This company has a high Price to Earnings ratio (33.72) relative to the sector (15.18). However, this can be explained as the stock is very strong fundamentally.
Newcrest has a very low debt to equity ratio (26.7%) for the size of the company (17.498bn). We can compare this to ASX:ASL Ausdrill, another gold company that closely tracks the global spot price of gold as both companies have a over 80% of revenue attributed to gold.
Ausdrill has a debt to equity ratio of 61.7% and only a market capitalisation of 0.9bn, yet trades at a Price to Earnings ratio of 27.72.
If we were to value Newcrest based against these statistics alone, the Price to Earnings of Newcrest should be 37.42 which is 10.97% higher than the current ratio. This would allow the price to break up above the trend and continue on an upward trajectory.
This discovery is significant because Newcrest can comfortably retain more debt which can bring benefits such as acquisitions or new project ventures that add value to the company, or an increase in shareholder dividends that adds value to the shareholders and as a result, an increase in share price.
The dividend yield of Newcrest (0.7%) is relatively low for the size of the company, especially when comparing the figure to Ausdrill (1.6%). The dividend stability of Newcrest is negligibly higher compared to the difference in return value between the two.
This is just a brief observation and should not be considered trading advice. I also have a bullish outlook on the global spot price of Gold which can be viewed in my related ideas below.
Newcrest has a very low debt to equity ratio (26.7%) for the size of the company (17.498bn). We can compare this to ASX:ASL Ausdrill, another gold company that closely tracks the global spot price of gold as both companies have a over 80% of revenue attributed to gold.
Ausdrill has a debt to equity ratio of 61.7% and only a market capitalisation of 0.9bn, yet trades at a Price to Earnings ratio of 27.72.
If we were to value Newcrest based against these statistics alone, the Price to Earnings of Newcrest should be 37.42 which is 10.97% higher than the current ratio. This would allow the price to break up above the trend and continue on an upward trajectory.
This discovery is significant because Newcrest can comfortably retain more debt which can bring benefits such as acquisitions or new project ventures that add value to the company, or an increase in shareholder dividends that adds value to the shareholders and as a result, an increase in share price.
The dividend yield of Newcrest (0.7%) is relatively low for the size of the company, especially when comparing the figure to Ausdrill (1.6%). The dividend stability of Newcrest is negligibly higher compared to the difference in return value between the two.
This is just a brief observation and should not be considered trading advice. I also have a bullish outlook on the global spot price of Gold which can be viewed in my related ideas below.
Kommentar:
Approaching take profit rapidly.
Trade geschlossen: Ziel wurde erreicht:
Take Profit achieved.
Kenzing trading indicators for TradingView perform advanced real-time analysis of stock price trends and display alerts that are easy for the average Trader to interpret.
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