Australian Strategic Materials (ASX:ASM) - Share price, News & Analysis

ASM fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	0/6
Past Performance	0/6
Financial Health	6/6
Dividends	0/6

ASM Stock Overview

Australian Strategic Materials Ltd operates as an integrated producer of critical metals for advanced and clean technologies in Australia.

Risk Analysis

Earnings have declined by 25.7% per year over past 5 years

Does not have meaningful revenue (A$2M)

Australian Strategic Materials Competitors

Boart Longyear Group

ASX:BLY

AU$736.8m

Neometals

ASX:NMT

AU$710.1m

Imdex

ASX:IMD

AU$935.6m

OM Holdings

ASX:OMH

AU$640.9m

Price History & Performance

Summary of all time highs, changes and price drops for Australian Strategic Materials
Historical stock prices
Current Share Price	AU$5.50
52 Week High	AU$14.15
52 Week Low	AU$4.20
Beta	0
1 Month Change	-17.29%
3 Month Change	-29.49%
1 Year Change	24.72%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	292.86%

Recent News & Updates

May 07

Here's Why We're Watching Australian Strategic Materials' (ASX:ASM) Cash Burn Situation

Just because a business does not make any money, does not mean that the stock will go down. For example, although...

Nov 24

We Think Australian Strategic Materials (ASX:ASM) Can Afford To Drive Business Growth

There's no doubt that money can be made by owning shares of unprofitable businesses. Indeed, Australian Strategic...

Shareholder Returns

	ASM	AU Metals and Mining	AU Market
7D	9.6%	4.4%	0.6%
1Y	24.7%	6.3%	0.5%

Return vs Industry: ASM exceeded the Australian Metals and Mining industry which returned 5.2% over the past year.

Return vs Market: ASM exceeded the Australian Market which returned 1.5% over the past year.

Price Volatility

Is ASM's price volatile compared to industry and market?
ASM volatility
ASM Average Weekly Movement	11.4%
Metals and Mining Industry Average Movement	11.0%
Market Average Movement	9.3%
10% most volatile stocks in AU Market	16.5%
10% least volatile stocks in AU Market	4.2%

Stable Share Price: ASM is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: ASM's weekly volatility (11%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2000	n/a	David Woodall	https://asm-au.com

Australian Strategic Materials Ltd operates as an integrated producer of critical metals for advanced and clean technologies in Australia. The company holds 100% interest in the Dubbo Project that contains zirconium, rare earths, niobium, hafnium, tantalum, and yttrium located in central-western New South Wales, Australia. It is also involved in breeding and grazing of sheep and cattle.

Australian Strategic Materials Fundamentals Summary

How do Australian Strategic Materials's earnings and revenue compare to its market cap?
ASM fundamental statistics
Market Cap	AU$780.76m
Earnings (TTM)	-AU$12.13m
Revenue (TTM)	AU$1.68m

464.1x

P/S Ratio

-64.4x

P/E Ratio

Is ASM overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ASM income statement (TTM)
Revenue	AU$1.68m
Cost of Revenue	AU$0
Gross Profit	AU$1.68m
Other Expenses	AU$13.81m
Earnings	-AU$12.13m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	-0.085
Gross Margin	100.00%
Net Profit Margin	-720.74%
Debt/Equity Ratio	0.0%

How did ASM perform over the long term?

See historical performance and comparison

New valuation analysis is now available for all ASX stocks. This is in beta.

Future Growth

How is Australian Strategic Materials forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-7.0%

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 Australian Strategic Materials 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 Australian Strategic Materials performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-25.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ASM is currently unprofitable.

Growing Profit Margin: ASM is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: ASM is unprofitable, and losses have increased over the past 5 years at a rate of 25.7% per year.

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

Earnings vs Industry: ASM is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (57.8%).

Return on Equity

High ROE: ASM has a negative Return on Equity (-6.27%), as it is currently unprofitable.

Financial Health

How is Australian Strategic Materials's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: ASM's short term assets (A$70.7M) exceed its short term liabilities (A$8.9M).

Long Term Liabilities: ASM's short term assets (A$70.7M) exceed its long term liabilities (A$25.4M).

Debt to Equity History and Analysis

Debt Level: ASM is debt free.

Reducing Debt: ASM had no debt 5 years ago.

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

Forecast Cash Runway: ASM has sufficient cash runway for 1 years if free cash flow continues to reduce at historical rates of 45.7% each year.

Dividend

What is Australian Strategic Materials's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

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

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

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

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as ASM has not reported any payouts.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

0.9yrs

Average management tenure

CEO

David Woodall (61 yo)

2.25yrs

Tenure

AU$1,189,131

Compensation

Mr. David Graham Woodall, MSc, BSc, GAICD is an Advisor of Gold Road Resources Limited. He was Independent Non Executive Director at Grange Resources Limited since March 1, 2019 until April 30, 2021. He se...

CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD835.59K) is about average for companies of similar size in the Australian market ($USD812.64K).

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

Leadership Team

Experienced Management: ASM's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.

Board Members

Experienced Board: ASM's board of directors are considered experienced (4.4 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 not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/23 00:00
End of Day Share Price	2022/05/23 00:00
Earnings	2021/12/31
Annual Earnings	2021/06/30