Lagging In Post-Market Activity: Newmont Mining (NEM)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified Newmont Mining ( NEM) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Newmont Mining as such a stock due to the following factors:

  • NEM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $135.3 million.
  • NEM is down 2% today from today's close.

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More details on NEM:

Newmont Mining Corporation operates in the mining industry. It primarily acquires, develops, explores for, and produces gold, copper, and silver deposits. The company's operations and/or assets are located in the United States, Australia, Peru, Indonesia, Ghana, and New Zealand. The stock currently has a dividend yield of 0.4%. NEM has a PE ratio of 22. Currently there is 1 analyst that rates Newmont Mining a buy, no analysts rate it a sell, and 12 rate it a hold.

The average volume for Newmont Mining has been 6.7 million shares per day over the past 30 days. Newmont has a market cap of $13.4 billion and is part of the basic materials sector and metals & mining industry. The stock has a beta of 0.01 and a short float of 2.1% with 1.96 days to cover. Shares are up 37.1% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Newmont Mining as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 17.3%. Since the same quarter one year prior, revenues rose by 11.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • 46.60% is the gross profit margin for NEWMONT MINING CORP which we consider to be strong. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of 9.27% trails the industry average.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Metals & Mining industry and the overall market on the basis of return on equity, NEWMONT MINING CORP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • NEM's debt-to-equity ratio of 0.62 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.11 is sturdy.

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