Australia Stock Alert
CLOSING UPDATE: Newcrest Mining decreases 1.0%, led S&P/ASX All Ordinaries Gold lower October 20, 2017 16:00:00 AEST
NEWS BITES - AUSTRALIA
This is an end of day Alert, produced after today's Australian market close. It concludes the BSS News Bites intra-day Alert series (summaries below).
Newcrest Mining, Australia's 5th largest materials company by market capitalisation, has decreased 1.0% to trade at $A21.58 vs. the S&P/ASX All Ordinaries Gold which weakened 29.5 points (or 0.7%) to 4,485.9. Representing a weighting of about 48.0% of the index, the stock accounted for 70.9% of today's loss. Trading volume was 57% of average at the end of the day. Compared with the All Ordinaries Index which rose 8.8 points (or 0.1%) in the day, this represented a relative price change of -1.1%.
Technical indicators complementing today's significant downtrend:
+ The negative 0.03 MACD (Moving Average Convergence Divergence) indicator suggests a bearish signal.
+ The price decreased 1.3% in the last week and sank 4.3% in the last month.
Fundamental measures by comparison with the sector average [in brackets] indicate:
+ Price/Sales of 4.8 [2.2]
+ Dividend yield of 0.9% [3.6%]
+ Return on Equity 4.4% [8.2%]
+ Return on Assets 2.8% [4.0%]
+ Return on Capital Employed 5.6% [9.1%]
Other Bearish Signals include:
+ As per the Du Pont analysis, Return on Equity is less than stellar at 4.4%. Also, this has deteriorated from 4.8% last year.
Newcrest Mining today is at a discount of 14.9% to the 12-month high of $A25.35 on 09 Nov, 2016. It is at a premium of 33.1% to the 12-month low of $A16.21 on 16 Dec, 2016.
Tobin's Q Ratio is 1.4. Compared with the rest of the market the stock is undervalued.
Net profit margin has averaged 10% in the last 3 years. This is better than the sector average of 8.5% and suggests a high margin of safety.
Morning Alert: Newcrest Mining decreases 0.3%
October 20, 2017 11:00:00 AEST
Newcrest Mining Limited (ASX:NCM) has decreased 6.0c (or 0.3%) to trade at $A21.73.
Newcrest Mining Limited (AU:NCM; ASX:NCM; AX:NCM)