New Gold Inc.
New Gold Inc. Fundamental Analysis
New Gold Inc. (NGD.TO) shows strong financial fundamentals with a PE ratio of 8.00, profit margin of 58.17%, and ROE of 65.62%. The company generates $1.5B in annual revenue with strong year-over-year growth of 17.55%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 77.6/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze NGD.TO's fundamental strength across five key dimensions:
Efficiency Score
ExcellentNGD.TO demonstrates superior asset utilization.
Valuation Score
ExcellentNGD.TO trades at attractive valuation levels.
Growth Score
ModerateNGD.TO shows steady but slowing expansion.
Financial Health Score
ExcellentNGD.TO maintains a strong and stable balance sheet.
Profitability Score
ExcellentNGD.TO achieves industry-leading margins.
Key Financial Metrics
Is NGD.TO Expensive or Cheap?
P/E Ratio
NGD.TO trades at 8.00 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, NGD.TO's PEG of 0.05 indicates potential undervaluation.
Price to Book
The market values New Gold Inc. at 3.63 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 8.48 times EBITDA. This is generally considered low.
How Well Does NGD.TO Make Money?
Net Profit Margin
For every $100 in sales, New Gold Inc. keeps $58.17 as profit after all expenses.
Operating Margin
Core operations generate 44.25 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $65.62 in profit for every $100 of shareholder equity.
ROA
New Gold Inc. generates $27.30 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
New Gold Inc. generates strong operating cash flow of $884.32M, reflecting robust business health.
Free Cash Flow
New Gold Inc. generates strong free cash flow of $294.01M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.37 in free cash annually.
FCF Yield
NGD.TO converts 4.24% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
8.001
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.05
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.63
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.65
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.21
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.32
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.66
vs 25 benchmark
ROA
Return on assets percentage
0.27
vs 25 benchmark
ROCE
Return on capital employed
0.24
vs 25 benchmark
How NGD.TO Stacks Against Its Sector Peers
| Metric | NGD.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 8.00 | 24.02 | Better (Cheaper) |
| ROE | 65.62% | 867.00% | Weak |
| Net Margin | 58.17% | -102872.00% (disorted) | Strong |
| Debt/Equity | 0.21 | 0.51 | Strong (Low Leverage) |
| Current Ratio | 1.32 | 5.08 | Neutral |
| ROA | 27.30% | -6488.00% (disorted) | Strong |
NGD.TO 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 New Gold Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
19.11%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
213.41%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
21.11%
Industry Style: Cyclical, Commodity, Value
High Growth