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RDG

Resource Development GroupASX:RDG Stock Report

Market Cap

AU$138.5m

7D

-2.0%

1Y

-12.7%

Updated

16 Oct, 2021

Data

Company Financials
RDG fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance3/6
Financial Health6/6
Dividends0/6

RDG Overview

Resource Development Group Limited provides contracting, remedial, and construction services to the resource, infrastructure, energy, government, utilities, and defense sectors in Australia.

Price History & Performance

Summary of all time highs, changes and price drops for Resource Development Group
Historical stock prices
Current Share PriceAU$0.048
52 Week HighAU$0.035
52 Week LowAU$0.061
Beta0
1 Month Change-4.00%
3 Month Change4.35%
1 Year Change-12.73%
3 Year Changen/a
5 Year Changen/a
Change since IPO92.00%

Recent News & Updates

Mar 19
Can Resource Development Group Limited (ASX:RDG) Improve Its Returns?

Can Resource Development Group Limited (ASX:RDG) Improve Its Returns?

Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is...

Jan 07
Here's Why We Don't Think Resource Development Group's (ASX:RDG) Statutory Earnings Reflect Its Underlying Earnings Potential

Here's Why We Don't Think Resource Development Group's (ASX:RDG) Statutory Earnings Reflect Its Underlying Earnings Potential

Broadly speaking, profitable businesses are less risky than unprofitable ones. That said, the current statutory profit...

Shareholder Returns

RDGAU ConstructionAU Market
7D-2.0%0.9%0.9%
1Y-12.7%1.7%20.2%

Return vs Industry: RDG underperformed the Australian Construction industry which returned 1.7% over the past year.

Return vs Market: RDG underperformed the Australian Market which returned 20.2% over the past year.

Price Volatility

Is RDG's price volatile compared to industry and market?
RDG volatility
RDG Beta0
Industry Beta0.99
Market Beta1

Stable Share Price: RDG is more volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 15% a week.

Volatility Over Time: RDG's weekly volatility (15%) has been stable over the past year, but is still higher than 75% of Australian stocks.

About the Company

FoundedEmployeesCEOWebsite
2011158Andrew Ellisonhttps://www.resdevgroup.com.au

Resource Development Group Limited provides contracting, remedial, and construction services to the resource, infrastructure, energy, government, utilities, and defense sectors in Australia. The company offers whole of project life-cycle services, including multi-disciplinary construction services, such as civil, SMPT, E&I, and non-process building works; ancillary maintenance services; EPCM, PMC, or integrated team project delivery solutions; EPC project delivery solutions; design and construct package delivery solutions; and optimizing services comprising debottlenecking existing operations. It also provides materials handling solutions consisting of mobile crushing and screening, modular crushing and screening, project management, and maintenance and field service; and develops residential buildings.

Resource Development Group Fundamentals Summary

How do Resource Development Group's earnings and revenue compare to its market cap?
RDG fundamental statistics
Market CapAU$138.49m
Earnings (TTM)AU$324.75k
Revenue (TTM)AU$67.12m

436.4x

P/E Ratio

2.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RDG income statement (TTM)
RevenueAU$67.12m
Cost of RevenueAU$39.45m
Gross ProfitAU$27.68m
ExpensesAU$27.35m
EarningsAU$324.75k

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.00011
Gross Margin41.23%
Net Profit Margin0.48%
Debt/Equity Ratio0%

How did RDG perform over the long term?

See historical performance and comparison

Valuation

Is Resource Development Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RDG (A$0.05) is trading below our estimate of fair value (A$0.52)

Significantly Below Fair Value: RDG is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: RDG is poor value based on its PE Ratio (436.4x) compared to the Australian Construction industry average (15.8x).

PE vs Market: RDG is poor value based on its PE Ratio (436.4x) compared to the Australian market (19.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate RDG's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RDG is good value based on its PB Ratio (1.6x) compared to the AU Construction industry average (2x).


Future Growth

How is Resource Development Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

29.1%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Resource Development Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has Resource Development Group performed over the past 5 years?

1,279.9%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: RDG has high quality earnings.

Growing Profit Margin: RDG's current net profit margins (0.5%) are higher than last year (0.1%).


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if RDG's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Insufficient data to compare RDG's past year earnings growth to its 5-year average.

Earnings vs Industry: RDG earnings growth over the past year (1279.9%) exceeded the Construction industry 25%.


Return on Equity

High ROE: RDG's Return on Equity (0.4%) is considered low.


Financial Health

How is Resource Development Group's financial position?


Financial Position Analysis

Short Term Liabilities: RDG's short term assets (A$35.0M) exceed its short term liabilities (A$29.7M).

Long Term Liabilities: RDG's short term assets (A$35.0M) exceed its long term liabilities (A$4.6M).


Debt to Equity History and Analysis

Debt Level: RDG is debt free.

Reducing Debt: RDG has not had any debt for past 5 years.

Debt Coverage: RDG has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: RDG has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Resource Development Group current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate RDG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate RDG's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if RDG's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if RDG's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RDG's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

AU$460k

CEO Compensation


CEO

Andrew Ellison (59 yo)

no data

Tenure

AU$460,000

Compensation

Mr. Andrew Blair Ellison serves as Managing Director and Director of Resource Development Group Limited and served as its Chairman. Mr. Ellison was a Owner of Cimeco Group Pty Ltd. (Cimeco Pty Ltd.) and se...


CEO Compensation Analysis

Compensation vs Market: Andrew's total compensation ($USD341.42K) is about average for companies of similar size in the Australian market ($USD302.45K).

Compensation vs Earnings: Andrew's compensation has increased by more than 20% in the past year.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 14%.


Top Shareholders

Company Information

Resource Development Group Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Resource Development Group Limited
  • Ticker: RDG
  • Exchange: ASX
  • Founded: 2011
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: AU$138.486m
  • Shares outstanding: 2.89b
  • Website: https://www.resdevgroup.com.au

Number of Employees


Location

  • Resource Development Group Limited
  • 46 Edward Street
  • Level 1
  • Perth
  • Western Australia
  • 6017
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/16 07:04
End of Day Share Price2021/10/15 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.