NEWMONT Corp /DE/ (NEM) Stock Analysis
NEWMONT Corp /DE/ (NEM) Stock Analysis
Analysis from 10-Q filed 2025-10-23. Data as of Q4 2025.
Overall Grade: F (Concerning)
NEWMONT Corp /DE/ faces challenges in financial performance that warrant careful analysis.
| Metric | Value | Context |
|---|---|---|
| ROIC | 16.8% | Solid returns |
| FCF Margin | 32.2% | Strong cash generation |
| Debt/Equity | 0.2x | Conservative leverage |
Investment Thesis: Strong return on invested capital of 16.8% suggests durable competitive advantages and efficient capital allocation.
Explore NEWMONT Corp /DE/: Earnings History | Filing Intelligence | ROIC Analysis
Profitability: NEWMONT Corp /DE/ earns 16.8% ROIC, Top 25% in Materials
NEWMONT Corp /DE/'s trailing-twelve-month ROIC of 16.8% ranks Top 25% in Materials companies (sector median: 4.3%), driven by NOPAT margin of 28.8% combined with asset turnover of 0.4x. Source: 10-Q filed 2025-10-23. Gross margin of 64.3% with operating margin at 48.4% reflects strong pricing power.
| Metric | NEM | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 16.8% | Good | Above sector median of 4.3% |
| Return on Equity (ROE) | 22.1% | Excellent | Efficient use of shareholder equity |
| Gross Margin | 64.3% | Excellent | Strong pricing power |
| Operating Margin | 48.4% | Excellent | Efficient operations |
Cash Flow: NEWMONT Corp /DE/ generates $7.3B FCF at 32.2% margin, positive NaN/8 quarters
NEWMONT Corp /DE/ generated $7.3B in free cash flow (TTM), a 32.2% FCF margin, a margin that ranks Top 5% in Materials. Operating cash flow exceeds net income by 1.5x, indicating high earnings quality. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-10-23.
| Metric | NEM | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 32.2% | Excellent | Excellent cash conversion |
| Free Cash Flow (TTM) | $7.3B | Good | Positive cash generation |
| OCF/Net Income | 1.5x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: NEWMONT Corp /DE/ at 0.2x leverage
NEWMONT Corp /DE/'s debt-to-equity ratio of 0.2x reflects conservative leverage. Net cash position of $3.2B provides financial flexibility. Source: 10-Q filed 2025-10-23.
| Metric | NEM | Rating | Context |
|---|---|---|---|
| Debt to Equity | 0.2x | Excellent | Conservative capital structure |
| Net Cash Position | $3.2B | Excellent | Net cash positive |
Valuation: NEWMONT Corp /DE/ trades at 15.6x earnings
NEWMONT Corp /DE/ trades at a P/E of 15.6x. Free cash flow yield of 6.6% offers attractive cash returns relative to price.
| Metric | NEM | Rating | Context |
|---|---|---|---|
| P/E Ratio | 15.6x | Adequate | Reasonable valuation |
| EV/Sales | 4.9x | Good | Growth premium priced in |
| FCF Yield | 6.6% | Good | Attractive cash return |
| Dividend Yield | 1.0% | Adequate | Growth focus over income |
Capital Allocation: NEWMONT Corp /DE/ returns 3.1% shareholder yield
NEWMONT Corp /DE/'s total shareholder yield is 3.1% (dividends 1.0% + buybacks 2.1%). Source: 10-Q filed 2025-10-23.
| Metric | NEM | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 3.1% | Good | Dividend + buyback yield combined |
| Buyback Yield | 2.1% | Adequate | Active share repurchases |
| Total Capital Returned (TTM) | $3.4B | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 16.8% | Top 25% | 3.9x above |
| Free Cash Flow Margin | 32.2% | Top 5% | 76.4x above |
| Gross Margin | 64.3% | Top 5% | 2.5x above |
| Operating Margin | 48.4% | Top 5% | 6.4x above |
| Return on Equity (ROE) | 22.1% | Top 25% | 3.0x above |
| P/E Ratio | 15.6x | N/A | - |
Financial Scorecard
| Metric | NEM | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 16.8% | Good | Top 25% of sector (median: 4.3%) |
| Free Cash Flow Margin | 32.2% | Excellent | Top 5% of sector (median: 0.4%) |
| Gross Margin | 64.3% | Excellent | Top 5% of sector (median: 25.9%) |
| Debt to Equity Ratio | 15.1% | Excellent | Conservative capital structure |
| P/E Ratio (Price-to-Earnings) | 15.6x | Adequate | Fair value |
| Free Cash Flow Yield | 6.6% | Good | Solid cash yield |
Frequently Asked Questions
Q: What is NEWMONT Corp /DE/'s Return on Invested Capital (ROIC)?
NEWMONT Corp /DE/ (NEM) has a trailing twelve-month Return on Invested Capital (ROIC) of 16.8%. This compares above the sector median of 4.3%. An ROIC between 12-20% indicates solid capital allocation and sustainable competitive position.
Q: What is NEWMONT Corp /DE/'s Free Cash Flow Margin?
NEWMONT Corp /DE/ (NEM) has a free cash flow margin of 32.2%, generating $7.3 billion in free cash flow over the trailing twelve months. A FCF margin above 20% indicates excellent cash conversion and a high-quality business model.
Q: Is NEWMONT Corp /DE/ stock overvalued or undervalued?
NEWMONT Corp /DE/ (NEM) trades at a P/E ratio of 15.6x, which is above the sector median of N/A. The EV/Sales multiple is 4.9x. Free cash flow yield is 6.6%, which represents an attractive cash return to investors.
Q: Does NEWMONT Corp /DE/ pay a dividend?
NEWMONT Corp /DE/ (NEM) currently pays a dividend yield of 1.0%. Including share buybacks, the total shareholder yield is 3.1%. The relatively low yield suggests the company prioritizes growth reinvestment over income distribution.
Q: What is NEWMONT Corp /DE/'s revenue and earnings growth?
NEWMONT Corp /DE/ (NEM) grew revenue by 21.3% year-over-year. Earnings per share increased by 118.8% compared to the prior year. Double-digit revenue growth indicates strong demand and market share gains.
Q: Is NEWMONT Corp /DE/ buying back stock?
NEWMONT Corp /DE/ (NEM) repurchased $2.3 billion of stock over the trailing twelve months. This represents a buyback yield of 2.1%.
Q: How does NEWMONT Corp /DE/ compare to competitors in Materials?
Compared to other companies in Materials, NEWMONT Corp /DE/ (NEM) shows: ROIC of 16.8% is above the sector median of 4.3% (Top 22%). FCF margin of 32.2% exceeds the sector median of 0.4% (Top 0% of sector). Gross margin at 64.3% is 38.5 percentage points higher than sector peers. These rankings are based on MetricDuck's analysis of all Materials companies with available SEC filings.
Q: What warning signs should I watch for with NEWMONT Corp /DE/?
NEWMONT Corp /DE/ (NEM) shows no major financial warning signs based on current metrics. However, investors should always monitor: 1) Margin compression trends, 2) Cash flow consistency, 3) Debt levels relative to cash generation, and 4) Changes in competitive positioning.
Data Source: Data sourced from 10-Q filed 2025-10-23. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.