New Gold Inc. /FI (NYSE: NGD)

Sector: Basic Materials Industry: Gold CIK: 0000800166
Market Cap 7.55 Bn
P/B 6.09
P/E 30.30
P/S 6.08
ROIC (Qtr) 20.22
Div Yield % 0.00
Rev 1y % (Qtr) 83.53
Total Debt (Qtr) 493.50 Mn
Debt/Equity (Qtr) 0.40

About

Price action

Investment thesis

Bull case

  • Strong operating cash flow of 680.70M provides robust 1.38x coverage of total debt 493.50M, indicating excellent debt servicing capability and financial flexibility.
  • Operating cash flow of 680.70M provides exceptional 14.58x coverage of interest expenses 46.70M, showing strong debt service capability.
  • Strong tangible asset base of 2.37B provides 4.80x coverage of total debt 493.50M, indicating robust asset backing and low credit risk.
  • Strong operating cash flow of 680.70M provides 25.49x coverage of SG&A expenses 26.70M, showing efficient operational cost management.
  • Operating cash flow of 680.70M fully covers other non-current liabilities 388.80M by 1.75x, showing strong long-term stability.

Bear case

  • Operating cash flow of 680.70M barely covers its investment activities of (588.20M), with a coverage ratio of -1.16, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (588.20M) provide weak support for R&D spending of 35.40M, which is -16.62x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Free cash flow of 80.20M provides weak coverage of capital expenditures of 600.50M, with a 0.13 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of 343.40M show weak coverage of depreciation charges of 249.90M, with a 1.37 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of 80.20M represents just -6.97x of debt issuance (11.50M), suggesting concerning reliance on leverage rather than internal cash generation for growth.

Segments [axis] Breakdown of Revenue (2024)

Major customers [axis] Breakdown of Revenue (2024)

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 3.42 3.17
EV to Cash from Ops. EV/CFO 11.90 -11.55
EV to Debt EV to Debt 16.41 548.67
EV to EBIT EV/EBIT 23.58 12.24
EV to EBITDA EV/EBITDA 11.64 3.14
EV to Free Cash Flow [EV/FCF] EV/FCF 100.96 12.17
EV to Market Cap EV to Market Cap 1.07 1.72
EV to Revenue EV/Rev 6.52 7.50
Price to Book Value [P/B] P/B 6.09 5.26
Price to Earnings [P/E] P/E 30.30 -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) 7.35 406.21
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -134.20 -97.36
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -7.01 130.91
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -5.27
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 7,197.22 518.35
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 91.41 53.19
EBIT Growth (1y) % EBIT 1y % (Qtr) 14,408.33 679.30
EBT Growth (1y) % EBT 1y % (Qtr) 2,531.97 144.05
EPS Growth (1y) % EPS 1y % (Qtr) 1,550.00 224.62
FCF Growth (1y) % FCF 1y % (Qtr) -17.49 171.65
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 234.25 84.25
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.52 0.26
Cash Payout Ratio Cash Payout Ratio 0.00 0.03
Cash Ratio Cash Ratio (Qtr) 0.36 3.14
Current Ratio Curr Ratio (Qtr) 0.88 4.90
Debt to Equity Ratio Debt/Equity (Qtr) 0.40 0.27
Interest Cover Ratio Int Coverage (Qtr) 7.35 406.21
Times Interest Earned Times Interest Earned (Qtr) 7.35 406.21
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 47.80 -19.19
EBIT Margin % EBIT Margin % (Qtr) 27.64 -44.57
EBT Margin % EBT Margin % (Qtr) 23.89 -34.79
Gross Margin % Gross Margin % (Qtr) 43.10 30.59
Net Profit Margin % Net Margin % (Qtr) 20.10 -40.44