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Aruma Resources

ASX:AAJ
Snowflake Description

Adequate balance sheet with weak fundamentals.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
AAJ
ASX
A$3M
Market Cap
  1. Home
  2. AU
  3. Materials
Company description

Aruma Resources Limited operates as a mineral exploration company in Australia. The last earnings update was 68 days ago. More info.


Add to Portfolio Compare Print
  • Aruma Resources has significant price volatility in the past 3 months.
AAJ Share Price and Events
7 Day Returns
0%
ASX:AAJ
3.8%
AU Metals and Mining
4%
AU Market
1 Year Returns
-73.7%
ASX:AAJ
7.4%
AU Metals and Mining
5.2%
AU Market
AAJ Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Aruma Resources (AAJ) 0% -16.7% -37.5% -73.7% -54.5% -86.1%
AU Metals and Mining 3.8% 1.5% 0.6% 7.4% 84.3% 11.6%
AU Market 4% 3.5% 5.9% 5.2% 21.7% 9.6%
1 Year Return vs Industry and Market
  • AAJ underperformed the Metals and Mining industry which returned 7.4% over the past year.
  • AAJ underperformed the Market in Australia which returned 5.2% over the past year.
Price Volatility
AAJ
Industry
5yr Volatility vs Market

Value

 Is Aruma Resources undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
  • It is not possible to calculate the future cash flow value for Aruma Resources. This is due to cash flow or dividend data being unavailable. The share price is A$0.005.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Aruma Resources's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Aruma Resources's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:AAJ PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in AUD A$0.00
ASX:AAJ Share Price ** ASX (2019-05-21) in AUD A$0.01
Australia Metals and Mining Industry PE Ratio Median Figure of 78 Publicly-Listed Metals and Mining Companies 12.27x
Australia Market PE Ratio Median Figure of 542 Publicly-Listed Companies 15.99x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Aruma Resources.

ASX:AAJ PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:AAJ Share Price ÷ EPS (both in AUD)

= 0.01 ÷ 0.00

-1.49x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Aruma Resources is loss making, we can't compare its value to the AU Metals and Mining industry average.
  • Aruma Resources is loss making, we can't compare the value of its earnings to the Australia market.
Price based on expected Growth
Does Aruma Resources's expected growth come at a high price?
Raw Data
ASX:AAJ PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -1.49x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
Not available
Australia Metals and Mining Industry PEG Ratio Median Figure of 38 Publicly-Listed Metals and Mining Companies 0.79x
Australia Market PEG Ratio Median Figure of 359 Publicly-Listed Companies 1.4x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Aruma Resources, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Aruma Resources's assets?
Raw Data
ASX:AAJ PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in AUD A$0.00
ASX:AAJ Share Price * ASX (2019-05-21) in AUD A$0.01
Australia Metals and Mining Industry PB Ratio Median Figure of 584 Publicly-Listed Metals and Mining Companies 1.49x
Australia Market PB Ratio Median Figure of 1,678 Publicly-Listed Companies 1.63x
ASX:AAJ PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:AAJ Share Price ÷ Book Value per Share (both in AUD)

= 0.01 ÷ 0.00

2.73x

* Primary Listing of Aruma Resources.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Aruma Resources is overvalued based on assets compared to the AU Metals and Mining industry average.
X
Value checks
We assess Aruma Resources's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Metals and Mining industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Metals and Mining industry average (and greater than 0)? (1 check)
  5. Aruma Resources has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

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 Simply Wall St do have past financial data. You can see them here.

Show me the analysis anyway

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
2%
Expected Metals and Mining industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Aruma Resources expected to grow at an attractive rate?
  • Unable to compare Aruma Resources's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare Aruma Resources's earnings growth to the Australia market average as no estimate data is available.
  • Unable to compare Aruma Resources's revenue growth to the Australia market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
ASX:AAJ Future Growth Rates Data Sources
Data Point Source Value (per year)
Australia Metals and Mining Industry Earnings Growth Rate Market Cap Weighted Average 2%
Australia Metals and Mining Industry Revenue Growth Rate Market Cap Weighted Average 0.8%
Australia Market Earnings Growth Rate Market Cap Weighted Average 6.9%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:AAJ Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:AAJ Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2018-12-31 1 -1 -2
2018-09-30 0 -2 -2
2018-06-30 0 -2 -2
2018-03-31 0 -1 -2
2017-12-31 0 -1 -1
2017-09-30 0 -1 -1
2017-06-30 0 -1 -1
2017-03-31 0 0 -1
2016-12-31 0 0 0
2016-09-30 1 0 0
2016-06-30 1 0 0
2016-03-31 1 -1 -1

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if Aruma Resources is high growth as no earnings estimate data is available.
  • Unable to determine if Aruma Resources is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:AAJ Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Aruma Resources Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:AAJ Past Financials Data
Date (Data in AUD Millions) EPS *
2018-12-31 0.00
2018-09-30 0.00
2018-06-30 0.00
2018-03-31 0.00
2017-12-31 0.00
2017-09-30 0.00
2017-06-30 0.00
2017-03-31 0.00
2016-12-31 0.00
2016-09-30 0.00
2016-06-30 0.00
2016-03-31 0.00

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Aruma Resources will efficiently use shareholders’ funds in the future without estimates of Return on Equity.

Next steps:

  1. Examine Aruma Resources's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
  2. Aruma Resources's future outlook can be gauged by looking at industry trends and market size, and determining how well-positioned the company is compared to its competitors. Take a look at other high-growth Materials companies here
  3. Aruma Resources's competitive advantages and company strategy can generally be found in its financial reports archived here.
  4. Use fundamentals to screen for another stock to analyse from our database of over 75,000 companies worldwide
X
Future performance checks
We assess Aruma Resources's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Aruma Resources has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Aruma Resources performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Aruma Resources's growth in the last year to its industry (Metals and Mining).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Aruma Resources does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare Aruma Resources's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Aruma Resources's 1-year growth to the AU Metals and Mining industry average as it is not currently profitable.
Earnings and Revenue History
Aruma Resources's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Aruma Resources Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:AAJ Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 0.52 -1.70 1.94
2018-09-30 0.38 -1.79 1.87
2018-06-30 0.25 -1.89 1.80
2018-03-31 0.25 -1.58 1.57
2017-12-31 0.24 -1.28 1.34
2017-09-30 0.30 -0.94 1.12
2017-06-30 0.36 -0.60 0.89
2017-03-31 0.41 -0.51 0.85
2016-12-31 0.47 -0.42 0.81
2016-09-30 0.67 -0.40 0.96
2016-06-30 0.86 -0.39 1.10
2016-03-31 0.55 -0.62 1.22
2015-12-31 0.24 -0.85 1.33
2015-09-30 0.12 -1.34 1.72
2015-06-30 -1.82 2.11
2015-03-31 -0.06 -1.91 2.23
2014-12-31 -0.12 -2.00 2.36
2014-09-30 -0.06 -1.62 1.97
2014-06-30 -1.24 1.58
2014-03-31 0.19 -1.47 1.81
2013-12-31 0.39 -1.69 2.03
2013-09-30 0.19 -1.76 2.01
2013-06-30 -1.83 1.99
2013-03-31 -0.05 -1.59 1.74
2012-12-31 -0.10 -1.35 1.49
2012-09-30 -0.05 -1.45 1.62
2012-06-30 -1.55 1.75

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Aruma Resources has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Aruma Resources has efficiently used its assets last year compared to the AU Metals and Mining industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Aruma Resources improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Aruma Resources's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Metals and Mining industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Aruma Resources has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Aruma Resources's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Aruma Resources's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Aruma Resources is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Aruma Resources has no long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Aruma Resources's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Aruma Resources has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Aruma Resources Company Filings, last reported 4 months ago.

ASX:AAJ Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 0.96 0.00 0.67
2018-09-30 0.96 0.00 0.67
2018-06-30 1.53 0.00 1.12
2018-03-31 1.53 0.00 1.12
2017-12-31 1.49 0.00 1.22
2017-09-30 1.49 0.00 1.22
2017-06-30 1.43 0.00 1.24
2017-03-31 1.43 0.00 1.24
2016-12-31 1.81 0.00 1.40
2016-09-30 1.81 0.00 1.40
2016-06-30 1.09 0.00 1.00
2016-03-31 1.09 0.00 1.00
2015-12-31 1.36 0.00 0.70
2015-09-30 1.36 0.00 0.70
2015-06-30 1.01 0.00 0.92
2015-03-31 1.01 0.00 0.92
2014-12-31 1.75 0.00 1.07
2014-09-30 1.75 0.00 1.07
2014-06-30 2.70 0.00 2.50
2014-03-31 2.70 0.00 2.50
2013-12-31 3.06 0.00 2.34
2013-09-30 3.06 0.00 2.34
2013-06-30 3.39 0.00 3.21
2013-03-31 3.39 0.00 3.21
2012-12-31 2.34 0.00 1.62
2012-09-30 2.34 0.00 1.62
2012-06-30 2.79 0.00 2.34
  • Aruma Resources has no debt.
  • Aruma Resources has not taken on any debt in the past 5 years.
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.

  • Aruma Resources has less than a year of cash runway based on current free cash flow.
  • Aruma Resources has less than a year of cash runway if free cash flow continues to grow at historical rates of 51.9% each year.
X
Financial health checks
We assess Aruma Resources's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Aruma Resources has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Aruma Resources dividends.
If you bought A$2,000 of Aruma Resources shares you are expected to receive A$0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Aruma Resources's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Aruma Resources's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:AAJ Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
Australia Metals and Mining Industry Average Dividend Yield Market Cap Weighted Average of 36 Stocks 4.3%
Australia Market Average Dividend Yield Market Cap Weighted Average of 414 Stocks 4.2%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.6%
Australia Bottom 25% Dividend Yield 25th Percentile 2.6%
Australia Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Aruma Resources has not reported any payouts.
  • Unable to verify if Aruma Resources's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Aruma Resources's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Aruma Resources has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Aruma Resources's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.6%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Aruma Resources afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Aruma Resources has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Peter Schwann
COMPENSATION A$253,602
AGE 68
TENURE AS CEO 9.3 years
CEO Bio

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 Director of Aruma Resources Limited since February 11, 2010. He served as an Executive of Hemisphere Resources Limited (AKA Nexus Minerals Limited) since January 6, 2010. He is a geologist with more than 35 years' experience and has been involved in project generation, evaluation, exploitation and management of gold and other commodities. He served as an Exploration Director of Kingsgate Consolidated Limited. He has experience as a Director of a listed resource company. Mr. Schwann is a highly experienced internationally recognised geologist and mining executive. Mr. Schwann has broad experience across multiple commodities with extensive geological capability as well as significant operational management. He has been an Independent Non Executive Director of Westgold Resources Limited since February 02, 2017. Mr. Schwann serves as a Director of Plasia Pty Ltd. He served as a Non Executive Director of Ventnor Resources Limited until September 24, 2010. Mr. Schwann is a Fellow of the Australasian Institute of Mining and Metallurgy and a Chartered Professional in Geology.

CEO Compensation
  • Peter's compensation has increased whilst company is loss making.
  • Peter's remuneration is about average for companies of similar size in Australia.
Management Team

Peter Schwann

TITLE
MD & Director
COMPENSATION
A$254K
AGE
68
TENURE
9.3 yrs

Phil MacLeod

TITLE
Company Secretary
COMPENSATION
A$36K
AGE
54
TENURE
9.3 yrs
Board of Directors Tenure

Average tenure and age of the Aruma Resources board of directors in years:

9.3
Average Tenure
66
Average Age
  • The tenure for the Aruma Resources board of directors is about average.
Board of Directors

Paul Boyatzis

TITLE
Non-Executive Chairman
COMPENSATION
A$71K
AGE
63
TENURE
9.3 yrs

Peter Schwann

TITLE
MD & Director
COMPENSATION
A$254K
AGE
68
TENURE
9.3 yrs

Stanley Elliott

TITLE
Non-Executive Director
COMPENSATION
A$39K
AGE
66
TENURE
1.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
X
Management checks
We assess Aruma Resources's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Aruma Resources has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is Aruma Resources Limited's (ASX:AAJ) CEO Paid Enough Relative To Peers?

Peter Schwann became the CEO of Aruma Resources Limited (ASX:AAJ) in 2010. … This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … How Does Peter Schwann's Compensation Compare With Similar Sized Companies?

Simply Wall St -

What You Must Know About Aruma Resources Limited's (ASX:AAJ) Financial Strength

However, it also faces higher cost of capital given interest cost is generally lower than equity. … Is AAJ growing fast enough to value financial flexibility over lower cost of capital … Debt funding can be cheaper than issuing new equity due to lower interest cost on debt.

Simply Wall St -

Does The Aruma Resources Limited (ASX:AAJ) Share Price Fall With The Market?

Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). … To use beta as an investor, you must first understand that the overall market has a beta of one. … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market.

Simply Wall St -

Is Aruma Resources Limited's (ASX:AAJ) CEO Paid At A Competitive Rate?

Peter Schwann became the CEO of Aruma Resources Limited (ASX:AAJ) in 2010. … How Does Peter Schwann's Compensation Compare With Similar Sized Companies. … We examined a group of similar sized companies, with market capitalizations of below AU$278m.

Simply Wall St -

Who Are The Major Shareholders In Aruma Resources Limited (ASX:AAJ)?

A look at the shareholders of Aruma Resources Limited (ASX:AAJ) can tell us which group is most powerful. … Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. … Aruma Resources is a smaller company with a market capitalization of AU$4m, so it may still be flying under the radar of many institutional investors.

Simply Wall St -

Aruma Resources Limited (ASX:AAJ): How Does It Impact Your Portfolio?

Generally, an investor should consider two types of risk that impact the market value of AAJ. … The other type of risk, which cannot be diversified away, is market risk. … Every stock in the market is exposed to this risk, which arises from macroeconomic factors such as economic growth and geo-political tussles just to name a few.

Simply Wall St -

Why Aruma Resources Limited's (ASX:AAJ) Ownership Structure Is Important

This size of ownership gives retail investors collective power in deciding on major policy decisions such as executive compensation, appointment of directors and acquisitions of businesses. … This level of ownership gives retail investors the power to sway key policy decisions such as board composition, executive compensation, and potential acquisitions. … As a result, potential investors should further explore the company's business relations with these companies and find out if they can affect shareholder returns in the long-term.Next Steps: Institutional ownership in AAJ is not at a level that would concern investors.

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Does Aruma Resources Limited (ASX:AAJ) Go Up With The Market?

With a beta of 1.42, Aruma Resources is a stock that tends to experience more gains than the market during a growth phase and also a bigger reduction in value compared to the market during a broad downturn. … As a result, the company may be less volatile relative to broad market movements, compared to a company of similar size but higher proportion of fixed assets. … However, this is the opposite to what AAJ’s actual beta value suggests, which is higher stock volatility relative to the market.

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Should You Worry About Aruma Resources Limited's (ASX:AAJ) CEO Salary Level?

Check out our latest analysis for Aruma Resources What has AAJ's performance been like? … During times of negative earnings, the company may be going through a period of reinvestment and growth, or it can be an indication of some headwind. … Normally I would look at market cap and earnings as a proxy for performance, however, AAJ's negative earnings reduces the effectiveness of this method.

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Does Zero-Debt Make Aruma Resources Limited (ASX:AAJ) A Financially Strong Company?

However, the trade-off is AAJ will have to adhere to stricter debt covenants and have less financial flexibility. … Check out our latest analysis for Aruma Resources Is AAJ growing fast enough to value financial flexibility over lower cost of capital? … AAJ’s absence of debt on its balance sheet may be due to lack of access to cheaper capital, or it may simply believe low cost is not worth sacrificing financial flexibility.

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Company Info

Description

Aruma Resources Limited operates as a mineral exploration company in Australia. The company explores for gold deposits. Its flagship property is the Slate Dam project covering approximately 266 square kilometers located to the east of Kalgoorlie, Western Australia. The company was incorporated in 2010 and is based in West Perth, Australia.

Details
Name: Aruma Resources Limited
AAJ
Exchange: ASX
Founded: 2010
A$3,103,601
620,720,310
Website: http://www.arumaresources.com
Address: Aruma Resources Limited
6 Thelma Street,
Level 1,
West Perth,
Western Australia, 6005,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX AAJ Ordinary Shares Australian Securities Exchange AU AUD 23. Jul 2010
CHIA AAJ Ordinary Shares Chi-X Australia AU AUD 23. Jul 2010
Number of employees
Current staff
Staff numbers
0
Aruma Resources employees.
Industry
Gold
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/22 10:35
End of day share price update: 2019/05/21 00:00
Last earnings filing: 2019/03/15
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.