ASX:ADD

Stock Analysis Report

Adavale Resources

Executive Summary

Adavale Resources Limited engages in the mining exploration and development activities in Australia and Indonesia.


Snowflake Analysis

Weak fundamentals or lack of information.

Share Price & News

How has Adavale Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ADD's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

20.0%

ADD

-4.4%

AU Oil and Gas

-2.2%

AU Market


1 Year Return

n/a

ADD

-12.3%

AU Oil and Gas

11.6%

AU Market

Return vs Industry: Insufficient data to determine how ADD performed against the Australian Oil and Gas industry.

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


Shareholder returns

ADDIndustryMarket
7 Day20.0%-4.4%-2.2%
30 Day-20.0%-11.5%-2.2%
90 Dayn/a-9.7%2.2%
1 Yearn/a-9.6%-12.3%16.5%11.6%
3 Year71.4%71.4%11.0%-0.3%36.2%18.1%
5 Year44.0%44.0%0.2%-16.2%46.7%14.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Adavale Resources undervalued compared to its fair value and its price relative to the market?


In this section, we usually try to help investors determine whether Adavale Resources is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Adavale Resources has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of ADD’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the potential returns from the core activities, the size of each contract's opportunity, and the capacity of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through Adavale Resources regulatory filings.
  • Explore potentially undervalued companies in the Energy industry.

Future Growth

How is Adavale Resources forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

13.6%

Forecasted Energy 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 Adavale Resources 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 Adavale Resources performed over the past 5 years?

13.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ADD is currently unprofitable.

Growing Profit Margin: ADD is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ADD is unprofitable, but has reduced losses over the past 5 years at a rate of 13% per year.

Accelerating Growth: Unable to compare ADD's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ADD is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (14.4%).


Return on Equity

High ROE: ADD's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is Adavale Resources's financial position?


Financial Position Analysis

Short Term Liabilities: ADD has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: ADD has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: ADD has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: ADD's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

Inventory Level: ADD has a low level of unsold assets or inventory.

Debt Coverage by Assets: ADD has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: ADD has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if ADD has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Adavale Resources's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if ADD'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 ADD'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?

0.3yrs

Average board tenure


CEO

Adavale Resources has no CEO, or we have no data on them.


Board Members

NamePositionTenureCompensationOwnership
Louis Clinton
Non-Executive Chairman0.3yrsno data3.35% A$165.3k
Gary Stewart
Non-Executive Director0.2yrsno datano data
Peter Tsegas
Non-Executive Director0.3yrsno datano data

0.3yrs

Average Tenure

Experienced Board: ADD's board of directors are not considered experienced ( 0.3 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: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 35.1%.


Top Shareholders

Company Information

Adavale Resources Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Adavale Resources Limited
  • Ticker: ADD
  • Exchange: ASX
  • Founded:
  • Industry: Coal and Consumable Fuels
  • Sector: Energy
  • Market Cap: AU$4.935m
  • Shares outstanding: 159.19m
  • Website: https://www.adavaleresources.com

Location

  • Adavale Resources Limited
  • 225 George Street
  • Level 12
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ADDASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
ASGASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
ADDCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992

Biography

Adavale Resources Limited engages in the mining exploration and development activities in Australia and Indonesia. The company holds a 100% interest in the Lake Surprise uranium project with three exploration licenses in the northern part of the Lake Frome Embayment, South Australia. The company is based in Sydney, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 10:31
End of Day Share Price2020/02/25 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.