ASX:ADN

Stock Analysis Report

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Executive Summary

Andromeda Metals Limited, together with its subsidiaries, operates as a mineral exploration company in Australia. More Details


Snowflake Analysis

Adequate balance sheet with reasonable growth potential.

Share Price & News

How has Andromeda Metals's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

14.3%

ADN

-4.4%

AU Metals and Mining

-3.9%

AU Market


1 Year Return

281.0%

ADN

7.6%

AU Metals and Mining

-9.6%

AU Market

Return vs Industry: ADN exceeded the Australian Metals and Mining industry which returned 10.7% over the past year.

Return vs Market: ADN exceeded the Australian Market which returned -9.2% over the past year.


Shareholder returns

ADNIndustryMarket
7 Day14.3%-4.4%-3.9%
30 Day0%-1.4%1.8%
90 Day220.0%-4.6%1.7%
1 Year281.0%281.0%13.2%7.6%-6.4%-9.6%
3 Year1,936.4%1,500.0%45.8%25.5%12.3%-1.9%
5 Year1,449.9%1,046.1%134.0%88.1%40.0%11.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Andromeda Metals undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ADN (A$0.16) is trading below our estimate of fair value (A$1.04)

Significantly Below Fair Value: ADN is trading below fair value by more than 20%.


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: ADN is overvalued based on its PB Ratio (22.4x) compared to the AU Metals and Mining industry average (2.5x).


Next Steps

Future Growth

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

57.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ADN is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.3%).

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

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

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

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


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ADN's Return on Equity is forecast to be very high in 3 years time (109.6%).


Next Steps

Past Performance

How has Andromeda Metals performed over the past 5 years?

8.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ADN is currently unprofitable.

Growing Profit Margin: ADN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ADN is unprofitable, but has reduced losses over the past 5 years at a rate of 8.5% per year.

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

Earnings vs Industry: ADN is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (38%).


Return on Equity

High ROE: ADN has a negative Return on Equity (-31.54%), as it is currently unprofitable.


Next Steps

Financial Health

How is Andromeda Metals's financial position?


Financial Position Analysis

Short Term Liabilities: ADN's short term assets (A$3.1M) exceed its short term liabilities (A$709.3K).

Long Term Liabilities: ADN's short term assets (A$3.1M) exceed its long term liabilities (A$1.0M).


Debt to Equity History and Analysis

Debt Level: ADN is debt free.

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

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


Next Steps

Dividend

What is Andromeda Metals's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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

1.5yrs

Average management tenure


CEO

James Marsh

2.42yrs

Tenure

AU$955,111

Compensation

Mr. James E. Marsh, BSc (Hons), MAusIMM, serves as the Managing Director and Director at Andromeda Metals Ltd. since May 30, 2018. Mr. Marsh served as General Manager of Industrial Minerals at Minotaur fro ...


CEO Compensation Analysis

Compensation vs Market: James's total compensation ($USD669.88K) is about average for companies of similar size in the Australian market ($USD523.73K).

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


Leadership Team

NamePositionTenureCompensationOwnership
James Marsh
MD & Director2.42yrsAU$955.11k0.14%
A$ 400.0k
Joseph Ranford
Operations Director & Executive Director0.50yrAU$32.50kno data
Eric Whittaker
Chief Geologist0.58yrAU$79.60kno data
Nicholas Harding
Executive Director & Company Secretary5.58yrsAU$776.29k0.36%
A$ 1.1m

1.5yrs

Average Tenure

Experienced Management: ADN's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
James Marsh
MD & Director2.42yrsAU$955.11k0.14%
A$ 400.0k
Joseph Ranford
Operations Director & Executive Director0.50yrAU$32.50kno data
Nicholas Harding
Executive Director & Company Secretary5.58yrsAU$776.29k0.36%
A$ 1.1m
Rhoderick John Grivas
Non-Executive Chairman3yrsAU$429.27k0.28%
A$ 831.9k
Andrew Shearer
Non-Executive Director3yrsAU$407.51k0.29%
A$ 857.8k

3.0yrs

Average Tenure

Experienced Board: ADN's board of directors are considered experienced (3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: ADN insiders have sold more shares than they have bought 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 28.7%.


Top Shareholders

Company Information

Andromeda Metals Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Andromeda Metals Limited
  • Ticker: ADN
  • Exchange: ASX
  • Founded: 1993
  • Industry: Gold
  • Sector: Materials
  • Market Cap: AU$295.426m
  • Shares outstanding: 1.85b
  • Website: https://www.andromet.com.au

Location

  • Andromeda Metals Limited
  • 69 King William Road
  • Unley
  • South Australia
  • 5061
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ADNASX (Australian Securities Exchange)YesOrdinary SharesAUAUDSep 1996
ADNCHIA (Chi-X Australia)YesOrdinary SharesAUAUDSep 1996

Biography

Andromeda Metals Limited, together with its subsidiaries, operates as a mineral exploration company in Australia. The company explores for halloysite, gold, and copper deposits. It has an option to acquire ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/30 10:40
End of Day Share Price2020/10/30 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.