Is New Gold Stock a Good Investment?
New Gold Investment Advice | NGD |
- Examine New Gold's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research New Gold's leadership team and their track record. Good management can help New Gold navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Metals & Mining space and any emerging trends that could impact New Gold's business and its evolving consumer preferences.
- Compare New Gold's performance and market position to its competitors. Analyze how New Gold is positioned in terms of product offerings, innovation, and market share.
- Check if New Gold pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about New Gold's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in New Gold stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if New Gold is a good investment.
Sell | Buy |
Strong Sell
Market Performance | Insignificant | Details | |
Volatility | Very risky | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Frail | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Possible Manipulator | Details |
Examine New Gold Stock
Researching New Gold's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 64.0% of the company shares are owned by institutional investors. The book value of New Gold was now reported as 1.26. The company had not issued any dividends in recent years. New Gold had 1:3 split on the 25th of July 2002.
To determine if New Gold is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding New Gold's research are outlined below:
| New Gold had very high historical volatility over the last 90 days | |
| The company reported the last year's revenue of 799.8 M. Reported Net Loss for the year was (65.68 M) with profit before taxes, overhead, and interest of 221.7 M. | |
| New Gold has a frail financial position based on the latest SEC disclosures | |
| About 64.0% of the company shares are owned by institutional investors | |
| Latest headline from news.google.com: Connor Clark Lunn Investment Management Ltd. Sells 754,600 Shares of New Gold Inc. - MarketBeat |
New Gold uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in New Gold. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to New Gold's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 13th of February 2024 Upcoming Quarterly Report | View | |
| 24th of April 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 13th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact New Gold's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises New Gold's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2019-04-25 | 2019-03-31 | -0.02 | -0.0231 | -0.0031 | 15 | ||
2024-04-30 | 2024-03-31 | 0.01 | 0.02 | 0.01 | 100 | ||
2022-11-03 | 2022-09-30 | -0.01 | -0.02 | -0.01 | 100 | ||
2021-11-12 | 2021-09-30 | 0.02 | 0.03 | 0.01 | 50 | ||
2021-08-11 | 2021-06-30 | 0.03 | 0.04 | 0.01 | 33 | ||
2021-05-05 | 2021-03-31 | 0.02 | 0.01 | -0.01 | 50 | ||
2021-02-18 | 2020-12-31 | 0.03 | 0.04 | 0.01 | 33 | ||
2020-04-29 | 2020-03-31 | -0.02 | -0.03 | -0.01 | 50 |
New Gold's market capitalization trends
The company currently falls under 'Mid-Cap' category with a total capitalization of 2.25 B.Market Cap |
|
New Gold's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | (0.03) | (0.03) | |
| Return On Capital Employed | 0.03 | 0.03 | |
| Return On Assets | (0.03) | (0.03) | |
| Return On Equity | (0.08) | (0.09) |
Determining New Gold's profitability involves analyzing its financial statements and using various financial metrics to determine if New Gold is a good buy. For example, gross profit margin measures New Gold's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of New Gold's profitability and make more informed investment decisions.
Please note, the presentation of New Gold's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, New Gold's management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of New Gold's management manipulating its earnings.
Evaluate New Gold's management efficiency
New Gold has Return on Asset of 0.0297 % which means that on every $100 spent on assets, it made $0.0297 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.0214 %, implying that it generated $0.0214 on every 100 dollars invested. New Gold's management efficiency ratios could be used to measure how well New Gold manages its routine affairs as well as how well it operates its assets and liabilities. The current year's Return On Capital Employed is expected to grow to 0.03, whereas Return On Tangible Assets are forecasted to decline to (0.03). At present, New Gold's Intangible Assets are projected to increase significantly based on the last few years of reporting. The current year's Fixed Asset Turnover is expected to grow to 0.44, whereas Non Current Assets Total are forecasted to decline to about 1.7 B.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 1.15 | 1.09 | |
| Tangible Book Value Per Share | 1.15 | 1.09 | |
| Enterprise Value Over EBITDA | 6.30 | 6.61 | |
| Price Book Value Ratio | 1.27 | 1.21 | |
| Enterprise Value Multiple | 6.30 | 6.61 | |
| Price Fair Value | 1.27 | 1.21 | |
| Enterprise Value | 1 B | 1.1 B |
At New Gold, effective management practices are pivotal to sustaining long-term profitability. We delve into financial metrics and market conditions to provide a comprehensive analysis of the stock's prospects.
Beta 1.589 |
Basic technical analysis of New Stock
As of the 26th of November, New Gold secures the Mean Deviation of 2.38, risk adjusted performance of 0.0465, and Downside Deviation of 2.99. In connection with fundamental indicators, the technical analysis model lets you check existing technical drivers of New Gold, as well as the relationship between them. Please verify New Gold value at risk, as well as the relationship between the semi variance and kurtosis to decide if New Gold is priced some-what accurately, providing market reflects its recent price of 2.66 per share. Please also check out New Gold total risk alpha, which is currently at (0.34) to check the company can sustain itself at a future point.New Gold's Outstanding Corporate Bonds
New Gold issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. New Gold uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most New bonds can be classified according to their maturity, which is the date when New Gold has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Boeing Co 2196 Corp BondUS097023DG73 | View | |
| HSBC Holdings PLC Corp BondUS404280DR76 | View | |
| MGM Resorts International Corp BondUS552953CD18 | View | |
| AerCap Global Aviation Corp BondUS00773HAA59 | View |
Understand New Gold's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing New Gold's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0465 | |||
| Market Risk Adjusted Performance | 0.2207 | |||
| Mean Deviation | 2.38 | |||
| Semi Deviation | 2.73 | |||
| Downside Deviation | 2.99 | |||
| Coefficient Of Variation | 1968.83 | |||
| Standard Deviation | 3.13 | |||
| Variance | 9.8 | |||
| Information Ratio | 0.009 | |||
| Jensen Alpha | 0.0636 | |||
| Total Risk Alpha | (0.34) | |||
| Sortino Ratio | 0.0094 | |||
| Treynor Ratio | 0.2107 | |||
| Maximum Drawdown | 17.13 | |||
| Value At Risk | (4.50) | |||
| Potential Upside | 5.53 | |||
| Downside Variance | 8.93 | |||
| Semi Variance | 7.45 | |||
| Expected Short fall | (2.69) | |||
| Skewness | 0.3782 | |||
| Kurtosis | 0.8531 |
| Risk Adjusted Performance | 0.0465 | |||
| Market Risk Adjusted Performance | 0.2207 | |||
| Mean Deviation | 2.38 | |||
| Semi Deviation | 2.73 | |||
| Downside Deviation | 2.99 | |||
| Coefficient Of Variation | 1968.83 | |||
| Standard Deviation | 3.13 | |||
| Variance | 9.8 | |||
| Information Ratio | 0.009 | |||
| Jensen Alpha | 0.0636 | |||
| Total Risk Alpha | (0.34) | |||
| Sortino Ratio | 0.0094 | |||
| Treynor Ratio | 0.2107 | |||
| Maximum Drawdown | 17.13 | |||
| Value At Risk | (4.50) | |||
| Potential Upside | 5.53 | |||
| Downside Variance | 8.93 | |||
| Semi Variance | 7.45 | |||
| Expected Short fall | (2.69) | |||
| Skewness | 0.3782 | |||
| Kurtosis | 0.8531 |
Consider New Gold's intraday indicators
New Gold intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of New Gold stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 552510.0 | |||
| Daily Balance Of Power | (1.13) | |||
| Rate Of Daily Change | 0.94 | |||
| Day Median Price | 2.71 | |||
| Day Typical Price | 2.69 | |||
| Price Action Indicator | (0.13) | |||
| Period Momentum Indicator | (0.17) | |||
| Relative Strength Index | 50.16 |
New Gold Corporate Filings
13A | 14th of November 2024 An amended filing to the original Schedule 13G | ViewVerify |
6K | 30th of October 2024 A report filed by foreign private issuers with SEC. A foreign private issuer is a non-U.S. company with securities traded on U.S. exchanges. | ViewVerify |
| 26th of June 2024 Other Reports | ViewVerify | |
| 15th of May 2024 Other Reports | ViewVerify |
New Stock media impact
Far too much social signal, news, headlines, and media speculation about New Gold that are available to investors today. That information is available publicly through New media outlets and privately through word of mouth or via New internal channels. However, regardless of the origin, that massive amount of New data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of New Gold news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of New Gold relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to New Gold's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive New Gold alpha.
New Gold Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards New Gold can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
New Gold Corporate Directors
| Gillian Davidson | Non-Executive Independent Director | Profile | |
| Margaret Mulligan | Non-Executive Independent Director | Profile | |
| Marilyn Schonberner | Non-Executive Independent Director | Profile | |
| James Gowans | Non-Executive Independent Director | Profile |
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in New Gold. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in price. For information on how to trade New Stock refer to our How to Trade New Stock guide.You can also try the Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Is Metals & Mining space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of New Gold. If investors know New will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about New Gold listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share 0.02 | Revenue Per Share 1.187 | Quarterly Revenue Growth 0.252 | Return On Assets 0.0297 | Return On Equity 0.0214 |
The market value of New Gold is measured differently than its book value, which is the value of New that is recorded on the company's balance sheet. Investors also form their own opinion of New Gold's value that differs from its market value or its book value, called intrinsic value, which is New Gold's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because New Gold's market value can be influenced by many factors that don't directly affect New Gold's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between New Gold's value and its price, as these two are different measures arrived at by various means. Investors typically determine if New Gold is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, New Gold's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.