ASX:RNU

Stock Analysis Report

Renascor Resources

Executive Summary

Renascor Resources Limited engages in the exploration and evaluation of mineral properties in Australia.

Rewards

Earnings are forecast to grow 51.35% per year

Earnings have grown 11.5% per year over the past 5 years

Risk Analysis

Shareholders have been substantially diluted in the past year

Makes less than USD$1m in revenue (A$185)

Does not have a meaningful market cap (A$13M)

Has less than 1 year of cash runway

+ 1 more risk


Snowflake Analysis

Excellent balance sheet with moderate growth potential.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

10.0%

RNU

0.9%

AU Oil and Gas

1.5%

AU Market


1 Year Return

-38.9%

RNU

-7.9%

AU Oil and Gas

15.6%

AU Market

Return vs Industry: RNU underperformed the Australian Oil and Gas industry which returned -7.3% over the past year.

Return vs Market: RNU underperformed the Australian Market which returned 16.1% over the past year.


Shareholder returns

RNUIndustryMarket
7 Day10.0%0.9%1.5%
30 Day-8.3%-8.1%0.4%
90 Day-21.4%-3.8%4.1%
1 Year-38.9%-38.9%-4.0%-7.9%20.6%15.6%
3 Year-52.2%-52.2%12.7%1.2%37.1%18.7%
5 Year-61.3%-63.3%6.2%-12.8%50.9%17.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.73x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

PE vs Market: RNU 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 RNU's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RNU is good value based on its PB Ratio (0.7x) compared to the AU Oil and Gas industry average (1.2x).


Next Steps

Future Growth

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

51.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RNU is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.1%).

Earnings vs Market: RNU is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: RNU's is expected to become profitable in the next 3 years.

Revenue vs Market: RNU is forecast to have no revenue next year.

High Growth Revenue: RNU is forecast to have no revenue next year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if RNU's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Renascor Resources performed over the past 5 years?

11.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RNU is currently unprofitable.

Growing Profit Margin: RNU is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RNU is unprofitable, but has reduced losses over the past 5 years at a rate of 11.5% per year.

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

Earnings vs Industry: RNU is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (58.2%).


Return on Equity

High ROE: RNU has a negative Return on Equity (-7.61%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Renascor Resources's financial position?


Financial Position Analysis

Short Term Liabilities: RNU's short term assets (A$2.9M) exceed its short term liabilities (A$629.0K).

Long Term Liabilities: RNU has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: RNU is debt free.

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


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if RNU's debt is 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: RNU has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: RNU has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of -15.9% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%5.5%industryaverage4.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

9.3yrs

Average board tenure


CEO

David Christensen 0

9.8yrs

Tenure

AU$481,469

Compensation

Mr. David Christensen serves as the Managing Director and Director at Renascor Resources Limited. Mr. Christensen is an experienced mining executive, with recent successful experience managing exploration, ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD323.50K) is about average for companies of similar size in the Australian market ($USD254.67K).

Compensation vs Earnings: David's compensation has increased whilst the company is unprofitable.


Board Members

NamePositionTenureCompensationOwnership
David Christensen
MD & Director9.8yrsAU$481.47k1.67% A$220.6k
Stephen Bizzell
Non-Executive Director9.4yrsAU$40.00k0.65% A$86.1k
Richard Keevers
Non-Executive Chairman3.1yrsAU$60.00k3.51% A$462.7k
Geoffrey McConachy
Non-Executive Director9.3yrsAU$261.05kno data

9.3yrs

Average Tenure

Experienced Board: RNU's board of directors are considered experienced (9.3 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 67.7%.


Top Shareholders

Company Information

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


Key Information

  • Name: Renascor Resources Limited
  • Ticker: RNU
  • Exchange: ASX
  • Founded: 2009
  • Industry: Coal and Consumable Fuels
  • Sector: Energy
  • Market Cap: AU$13.182m
  • Shares outstanding: 1.32b
  • Website: https://www.renascor.com.au

Number of Employees


Location

  • Renascor Resources Limited
  • 36 North Terrace
  • Kent Town
  • South Australia
  • 5067
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RNUASX (Australian Securities Exchange)YesOrdinary SharesAUAUDDec 2010
RU8DB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2010
RNUCHIA (Chi-X Australia)YesOrdinary SharesAUAUDDec 2010

Biography

Renascor Resources Limited engages in the exploration and evaluation of mineral properties in Australia. The company explores for graphite, copper, gold, uranium, and other minerals. Its focus project is the Siviour graphite project located in Eyre Peninsula, South Australia. The company was formerly known as Renaissance Uranium Limited and changed its name to Renascor Resources Limited in December 2013. Renascor Resources Limited was incorporated in 2009 and is headquartered in Kent Town, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 10:37
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.