ASX:RDG

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Resource Development Group

Executive Summary

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


Snowflake Analysis

Flawless balance sheet with poor track record.

Share Price & News

How has Resource Development Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RDG is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 12% a week.

Volatility Over Time: Insufficient data to determine RDG's volatility change over the past year.


Market Performance


7 Day Return

-8.8%

RDG

6.4%

AU Construction

1.3%

AU Market


1 Year Return

n/a

RDG

-23.9%

AU Construction

-1.7%

AU Market

Return vs Industry: Insufficient data to determine how RDG performed against the Australian Construction industry.

Return vs Market: Insufficient data to determine how RDG performed against the Australian Market.


Shareholder returns

RDGIndustryMarket
7 Day-8.8%6.4%1.3%
30 Day-8.8%18.5%11.1%
90 Day-30.7%18.7%9.0%
1 Yearn/a-23.2%-23.9%1.7%-1.7%
3 Yearn/a-37.3%-41.8%23.1%7.9%
5 Yearn/a35.5%17.9%57.2%26.0%

Long-Term Price Volatility Vs. Market

How volatile is Resource Development Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

24.73x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RDG (A$0.05) is trading above our estimate of fair value (A$0)

Significantly Below Fair Value: RDG is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: RDG is poor value based on its PE Ratio (24.7x) compared to the AU Construction industry average (19.2x).

PE vs Market: RDG is poor value based on its PE Ratio (24.7x) compared to the Australian market (23x).


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's PB Ratio (2x) is in line with the AU Construction industry average.


Next Steps

Future Growth

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

25.4%

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.


Next Steps

Past Performance

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

-21.1%

Last years revenue growth


Earnings and Revenue History

Quality Earnings: RDG has a large one-off gain of A$1.8M impacting its June 30 2020 financial results.

Growing Profit Margin: RDG became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: Unable to establish if RDG's year-on-year earnings growth rate was positive over the past 5 years as it has been trading publicly for less than 3 years.

Accelerating Growth: Unable to compare RDG's past year earnings growth to its 5-year average as it has been trading publicly for less than 3 years.

Earnings vs Industry: RDG has become profitable in the last year, making it difficult to compare its past year earnings growth to the Construction industry (-3.4%).


Return on Equity

High ROE: RDG's Return on Equity (2.7%) is considered low.


Next Steps

Financial Health

How is Resource Development Group's financial position?


Financial Position Analysis

Short Term Liabilities: RDG's short term assets (A$19.0M) exceed its short term liabilities (A$9.7M).

Long Term Liabilities: RDG's short term assets (A$19.0M) exceed its long term liabilities (A$2.9M).


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


Next Steps

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?

0.4yrs

Average board tenure


CEO

Andrew Ellison (58 yo)

no data

Tenure

AU$340,860

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Andrew's total compensation ($USD251.98K) is about average for companies of similar size in the Australian market ($USD282.32K).

Compensation vs Earnings: Andrew's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Andrew Ellison
Chairman of the Board & MDno dataAU$340.86k5.49%
A$ 7.2m
Mark Wilson
Chairman of the Board0.83yrno datano data
Michael Grey
Non-Executive Director0.42yrno data0.011%
A$ 14.3k
Paul Brown
Non-Executive Director0.42yrno datano data

0.4yrs

Average Tenure

Experienced Board: RDG's board of directors are not considered experienced ( 0.4 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: RDG insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: RDG only recently listed within the past 12 months.


Top Shareholders

Company Information

Resource Development Group Limited's company bio, 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$131.566m
  • Shares outstanding: 2.53b
  • Website: https://www.resdevgroup.com.au

Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RDGASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJun 2020

Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/30 07:06
End of Day Share Price2020/11/26 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.