Newmont Mining Corp

Find Ratings Reports
NEM : NYSE : Basic Materials
$33.9 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 5287500.0
07/24/17 - 4:02 PM ET

Financial Analysis


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.

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 Q1 FY17 Q1 FY16
Net Sales ($mil)1659.01462.0
EBITDA ($mil)601.0496.0
EBIT ($mil)278.0199.0
Net Income ($mil)46.052.0


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)2970.02503.0
Total Assets ($mil)20969.024553.0
Total Debt ($mil)4621.05704.0
Equity ($mil)10755.011349.0


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin43.2841.45
EBITDA Margin36.2233.92
Operating Margin16.7613.61
Sales Turnover0.330.23
Return on Assets-3.010.36
Return on Equity-1.29-1.65
Debt Q1 FY17 Q1 FY16
Current Ratio3.093.28
Debt/Capital0.30.33
Interest Expense70.084.0
Interest Coverage3.972.37


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)533.23530.53
Div / share0.050.03
EPS0.13-0.02
Book value / share20.1721.39
Institutional Own % n/a n/a
Avg Daily Volume5324727.06216853.0

Valuation


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 1.68 indicates a discount versus the S&P 500 average of 3.07 and a discount versus the industry average of 1.77. 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.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
NEM NM Peers 27.90   NEM 6.83 Peers 10.76

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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
NEM 28.50 Peers 22.07   NEM NA Peers 1.19

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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
NEM 1.68 Peers 1.77   NEM 32.44 Peers 291.81

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 2.62 Peers 2.74   NEM 23.91 Peers 10.83

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.

 

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.

 

 

Latest Stock Upgrades/Downgrades