ASX:CIA

Stock Analysis Report

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Market Cap

AU$3.3b

Last Updated

2021/06/24 16:20 UTC

Data Sources

Company Financials +

Executive Summary

Champion Iron Limited engages in the acquisition, exploration, development, and production of iron ore deposits in Canada. More Details


Snowflake Analysis

Outstanding track record with excellent balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: CIA is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: CIA's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

0.9%

CIA

-1.0%

AU Metals and Mining

-0.8%

AU Market


1 Year Return

131.1%

CIA

35.1%

AU Metals and Mining

29.1%

AU Market

Return vs Industry: CIA exceeded the Australian Metals and Mining industry which returned 35.1% over the past year.

Return vs Market: CIA exceeded the Australian Market which returned 29.1% over the past year.


Shareholder returns

CIAIndustryMarket
7 Day0.9%-1.0%-0.8%
30 Day-0.5%-0.7%2.7%
90 Day24.6%6.2%6.7%
1 Year131.1%131.1%42.0%35.1%33.3%29.1%
3 Year391.7%391.7%66.3%42.9%32.9%17.2%
5 Year3,170.0%3,170.0%154.2%117.5%69.8%38.1%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Champion Iron undervalued compared to its fair value and its price relative to the market?

38.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CIA (A$6.58) is trading below our estimate of fair value (A$10.6)

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


Price To Earnings Ratio

PE vs Industry: CIA is good value based on its PE Ratio (6.3x) compared to the Australian Metals and Mining industry average (12.2x).

PE vs Market: CIA is good value based on its PE Ratio (6.3x) compared to the Australian market (20.4x).


Price to Earnings Growth Ratio

PEG Ratio: CIA's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: CIA is overvalued based on its PB Ratio (4.4x) compared to the AU Metals and Mining industry average (2.5x).


Future Growth

How is Champion Iron forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

-9.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CIA's earnings are forecast to decline over the next 3 years (-9.5% per year).

Earnings vs Market: CIA's earnings are forecast to decline over the next 3 years (-9.5% per year).

High Growth Earnings: CIA's earnings are forecast to decline over the next 3 years.

Revenue vs Market: CIA's revenue (3.4% per year) is forecast to grow slower than the Australian market (5.4% per year).

High Growth Revenue: CIA's revenue (3.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CIA's Return on Equity is forecast to be low in 3 years time (19.9%).


Past Performance

How has Champion Iron performed over the past 5 years?

73.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CIA has high quality earnings.

Growing Profit Margin: CIA's current net profit margins (36.2%) are higher than last year (11.4%).


Past Earnings Growth Analysis

Earnings Trend: CIA has become profitable over the past 5 years, growing earnings by 73.8% per year.

Accelerating Growth: CIA's earnings growth over the past year (419.3%) exceeds its 5-year average (73.8% per year).

Earnings vs Industry: CIA earnings growth over the past year (419.3%) exceeded the Metals and Mining industry 26.1%.


Return on Equity

High ROE: CIA's Return on Equity (54.4%) is considered outstanding.


Financial Health

How is Champion Iron's financial position?


Financial Position Analysis

Short Term Liabilities: CIA's short term assets (CA$807.5M) exceed its short term liabilities (CA$293.8M).

Long Term Liabilities: CIA's short term assets (CA$807.5M) exceed its long term liabilities (CA$350.1M).


Debt to Equity History and Analysis

Debt Level: CIA's debt to equity ratio (25.2%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if CIA's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: CIA's debt is well covered by operating cash flow (290.1%).

Interest Coverage: CIA's interest payments on its debt are well covered by EBIT (61.5x coverage).


Balance Sheet


Dividend

What is Champion Iron current dividend yield, its reliability and sustainability?

2.36%

Forecast Dividend Yield


Dividend Yield vs Market

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

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

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

2.2yrs

Average management tenure


CEO

David Cataford

2.17yrs

Tenure

CA$3,678,803

Compensation

Mr. David Cataford, P. Eng. has been Chief Executive Officer of Champion Iron Limited since April 1, 2019 and also has been its Director since May 21, 2019. He had been President of Champion Iron Limited s...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD2.99M) is above average for companies of similar size in the Australian market ($USD1.75M).

Compensation vs Earnings: David's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: CIA's management team is considered experienced (2.2 years average tenure).


Board Members

Experienced Board: CIA's board of directors are considered experienced (4.1 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 diluted in the past year, with total shares outstanding growing by 7.2%.


Top Shareholders

Company Information

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


Key Information

  • Name: Champion Iron Limited
  • Ticker: CIA
  • Exchange: ASX
  • Founded: NaN
  • Industry: Steel
  • Sector: Materials
  • Implied Market Cap: AU$3.311b
  • Market Cap: AU$3.311b
  • Shares outstanding: 506.32m
  • Website: https://www.championiron.com

Number of Employees


Location

  • Champion Iron Limited
  • 91 Evans Street
  • Level 1
  • Rozelle
  • New South Wales
  • 2039
  • Australia

Listings


Biography

Champion Iron Limited engages in the acquisition, exploration, development, and production of iron ore deposits in Canada. Its flagship projects include the Bloom Lake Mine located in south end of the Labr...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/24 16:20
End of Day Share Price2021/06/24 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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.