ASX:XRF

Stock Analysis Report

Executive Summary

XRF Scientific Limited manufactures and markets precious metal products, specialized chemicals, and instruments for the scientific, analytical, construction material, and mining industries in Australia, Canada, and Europe.

Snowflake

Fundamentals

Undervalued with excellent balance sheet and pays a dividend.

Share Price & News

How has XRF Scientific's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

2.1%

XRF

1.8%

AU Machinery

0.1%

AU Market


1 Year Return

50.0%

XRF

15.0%

AU Machinery

11.9%

AU Market

Return vs Industry: XRF exceeded the Australian Machinery industry which returned 15% over the past year.

Return vs Market: XRF exceeded the Australian Market which returned 11.9% over the past year.


Shareholder returns

XRFIndustryMarket
7 Day2.1%1.8%0.1%
30 Day-4.0%4.0%-1.1%
90 Day20.0%24.8%-1.4%
1 Year56.1%50.0%15.9%15.0%18.5%11.9%
3 Year35.6%26.3%-28.2%-29.5%36.4%18.1%
5 Year55.9%33.3%27.3%3.2%50.9%16.7%

Price Volatility Vs. Market

How volatile is XRF Scientific's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is XRF Scientific 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: XRF (A$0.24) is trading below our estimate of fair value (A$0.53)

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


Price To Earnings Ratio

PE vs Industry: XRF is poor value based on its PE Ratio (15x) compared to the Machinery industry average (13.7x).

PE vs Market: XRF is good value based on its PE Ratio (15x) compared to the Australian market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: XRF is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: XRF is good value based on its PB Ratio (0.9x) compared to the AU Machinery industry average (1.2x).


Next Steps

Future Growth

How is XRF Scientific forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

17.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: XRF's forecast earnings growth (17.1% per year) is above the savings rate (2.3%).

Earnings vs Market: XRF's earnings (17.1% per year) are forecast to grow faster than the Australian market (10.2% per year).

High Growth Earnings: XRF's earnings are forecast to grow, but not significantly.

Revenue vs Market: XRF's revenue (5.3% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: XRF's revenue (5.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: XRF's Return on Equity is forecast to be low in 3 years time (8.7%).


Next Steps

Past Performance

How has XRF Scientific performed over the past 5 years?

-16.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: XRF's earnings have declined by -16.2% per year over the past 5 years.

Accelerating Growth: XRF's earnings growth over the past year (108.7%) exceeds its 5-year average (-16.2% per year).

Earnings vs Industry: XRF earnings growth over the past year (108.7%) exceeded the Machinery industry -19.1%.


Return on Equity

High ROE: XRF's Return on Equity (6.3%) is considered low.


Return on Assets

ROA vs Industry: XRF has a higher Return on Assets than the Machinery industry average last year.


Return on Capital Employed

ROCE Improving: XRF has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is XRF Scientific's financial position?


Financial Position Analysis

Short Term Liabilities: XRF's short term assets (A$16.4M) exceeds its short term liabilities (A$6.0M)

Long Term Liabilities: XRF's short term assets (16.4M) exceeds its long term liabilities (1.9M)


Debt to Equity History and Analysis

Debt Level: XRF's debt to equity ratio (12.5%) is considered satisfactory

Reducing Debt: Insufficient data to determine if XRF's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: XRF's debt is well covered by operating cash flow (91.5%).

Interest Coverage: XRF's interest payments on its debt are well covered by EBIT (31.5x coverage).


Balance Sheet

Inventory Level: XRF has a high level of physical assets or inventory.

Debt Coverage by Assets: XRF's debt is covered by short term assets (assets are 3.876310x debt).


Next Steps

Dividend

What is XRF Scientific's current dividend yield, its reliability and sustainability?

4.17%

Current Dividend Yield


Dividend Yield vs Market

company4.2%marketbottom25%2.4%markettop25%5.6%industryaverage1.5%forecastin3Years5.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: XRF's dividend (4.17%) is higher than the bottom 25% of dividend payers in the Australian market (2.44%).

High Dividend: XRF's dividend (4.17%) is low compared to the top 25% of dividend payers in the Australian market (5.58%).

Stable Dividend: XRF's dividend payments have been volatile in the past 10 years.

Growing Dividend: XRF's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (62.6%), XRF's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: XRF's dividends in 3 years are forecast to be covered by earnings (58.3% payout ratio).


Next Steps

Management

What is the CEO of XRF Scientific's salary, the management and board of directors tenure and is there insider trading?

7.2yrs

Average management tenure


CEO

Vance Stazzonelli 0

7.2yrs

Tenure

AU$336,313

Compensation

Mr. Vance Stazzonelli, B.Comm has been the Chief Executive Officer of XRF Scientific Limited since August 6, 2012 and Company Secretary since June 16, 2008. Mr. Stazzonelli has been Managing Director and D ...


CEO Compensation Analysis

Compensation vs. Market: Vance's total compensation ($USD230.89K) is about average for companies of similar size in the Australian market ($USD260.53K).

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


Management Age and Tenure

7.2yrs

Average Tenure

Experienced Management: XRF's management team is seasoned and experienced (7.2 years average tenure).


Board Age and Tenure

7.4yrs

Average Tenure

61yo

Average Age

Experienced Board: XRF's board of directors are considered experienced (7.4 years average tenure).


Insider Trading

Insider Buying: XRF insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellAU$356,23913 Sep 19
Craig Burton
EntityIndividual
Shares1,480,471
Max PriceAU$0.24
SellAU$189,10813 Dec 18
Pengana Capital Ltd.
EntityCompany
Shares1,259,017
Max PriceAU$0.17
BuyAU$14,50012 Dec 18
Frederick Grimwade
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares100,000
Max PriceAU$0.14
BuyAU$3,93010 Dec 18
David Brown
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares27,106
Max PriceAU$0.14
BuyAU$15,30022 Nov 18
David Brown
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares102,000
Max PriceAU$0.15
BuyAU$242,74214 Nov 18
Michael Korber
EntityIndividual
Shares1,350,775
Max PriceAU$0.18
BuyAU$10,15009 Nov 18
Vance Stazzonelli
EntityIndividual
Role
Chief Executive Officer
MD, Company Secretary & Director
Shares70,000
Max PriceAU$0.14

Ownership Breakdown


Management Team

  • Steve Prossor

    Business Development Manager

    • Tenure: 5.3yrs
    • Compensation: AU$152.54k
  • Gino Manfredi

    General Manager of XRF Labware

    • Tenure: 0yrs
    • Compensation: AU$183.15k
  • Vance Stazzonelli

    MD, Company Secretary & Director

    • Tenure: 7.2yrs
    • Compensation: AU$336.31k
  • Rob McConnell

    General Manager of XRF Technology WA

    • Tenure: 13.7yrs
    • Compensation: AU$133.49k
  • Jeff Brown

    General Manager of XRF Chemicals

    • Tenure: 13.8yrs
    • Compensation: AU$144.86k
  • Andrew Watson

    CFO & Joint Company Secretary

    • Tenure: 5.3yrs
    • Compensation: AU$208.59k

Board Members

  • Fred Grimwade (61yo)

    Non-Executive Chairman

    • Tenure: 0yrs
    • Compensation: AU$78.69k
  • David Kiggins (50yo)

    Non-Executive Independent Director

    • Tenure: 7.4yrs
    • Compensation: AU$63.00k
  • David Brown (81yo)

    Non-Executive Director

    • Tenure: 15.3yrs
    • Compensation: AU$226.00k
  • Vance Stazzonelli

    MD, Company Secretary & Director

    • Tenure: 7.2yrs
    • Compensation: AU$336.31k

Company Information

XRF Scientific Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: XRF Scientific Limited
  • Ticker: XRF
  • Exchange: ASX
  • Founded:
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: AU$32.118m
  • Shares outstanding: 133.83m
  • Website: https://www.xrfscientific.com

Location

  • XRF Scientific Limited
  • 86 Guthrie Street
  • Osborne Park
  • Western Australia
  • 6017
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
XRFASX (Australian Securities Exchange)YesOrdinary SharesAUAUDOct 2006
XRFCHIA (Chi-X Australia)YesOrdinary SharesAUAUDOct 2006

Biography

XRF Scientific Limited manufactures and markets precious metal products, specialized chemicals, and instruments for the scientific, analytical, construction material, and mining industries in Australia, Ca ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 10:33
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.