Newmont Corp (NEMCL) stock analysis

P/E below its 5-year median

Newmont's P/E of 13.5 is below its own 5-year median of 17.9.

P/E below the industry

Newmont's P/E of 13.5 is below the Materials median of 20.4.

EV/EBITDA below its 5-year median

Newmont's EV/EBITDA of 6.8 is below its 5-year median of 12.8.

P/B below the industry

Newmont's price-to-book of 3.19 is below the Materials median of 3.24.

Trading below fair value

The share price of $106.61 is below our fair value estimate of $169.55.

Margin of safety over 20%

The price is 37.1% below fair value, more than the 20% cushion we look for.

Revenue growing 10%+ a year

Revenue grew 23.9% a year over the last three fiscal years.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings growth accelerating

Net income grew 37.0% over the last twelve months, against a 5-year average of 20.2% a year.

Growing slower than the industry

Revenue grew 25.2% over the last twelve months; the Materials median is 51.1%.

Guidance raised

Newmont raised its 2026E Interest Expense outlook on Oct 22, 2026.

Gross margin improving

Gross margin was 68.9% over the last twelve months, against 57.2% a year earlier.

Return on equity under 15%

Return on equity was 25.5% over the last twelve months and averaged 5.3% over five years; we look for 15% on both.

Return on invested capital

Needs operating income and invested capital.

Return on equity above the industry

Newmont's return on equity of 25.5% is above the Materials median of -8.5%.

Earnings grew over 5 years

Net income grew 20.2% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 33.4% over the last twelve months, against a 5-year average of 6.8%.

Net margin above the industry

Newmont's net margin of 33.4% is above the Materials median of 10.8%.

Low debt

Debt is 14.4% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 26.2% five years ago to 14.4%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 248% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 2.55 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 3.79; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Newmont paid dividends worth 1.0% of the share price over the last twelve months.

Yield below Treasuries

The 1.0% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 4.0% or more; Newmont yields 1.0%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Covered by earnings

Dividends take 12.8% of net income.

Covered by free cash flow

Dividends take 11.3% of free cash flow.