How to buy Newmont shares

Is it a good time to buy Newmont stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

Is Newmont under- or over-valued?

Valuing Newmont stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Newmont’s overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

Newmont’s P/E ratio

Newmont’s current share price divided by its per-share earnings (EPS) over a 12-month period gives a “trailing price/earnings ratio” of roughly 13x. In other words, Newmont shares trade at around 13x recent earnings.

That’s relatively low compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they’re under-valued.

Newmont’s PEG ratio

Newmont’s “price/earnings-to-growth ratio” can be calculated by dividing its P/E ratio by its growth – to give 0.5684. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Newmont’s future profitability. By accounting for growth, it could also help you if you’re comparing the share prices of multiple high-growth companies.

Newmont’s EBITDA

Newmont’s EBITDA (earnings before interest, taxes, depreciation and amortisation) is US$4.5 billion (£3.5 billion).

The EBITDA is a measure of a Newmont’s overall financial performance and is widely used to measure a its profitability.

Shorting Newmont shares

There are currently 9.1 million Newmont shares held short by investors – that’s known as Newmont’s “short interest”. This figure is 16.7{cbf6da10fac2230370cea9448ed9872290737d25c88b8c8db3eefaf8c399e33d} down from 10.9 million last month.

There are a few different ways that this level of interest in shorting Newmont shares can be evaluated.

Newmont’s “short interest ratio” (SIR)

Newmont’s “short interest ratio” (SIR) is the quantity of Newmont shares currently shorted divided by the average quantity of Newmont shares traded daily (recently around 6.2 million). Newmont’s SIR currently stands at 1.47. In other words for every 100,000 Newmont shares traded daily on the market, roughly 1470 shares are currently held short.

However Newmont’s short interest can also be evaluated against the total number of Newmont shares, or, against the total number of tradable Newmont shares (the shares that aren’t held by “insiders” or major long-term shareholders – also known as the “float”). In this case Newmont’s short interest could be expressed as 0.01{cbf6da10fac2230370cea9448ed9872290737d25c88b8c8db3eefaf8c399e33d} of the outstanding shares (for every 100,000 Newmont shares in existence, roughly 10 shares are currently held short) or 0.0152{cbf6da10fac2230370cea9448ed9872290737d25c88b8c8db3eefaf8c399e33d} of the tradable shares (for every 100,000 tradable Newmont shares, roughly 15 shares are currently held short).

Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against Newmont.

Find out more about how you can short Newmont stock.

Newmont’s environmental, social and governance track record

Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Newmont.

When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.

Newmont’s total ESG risk score

Total ESG risk: 26.17

Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Newmont’s overall score of 26.17 (as at 07/31/2020) is pretty good – landing it in it in the 35th percentile of companies rated in the same sector.

ESG scores are increasingly used to estimate the level of risk a company like Newmont is exposed to within the areas of “environmental” (carbon footprint, resource use etc.), “social” (health and safety, human rights etc.), and “governance” (anti-corruption, tax transparency etc.).

Newmont’s environmental score

Environmental score: 11.88/100

Newmont’s environmental score of 11.88 puts it squarely in the 7th percentile of companies rated in the same sector. This could suggest that Newmont is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.

Newmont’s social score

Social score: 13.06/100

Newmont’s social score of 13.06 puts it squarely in the 7th percentile of companies rated in the same sector. This could suggest that Newmont is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.

Newmont’s governance score

Governance score: 10.23/100

Newmont’s governance score puts it squarely in the 7th percentile of companies rated in the same sector. That could suggest that Newmont is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.

Newmont’s controversy score

Controversy score: 3/5

ESG scores also evaluate any incidences of controversy that a company has been involved in. Newmont scored a 3 out of 5 for controversy – a middle-of-the-table result reflecting that Newmont hasn’t always managed to keep its nose clean.

Newmont share dividends

Dividend payout ratio: 12.69{cbf6da10fac2230370cea9448ed9872290737d25c88b8c8db3eefaf8c399e33d} of net profits

Recently Newmont has paid out, on average, around 12.69{cbf6da10fac2230370cea9448ed9872290737d25c88b8c8db3eefaf8c399e33d} of net profits as dividends. That has enabled analysts to estimate a “forward annual dividend yield” of 1.55{cbf6da10fac2230370cea9448ed9872290737d25c88b8c8db3eefaf8c399e33d} of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Newmont shareholders could enjoy a 1.55{cbf6da10fac2230370cea9448ed9872290737d25c88b8c8db3eefaf8c399e33d} return on their shares, in the form of dividend payments. In Newmont’s case, that would currently equate to about $1 per share.

While Newmont’s payout ratio might seem low, this can signify that Newmont is investing more in its future growth.

Newmont’s most recent dividend payout was on 23 September 2020. The latest dividend was paid out to all shareholders who bought their shares by 8 September 2020 (the “ex-dividend date”).

Have Newmont’s shares ever split?

Newmont’s shares were split on a 5:4 basis on 21 April 1994. So if you had owned 4 shares the day before before the split, the next day you’d have owned 5 shares. This wouldn’t directly have changed the overall worth of your Newmont shares – just the quantity. However, indirectly, the new 20{cbf6da10fac2230370cea9448ed9872290737d25c88b8c8db3eefaf8c399e33d} lower share price could have impacted the market appetite for Newmont shares which in turn could have impacted Newmont’s share price.

Newmont share price volatility

Over the last 12 months, Newmont’s shares have ranged in value from as little as US$33 up to US$72.22. A popular way to gauge a stock’s volatility is its “beta”.

Beta is a measure of a share’s volatility in relation to the market. The market (NYSE average) beta is 1, while Newmont’s is 0.3629. This would suggest that Newmont’s shares are less volatile than average (for this exchange).

Newmont overview

Newmont Corporation engages in the production and exploration of gold, copper, silver, zinc, and lead. The company has operations and/or assets in the United States, Canada, Mexico, Dominican Republic, Peru, Suriname, Argentina, Chile, Australia, and Ghana. As of December 31, 2019, it had proven and probable gold reserves of 100.2 million ounces and land position of 68,300 square kilometers. The company has a strategic alliance agreement with Kirkland Lake Gold Ltd. to assess regional exploration opportunities around the company’s Timmins properties and Kirkland’s Holt Complex in Ontario, Canada. Newmont Corporation was founded in 1916 and is headquartered in Greenwood Village, Colorado.

Frequently asked questions

• 
  What percentage of Newmont is owned by insiders or institutions?
  
  

  Currently 0.38{cbf6da10fac2230370cea9448ed9872290737d25c88b8c8db3eefaf8c399e33d} of Newmont shares are held by insiders and 85.926{cbf6da10fac2230370cea9448ed9872290737d25c88b8c8db3eefaf8c399e33d} by institutions.

• 
  When does the fiscal year end for Newmont?
  
  

  Newmont’s fiscal year ends in December.

• 
  Where is Newmont based?
  
  

  Newmont’s address is: 6363 South Fiddler?s Green Circle, Greenwood Village, CO, United States, 80111

• 
  What is Newmont’s ISIN number?
  
  

  Newmont’s international securities identification number is: US6516391066

• 
  What is Newmont’s CUSIP number?
  
  

  Newmont’s Committee on Uniform Securities Identification Procedures number is: 651639106