ASX:AGO

Stock Analysis Report

Executive Summary

Atlas Iron Limited, an independent iron ore company, explores for, develops, mines, and sells iron ore in the Pilbara region in Western Australia.

Snowflake

Fundamentals

Mediocre balance sheet and overvalued.

Risks

  • Atlas Iron is covered by less than 3 analysts.

Similar Companies

Share Price & News

How has Atlas Iron's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

AGO

0.9%

AU Metals and Mining

1.0%

AU Market


1 Year Return

164.7%

AGO

16.0%

AU Metals and Mining

7.2%

AU Market

AGO outperformed the Metals and Mining industry which returned 12% over the past year.

AGO outperformed the Market in Australia which returned 3.7% over the past year.


Share holder returns

AGOIndustryMarket
7 Day0%0.9%1.0%
30 Day4.7%3.3%3.2%
90 Day7.1%-4.0%1.4%
1 Year164.7%164.7%24.1%16.0%13.4%7.2%
3 Year60.7%60.7%76.9%54.0%40.7%21.8%
5 Year-95.3%-95.5%59.9%23.4%50.8%17.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

31%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Atlas Iron's share price is below the future cash flow value, and at a moderate discount (> 20%).

Atlas Iron's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Atlas Iron is loss making, we can't compare its value to the AU Metals and Mining industry average.

Atlas Iron is loss making, we can't compare the value of its earnings to the Australia market.


Price Based on Expected Growth

Atlas Iron is loss making, we can't assess if its growth is good value.


Price Based on Value of Assets

Atlas Iron is overvalued based on assets compared to the AU Metals and Mining industry average.


Next Steps

Future Growth

How is Atlas Iron expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

103.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Atlas Iron's revenue is expected to grow by 16% yearly, however this is not considered high growth (20% yearly).

Atlas Iron is not considered high growth as it is expected to be loss making for the next 1-3 years.

Atlas Iron's revenue growth is expected to exceed the Australia market average.

Unable to compare Atlas Iron's earnings growth to the Australia market average as it is expected to be loss making during the next 1-3 years.

Unable to compare Atlas Iron's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Atlas Iron will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Atlas Iron performed over the past 5 years?

21.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Atlas Iron does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.

Unable to compare Atlas Iron's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Atlas Iron's 1-year growth to the AU Metals and Mining industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Atlas Iron has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Atlas Iron has efficiently used its assets last year compared to the AU Metals and Mining industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Atlas Iron improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Atlas Iron's financial position?


Financial Position Analysis

Atlas Iron is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Atlas Iron's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Atlas Iron's level of debt (55.3%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (18% vs 55.3% today).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.2x 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.

Whilst loss making Atlas Iron has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.

Whilst loss making Atlas Iron has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 6.8% per year.


Next Steps

Dividend

What is Atlas Iron's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate Atlas Iron's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Atlas Iron's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Atlas Iron has not reported any payouts.

Unable to verify if Atlas Iron's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Atlas Iron 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.


Next Steps

Management

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

4.2yrs

Average management tenure


CEO

Sanjiv Manchanda 0

0yrs

Tenure

0

Mr. Sanjiv Manchanda, BEng, MBA has been Chief Executive Officer of Atlas Iron Ltd. since October 2018. Mr. Manchanda was Chief Operating Officer at Roy Hill Holdings Pty Ltd. Mr. Manchanda has significant ...


Management Age and Tenure

4.2yrs

Average Tenure

The tenure for the Atlas Iron management team is about average.


Insider Trading

No 3 month insider trading information.


Recent Insider Transactions

BuyAU$4,707,24115 Oct 18
Hancock Prospecting Pty Ltd.
EntityCompany
Shares102,330,963
Max PriceAU$0.046
BuyAU$5,681,68812 Oct 18
Hancock Prospecting Pty Ltd.
EntityCompany
Shares123,515,052
Max PriceAU$0.046
BuyAU$1,605,61809 Oct 18
Hancock Prospecting Pty Ltd.
EntityCompany
Shares34,958,120
Max PriceAU$0.046
BuyAU$5,228,67709 Oct 18
Hancock Prospecting Pty Ltd.
EntityCompany
Shares113,667,941
Max PriceAU$0.046
BuyAU$2,124,47104 Oct 18
Hancock Prospecting Pty Ltd.
EntityCompany
Shares43,657,405
Max PriceAU$0.051
BuyAU$2,798,62004 Oct 18
Hancock Prospecting Pty Ltd.
EntityCompany
Shares60,839,381
Max PriceAU$0.046
BuyAU$164,74830 Sep 18
Hancock Prospecting Pty Ltd.
EntityCompany
Shares3,922,637
Max PriceAU$0.042
BuyAU$47,602,71130 Sep 18
Hancock Prospecting Pty Ltd.
EntityCompany
Shares1,133,388,089
Max PriceAU$0.042
SellAU$48,671,79328 Sep 18
Fortescue Metals Group Limited
EntityCompany
Shares1,058,086,927
Max PriceAU$0.046

Ownership Breakdown


Management Team

  • Mark Hancock (49yo)

    Chief Commercial Officer

    • Tenure: 6.4yrs
    • Compensation: AU$888.94k
  • Jeremy Sinclair

    Chief Operating Officer

    • Tenure: 7.3yrs
    • Compensation: AU$1.07m
  • Chris Els

    CFO & Joint Company Secretary

    • Tenure: 1.3yrs
  • Alvin Rajwanth

    Marketing Manager

    • Tenure: 0yrs
  • Sanjiv Manchanda

    Chief Executive Officer

    • Tenure: 0yrs
  • Bronwyn Kerr

    General Counsel & Company Secretary

    • Tenure: 2yrs

Board Members

  • Daniel Harris (64yo)

    Non-Executive Director

    • Tenure: 2.4yrs
    • Compensation: AU$617.86k
  • Ian Plimer (71yo)

    Non-Executive Director

    • Tenure: 0yrs
  • Spiro Pappas

    Chairman

    • Tenure: 0yrs
  • Tad Watroba

    Non-Executive Director

    • Tenure: 0yrs
  • Stephen Wood

    Non-Executive Director

    • Tenure: 0yrs

Company Information

Atlas Iron Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Atlas Iron Limited
  • Ticker: AGO
  • Exchange: ASX
  • Founded:
  • Industry: Steel
  • Sector: Materials
  • Market Cap: AU$432.854m
  • Shares outstanding: 9.62b
  • Website: https://www.atlasiron.com.au

Number of Employees


Location

  • Atlas Iron Limited
  • Raine Square
  • Level 17
  • Perth
  • Western Australia
  • 6000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AGOASX (Australian Securities Exchange)YesOrdinary SharesAUAUDDec 2004
ATLG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 2004
ATUDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2004
AGOCHIA (Chi-X Australia)YesOrdinary SharesAUAUDDec 2004
AGOD.YOTCPK (Pink Sheets LLC)ADRUSUSDJun 2012

Biography

Atlas Iron Limited, an independent iron ore company, explores for, develops, mines, and sells iron ore in the Pilbara region in Western Australia. Its primary projects include Abydos and Mt Webber mines. T ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2018/10/30 06:31
End of Day Share Price2018/10/30 00:00
Earnings2018/06/30
Annual Earnings2018/06/30


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.