Long-established in the Metals & Mining industry, Newmont Corp (NEM, Financial) has enjoyed a stellar reputation. It has recently witnessed a daily gain of 1.9%, juxtaposed with a three-month change of 19.06%. However, fresh insights from the GF Score hint at potential headwinds. Notably, its diminished rankings in financial strength, growth, and valuation suggest that the company might not live up to its historical performance. Join us as we dive deep into these pivotal metrics to unravel the evolving narrative of Newmont Corp.
What Is the GF Score?
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
- Financial strength rank: 7/10
- Profitability rank: 6/10
- Growth rank: 1/10
- GF Value rank: 6/10
- Momentum rank: 3/10
Based on the above method, GuruFocus assigned Newmont Corp the GF Score of 66 out of 100, which signals poor future outperformance potential.
Understanding Newmont Corp's Business
Newmont Corp, with a market capitalization of $59.7 billion, stands as the world's largest gold miner. The company has expanded its operations significantly, acquiring Goldcorp in 2019 and forming a joint venture with Barrick in Nevada. In November 2023, Newmont further expanded by purchasing Newcrest. Its portfolio includes 17 wholly or majority-owned mines and interests in two joint ventures across the Americas, Africa, Australia, and Papua New Guinea. The company is projected to sell approximately 5.6 million ounces of gold in 2025 from its core mines, following the sale of six higher-cost, smaller mines. Additionally, Newmont produces copper, silver, zinc, and lead as byproducts, with substantial reserves expected to last two decades.
Growth Prospects
A lack of significant growth is another area where Newmont Corp seems to falter, as evidenced by the company's low Growth rank. This low ranking indicates potential challenges in expanding its operations or increasing its market share. Furthermore, Newmont Corp's predictability rank is just one star out of five, adding to investor uncertainty regarding revenue and earnings consistency.
Conclusion
Despite its strong position in the gold mining industry, Newmont Corp's financial strength, profitability, and growth metrics, as highlighted by the GF Score, suggest potential underperformance. Investors should consider these factors when evaluating the company's future prospects. For those seeking companies with stronger GF Scores, GuruFocus Premium members can explore more options using the following screener link: GF Score Screen.
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.
