ASX:CIA

Stock Analysis Report

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Executive Summary

Champion Iron Limited explores, develops, and produces iron ore in Quebec, Canada.


Snowflake Analysis

Proven track record with adequate balance sheet.

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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.3%

CIA

3.6%

AU Metals and Mining

2.9%

AU Market


1 Year Return

-12.4%

CIA

0.6%

AU Metals and Mining

-13.6%

AU Market

Return vs Industry: CIA underperformed the Australian Metals and Mining industry which returned 0.8% over the past year.

Return vs Market: CIA exceeded the Australian Market which returned -15% over the past year.


Shareholder returns

CIAIndustryMarket
7 Day3.3%3.6%2.9%
30 Day33.7%14.0%8.3%
90 Day18.7%0.05%-18.0%
1 Year-12.4%-12.4%6.0%0.6%-10.0%-13.6%
3 Year187.0%187.0%64.0%41.3%9.8%-4.7%
5 Year3075.0%3075.0%86.5%49.0%20.7%-5.4%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CIA (A$2.54) is trading below our estimate of fair value (A$10.19)

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


Price To Earnings Ratio

PE vs Industry: CIA is poor value based on its PE Ratio (11.5x) compared to the Metals and Mining industry average (9.2x).

PE vs Market: CIA is good value based on its PE Ratio (11.5x) compared to the Australian market (14.7x).


Price to Earnings Growth Ratio

PEG Ratio: CIA is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: CIA is overvalued based on its PB Ratio (2.9x) compared to the AU Metals and Mining industry average (1.4x).


Next Steps

Future Growth

How is Champion Iron forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

9.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CIA's forecast earnings growth (9.6% per year) is above the savings rate (2.3%).

Earnings vs Market: CIA's earnings (9.6% per year) are forecast to grow slower than the Australian market (14.4% per year).

High Growth Earnings: CIA's earnings are forecast to grow, but not significantly.

Revenue vs Market: CIA's revenue (12.6% per year) is forecast to grow faster than the Australian market (4.3% per year).

High Growth Revenue: CIA's revenue (12.6% 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 (15.8%).


Next Steps

Past Performance

How has Champion Iron performed over the past 5 years?

50.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CIA has high quality earnings.

Growing Profit Margin: CIA's current net profit margins (11.4%) are lower than last year (12.7%).


Past Earnings Growth Analysis

Earnings Trend: CIA has become profitable over the past 5 years, growing earnings by 50.2% per year.

Accelerating Growth: CIA's earnings growth over the past year (7.3%) is below its 5-year average (50.2% per year).

Earnings vs Industry: CIA earnings growth over the past year (7.3%) exceeded the Metals and Mining industry -7.9%.


Return on Equity

High ROE: CIA's Return on Equity (32.1%) is considered high.


Next Steps

Financial Health

How is Champion Iron's financial position?


Financial Position Analysis

Short Term Liabilities: CIA's short term assets (CA$401.5M) exceed its short term liabilities (CA$112.9M).

Long Term Liabilities: CIA's short term assets (CA$401.5M) exceed its long term liabilities (CA$393.1M).


Debt to Equity History and Analysis

Debt Level: CIA's debt to equity ratio (73.3%) is considered high.

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 (112.2%).

Interest Coverage: CIA's interest payments on its debt are well covered by EBIT (13.6x coverage).


Balance Sheet


Next Steps

Dividend

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


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?

1.5yrs

Average management tenure


CEO

David Cataford

1.08yrs

Tenure

CA$1,962,025

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 ($USD1.40M) is above average for companies of similar size in the Australian market ($USD1.02M).

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


Leadership Team

NamePositionTenureCompensationOwnership
William O'Keeffe
Executive Chairman6.75yrsCA$1.29m9.96% CA$107.6m
David Cataford
CEO & Director1.08yrsCA$1.96m0.45% CA$4.9m
Natacha Garoute
Chief Financial Officer1.75yrsCA$1.78m0.0027% CA$28.6k
Steve Boucratie
VP, General Counsel & Corporate Secretary0.92yrCA$1.05m0.0034% CA$36.6k
Michael Marcotte
Vice President of Investor Relations1.33yrsno data0.0075% CA$80.6k
Pradipkumar Devalia
Company Secretary5.92yrsCA$129.77kno data
Alexander Horvath
Consultant3.17yrsCA$196.67kno data

1.5yrs

Average Tenure

Experienced Management: CIA's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
William O'Keeffe
Executive Chairman6.75yrsCA$1.29m9.96% CA$107.6m
David Cataford
CEO & Director1.08yrsCA$1.96m0.45% CA$4.9m
Michelle Cormier
Independent Non-Executive Director4.08yrsCA$145.00k0.0042% CA$45.8k
Andrew Love
Lead Director0.58yrCA$160.00k0.37% CA$4.0m
Gary Kenneth Lawler
Non-Executive Director6.08yrsCA$175.00k0.32% CA$3.4m
Wayne Wouters
Non-Executive Director3.5yrsCA$135.00k0.093% CA$1.0m
Jyothish George
Non-Executive Director2.58yrsno datano data

3.5yrs

Average Tenure

65.5yo

Average Age

Experienced Board: CIA's board of directors are considered experienced (3.5 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 9%.


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:
  • Industry: Steel
  • Sector: Materials
  • Implied Market Cap: AU$1.080b
  • Market Cap: AU$1.180b
  • Shares outstanding: 471.94m
  • Website: https://www.championiron.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CIATSX (The Toronto Stock Exchange)YesCommon SharesCACADMar 2014
MMPIDB (Deutsche Boerse AG)YesCommon SharesDEEURMar 2014
CIAASX (Australian Securities Exchange)YesCommon SharesAUAUDMar 2014
CIACHIA (Chi-X Australia)YesCommon SharesAUAUDMar 2014
CHPR.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDMar 2014

Biography

Champion Iron Limited explores, develops, and produces iron ore in Quebec, Canada. Its flagship projects include the Bloom Lake mine, which consists of BM877 mining lease and 69 mining claims located in Québec, Canada; 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 was formerly known as Champion Iron Mines Limited and changed its name to Champion Iron Limited in March 2014. Champion Iron Limited is headquartered in Rozelle, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/25 10:50
End of Day Share Price2020/05/25 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.