Newmont Mining Corp

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NEM : NYSE : Basic Materials
$33.58 | %
Today's Range: 32.15 - 33.67
Avg. Daily Volume: 7574400.0
12/02/16 - 4:01 PM ET

Financial Analysis


NEWMONT MINING CORP's gross profit margin for the third quarter of its fiscal year 2016 has increased 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 weak liquidity. Currently, the Quick Ratio is 0.97 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 3.82% 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 FY16 Q3 FY15
Net Sales ($mil)1791.01560.0
EBITDA ($mil)667.0503.0
EBIT ($mil)307.0189.0
Net Income ($mil)-358.0219.0


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)2179.02994.0
Total Assets ($mil)24081.025554.0
Total Debt ($mil)5116.06351.0
Equity ($mil)11102.011544.0


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin44.8440.19
EBITDA Margin37.2432.24
Operating Margin17.1412.12
Sales Turnover0.280.26
Return on Assets-2.221.91
Return on Equity-0.682.72
Debt Q3 FY16 Q3 FY15
Current Ratio2.83.07
Debt/Capital0.320.35
Interest Expense74.085.0
Interest Coverage4.152.22


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)530.75529.12
Div / share0.030.03
EPS0.320.3
Book value / share20.9221.82
Institutional Own % n/a n/a
Avg Daily Volume7354624.07911111.0

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 1.56 indicates a discount versus the S&P 500 average of 2.79 and a discount versus the industry average of 1.84. 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 422.61   NEM 7.16 Peers 10.59

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 16.27 Peers 27.71   NEM NA Peers 0.96

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

NEM is trading at a significant discount 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 1.56 Peers 1.84   NEM -125.80 Peers -72.11

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 discount to 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 2.58 Peers 2.88   NEM 1.32 Peers -11.17

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.

 

 

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