Newmont Corp's Growth Scores Mixed in Latest Analysis

Mixed Performance Rated: Newmont Corporation's analysis shows strong growth potential but weaknesses in revenue and earnings sustainability.

Date: 17-02-2025

AI Rating: 5

Analysis of NEWMONT CORPORATION (NEM)
Newmont Corporation received a growth stock rating of 54% based on its underlying fundamentals and valuation, according to the report. The P/E ratio passed the evaluation, indicating reasonable valuations. However, the revenue growth in relation to EPS growth failed, suggesting a disparity between sales growth and earnings growth. Sales growth rate passed, denoting an ability to increase revenue remarkably, while current quarter earnings, quarterly earnings against the prior year, and positive earnings growth rate for the current quarter all succeeded, showcasing short-term strength. Yet, earnings growth rate over the past several quarters failed, indicating issues in maintaining earnings growth. Additionally, both the EPS growth for the current quarter greater than the prior three quarters passed, but it failed against the historical growth rate, which questions sustainability. Furthermore, earnings persistence and long-term EPS growth both failed, presenting a potential concern about maintaining consistent earnings. The total debt/equity ratio also failed, suggesting a higher reliance on debt financing, which can pose risks especially during economic downturns. However, insider transactions passed, potentially indicating confidence from company insiders. Overall, the data suggest caution for investors considering long-term sustainability despite current performance indicators.

Stocks: NEM