Newmont Price To Book vs. Operating Margin

NMM Stock  EUR 35.55  1.34  3.63%   
Based on Newmont's profitability indicators, Newmont may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess Newmont's ability to earn profits and add value for shareholders.
For Newmont profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Newmont to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Newmont utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Newmont's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Newmont over time as well as its relative position and ranking within its peers.
  
Check out Correlation Analysis.
Please note, there is a significant difference between Newmont's value and its price as these two are different measures arrived at by different means. Investors typically determine if Newmont is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Newmont's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Newmont Operating Margin vs. Price To Book Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Newmont's current stock value. Our valuation model uses many indicators to compare Newmont value to that of its competitors to determine the firm's financial worth.
Newmont is regarded third in price to book category among its peers. It is regarded fifth in operating margin category among its peers reporting about  0.08  of Operating Margin per Price To Book. The ratio of Price To Book to Operating Margin for Newmont is roughly  12.85 . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Newmont's earnings, one of the primary drivers of an investment's value.

Newmont Operating Margin vs. Price To Book

Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.

Newmont

P/B

 = 

MV Per Share

BV Per Share

 = 
1.75 X
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

Newmont

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.14 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.

Newmont Operating Margin Comparison

Newmont is regarded fourth in operating margin category among its peers.

Newmont Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Newmont, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Newmont will eventually generate negative long term returns. The profitability progress is the general direction of Newmont's change in net profit over the period of time. It can combine multiple indicators of Newmont, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Newmont Goldcorp Corporation, together with its subsidiaries, operates in the mining industry. The company was founded in 1916 and is headquartered in Greenwood Village, Colorado. Newmont Mining operates under Gold classification in Germany and is traded on Frankfurt Stock Exchange. It employs 12400 people.

Newmont Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Newmont. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Newmont position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Newmont's important profitability drivers and their relationship over time.

Use Newmont in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Newmont position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Newmont will appreciate offsetting losses from the drop in the long position's value.

Newmont Pair Trading

Newmont Pair Trading Analysis

The ability to find closely correlated positions to Newmont could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Newmont when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Newmont - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Newmont to buy it.
The correlation of Newmont is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Newmont moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Newmont moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Newmont can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Newmont position

In addition to having Newmont in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Software Thematic Idea Now

Software
Software Theme
Companies that develop and distribute software and software systems to individuals or business. The Software theme has 40 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Software Theme or any other thematic opportunities.
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Other Information on Investing in Newmont Stock

To fully project Newmont's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Newmont at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Newmont's income statement, its balance sheet, and the statement of cash flows.
Potential Newmont investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Newmont investors may work on each financial statement separately, they are all related. The changes in Newmont's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Newmont's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.