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AAJ

Aruma ResourcesASX:AAJ Stock Report

Market Cap

AU$11.3m

7D

4.7%

1Y

-20.0%

Updated

26 Oct, 2021

Data

Company Financials
AAJ fundamental analysis
Snowflake Score
Valuation0/6
Future Growth0/6
Past Performance0/6
Financial Health6/6
Dividends0/6

AAJ Overview

Aruma Resources Limited operates as a mineral exploration company in Australia.

Price History & Performance

Summary of all time highs, changes and price drops for Aruma Resources
Historical stock prices
Current Share PriceAU$0.09
52 Week HighAU$0.05
52 Week LowAU$0.13
Beta0.64
1 Month Change-4.26%
3 Month Change66.67%
1 Year Change-20.00%
3 Year Change0.001%
5 Year Change-40.00%
Change since IPO-96.84%

Recent News & Updates

Shareholder Returns

AAJAU Metals and MiningAU Market
7D4.7%-0.4%0.8%
1Y-20.0%15.6%24.4%

Return vs Industry: AAJ underperformed the Australian Metals and Mining industry which returned 15.6% over the past year.

Return vs Market: AAJ underperformed the Australian Market which returned 24.4% over the past year.

Price Volatility

Is AAJ's price volatile compared to industry and market?
AAJ volatility
AAJ Beta0.64
Industry Beta0.97
Market Beta1

Stable Share Price: AAJ is more volatile than 90% of Australian stocks over the past 3 months, typically moving +/- 19% a week.

Volatility Over Time: AAJ's weekly volatility (19%) has been stable over the past year, but is still higher than 75% of Australian stocks.

About the Company

FoundedEmployeesCEOWebsite
2010n/aPeter Schwannhttps://www.arumaresources.com

Aruma Resources Limited operates as a mineral exploration company in Australia. The company explores for gold and lithium. Its flagship property is its 100% owned Pilbara projects, comprising Saltwater gold project, consisting of nine granted exploration licenses covering an area of 744km2; and Melrose Gold project, including twelve exploration licenses and two prospecting licenses, which covers an area of 371km2 located in Western Australia.

Aruma Resources Fundamentals Summary

How do Aruma Resources's earnings and revenue compare to its market cap?
AAJ fundamental statistics
Market CapAU$11.34m
Earnings (TTM)-AU$1.60m
Revenue (TTM)AU$401.74k

28.3x

P/S Ratio

-7.1x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AAJ income statement (TTM)
RevenueAU$401.74k
Cost of RevenueAU$0
Gross ProfitAU$401.74k
ExpensesAU$2.00m
Earnings-AU$1.60m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.013
Gross Margin100.00%
Net Profit Margin-397.38%
Debt/Equity Ratio0.0%

How did AAJ perform over the long term?

See historical performance and comparison

Valuation

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

4.19x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

PE vs Industry: AAJ is unprofitable, so we can't compare its PE Ratio to the Australian Metals and Mining industry average.

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


Price to Book Ratio

PB vs Industry: AAJ is overvalued based on its PB Ratio (4.2x) compared to the AU Metals and Mining industry average (2.6x).


Future Growth

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

-0.5%

Forecasted Materials 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 Aruma 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.


Past Performance

How has Aruma Resources performed over the past 5 years?

-10.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AAJ is currently unprofitable.

Growing Profit Margin: AAJ is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AAJ is unprofitable, and losses have increased over the past 5 years at a rate of 10.4% per year.

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

Earnings vs Industry: AAJ is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (35.3%).


Return on Equity

High ROE: AAJ has a negative Return on Equity (-59%), as it is currently unprofitable.


Financial Health

How is Aruma Resources's financial position?


Financial Position Analysis

Short Term Liabilities: AAJ's short term assets (A$2.8M) exceed its short term liabilities (A$154.3K).

Long Term Liabilities: AAJ's short term assets (A$2.8M) exceed its long term liabilities (A$34.1K).


Debt to Equity History and Analysis

Debt Level: AAJ is debt free.

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


Balance Sheet


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: AAJ has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: AAJ has sufficient cash runway for 1.2 years if free cash flow continues to reduce at historical rates of 7.3% each year.


Dividend

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


Dividend Yield vs Market

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

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

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

11.7yrs

Average management tenure


CEO

Peter Schwann (71 yo)

11.67yrs

Tenure

AU$390,563

Compensation

Mr. Peter Bernard Schwann, Assoc. in Applied Geology, FAIMM (CP), FAusIMM, FAIG, MSEG, has been Managing Director of Aruma Resources Limited from February 11, 2010. Mr. Schwann has been an Executive Direct...


CEO Compensation Analysis

Compensation vs Market: Peter's total compensation ($USD292.78K) is about average for companies of similar size in the Australian market ($USD301.38K).

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


Leadership Team

Experienced Management: AAJ's management team is seasoned and experienced (11.7 years average tenure).


Board Members

Experienced Board: AAJ's board of directors are seasoned and experienced ( 11.7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: AAJ 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 18.9%.


Top Shareholders

Company Information

Aruma Resources Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Aruma Resources Limited
  • Ticker: AAJ
  • Exchange: ASX
  • Founded: 2010
  • Industry: Gold
  • Sector: Materials
  • Market Cap: AU$11.337m
  • Shares outstanding: 125.96m
  • Website: https://www.arumaresources.com

Location

  • Aruma Resources Limited
  • 6 Thelma Street
  • Level 1
  • West Perth
  • Western Australia
  • 6005
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/26 16:26
End of Day Share Price2021/10/26 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.