New Gold Inc (NGD, Financial) has recently caught the attention of investors with its notable stock performance. Over the past week, the company's stock price has seen a gain of 10.99%, and over the past three months, it has surged by 14.23%. Currently, the market capitalization stands at $1.09 billion, with a stock price of $1.58. When compared to the GF Value of $1.49, which is a measure of intrinsic value, New Gold Inc is considered to be fairly valued, a status that has been consistent over the past three months as the past GF Value was $1.41.
Introduction to New Gold Inc
New Gold Inc, operating within the Metals & Mining industry, is engaged in the development and operation of intermediate mining properties. The company's portfolio includes the Rainy River and New Afton Mines in Canada, as well as the Cerro San Pedro Mine in Mexico. New Gold Inc's revenue primarily comes from the sale of gold, copper, and silver. The company's strategic focus on these commodities and its diversified asset base provide a stable foundation for its operations and financial performance.
Assessing Profitability
When it comes to profitability, New Gold Inc has a Profitability Rank of 4/10. The company's operating margin stands at 7.82%, which is better than 66% of its peers in the industry. However, the Return on Equity (ROE) is at -7.36%, which, despite being better than 65.48% of its peers, indicates that the company is not generating positive returns on shareholders' equity. The Return on Assets (ROA) is at -2.88%, surpassing 75.1% of its peers, while the Return on Invested Capital (ROIC) is at a more favorable 3.43%, outperforming 86.61% of competitors. Over the past ten years, New Gold Inc has managed to achieve profitability in one year, which is better than 36.75% of its peers.
Growth Prospects of New Gold Inc
The company's Growth Rank is 7/10, reflecting a strong potential for future expansion. The 3-Year Revenue Growth Rate per Share is at 8.20%, which is better than 42.05% of its peers. The 5-Year Revenue Growth Rate per Share is modest at 0.70%, surpassing 27.73% of competitors. Looking ahead, the Total Revenue Growth Rate (Future 3Y To 5Y Est) is projected at an impressive 12.15%, which is better than 81.17% of its peers. Additionally, the 3-Year EPS without NRI Growth Rate is at a robust 35.20%, outperforming 81.33% of the industry. These growth metrics suggest that New Gold Inc has a solid trajectory for increasing its revenue and earnings per share in the coming years.
Notable Shareholders
Among the notable holders of New Gold Inc's stock, Azvalor Internacional FI (Trades, Portfolio) leads with 39,204,122 shares, representing a 5.73% share percentage. Following closely is renowned investor Jim Simons (Trades, Portfolio), holding 16,591,564 shares, which accounts for 2.42% of the company's shares. Azvalor Blue Chips FI (Trades, Portfolio) also has a stake in the company with 996,209 shares, making up 0.15% of the share percentage.
Competitive Landscape
In comparison to its competitors, New Gold Inc stands strong with a market cap of $1.09 billion. Its closest competitors include Calibre Mining Corp (TSX:CXB, Financial) with a market cap of $931.685 million, Novagold Resources Inc (TSX:NG, Financial) at $855.988 million, and Fortuna Silver Mines Inc (TSX:FVI, Financial) with a market cap of $994.159 million. These figures highlight New Gold Inc's competitive position within the Metals & Mining industry.
Conclusion
In conclusion, New Gold Inc's recent stock performance has been impressive, with significant gains over the past week and three months. The company's profitability metrics, while mixed, show potential in certain areas such as operating margin and ROIC. Growth prospects appear strong, with solid revenue and EPS growth rates that bode well for the future. With a market cap that surpasses some of its closest competitors, New Gold Inc is positioned as a noteworthy player in the industry. Investors may find New Gold Inc an interesting option to consider in their portfolios, given its current valuation and growth trajectory.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
