ASX:ATC

Stock Analysis Report

Executive Summary

Altech Chemicals Limited focuses on producing high purity alumina used in the production of synthetic sapphire.

Risk Analysis

Earnings have declined by -20.79% per year over past 5 years

Shareholders have been substantially diluted in the past year

Currently unprofitable and not forecast to become profitable over the next 3 years

Has less than 1 year of cash runway

+ 2 more risks


Snowflake Analysis

Adequate balance sheet and overvalued.

Share Price & News

How has Altech Chemicals's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-6.2%

ATC

0.6%

AU Metals and Mining

2.4%

AU Market


1 Year Return

2.2%

ATC

22.9%

AU Metals and Mining

20.1%

AU Market

Return vs Industry: ATC underperformed the Australian Metals and Mining industry which returned 22% over the past year.

Return vs Market: ATC underperformed the Australian Market which returned 19.4% over the past year.


Shareholder returns

ATCIndustryMarket
7 Day-6.2%0.6%2.4%
30 Day-9.0%2.5%3.1%
90 Day-24.2%13.0%5.4%
1 Year2.2%2.2%29.0%22.9%25.5%20.1%
3 Year-44.8%-44.8%60.4%40.6%38.4%19.8%
5 Year13.8%13.8%111.1%62.4%63.6%26.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Altech Chemicals undervalued compared to its fair value and its price relative to the market?

1.04x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: ATC is good value based on its PB Ratio (1.1x) compared to the AU Metals and Mining industry average (1.5x).


Next Steps

Future Growth

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

1.7%

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 Altech Chemicals 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.


Next Steps

Past Performance

How has Altech Chemicals performed over the past 5 years?

-20.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ATC is currently unprofitable.

Growing Profit Margin: ATC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ATC is unprofitable, and losses have increased over the past 5 years at a rate of -20.8% per year.

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

Earnings vs Industry: ATC is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (7.8%).


Return on Equity

High ROE: ATC has a negative Return on Equity (-9.76%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Altech Chemicals's financial position?


Financial Position Analysis

Short Term Liabilities: ATC's short term assets (A$8.3M) exceed its short term liabilities (A$5.1M).

Long Term Liabilities: ATC's short term assets (A$8.3M) exceed its long term liabilities (A$70.9K).


Debt to Equity History and Analysis

Debt Level: ATC is debt free.

Reducing Debt: ATC had no debt 5 years ago.


Balance Sheet

Inventory Level: ATC has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if ATC's debt is covered by short term assets.


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

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


Next Steps

Dividend

What is Altech Chemicals's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%5.4%industryaverage4.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate ATC's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ATC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ATC'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 ATC's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

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

5.2yrs

Average management tenure


CEO

Iggy Tan (56yo)

5.4yrs

Tenure

AU$1,735,844

Compensation

Mr. Ignatius Kim-Seng Tan, also known as Iggy, BSc, MBA, GAICD serves as Member of Management Board of Youbisheng Green Paper AG since July 2019. Mr. Tan has been Managing Director of Altech Chemicals Limi ...


CEO Compensation Analysis

Compensation vs Market: Iggy's total compensation ($USD1.20M) is above average for companies of similar size in the Australian market ($USD262.68K).

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


Management Age and Tenure

5.2yrs

Average Tenure

Experienced Management: ATC's management team is seasoned and experienced (5.2 years average tenure).


Board Age and Tenure

6.9yrs

Average Tenure

57.5yo

Average Age

Experienced Board: ATC's board of directors are considered experienced (6.9 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyAU$1,999,98018 Nov 19
MAA Group Berhad, Asset Management Arm
EntityCompany
Shares18,433,180
Max PriceAU$0.11
BuyAU$112,59719 Aug 19
Deutsche Balaton AG
EntityCompany
Shares1,000,000
Max PriceAU$0.12
BuyAU$36,00019 Aug 19
DELPHI Unternehmensberatung Aktiengesellschaft
EntityCompany
Shares300,000
Max PriceAU$0.12
BuyAU$18,55529 Apr 19
DELPHI Unternehmensberatung Aktiengesellschaft
EntityCompany
Shares150,000
Max PriceAU$0.12

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 76.1%.


Management Team

  • Shane Volk

    Company Secretary & CFO

    • Tenure: 5.2yrs
    • Compensation: AU$631.69k
  • Iggy Tan (56yo)

    MD & Director

    • Tenure: 5.4yrs
    • Compensation: AU$1.74m
  • Jingyuan Liu (54yo)

    General Manager of Operations & Marketing

    • Tenure: 4.3yrs

Board Members

  • Yaacob Khyra (59yo)

    Non-Executive Director

    • Tenure: 6.3yrs
    • Compensation: AU$192.03k
  • Peter Bailey

    Non-Executive Director

    • Tenure: 7.6yrs
    • Compensation: AU$184.88k
  • Uwe Ahrens (54yo)

    Alternate Non-Executive Director

    • Tenure: 4.3yrs
    • Compensation: AU$152.03k
  • Luke Atkins

    Non-Executive Chairman

    • Tenure: 12.7yrs
    • Compensation: AU$216.80k
  • Iggy Tan (56yo)

    MD & Director

    • Tenure: 5.4yrs
    • Compensation: AU$1.74m
  • Dan Tenardi (73yo)

    Non-Executive Director

    • Tenure: 10.3yrs
    • Compensation: AU$189.43k

Company Information

Altech Chemicals Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Altech Chemicals Limited
  • Ticker: ATC
  • Exchange: ASX
  • Founded: 2007
  • Industry: Aluminum
  • Sector: Materials
  • Market Cap: AU$73.655m
  • Shares outstanding: 809.39m
  • Website: https://www.altechchemicals.com

Location

  • Altech Chemicals Limited
  • 295 Rokeby Road
  • Suite 8
  • Subiaco
  • Western Australia
  • 6008
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ATCASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 2010
ATCCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 2010

Biography

Altech Chemicals Limited focuses on producing high purity alumina used in the production of synthetic sapphire. It holds 100% interest in a kaolin deposit located in the Meckering, Western Australia. The company was formerly known as Australia Minerals and Mining Group Limited and changed its name to Altech Chemicals Limited in November 2014. Altech Chemicals Limited was founded in 2007 and is headquartered in Subiaco, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/17 10:34
End of Day Share Price2020/01/17 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.