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NEM (Newmont) Piotroski F-Score : 4 (As of Oct. 31, 2024)


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What is Newmont Piotroski F-Score?

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Newmont has an F-score of 4 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for Newmont's Piotroski F-Score or its related term are showing as below:

NEM' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Med: 5   Max: 8
Current: 4

During the past 13 years, the highest Piotroski F-Score of Newmont was 8. The lowest was 2. And the median was 5.


Newmont Piotroski F-Score Historical Data

The historical data trend for Newmont's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Newmont Piotroski F-Score Chart

Newmont Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.00 6.00 7.00 3.00 3.00

Newmont Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.00 3.00 4.00 4.00 4.00

Competitive Comparison of Newmont's Piotroski F-Score

For the Gold subindustry, Newmont's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Newmont's Piotroski F-Score Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Newmont's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Newmont's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Sep24) TTM:Last Year (Sep23) TTM:
Net Income was -3158 + 170 + 853 + 922 = $-1,213 Mil.
Cash Flow from Operations was 616 + 776 + 1428 + 1648 = $4,468 Mil.
Revenue was 3957 + 4023 + 4402 + 4605 = $16,987 Mil.
Gross Profit was 973 + 1263 + 1644 + 1664 = $5,544 Mil.
Average Total Assets from the begining of this year (Sep23)
to the end of this year (Sep24) was
(38084 + 55506 + 55335 + 55678 + 56175) / 5 = $52155.6 Mil.
Total Assets at the begining of this year (Sep23) was $38,084 Mil.
Long-Term Debt & Capital Lease Obligation was $8,987 Mil.
Total Current Assets was $12,577 Mil.
Total Current Liabilities was $6,408 Mil.
Net Income was -1477 + 351 + 155 + 158 = $-813 Mil.

Revenue was 3200 + 2679 + 2683 + 2493 = $11,055 Mil.
Gross Profit was 849 + 736 + 654 + 642 = $2,881 Mil.
Average Total Assets from the begining of last year (Sep22)
to the end of last year (Sep23) was
(39143 + 38482 + 38374 + 38133 + 38084) / 5 = $38443.2 Mil.
Total Assets at the begining of last year (Sep22) was $39,143 Mil.
Long-Term Debt & Capital Lease Obligation was $5,993 Mil.
Total Current Assets was $5,955 Mil.
Total Current Liabilities was $2,808 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Newmont's current Net Income (TTM) was -1,213. ==> Negative ==> Score 0.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Newmont's current Cash Flow from Operations (TTM) was 4,468. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Sep23)
=-1213/38084
=-0.03185065

ROA (Last Year)=Net Income/Total Assets (Sep22)
=-813/39143
=-0.02077

Newmont's return on assets of this year was -0.03185065. Newmont's return on assets of last year was -0.02077. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Newmont's current Net Income (TTM) was -1,213. Newmont's current Cash Flow from Operations (TTM) was 4,468. ==> 4,468 > -1,213 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Sep24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep23 to Sep24
=8987/52155.6
=0.17231131

Gearing (Last Year: Sep23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep22 to Sep23
=5993/38443.2
=0.15589233

Newmont's gearing of this year was 0.17231131. Newmont's gearing of last year was 0.15589233. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Sep24)=Total Current Assets/Total Current Liabilities
=12577/6408
=1.96270287

Current Ratio (Last Year: Sep23)=Total Current Assets/Total Current Liabilities
=5955/2808
=2.1207265

Newmont's current ratio of this year was 1.96270287. Newmont's current ratio of last year was 2.1207265. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Newmont's number of shares in issue this year was 1149. Newmont's number of shares in issue last year was 796. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=5544/16987
=0.32636722

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=2881/11055
=0.26060606

Newmont's gross margin of this year was 0.32636722. Newmont's gross margin of last year was 0.26060606. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Sep23)
=16987/38084
=0.44604033

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Sep22)
=11055/39143
=0.28242598

Newmont's asset turnover of this year was 0.44604033. Newmont's asset turnover of last year was 0.28242598. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=0+1+0+1+0+0+0+1+1
=4

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Newmont has an F-score of 4 indicating the company's financial situation is typical for a stable company.

Newmont  (NYSE:NEM) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Newmont Piotroski F-Score Related Terms

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Newmont Business Description

Address
6900 E Layton Avenue, Suite 700, Denver, CO, USA, 80237
Newmont is the world's largest gold miner. It bought Goldcorp in 2019, combined its Nevada mines in a joint venture with competitor Barrick later that year, and also purchased competitor Newcrest in November 2023. Its portfolio includes 17 wholly or majority owned mines and interests in two joint ventures in the Americas, Africa, Australia and Papua New Guinea. The company is expected to produce roughly 6.9 million ounces of gold in 2024. However, after buying Newcrest, Newmont is likely to sell a number of its higher cost, smaller mines accounting for 20% of forecast sales in 2024. Newmont also produces material amounts of copper, silver, zinc, and lead as byproducts. It had about two decades of gold reserves along with significant byproduct reserves at the end of December 2023.
Executives
Thomas Ronald Palmer director, officer: President & CEO 6363 S FIDDLERS GREEN CIRCLE, GREENWOOD VILLAGE CO 80111
Peter Toth officer: EVP, Strategic Development 7900 E LAYTON AVENUE, SUITE 700, DENVER CO 80237
Joshua Cage officer: Interim Controller and CAO 6900 E LAYTON AVENUE, SUITE 700, DENVER CO 80237
Robert D Atkinson officer: EVP & COO 6363 S FIDDLERS GREEN CIRCLE, GREENWOOD VILLAGE CO 80111
Philip Aiken director 6900 E. LAYTON AVENUE, SUITE 700, DENVER CO 80237
Sally-anne Layman director 6900 E. LAYTON AVENUE, SUITE 700, DENVER CO 80237
Mark David Ebel officer: Interim Chief Legal Officer 6900 E. LAYTON AVENUE, SUITE 700, DENVER CO 80237
Natascha Viljoen officer: EVP & COO 6900 E. LAYTON AVENUE, SUITE 700, DENVER CO 80237
Suzanne P Retallack officer: CSSO 6900 E. LAYTON AVENUE, SUITE 700, DENVER CO 80237
Karyn F. Ovelmen officer: EVP & CFO STATIONSPLEIN 45, ROTTERDAM P7 3013AK
Aaron Puna officer: EVP & CTO 6900 E. LAYTON AVE., SUITE 700, DENVER CO 80237
Mark Casper officer: Acting CTO 7900 E LAYTON AVENUE, SUITE 700, DENVER CO 80237
Nancy Buese officer: EVP & CFO 1515 ARAPAHOE STREET, DENVER CO 80202-2126
Stephen P Gottesfeld officer: EVP and Chief S&EA Officer 6363 SOUTH FIDDLER'S GREEN CIRCLE, GREENWOOD VILLAGE CO 80111
Bruce R Brook director 6363 SOUTH FIDDLER'S GREEN CIRCLE, GREENWOOD VILLAGE CO 80111