ASX:REY

Stock Analysis Report

Executive Summary

Rey Resources Limited engages in exploring for and developing energy resources in Western Australia.


Snowflake Analysis

Worrying balance sheet with weak fundamentals.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.7%

REY

0.4%

AU Oil and Gas

0.7%

AU Market


1 Year Return

181.0%

REY

-8.8%

AU Oil and Gas

15.5%

AU Market

Return vs Industry: REY exceeded the Australian Oil and Gas industry which returned -8.8% over the past year.

Return vs Market: REY exceeded the Australian Market which returned 15.5% over the past year.


Shareholder returns

REYIndustryMarket
7 Day-1.7%0.4%0.7%
30 Day13.5%-7.8%0.8%
90 Day1.7%-2.8%6.1%
1 Year181.0%181.0%-5.0%-8.8%20.6%15.5%
3 Year243.0%243.0%12.4%0.9%38.1%19.7%
5 Year-43.8%-43.8%6.3%-11.0%51.8%17.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

2.28x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate REY's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate REY's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: REY is unprofitable, so we can't compare its PE Ratio to the Oil and Gas industry average.

PE vs Market: REY is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: REY is overvalued based on its PB Ratio (2.3x) compared to the AU Oil and Gas industry average (1.2x).


Next Steps

Future Growth

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

13.2%

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 Rey 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 Rey Resources performed over the past 5 years?

6.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: REY is currently unprofitable.

Growing Profit Margin: REY is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: REY is unprofitable, but has reduced losses over the past 5 years at a rate of 6.8% per year.

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

Earnings vs Industry: REY is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (16.4%).


Return on Equity

High ROE: REY has a negative Return on Equity (-32.48%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Rey Resources's financial position?


Financial Position Analysis

Short Term Liabilities: REY's short term assets (A$64.0K) do not cover its short term liabilities (A$2.7M).

Long Term Liabilities: REY's short term assets (A$64.0K) do not cover its long term liabilities (A$6.0M).


Debt to Equity History and Analysis

Debt Level: REY's debt to equity ratio (20.1%) is considered satisfactory.

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


Balance Sheet

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

Debt Coverage by Assets: REY's debt is not covered by short term assets (assets are 0x debt).


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: REY has less than a year of cash runway based on its current free cash flow.

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


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%5.4%industryaverage4.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate REY'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 REY's dividends per share have been stable in the past.

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

3.6yrs

Average management tenure


CEO

Wei Jin 0

3.6yrs

Tenure

AU$131,400

Compensation

Mr. Wei Jin has been the Managing Director of Rey Resources Limited since July 1, 2016 and its Director since December 2, 2013. Mr. Jin serves as a Nominee Director of Crystal Yield Investments Limited. He ...


CEO Compensation Analysis

Compensation vs Market: Wei's total compensation ($USD86.89K) is below average for companies of similar size in the Australian market ($USD253.04K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Wei Jin
MD & Director3.6yrsAU$131.40k0.094% A$59.0k
Stanley Fu
Operations Manager2.5yrsno datano data
Shannon Coates
Company Secretary8.1yrsno datano data
Grant Quinn
Consultant0yrsno datano data
Walter Muir
Consultant0yrsno datano data

3.6yrs

Average Tenure

Experienced Management: REY's management team is considered experienced (3.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Wei Jin
MD & Director3.6yrsAU$131.40k0.094% A$59.0k
Dachun Zhang
Independent Non-Executive Director6.6yrsAU$25.00k0.37% A$229.3k
Min Yang
Non-Executive Chairman7.4yrsno datano data
Zhiliang Ou
Independent Non-Executive Director3.4yrsAU$59.13kno data
Geoffrey Baker
Non-Executive Director7.4yrsAU$60.00kno data
Louis Chien
Alternate Non-Executive Director4.1yrsno datano data

6.4yrs

Average Tenure

63.5yo

Average Age

Experienced Board: REY's board of directors are considered experienced (6.4 years average tenure).


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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Rey Resources Limited
  • Ticker: REY
  • Exchange: ASX
  • Founded:
  • Industry: Coal and Consumable Fuels
  • Sector: Energy
  • Market Cap: AU$62.587m
  • Shares outstanding: 212.16m
  • Website: https://www.reyresources.com

Location

  • Rey Resources Limited
  • 3b Macquarie Street
  • Suite 2
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
REYASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJun 2006
REYCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJun 2006

Biography

Rey Resources Limited engages in exploring for and developing energy resources in Western Australia. It holds a 25% interest in the Canning Basin petroleum permits EP457 and EP458 (Fitzroy Blocks), and a 100% interest in EP487 (Derby Block). The company also holds a 100% interest in petroleum permits EP104, R1, and L15 and in Canning Basin, as well as coal tenements in the Canning Basin. Rey Resources Limited 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 Analysis2020/02/21 10:34
End of Day Share Price2020/02/17 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.