Newmont Corporation Achieves Growth Investor Strategy Rating

Newmont Corporation (NEM) receives a 54% rating in a guru analysis, reflecting mixed signals on its financial performance. While it passes certain growth metrics, weaknesses in earnings growth and debt reveal potential concerns for investors.

Date: 04-02-2025

AI Rating: 5

NEWMONT CORPORATION Analysis

According to the report, Newmont Corporation (NEM) scores 54% using the Growth Investor model based on Martin Zweig's strategies, which emphasizes high growth with reasonable valuations. While the company appears strong in several areas, concerns arise with its revenue growth relative to EPS growth and earnings stability over time.

Revenue Growth: The firm has a PASS for sales growth rate, which indicates that its sales are increasing. However, the report fails the REVENUE GROWTH IN RELATION TO EPS GROWTH, highlighting a mismatch between revenue increases and earnings per share growth. This could suggest that despite growing sales, profit conversion is weakening.

Earnings Performance: NEM has multiple PASS ratings, including positive current quarter earnings, positive growth for the past several quarters, and EPS growth greater than that of the prior three quarters. Unfortunately, the firm fails in areas such as long-term EPS growth, earnings persistence, and EPS growth compared to historical rates, signaling a lack of sustained performance over time.

Debt Levels: The report also indicates a FAIL for the total debt/equity ratio, which may concern investors about the company's reliance on debt for growth and financial stability.

These mixed signals suggest that while NEM is performing well in the short term, its long-term prospects require further scrutiny, particularly regarding its ability to convert sales growth into sustainable earnings and manage debt levels effectively.

Stocks: NEM