The share price of Newmont Goldcorp Corporation [NYSE: NEM] inclined by $39.29, presently trading at $39.33. The company’s shares saw 38.73% gains compared to the lowest price in the period of the last 52 weeks, set at $28.35 recorded on 09/08/2019. The last few days have been benevolent to the share price as NEM jumped by +6.68% during the last week, even though the stock is still down by -1.41% compared to 2.47 of all time high it touched on 08/07/19. However, the stock had a strong performance during the past 3 months, roughly gaining 0.61%, while additionally gaining 11.64% during the last 12 months. Newmont Goldcorp Corporation is said to have a 12-month price target set at $44.01. That means that the stock has a strong potential to acquire 4.68% increase from the current trading price.
Newmont Goldcorp Corporation [NYSE:NEM]: Analyst Rating and Earnings
Stock market traders frequently keep their eyes on what Wall Street experts as it relates to a potential investment. For Newmont Goldcorp Corporation [NEM], the most recent analyst consensus recommendation available since its latest financial results for the quarter ending in December. On average, stock market experts give NEM an Outperform rating. Its stock price has been found in the range of 28.35 to 40.33. This is compared to its latest closing price of $39.29.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Newmont Goldcorp Corporation [NEM] is sitting at 2.12. This is compared to 1 month ago, when its average rating was 2.12.
For the quarter ending in Jun-19 Newmont Goldcorp Corporation [NEM] generated $2.26 billion in sales. That’s 5.55% lower than the average estimate of $2.39 billion as provided by Wall Street analysts. The three indicators above suggest that on the whole, this stock is not presenting an attractive investment option, as there are too many red flags that don’t point to a high-value ROI.
Keep your eyes peeled for the soon-to-be-published financial results of this company, which are expected to be made public on Thu 24 Oct (In 76 Days).
Fundamental Analysis of Newmont Goldcorp Corporation [NEM]
Now let’s turn to look at profitability: with a current Operating Margin for Newmont Goldcorp Corporation [NEM] sitting at +16.28 and its Gross Margin at +21.87, this company’s Net Margin is now -1.00%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 7.51, and its Return on Invested Capital has reached 2.80%. Its Return on Equity is 2.65, and its Return on Assets is 1.36. These metrics suggest that this Newmont Goldcorp Corporation does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
Turning to investigate this organization’s capital structure, Newmont Goldcorp Corporation [NEM] has generated a Total Debt to Total Equity ratio of 40.57. Similarly, its Total Debt to Total Capital is 28.86, while its Total Debt to Total Assets stands at 20.57. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 34.36, and its Long-Term Debt to Total Capital is 24.44. This company has a healthy balance between its debt and its current holdings, suggesting it is a reliable investment due to its ability to leverage debt in an efficient way.
What about valuation? This company’s Enterprise Value to EBITDA is 12.14 and its Total Debt to EBITDA Value is 1.66. The Enterprise Value to Sales for this firm is now 3.97, and its Total Debt to Enterprise Value stands at 0.21. Newmont Goldcorp Corporation [NEM] has a Price to Book Ratio of 1.76, a Price to Cash Flow Ratio of 10.15.
Shifting the focus to workforce efficiency, Newmont Goldcorp Corporation [NEM] earns $300,083 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 24.91 and its Total Asset Turnover is 0.35. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 2.21 and its Current Ratio is 2.95. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Newmont Goldcorp Corporation [NEM] has 825.23M shares outstanding, amounting to a total market cap of $32.42B. Its stock price has been found in the range of 28.35 to 40.33. At its current price, it has moved down by -2.47% from its 52-week high, and it has moved up 38.73% from its 52-week low.
This stock’s Beta value is currently 0.01, which indicates that it is 2.36% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 60.08. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Newmont Goldcorp Corporation [NEM] a Reliable Buy?
Newmont Goldcorp Corporation [NEM] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.