Is NEM a high-quality business?

AlphaMadera's AlphaQuality grade scores Newmont Corporation on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how NEM compares to a Buffett-style quality bar.

What is Newmont Corporation's AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to NEM based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes NEM a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

NEM - Newmont Corporation

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $137.09 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Other Commodity Producers

AlphaQuality — archetype-weighted quantitative grade

B 70.9 / 100 composite

Composite Grade

Composite of six pillars weighted for other commodity producers businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 15%

C 53.3

5yr Avg ROIC 4.6% 33/100
Operating Margin Trend +7.97 pp/yr 100/100

Capital Efficiency

Weight: 10%

F 23.0

5yr Avg ROE 5.1% 35/100
5yr Share-Count CAGR 8.4% 0/100

Growth Quality

Weight: 5%

A 88.7

5yr Revenue CAGR 16.0% 93/100
5yr EPS CAGR 44.8% 100/100
Revenue-Growth Years (5) 3/5 60/100

Cash Generation

Weight: 25%

A 88.0

5yr FCF Margin 16.1% 84/100
5yr FCF/NI Conversion 1.39x 93/100

Balance Sheet

Weight: 25%

A+ 97.6

Net Debt / EBITDA -0.19x 96/100
Interest Coverage (EBIT/Int) 34.40x 100/100
Altman Z-Score 4.56 98/100

Stability

Weight: 20%

C- 49.1

EPS Volatility (σ/μ) 0.77 9/100
Piotroski F-Score 9 100/100
Negative-Revenue Years (5) 2/5 60/100

4 of 4 gurus held; 1 added; 3 trimmed; 1 full exit.

Holders: 4
Avg Δ position: -13.1%
New buys: 0
Full exits: 1

Laffont sold -100%
Wood decreased -30%
Cooperman decreased -22%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (15%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (10%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (5%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (25%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (25%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (20%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.