New Gold, Inc. (NGD) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Torex Gold Resources, Inc.

Wesdome Gold Mines Ltd.

Fortuna Silver Mines, Inc.

Artemis Gold, Inc.

New Gold, Inc.

Aya Gold & Silver, Inc.

SilverCrest Metals, Inc.

Seabridge Gold, Inc.

Foran Mining Corp.

Osisko Mining, Inc.

New Found Gold Corp.

Why is New Gold, Inc. ?

Strong Long Term Fundamental Strength with a 70.00% CAGR growth in Operating Profits

Healthy long term growth as Operating profit has grown by an annual rate 70.00%

The company has declared Positive results for the last 3 consecutive quarters

OPERATING CASH FLOW(Y) Highest at CAD 654.72 MM
ROCE(HY) Highest at 14.23%
RAW MATERIAL COST(Y) Fallen by -250.6% (YoY)

With ROE of 20.96%, it has a fair valuation with a 4.65 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 123.06%, its profits have risen by 149.1% ; the PEG ratio of the company is 0.2

Rising Promoter Confidence

Promoters have increased their stake in the company by 0.81% over the previous quarter and currently hold 0.81% of the company
Promoters increasing their stake is a sign of high confidence in the future of the business

Consistent Returns over the last 3 years

Along with generating 123.06% returns in the last 1 year, the stock has outperformed S&P/TSX 60 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to New Gold, Inc. should be less than 10%
Overall Portfolio exposure to Gems, Jewellery And Watches should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Gems, Jewellery And Watches)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is New Gold, Inc. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

New Gold, Inc.

172.59%

4.92

51.56%

S&P/TSX 60

27.1%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

17.09%

EBIT Growth (5y)

256.10%

EBIT to Interest (avg)

4.25

Debt to EBITDA (avg)

0.70

Net Debt to Equity (avg)

0.28

Sales to Capital Employed (avg)

0.62

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

60.28%

ROCE (avg)

8.81%

ROE (avg)

11.38%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

6.51

EV to EBIT

19.20

EV to EBITDA

12.08

EV to Capital Employed

5.52

EV to Sales

6.75

PEG Ratio

0.14

Dividend Yield

ROCE (Latest)

28.77%

ROE (Latest)

27.76%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

36What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 895.07 MM

ROCE(HY)

Highest at 22.4%

RAW MATERIAL COST(Y)

Fallen by -78.21% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 22.03 %

INVENTORY TURNOVER RATIO(HY)

Highest at 6.02 times

NET SALES(Q)

Highest at CAD 625.08 MM

OPERATING PROFIT(Q)

Highest at CAD 405.56 MM

OPERATING PROFIT MARGIN(Q)

Highest at 64.88 %

PRE-TAX PROFIT(Q)

Highest at CAD 298.7 MM

NET PROFIT(Q)

Highest at CAD 244.28 MM

EPS(Q)

Highest at CAD 0.25

-10What is not working for the Company

INTEREST(HY)

At CAD 28.59 MM has Grown at 772.05%

DEBTORS TURNOVER RATIO(HY)

Lowest at 52.26 times

Here's what is working for New Gold, Inc.

Pre-Tax Profit

At CAD 298.7 MM has Grown at 251.81%

over average net sales of the previous four periods of CAD 84.9 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CAD MM)

Net Profit

At CAD 244.28 MM has Grown at 210.01%

over average net sales of the previous four periods of CAD 78.8 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CAD MM)

Operating Cash Flow

Highest at CAD 895.07 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Net Sales

At CAD 625.08 MM has Grown at 74.6%

over average net sales of the previous four periods of CAD 358.01 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (CAD MM)

Net Sales

Highest at CAD 625.08 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Operating Profit

Highest at CAD 405.56 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CAD MM)

Operating Profit Margin

Highest at 64.88 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CAD 298.7 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CAD MM)

Net Profit

Highest at CAD 244.28 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

EPS

Highest at CAD 0.25

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CAD)

Debt-Equity Ratio

Lowest at 22.03 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 6.02 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -78.21% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at CAD 97.91 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (CAD MM)

Here's what is not working for New Gold, Inc.

Interest

At CAD 28.59 MM has Grown at 772.05%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Debtors Turnover Ratio

Lowest at 52.26 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio