Newmont Corporation
Newmont Corporation Fundamental Analysis
Newmont Corporation (NEM) shows strong financial fundamentals with a PE ratio of 19.00, profit margin of 31.62%, and ROE of 21.98%. The company generates $22.4B in annual revenue with strong year-over-year growth of 57.60%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 94.5/100 based on profitability, valuation, growth, and balance sheet metrics. The A grade reflects excellent fundamentals and strong overall stability.
Fundamental Health Score
We analyze NEM's fundamental strength across five key dimensions:
Efficiency Score
ExcellentNEM demonstrates superior asset utilization.
Valuation Score
ExcellentNEM trades at attractive valuation levels.
Growth Score
ModerateNEM shows steady but slowing expansion.
Financial Health Score
ExcellentNEM maintains a strong and stable balance sheet.
Profitability Score
ExcellentNEM achieves industry-leading margins.
Key Financial Metrics
Is NEM Expensive or Cheap?
P/E Ratio
NEM trades at 19.00 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, NEM's PEG of -30.64 indicates potential undervaluation.
Price to Book
The market values Newmont Corporation at 4.02 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 12.45 times EBITDA. This signals the market has high growth expectations.
How Well Does NEM Make Money?
Net Profit Margin
For every $100 in sales, Newmont Corporation keeps $31.62 as profit after all expenses.
Operating Margin
Core operations generate 60.85 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $21.98 in profit for every $100 of shareholder equity.
ROA
Newmont Corporation generates $12.55 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Newmont Corporation generates strong operating cash flow of $10.20B, reflecting robust business health.
Free Cash Flow
Newmont Corporation generates strong free cash flow of $8.00B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $7.33 in free cash annually.
FCF Yield
NEM converts 6.07% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
19.004
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-30.64
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.02
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.93
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.01
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.72
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.22
vs 25 benchmark
ROA
Return on assets percentage
0.13
vs 25 benchmark
ROCE
Return on capital employed
0.27
vs 25 benchmark
How NEM Stacks Against Its Sector Peers
| Metric | NEM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 19.00 | 27.41 | Better (Cheaper) |
| ROE | 21.98% | 859.00% | Weak |
| Net Margin | 31.62% | -120873.00% (disorted) | Strong |
| Debt/Equity | 0.01 | 0.51 | Strong (Low Leverage) |
| Current Ratio | 1.72 | 4.80 | Neutral |
| ROA | 12.55% | -3590.00% (disorted) | Strong |
NEM outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Newmont Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
22.37%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
-25.00%
Industry Style: Cyclical, Commodity, Value
DecliningFCF CAGR
42.39%
Industry Style: Cyclical, Commodity, Value
High Growth