New Found Gold Corp. (NYSE: NFGC)

Sector: Basic Materials Industry: Gold CIK: 0001840616
Market Cap 625.27 Mn
P/B 8.52
P/E -18.82
P/S 0.00
ROIC (Qtr) -78.64
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 50,138.41
Debt/Equity (Qtr) 0.00

About

Price action

Investment thesis

Bull case

  • Healthy cash reserves of 51.55M provide 158080.27x coverage of short-term debt 326.09, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 86.92M provides 1733.54x coverage of total debt 50138.41, indicating robust asset backing and low credit risk.
  • Long-term investments of 1.68M provide solid 33.78x coverage of long-term debt 49812.32, indicating strategic financial planning.
  • Short-term investments of 391373.91 provide 1200.21x coverage of short-term debt 326.09, showing strong liquidity management.
  • Tangible assets of 86.92M provide robust 9.97x coverage of other current liabilities 8.72M, indicating strong asset backing.

Bear case

  • Operating cash flow of (37.10M) barely covers its investment activities of 881748.55, with a coverage ratio of -42.08, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of 881748.55 provide weak support for R&D spending of 31.31M, which is 0.03x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (37.10M) shows concerning coverage of stock compensation expenses of 1.59M, with a -23.28 ratio indicating potential earnings quality issues.
  • Operating earnings of (33.21M) show weak coverage of depreciation charges of 565781.88, with a -58.70 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of (39.14M) provides weak coverage of capital expenditures of 2.04M, with a -19.22 ratio suggesting additional external financing needs for growth initiatives.

Peer comparison

Companies in the Gold
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 NEM NEWMONT Corp /DE/ 121.63 Bn 16.92 5.66 5.65 Bn
2 AEM Agnico Eagle Mines Ltd 96.06 Bn 27.86 9.09 0.34 Bn
3 B Barrick Mining Corp 82.76 Bn 23.10 5.67 4.71 Bn
4 WPM Wheaton Precious Metals Corp. 56.61 Bn 56.52 30.93 0.01 Bn
5 FNV FRANCO NEVADA Corp 44.11 Bn 47.96 28.52 0.00 Bn
6 KGC Kinross Gold Corp 38.43 Bn 21.85 5.96 1.24 Bn
7 PAAS Pan American Silver Corp 19.78 Bn 31.19 6.08 0.86 Bn
8 AGI Alamos Gold Inc 17.45 Bn 32.41 10.85 0.28 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 5.07 3.17
EV to Cash from Ops. EV/CFO -11.87 -11.55
EV to Debt EV to Debt 8,780.69 548.67
EV to EBIT EV/EBIT -13.26 12.24
EV to EBITDA EV/EBITDA -11.13 3.14
EV to Free Cash Flow [EV/FCF] EV/FCF -11.25 12.17
EV to Market Cap EV to Market Cap 0.70 1.72
EV to Revenue EV to Revenue 0.00 7.50
Price to Book Value [P/B] P/B 8.52 5.26
Price to Earnings [P/E] P/E -18.82 -1.39
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 1.54
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 5.40
Dividend per Basic Share Div per Share (Qtr) 0.00 0.17
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 10.25
Interest Coverage Int. cover (Qtr) -2,380.11 406.21
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 14.49 -97.36
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 79.26 130.91
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -5.27
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 21.28 518.35
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 17.26 53.19
EBIT Growth (1y) % EBIT 1y % (Qtr) 21.28 679.30
EBT Growth (1y) % EBT 1y % (Qtr) 21.28 144.05
EPS Growth (1y) % EPS 1y % (Qtr) 27.73 224.62
FCF Growth (1y) % FCF 1y % (Qtr) 20.62 171.65
Gross Profit Growth (1y) % Gross Profit Growth (1y) % 0.00 84.25
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.00 0.26
Cash Payout Ratio Cash Payout Ratio 0.00 0.03
Cash Ratio Cash Ratio (Qtr) 3.84 3.14
Current Ratio Curr Ratio (Qtr) 4.04 4.90
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 0.27
Interest Cover Ratio Int Coverage (Qtr) -2,380.11 406.21
Times Interest Earned Times Interest Earned (Qtr) -2,380.11 406.21
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % 0.00 -19.19
EBIT Margin % EBIT Margin % 0.00 -44.57
EBT Margin % EBT Margin % 0.00 -34.79
Gross Margin % Gross Margin % 0.00 30.59
Net Profit Margin % Net Profit Margin % 0.00 -40.44