Debt ($mil)4623.05571.0
Equity ($mil)10928.011423.0


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin46.1945.78
EBITDA Margin38.6637.14
Operating Margin19.8919.05
Sales Turnover0.340.25
Return on Assets-2.260.16
Return on Equity0.35-1.0
Debt Q2 FY17 Q2 FY16
Current Ratio3.243.89
Debt/Capital0.30.33
Interest Expense69.075.0
Interest Coverage5.414.24


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)533.27530.6
Div / share0.050.03
EPS0.360.02
Book value / share20.4921.53
Institutional Own % n/a n/a
Avg Daily Volume4955852.05616346.0

Valuation


HOLD. NEWMONT MINING CORP's P/E ratio indicates a significant premium compared to an average of 40.62 for the Metals & Mining industry and a significant premium compared to the S&P 500 average of 24.88. For additional comparison, its price-to-book ratio of 1.86 indicates a discount versus the S&P 500 average of 3.10 and a discount versus the industry average of 1.90. The current price-to-sales ratio is well above the S&P 500 average, but below the industry average.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
NEM 475.75 Peers 40.62   NEM 8.48 Peers 11.98

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

NEM is trading at a significant premium to its peers.

 

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 significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
NEM 29.62 Peers 27.51   NEM NM Peers 0.62

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.

NEM's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
NEM 1.86 Peers 1.90   NEM 133.33 Peers 1398.57

Average. 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 valuation on par with its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, NEM is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
NEM 2.85 Peers 3.07   NEM 15.80 Peers 23.20

Average. 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 valuation on par with 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

 

 

Latest Stock Upgrades/Downgrades