Despite rising 43% from five-year lows in February 2024, we think shares in no-moat Newmont remain materially undervalued, trading at a 17% discount to our unchanged USD 51 per share fair value estimate. We think the market expects weak production performance and inflated unit costs to continue, affecting margins.
Newmont is the world’s largest gold miner, with copper and other byproducts providing some diversification, representing around 15% of forecast midcycle revenue from 2028.
Bigger is not always better in gold mining. Newmont's operations span five continents, increasing complexity and difficulty managing the assets.
|
Metric
|
NEM
|
KGC
|
GOLD
|
|---|---|---|---|
Price/Earnings (Normalized) | 26.38 | 15.58 | 18.19 |
Price/Book Value | 1.61 | 1.48 | 1.21 |
Price/Sales | 2.85 | 2.08 | 2.47 |
Price/Cash Flow | 9.71 | 5.84 | 6.76 |
|
Metric
|
NEM
|
KGC
|
GOLD
|
|---|---|---|---|
Quick Ratio | 0.57 | 0.67 | 2.09 |
Current Ratio | 2.15 | 2.63 | 3.32 |
Interest Coverage | −7.46 | 10.68 | 9.98 |
|
Metric
|
NEM
|
KGC
|
GOLD
|
|---|---|---|---|
Return on Assets (Normalized) | 3.70% | 5.47% | 3.40% |
Return on Equity (Normalized) | 7.22% | 9.56% | 6.73% |
Return on Invested Capital (Normalized) | 5.73% | 6.92% | 4.86% |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
| Zijin Mining Group Co Ltd Class H
ZIJMF
| — | Lgytjkn | $64.3 Bil | |||
| Zijin Mining Group Co Ltd ADR
ZIJMY
| — | Rpzgmpw | $61.5 Bil | |||
| Newmont Corp Chess Depository Interest
NEMCL
| — | Fxx | $46.9 Bil | |||
| Agnico Eagle Mines Ltd
AEM
| Bjqgsqyk | Hkjyj | $32.2 Bil | |||
| Barrick Gold Corp
GOLD
| Ylplgkrdl | Msc | $28.9 Bil | |||
| Wheaton Precious Metals Corp
WPM
| Xmvvjkmb | Nsrl | $24.4 Bil | |||
| Franco-Nevada Corp
FNV
| — | Ztvmhy | $22.8 Bil | |||
| Gold Fields Ltd
GFIOF
| — | Bcnvy | $13.7 Bil | |||
| Kinross Gold Corp
KGC
| Jkgbj | Ftd | $9.2 Bil |
