Newmont Mining CorpFind Ratings Reports
NEWMONT MINING CORP's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. NEWMONT MINING CORP has strong liquidity. Currently, the Quick Ratio is 1.96 which shows the ability to cover 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 decreased by 5.23% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.
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|Income Statement||Q1 FY17||Q1 FY16|
|Net Sales ($mil)||1659.0||1462.0|
|Net Income ($mil)||46.0||52.0|
|Balance Sheet||Q1 FY17||Q1 FY16|
|Cash & Equiv. ($mil)||2970.0||2503.0|
|Total Assets ($mil)||20969.0||24553.0|
|Total Debt ($mil)||4621.0||5704.0|
|Profitability||Q1 FY17||Q1 FY16|
|Gross Profit Margin||43.28||41.45|
|Return on Assets||-3.01||0.36|
|Return on Equity||-1.29||-1.65|
|Debt||Q1 FY17||Q1 FY16|
|Share Data||Q1 FY17||Q1 FY16|
|Shares outstanding (mil)||533.23||530.53|
|Div / share||0.05||0.03|
|Book value / share||20.17||21.39|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||6355739.0||7501235.0|
HOLD. 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. For additional comparison, its price-to-book ratio of 1.65 indicates a discount versus the S&P 500 average of 3.00 and a discount versus the industry average of 1.74. The current price-to-sales ratio is well above the S&P 500 average, but below the industry average. 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 34.90||NEM 6.71||Peers 11.46|
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 significant discount to its peers.
|NEM 27.99||Peers 20.68||NEM NA||Peers 1.29|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.
NEM is trading at a significant premium to 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 1.65||Peers 1.74||NEM 32.44||Peers 242.77|
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.
|NEM 2.57||Peers 2.94||NEM 23.91||Peers 6.23|
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 discount to its industry on this measurement.
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.
NEM has a sales growth rate that significantly exceeds its peers.