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ARR

American Rare EarthsASX:ARR Stock Report

Market Cap

AU$60.7m

7D

5.9%

1Y

38.5%

Updated

18 Oct, 2021

Data

Company Financials
ARR fundamental analysis
Snowflake Score
Valuation0/6
Future Growth0/6
Past Performance0/6
Financial Health5/6
Dividends0/6

ARR Overview

American Rare Earths Limited engages in the exploration and development of mineral resources in Australia and the United States.

Price History & Performance

Summary of all time highs, changes and price drops for American Rare Earths
Historical stock prices
Current Share PriceAU$0.18
52 Week HighAU$0.066
52 Week LowAU$0.22
Beta-0.86
1 Month Change-7.69%
3 Month Change119.51%
1 Year Change38.46%
3 Year Change246.16%
5 Year Change114.29%
Change since IPO2.86%

Recent News & Updates

Shareholder Returns

ARRAU Metals and MiningAU Market
7D5.9%4.3%0.9%
1Y38.5%12.2%20.2%

Return vs Industry: ARR exceeded the Australian Metals and Mining industry which returned 12.2% over the past year.

Return vs Market: ARR exceeded the Australian Market which returned 20.2% over the past year.

Price Volatility

Is ARR's price volatile compared to industry and market?
ARR volatility
ARR Beta-0.86
Industry Beta0.97
Market Beta1

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

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

About the Company

FoundedEmployeesCEOWebsite
1988n/aKeith Middletonhttps://americanrareearths.com.au

American Rare Earths Limited engages in the exploration and development of mineral resources in Australia and the United States. The company explores for thorium and uranium; base and precious metals; industrial minerals; copper; and cobalt. American Rare Earths Limited primarily focuses on its 100% owned La Paz Rare Earth Project covering an area of approximately 890 hectares comprising 107 unpatented lode mining claims located in Arizona, the United States.

American Rare Earths Fundamentals Summary

How do American Rare Earths's earnings and revenue compare to its market cap?
ARR fundamental statistics
Market CapAU$60.73m
Earnings (TTM)-AU$258.92k
Revenue (TTM)AU$2.29m

27.3x

P/S Ratio

-243.2x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ARR income statement (TTM)
RevenueAU$2.29m
Cost of RevenueAU$0
Gross ProfitAU$2.29m
ExpensesAU$2.55m
Earnings-AU$258.92k

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.00074
Gross Margin100.00%
Net Profit Margin-11.30%
Debt/Equity Ratio0%

How did ARR perform over the long term?

See historical performance and comparison

Valuation

Is American Rare Earths undervalued compared to its fair value and its price relative to the market?

6.54x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: ARR is overvalued based on its PB Ratio (6.5x) compared to the AU Metals and Mining industry average (2.6x).


Future Growth

How is American Rare Earths forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

-0.3%

Forecasted Materials industry annual growth in earnings


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 American Rare Earths 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 SimplyWall St do have past financial data.


Past Performance

How has American Rare Earths performed over the past 5 years?

34.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ARR is currently unprofitable.

Growing Profit Margin: ARR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ARR is unprofitable, but has reduced losses over the past 5 years at a rate of 34.2% per year.

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

Earnings vs Industry: ARR is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (35.3%).


Return on Equity

High ROE: ARR has a negative Return on Equity (-2.71%), as it is currently unprofitable.


Financial Health

How is American Rare Earths's financial position?


Financial Position Analysis

Short Term Liabilities: ARR's short term assets (A$3.8M) exceed its short term liabilities (A$395.1K).

Long Term Liabilities: ARR has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: ARR is debt free.

Reducing Debt: ARR 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: ARR has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: ARR has less than a year of cash runway if free cash flow continues to reduce at historical rates of 20.6% each year


Dividend

What is American Rare Earths's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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

1.1yrs

Average management tenure


CEO

Keith Middleton

0.92

Tenure

AU$759,345

Compensation

Mr. Keith Middleton, BA, AIM, AICD, has been Executive Director at American Rare Earths Limited and Managing Director since November 11, 2020. He was Independent Non-Executive Director since March 19, 2020...


Leadership Team

Experienced Management: ARR's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

Experienced Board: ARR's board of directors are considered experienced (3.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: ARR 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 19.3%.


Top Shareholders

Company Information

American Rare Earths Limited's employee growth, exchange listings and data sources


Key Information

  • Name: American Rare Earths Limited
  • Ticker: ARR
  • Exchange: ASX
  • Founded: 1988
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: AU$60.726m
  • Shares outstanding: 347.01m
  • Website: https://americanrareearths.com.au

Location

  • American Rare Earths Limited
  • 89 York Street
  • Suite 706
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/18 07:01
End of Day Share Price2021/10/18 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.