ASX:ABR

Stock Analysis Report

American Pacific Borates

Executive Summary

American Pacific Borates Limited engages in the exploration and development of mineral properties in Australia and the United States.


Snowflake Analysis

High growth potential with adequate balance sheet.

Share Price & News

How has American Pacific Borates's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

31.0%

ABR

4.4%

AU Metals and Mining

5.0%

AU Market


1 Year Return

-11.6%

ABR

-19.1%

AU Metals and Mining

-19.2%

AU Market

Return vs Industry: ABR exceeded the Australian Metals and Mining industry which returned -21.1% over the past year.

Return vs Market: ABR exceeded the Australian Market which returned -18.9% over the past year.


Shareholder returns

ABRIndustryMarket
7 Day31.0%4.4%5.0%
30 Day-54.2%-11.2%-20.3%
90 Day-46.5%-21.3%-25.8%
1 Year-11.6%-11.6%-14.5%-19.1%-15.6%-19.2%
3 Yearn/a28.2%10.4%-3.6%-16.8%
5 Yearn/a62.2%23.4%6.6%-17.5%

Price Volatility Vs. Market

How volatile is American Pacific Borates's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is American Pacific Borates undervalued compared to its fair value and its price relative to the market?

1.38x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: ABR is overvalued based on its PB Ratio (1.4x) compared to the AU Metals and Mining industry average (1x).


Next Steps

Future Growth

How is American Pacific Borates forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

48.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: ABR's revenue (85.3% per year) is forecast to grow faster than the Australian market (4% per year).

High Growth Revenue: ABR's revenue (85.3% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ABR's Return on Equity is forecast to be low in 3 years time (2%).


Next Steps

Past Performance

How has American Pacific Borates performed over the past 5 years?

1.0%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: ABR is currently unprofitable.

Growing Profit Margin: ABR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if ABR's year-on-year earnings growth rate was positive over the past 5 years.

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

Earnings vs Industry: ABR is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-7%).


Return on Equity

High ROE: ABR has a negative Return on Equity (-10.99%), as it is currently unprofitable.


Next Steps

Financial Health

How is American Pacific Borates's financial position?


Financial Position Analysis

Short Term Liabilities: ABR's short term assets (A$4.6M) exceed its short term liabilities (A$2.8M).

Long Term Liabilities: ABR has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: ABR's debt to equity ratio (8.6%) is considered satisfactory.

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


Balance Sheet

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

Debt Coverage by Assets: ABR's debt is covered by short term assets (assets are 1.8x 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: ABR has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: ABR has sufficient cash runway for 1.7 years if free cash flow continues to reduce at historical rates of -21.9% each year.


Next Steps

Dividend

What is American Pacific Borates's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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

2.9yrs

Average board tenure


CEO

Mike Schlumpberger (55yo)

2.83s

Tenure

AU$820,053

Compensation

Mr. Michael X. Schlumpberger, also known as Mike, BEng (Mining), MBA, has been Chief Executive Officer and Managing Director at American Pacific Borates Limited (formerly known as American Pacific Borate & ...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD496.37K) is above average for companies of similar size in the Australian market ($USD239.28K).

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


Board Members

NamePositionTenureCompensationOwnership
Michael Schlumpberger
MD, CEO & Director2.83yrsAU$820.05k0.28% A$128.2k
Anthony Hall
Executive Director3.5yrsAU$341.53k2.32% A$1.1m
Harold Shipes
Non-Executive Chairman2.92yrsAU$93.32kno data
John McKinney
Non-Executive Director2.92yrsAU$50.46kno data
Stephen Hunt
Non-Executive Director2.92yrsAU$50.46k0.058% A$26.4k

2.9yrs

Average Tenure

57yo

Average Age

Experienced Board: ABR's board of directors are not considered experienced ( 2.9 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 11.6%.


Top Shareholders

Company Information

American Pacific Borates Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: American Pacific Borates Limited
  • Ticker: ABR
  • Exchange: ASX
  • Founded: 2016
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: AU$45.749m
  • Shares outstanding: 240.78m
  • Website: https://www.americanpacificborate.com

Location

  • American Pacific Borates Limited
  • Allendale Square
  • Level 24
  • Perth
  • Western Australia
  • 6000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ABRASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJul 2017
ABRCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJul 2017

Biography

American Pacific Borates Limited engages in the exploration and development of mineral properties in Australia and the United States. It primarily explores for borates and lithium deposits. The company’s principal project is the 100% owned Fort Cady project located in Southern California. The company was formerly known as American Pacific Borate & Lithium Limited and changed its name to American Pacific Borates Limited in October 2019. American Pacific Borates Limited was incorporated in 2016 and is based in Perth, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 11:17
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
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.