CIA

Champion IronASX:CIA Stock Report

Market Cap

AU$2.6b

7D

-6.6%

1Y

59.2%

Updated

18 Sep, 2021

Data

Company Financials +
CIA fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance5/6
Financial Health5/6
Dividends0/6

CIA Overview

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

Champion Iron Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Champion Iron
Historical stock prices
Current Share PriceAU$5.11
52 Week HighAU$2.66
52 Week LowAU$7.86
Beta1.54
1 Month Change-10.35%
3 Month Change-21.14%
1 Year Change59.19%
3 Year Change299.22%
5 Year Change1,792.59%
Change since IPO804.43%

Recent News & Updates

Sep 08
Are Investors Undervaluing Champion Iron Limited (ASX:CIA) By 49%?

Are Investors Undervaluing Champion Iron Limited (ASX:CIA) By 49%?

How far off is Champion Iron Limited ( ASX:CIA ) from its intrinsic value? Using the most recent financial data, we'll...

Aug 19
Here's Why I Think Champion Iron (ASX:CIA) Might Deserve Your Attention Today

Here's Why I Think Champion Iron (ASX:CIA) Might Deserve Your Attention Today

Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling...

Aug 04
Industry Analysts Just Made A Sizeable Upgrade To Their Champion Iron Limited (ASX:CIA) Revenue Forecasts

Industry Analysts Just Made A Sizeable Upgrade To Their Champion Iron Limited (ASX:CIA) Revenue Forecasts

Shareholders in Champion Iron Limited ( ASX:CIA ) may be thrilled to learn that the analysts have just delivered a...

Shareholder Returns

CIAAU Metals and MiningAU Market
7D-6.6%-4.0%-0.02%
1Y59.2%10.0%27.0%

Return vs Industry: CIA exceeded the Australian Metals and Mining industry which returned 10% over the past year.

Return vs Market: CIA exceeded the Australian Market which returned 27% over the past year.

Price Volatility

Is CIA's price volatile compared to industry and market?
CIA volatility
CIA Beta1.54
Industry Beta0.93
Market Beta1

Stable Share Price: CIA is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: CIA's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
n/an/aDavid Catafordhttps://www.championiron.com

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 Labrador; and the Consolidated Fire Lake North project that includes the Fire Lake North, Don Lake, Bellechasse, and Oil Can deposits situated in northeastern Quebec. The company also holds interest in Kami iron ore project located in the Labrador.

Champion Iron Fundamentals Summary

How do Champion Iron's earnings and revenue compare to its market cap?
CIA fundamental statistics
Market CapCA$2.40b
Earnings (TTM)CA$613.21m
Revenue (TTM)CA$1.58b

3.9x

P/E Ratio

1.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CIA income statement (TTM)
RevenueCA$1.58b
Cost of RevenueCA$441.75m
Gross ProfitCA$1.14b
ExpensesCA$527.70m
EarningsCA$613.21m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.26
Gross Margin72.09%
Net Profit Margin38.75%
Debt/Equity Ratio23.2%

How did CIA perform over the long term?

See historical performance and comparison

Valuation

Is Champion Iron 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: CIA (A$5.11) is trading below our estimate of fair value (A$10.97)

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 (3.9x) compared to the Australian Metals and Mining industry average (12.1x).

PE vs Market: CIA is good value based on its PE Ratio (3.9x) compared to the Australian market (18.7x).


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 good value based on its PB Ratio (2.6x) compared to the AU Metals and Mining industry average (2.7x).


Future Growth

How is Champion Iron forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

-20.2%

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 (-20.2% per year).

Earnings vs Market: CIA's earnings are forecast to decline over the next 3 years (-20.2% per year).

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

Revenue vs Market: CIA's revenue is expected to decline over the next 3 years (-2% per year).

High Growth Revenue: CIA's revenue is forecast to decline over the next 3 years (-2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CIA's Return on Equity is forecast to be high in 3 years time (27.8%)


Past Performance

How has Champion Iron performed over the past 5 years?

76.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CIA has a high level of non-cash earnings.

Growing Profit Margin: CIA's current net profit margins (38.7%) are higher than last year (16.8%).


Past Earnings Growth Analysis

Earnings Trend: CIA has become profitable over the past 5 years, growing earnings by 76.5% per year.

Accelerating Growth: CIA's earnings growth over the past year (385.8%) exceeds its 5-year average (76.5% per year).

Earnings vs Industry: CIA earnings growth over the past year (385.8%) exceeded the Metals and Mining industry 43.2%.


Return on Equity

High ROE: CIA's Return on Equity (59.1%) is considered outstanding.


Financial Health

How is Champion Iron's financial position?


Financial Position Analysis

Short Term Liabilities: CIA's short term assets (CA$787.5M) exceed its short term liabilities (CA$252.2M).

Long Term Liabilities: CIA's short term assets (CA$787.5M) exceed its long term liabilities (CA$368.6M).


Debt to Equity History and Analysis

Debt Level: CIA's debt to equity ratio (23.2%) 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 (222.5%).

Interest Coverage: CIA's interest payments on its debt are well covered by EBIT (94x coverage).


Balance Sheet


Dividend

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

5.72%

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?

2.4yrs

Average management tenure


CEO

David Cataford

2.42yrs

Tenure

CA$3,678,803

Compensation

Mr. David Cataford, 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 sinc...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD2.89M) is above average for companies of similar size in the Australian market ($USD1.28M).

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 (2.4 years average tenure).


Board Members

Experienced Board: CIA'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 been diluted in the past year, with total shares outstanding growing by 7%.


Top Shareholders

Company Information

Champion Iron Limited's 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$2.588b
  • Market Cap: AU$2.588b
  • Shares outstanding: 506.49m
  • Website: https://www.championiron.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 08:03
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
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.