Harmony Gold Mining Company Limited Fundamental Analysis (NYSE: HMY)
Harmony Gold Mining Company Limited (NYSE: HMY) shows strong financial fundamentals with a PE ratio of 6.78, profit margin of 27.08%, and ROE of 45.44%. The company generates $106.0B in annual revenue with strong year-over-year growth of 20.39%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 92.9/100 based on profitability, valuation, growth, and balance sheet metrics. The A grade reflects excellent fundamentals and strong overall stability.
Fundamental Health Score
We analyze HMY's fundamental strength across five key dimensions:
Efficiency Score
ExcellentHMY demonstrates superior asset utilization.
Valuation Score
ExcellentHMY trades at attractive valuation levels.
Growth Score
ExcellentHMY delivers strong and consistent growth momentum.
Financial Health Score
ModerateHMY shows balanced financial health with some risks.
Profitability Score
ExcellentHMY achieves industry-leading margins.
Key Financial Metrics
Is HMY Expensive or Cheap?
P/E Ratio
HMY trades at 6.78 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, HMY's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values Harmony Gold Mining Company Limited at 2.62 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.56 times EBITDA. This is generally considered low.
How Well Does HMY Make Money?
Net Profit Margin
For every $100 in sales, Harmony Gold Mining Company Limited keeps $27.08 as profit after all expenses.
Operating Margin
Core operations generate 44.63 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $45.44 in profit for every $100 of shareholder equity.
ROA
Harmony Gold Mining Company Limited generates $22.97 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Harmony Gold Mining Company Limited generates strong operating cash flow of $33.53B, reflecting robust business health.
Free Cash Flow
Harmony Gold Mining Company Limited generates strong free cash flow of $15.72B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $25.15 in free cash annually.
FCF Yield
HMY converts 8.10% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
6.78
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.004
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.62
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.84
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.13
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.84
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.45
vs 25 benchmark
ROA
Return on assets percentage
0.23
vs 25 benchmark
ROCE
Return on capital employed
0.47
vs 25 benchmark
How HMY Stacks Against Its Sector Peers
| Metric | HMY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 6.78 | 26.74 | Better (Cheaper) |
| ROE | 45.44% | 1215.00% | Weak |
| Net Margin | 27.08% | 433.00% | Weak |
| Debt/Equity | 0.13 | 0.73 | Strong (Low Leverage) |
| Current Ratio | 0.84 | 3.14 | Weak Liquidity |
| ROA | 22.97% | 2728.00% | Weak |
HMY outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Harmony Gold Mining Company Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
115.17%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
1495.05%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
6987.99%
Industry Style: Cyclical, Commodity, Value
High Growth