ASX:AIS

Stock Analysis Report

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Market Cap

AU$468.3m

Last Updated

2021/07/26 16:20 UTC

Data Sources

Company Financials +

Executive Summary

Aeris Resources Limited, together with its subsidiaries, produces and sells copper, gold, and silver products. More Details


Snowflake Analysis

Undervalued with high growth potential.


Similar Companies

Share Price & News

How has Aeris Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AIS is more volatile than 90% of Australian stocks over the past 3 months, typically moving +/- 17% a week.

Volatility Over Time: AIS's weekly volatility (17%) has been stable over the past year, but is still higher than 75% of Australian stocks.


Market Performance


7 Day Return

10.5%

AIS

4.6%

AU Metals and Mining

2.0%

AU Market


1 Year Return

388.4%

AIS

31.2%

AU Metals and Mining

26.0%

AU Market

Return vs Industry: AIS exceeded the Australian Metals and Mining industry which returned 33.5% over the past year.

Return vs Market: AIS exceeded the Australian Market which returned 26.1% over the past year.


Shareholder returns

AISIndustryMarket
7 Day10.5%4.6%2.0%
30 Day7.7%7.3%1.4%
90 Day82.6%7.4%4.3%
1 Year388.4%388.4%37.9%31.2%30.6%26.0%
3 Year70.6%-8.7%81.3%55.4%33.4%17.2%
5 Year684.6%320.0%171.8%122.8%65.0%32.8%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Aeris Resources 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: AIS (A$0.21) is trading below our estimate of fair value (A$0.72)

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


Price To Earnings Ratio

PE vs Industry: AIS is good value based on its PE Ratio (7.2x) compared to the Australian Metals and Mining industry average (13.1x).

PE vs Market: AIS is good value based on its PE Ratio (7.2x) compared to the Australian market (20.1x).


Price to Earnings Growth Ratio

PEG Ratio: AIS is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: AIS is overvalued based on its PB Ratio (3.3x) compared to the AU Metals and Mining industry average (2.5x).


Future Growth

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

20.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AIS's forecast earnings growth (20.9% per year) is above the savings rate (1.9%).

Earnings vs Market: AIS's earnings (20.9% per year) are forecast to grow faster than the Australian market (12.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: AIS's revenue (10.1% per year) is forecast to grow faster than the Australian market (5.1% per year).

High Growth Revenue: AIS's revenue (10.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AIS's Return on Equity is forecast to be high in 3 years time (30.9%)


Past Performance

How has Aeris Resources performed over the past 5 years?

-5.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AIS has high quality earnings.

Growing Profit Margin: AIS became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: AIS has become profitable over the past 5 years, growing earnings by -5.6% per year.

Accelerating Growth: AIS has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: AIS has become profitable in the last year, making it difficult to compare its past year earnings growth to the Metals and Mining industry (22.9%).


Return on Equity

High ROE: AIS's Return on Equity (30.2%) is considered high.


Financial Health

How is Aeris Resources's financial position?


Financial Position Analysis

Short Term Liabilities: AIS's short term assets (A$98.7M) exceed its short term liabilities (A$96.2M).

Long Term Liabilities: AIS's short term assets (A$98.7M) do not cover its long term liabilities (A$102.2M).


Debt to Equity History and Analysis

Debt Level: AIS's debt to equity ratio (47.9%) is considered high.

Reducing Debt: AIS's debt to equity ratio has reduced from 245.8% to 47.9% over the past 5 years.

Debt Coverage: AIS's debt is well covered by operating cash flow (168.1%).

Interest Coverage: AIS's interest payments on its debt are well covered by EBIT (5.9x coverage).


Balance Sheet


Dividend

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


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if AIS's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: AIS is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AIS'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?

8.3yrs

Average management tenure


CEO

Willie Labuschagne (54 yo)

8.58yrs

Tenure

AU$1,107,548

Compensation

Mr. Willie Andre Labuschagne, B.Comm, has been the Chief Executive Officer of Aeris Resources Limited (alternate name Straits Resources Limited) since December 2012 and served as its Managing Director sinc...


CEO Compensation Analysis

Compensation vs Market: Willie's total compensation ($USD816.29K) is about average for companies of similar size in the Australian market ($USD677.81K).

Compensation vs Earnings: Willie's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: AIS's management team is seasoned and experienced (8.3 years average tenure).


Board Members

Experienced Board: AIS's board of directors are considered experienced (8.2 years average tenure).


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 substantially diluted in the past year, with total shares outstanding growing by 116.4%.


Top Shareholders

Company Information

Aeris Resources Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Aeris Resources Limited
  • Ticker: AIS
  • Exchange: ASX
  • Founded: 2010
  • Industry: Copper
  • Sector: Materials
  • Market Cap: AU$468.272m
  • Shares outstanding: 2.23b
  • Website: https://www.aerisresources.com.au

Location

  • Aeris Resources Limited
  • HQ South Tower
  • Suite 2.2
  • Brisbane
  • Queensland
  • 4006
  • Australia

Listings


Biography

Aeris Resources Limited, together with its subsidiaries, produces and sells copper, gold, and silver products. The company also explores for copper ores. Its flagship asset is the Tritton Copper Operations...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/26 16:20
End of Day Share Price2021/07/26 00:00
Earnings2020/12/31
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.