Newmont Corp (NEM, Financial), a leading player in the metals and mining industry, has recently seen a notable uptick in its stock performance. With a market capitalization of $47.36 billion, the company's current stock price stands at $41.08. Over the past week, Newmont has experienced a modest gain of 0.10%, while the past three months have been more impressive, with a gain of 12.96%. According to GuruFocus's valuation metrics, the stock is currently modestly undervalued with a GF Value of $51.49, compared to a past GF Value of $71.42. This suggests a shift from a possible value trap to a more favorable investment opportunity.
Company Overview
Newmont Corp, the world's largest gold miner, has made significant strategic moves, including the acquisition of Goldcorp in 2019, a joint venture with Barrick, and the recent purchase of Newcrest in November 2023. With a portfolio of 17 mines and interests in two joint ventures spread across the globe, Newmont is expected to produce approximately 6.9 million ounces of gold in 2024. The company is also a significant producer of copper, silver, zinc, and lead. As of December 2023, Newmont boasted two decades of gold reserves, with plans to divest some of its higher-cost, smaller mines. 
Assessing Profitability
Newmont's Profitability Rank stands at 5/10, indicating a moderate level of profitability within the industry. The company's operating margin is 5.99%, which is better than 61.51% of 860 companies in the same sector. Despite a negative Return on Equity (ROE) of -11.76%, Newmont still outperforms 56.79% of 2,481 companies. The Return on Assets (ROA) and Return on Invested Capital (ROIC) are -5.98% and 2.40%, respectively, with the latter being better than 85.14% of 2,671 companies. Over the past decade, Newmont has been profitable for six years, a record that surpasses 73.42% of 1,204 companies in the industry. 
Growth Prospects
The Growth Rank for Newmont is 7/10, reflecting a strong growth trajectory. Despite a slight decline in the 3-Year Revenue Growth Rate per Share of -0.50%, the company's 5-Year Revenue Growth Rate per Share has increased by 1.80%. Looking ahead, the Total Revenue Growth Rate (Future 3Y To 5Y Est) is projected at an impressive 11.80%. Earnings per Share (EPS) growth rates have been mixed, with a 3-Year EPS without NRI Growth Rate of -16.10% and a 5-Year EPS without NRI Growth Rate of 5.60%. However, the future looks brighter, with an EPS Growth Rate (Future 3Y To 5Y Est) estimated at 15.15%. 
Investor Holdings
Notable investors have maintained positions in Newmont, with First Eagle Investment (Trades, Portfolio) holding 23,756,158 shares (2.06%), Barrow, Hanley, Mewhinney & Strauss with 3,509,476 shares (0.3%), and Mario Gabelli (Trades, Portfolio) owning 568,030 shares (0.05%). These holdings reflect confidence in the company's future performance and strategic direction.
Competitive Landscape
When compared to its competitors, Newmont stands out with its substantial market cap of $47.36 billion. Anglogold Ashanti PLC (AU, Financial) has a market cap of $9.23 billion, Royal Gold Inc (RGLD, Financial) is valued at $7.94 billion, and Coeur Mining Inc (CDE, Financial) at $1.8 billion. Newmont's size and recent strategic acquisitions position it as a dominant force in the metals and mining industry.
Conclusion
In summary, Newmont Corp's recent stock performance and current valuation suggest a company on the rise. The stock's modest undervaluation, coupled with a solid profitability rank and promising growth prospects, make it an attractive option for investors. The company's strategic acquisitions and divestitures, along with its significant reserves, provide a strong foundation for future success. Major holders' continued investment and Newmont's competitive edge in the industry further reinforce the positive outlook for the company's stock.
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.
