Long-established in the Metals & Mining industry, Newmont Corp (NEM, Financial) has enjoyed a stellar reputation. However, it has recently witnessed a daily loss of 1.68%, juxtaposed with a three-month change of 32.8%. 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: 5/10
- Momentum rank: 7/10
Based on the above method, GuruFocus assigned Newmont Corp the GF Score of 69 out of 100, which signals poor future outperformance potential.
Understanding Newmont Corp Business
Newmont Corp, with a market cap of $62,010.44 million and sales of $18,682 million, is the world's largest gold miner. It acquired Goldcorp in 2019, formed a joint venture with Barrick for its Nevada mines, and purchased Newcrest in November 2023. The company's portfolio includes 17 wholly or majority-owned mines and interests in two joint ventures across the Americas, Africa, Australia, and Papua New Guinea. By 2025, Newmont is expected to sell approximately 5.5 million ounces of gold from its core mines after divesting six higher-cost, smaller mines. Additionally, Newmont produces significant amounts of copper, silver, zinc, and lead as byproducts, with about two decades of gold reserves and substantial byproduct reserves as of December 2024.
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 suggests that the company may struggle to expand its operations or increase its market share in the near future. Additionally, Newmont Corp's predictability rank is just one star out of five, adding to investor uncertainty regarding revenue and earnings consistency.
Conclusion
Newmont Corp's financial strength, profitability, and growth metrics, as highlighted by the GF Score, underscore the firm's potential for underperformance. While the company maintains a strong position in the gold mining industry, its low growth and predictability ranks suggest challenges ahead. Investors should consider these factors when evaluating Newmont Corp's future prospects. For those seeking companies with strong 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.
