New Gold Inc (NGD, Financial) has experienced a notable uptick in its stock performance, with a market capitalization now standing at $1.01 billion. The current price of $1.47 per share reflects a significant 12.21% gain over the past week and an even more impressive 45.54% gain over the past three months. This recent surge has brought the stock to a position where it is considered fairly valued according to the GF Value, which is currently set at $1.41. This is a slight adjustment from the past GF Value of $1.45, indicating that the stock was previously seen as modestly undervalued.
Introduction to New Gold Inc
New Gold Inc, operating within the metals & mining industry, is engaged in the development and operation of intermediate mining properties. The company's portfolio includes the Rainy River Mine and the New Afton Mine in Canada, as well as the Cerro San Pedro Mine in Mexico. New Gold Inc generates its revenue primarily from the sale of gold, copper, and silver, catering to banks and refineries involved in precious metals trading. The strategic focus on these valuable resources has positioned the company to capitalize on the market's demand for these commodities.
Assessing Profitability
When it comes to profitability, New Gold Inc has a Profitability Rank of 4 out of 10. Its operating margin stands at 6.96%, which is better than 65.11% of its peers in the industry. However, the company's Return on Equity (ROE) is at -5.89%, which, despite being better than 68.71% of its competitors, indicates a loss in equity value. The Return on Assets (ROA) is also negative at -2.43%, yet this performance is still better than 76.63% of peers. Interestingly, New Gold Inc's Return on Invested Capital (ROIC) is at 4.28%, outperforming 87.68% of its industry counterparts. Over the past decade, the company has managed to achieve profitability in one year, ranking better than 37.31% of its peers.
Growth Trajectory of New Gold Inc
The Growth Rank for New Gold Inc is currently at 3 out of 10. The company has seen a 3-Year Revenue Growth Rate per Share of -4.00%, which, while negative, is still better than 20.07% of its industry peers. The 5-Year Revenue Growth Rate per Share shows a positive change at 4.20%, surpassing 36.56% of competitors. Looking ahead, the Total Revenue Growth Rate (Future 3Y To 5Y Est) is projected at 11.97%, which is more optimistic and better than 80.25% of peers. The 3-Year EPS without NRI Growth Rate is at 19.90%, which is a strong performance better than 60.38% of the companies in the sector.
Notable Shareholders
Among the notable shareholders of New Gold Inc, Azvalor Internacional FI (Trades, Portfolio) holds a significant stake with 49,249,353 shares, accounting for 7.19% of the company's shares. Renowned investor Jim Simons (Trades, Portfolio) also has a stake in the company, with 15,598,764 shares, representing 2.28% of the share percentage. Additionally, Azvalor Managers FI (Trades, Portfolio) holds a smaller position with 333,544 shares, equating to 0.05% of the company's shares.
Competitive Landscape
In comparison to its competitors, New Gold Inc stands strong with a market cap of $1.01 billion. Orla Mining Ltd (TSX:OLA, Financial) has a slightly lower market cap of $937.967 million, while K92 Mining Inc (TSX:KNT, Financial) is closely aligned with a market cap of $1.03 billion. Artemis Gold Inc (TSXV:ARTG, Financial) also competes in the same ballpark with a market cap of $947.997 million. These companies represent the competitive environment within the metals & mining industry in which New Gold Inc operates.
Conclusion
In conclusion, New Gold Inc's recent stock performance has been robust, with significant gains over the past three months. The company's profitability metrics, while mixed, show some strengths, particularly in operating margin and ROIC. Growth prospects appear promising, especially with the anticipated revenue growth in the coming years. The company's competitive standing within the Metals & Mining industry is solid, with a market cap that holds its own against close competitors. For value investors, New Gold Inc presents an interesting case study in balancing current performance with future growth potential.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
