ASX:CIA

Stock Analysis Report

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Executive Summary

Champion Iron Limited engages in the acquisition, exploration, development, and production of iron ore deposits in North-Eastern Quebec. More Details


Snowflake Analysis

Good value 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

CIA

1.0%

AU Metals and Mining

0.3%

AU Market


1 Year Return

56.5%

CIA

15.6%

AU Metals and Mining

-5.4%

AU Market

Return vs Industry: CIA exceeded the Australian Metals and Mining industry which returned 15.3% over the past year.

Return vs Market: CIA exceeded the Australian Market which returned -5.7% over the past year.


Shareholder returns

CIAIndustryMarket
7 Day0%1.0%0.3%
30 Day-2.2%0.2%6.3%
90 Day11.8%0.2%3.7%
1 Year56.5%56.5%21.0%15.6%-2.1%-5.4%
3 Year198.1%198.1%60.1%38.3%18.3%3.3%
5 Year1,355.8%1,355.8%136.1%91.3%43.1%14.0%

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$3.13) is trading below our estimate of fair value (A$6.81)

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 (10.4x) compared to the AU Metals and Mining industry average (11.6x).

PE vs Market: CIA is good value based on its PE Ratio (10.4x) compared to the Australian market (21.5x).


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 (3x) compared to the AU Metals and Mining industry average (2.6x).


Next Steps

Future Growth

How is Champion Iron forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

-7.2%

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 (-7.2% per year).

Earnings vs Market: CIA's earnings are forecast to decline over the next 3 years (-7.2% per year).

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

Revenue vs Market: CIA's revenue (6.4% per year) is forecast to grow faster than the Australian market (4.7% per year).

High Growth Revenue: CIA's revenue (6.4% 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 high in 3 years time (24.3%)


Next Steps

Past Performance

How has Champion Iron performed over the past 5 years?

55.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CIA has a large one-off loss of CA$60.5M impacting its June 30 2020 financial results.

Growing Profit Margin: CIA's current net profit margins (16.8%) are higher than last year (14.1%).


Past Earnings Growth Analysis

Earnings Trend: CIA has become profitable over the past 5 years, growing earnings by 55.6% per year.

Accelerating Growth: CIA's earnings growth over the past year (14.4%) is below its 5-year average (55.6% per year).

Earnings vs Industry: CIA earnings growth over the past year (14.4%) underperformed the Metals and Mining industry 22.2%.


Return on Equity

High ROE: CIA's Return on Equity (26.8%) 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$501.6M) exceed its short term liabilities (CA$179.7M).

Long Term Liabilities: CIA's short term assets (CA$501.6M) exceed its long term liabilities (CA$366.8M).


Debt to Equity History and Analysis

Debt Level: CIA's debt to equity ratio (58%) 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 (110.8%).

Interest Coverage: CIA's interest payments on its debt are well covered by EBIT (16.4x coverage).


Balance Sheet


Next Steps

Dividend

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

1.04%

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?

1.6yrs

Average management tenure


CEO

David Cataford

1.5yrs

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 ($USD1.49M) is above average for companies of similar size in the Australian market ($USD941.91K).

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


Leadership Team

NamePositionTenureCompensationOwnership
William O'Keeffe
Executive Chairman7.17yrsCA$1.29m9.94%
CA$ 136.8m
David Cataford
CEO & Non-Independent Director1.5yrsCA$1.96m0.44%
CA$ 6.1m
Natacha Garoute
Chief Financial Officer2.17yrsCA$1.78m0.014%
CA$ 190.4k
Steve Boucratie
VP, General Counsel & Corporate Secretary1.42yrsCA$1.08m0.0034%
CA$ 46.5k
Alexandre Belleau
Chief Operating Officer0.25yrno data0.055%
CA$ 757.0k
Michael Marcotte
Vice President of Investor Relations1.75yrsno data0.012%
CA$ 162.3k
Nabil Tarbouche
Senior Geologistno datano datano data
Jorge Estepa
Company Secretaryno dataCA$157.30k0.28%
CA$ 3.8m
Pradipkumar Devalia
Company Secretary6.33yrsCA$129.77k0.046%
CA$ 640.1k

1.6yrs

Average Tenure

Experienced Management: CIA's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
William O'Keeffe
Executive Chairman7.17yrsCA$1.29m9.94%
CA$ 136.8m
David Cataford
CEO & Non-Independent Director1.5yrsCA$1.96m0.44%
CA$ 6.1m
Michelle Cormier
Independent Non-Executive Director4.5yrsCA$145.00k0.096%
CA$ 1.3m
Andrew Love
Lead Independent Director1yrCA$138.82k0.35%
CA$ 4.8m
Louise Grondin
Independent Director0.17yrno datano data
Gary Kenneth Lawler
Independent Non-Executive Director6.5yrsCA$151.83k0.36%
CA$ 4.9m
Wayne Wouters
Independent Non-Executive Director3.92yrsCA$135.00k0.093%
CA$ 1.3m
Jyothish George
Independent Non-Executive Director3yrsno datano data

3.5yrs

Average Tenure

66yo

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: CIA insiders have only sold shares 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 8.7%.


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$1.377b
  • Market Cap: AU$1.481b
  • Shares outstanding: 473.14m
  • 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 engages in the acquisition, exploration, development, and production of iron ore deposits in North-Eastern Quebec. Its flagship project include the Bloom Lake mine, which consists of ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/21 10:39
End of Day Share Price2020/10/21 00:00
Earnings2020/06/30
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.