ASX:CII

Stock Analysis Report

Executive Summary

CI Resources Limited, together with its subsidiaries, engages in the mining, processing, and sale of phosphate rock, phosphate dust, and chalk in Australia and Malaysia.

Rewards

PE ratio (17.8x) is below the Australian market (18.3x)

Risk Analysis

Earnings have declined by -2.53% per year over past 5 years

Profit margins (6.4%) are lower than last year (12.6%)



Snowflake Analysis

Excellent balance sheet and slightly overvalued.

Share Price & News

How has CI Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CII has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

16.1%

CII

2.6%

AU Metals and Mining

0.3%

AU Market


1 Year Return

6.0%

CII

20.3%

AU Metals and Mining

17.3%

AU Market

Return vs Industry: CII underperformed the Australian Metals and Mining industry which returned 20.3% over the past year.

Return vs Market: CII underperformed the Australian Market which returned 17.3% over the past year.


Shareholder returns

CIIIndustryMarket
7 Day16.1%2.6%0.3%
30 Day2.7%3.2%-1.0%
90 Day2.7%1.0%-0.1%
1 Year8.1%6.0%29.3%20.3%23.1%17.3%
3 Year-21.9%-31.2%65.2%42.5%36.2%17.5%
5 Year98.4%54.3%113.2%62.9%61.4%25.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is CI Resources undervalued compared to its fair value and its price relative to the market?

17.8x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CII (A$1.34) is trading above our estimate of fair value (A$0.38)

Significantly Below Fair Value: CII is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CII is poor value based on its PE Ratio (17.8x) compared to the Metals and Mining industry average (12.8x).

PE vs Market: CII is good value based on its PE Ratio (17.8x) compared to the Australian market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CII's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CII is good value based on its PB Ratio (0.8x) compared to the AU Metals and Mining industry average (1.4x).


Next Steps

Future Growth

How is CI Resources forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

1.5%

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 CI Resources 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 CI Resources performed over the past 5 years?

-2.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CII has high quality earnings.

Growing Profit Margin: CII's current net profit margins (6.4%) are lower than last year (12.6%).


Past Earnings Growth Analysis

Earnings Trend: CII's earnings have declined by -2.5% per year over the past 5 years.

Accelerating Growth: CII's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CII had negative earnings growth (-59%) over the past year, making it difficult to compare to the Metals and Mining industry average (7.8%).


Return on Equity

High ROE: CII's Return on Equity (4.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is CI Resources's financial position?


Financial Position Analysis

Short Term Liabilities: CII's short term assets (A$112.2M) exceed its short term liabilities (A$19.7M).

Long Term Liabilities: CII's short term assets (A$112.2M) exceed its long term liabilities (A$38.0M).


Debt to Equity History and Analysis

Debt Level: CII's debt to equity ratio (6.8%) is considered satisfactory.

Reducing Debt: CII's debt to equity ratio has increased from 4.2% to 6.8% over the past 5 years.

Debt Coverage: CII's debt is well covered by operating cash flow (128.1%).

Interest Coverage: CII's interest payments on its debt are well covered by EBIT (54.3x coverage).


Balance Sheet

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

Debt Coverage by Assets: CII's debt is covered by short term assets (assets are 8.5x debt).


Next Steps

Dividend

What is CI Resources's current dividend yield, its reliability and sustainability?

2.25%

Current Dividend Yield


Dividend Yield vs Market

company2.2%marketbottom25%2.4%markettop25%5.6%industryaverage4.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: CII's dividend (2.25%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.42%).

High Dividend: CII's dividend (2.25%) is low compared to the top 25% of dividend payers in the Australian market (5.56%).


Stability and Growth of Payments

Stable Dividend: CII's dividend payments have been volatile in the past 10 years.

Growing Dividend: CII's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (40%), CII's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

4.8yrs

Average management tenure


CEO

Ah Hong Lai 0

4.8yrs

Tenure

AU$1,079,734

Compensation

Mr. Ah Hong Lai has been the Managing Director of CI Resources Limited since March 2015. Mr. Lai serves as Managing Director of Phosphate Resources Limited. He is responsible for the day-to-day running and ...


CEO Compensation Analysis

Compensation vs Market: Ah Hong's total compensation ($USD745.00K) is above average for companies of similar size in the Australian market ($USD261.30K).

Compensation vs Earnings: Ah Hong's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.8yrs

Average Tenure

Experienced Management: CII's management team is considered experienced (4.8 years average tenure).


Board Age and Tenure

8.8yrs

Average Tenure

Experienced Board: CII's board of directors are considered experienced (8.8 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Lip Sin Tee (48yo)

    Executive Director

    • Tenure: 12.5yrs
    • Compensation: AU$204.71k
  • Ah Hong Lai

    MD, CEO & Executive Director

    • Tenure: 4.8yrs
    • Compensation: AU$1.08m
  • Elizabeth Lee

    Company Secretary

    • Tenure: 8.8yrs
    • Compensation: AU$52.68k
  • Darren Gold

    Group Chief Financial Officer

    • Tenure: 4.3yrs
    • Compensation: AU$477.67k

Board Members

  • Kamaruddin Bin Mohammed (71yo)

    Independent Non-Executive Director

    • Tenure: 6.9yrs
    • Compensation: AU$142.30k
  • Lip Sin Tee (48yo)

    Executive Director

    • Tenure: 12.5yrs
    • Compensation: AU$204.71k
  • Clive Brown

    Independent Non-Executive Director

    • Tenure: 4.8yrs
    • Compensation: AU$193.27k
  • Ah Hong Lai

    MD, CEO & Executive Director

    • Tenure: 4.8yrs
    • Compensation: AU$1.08m
  • David Somerville

    Non-Executive Independent Chairman

    • Tenure: 9.9yrs
    • Compensation: AU$191.15k
  • Adrian Anthony Gurgone

    Non-Executive Director

    • Tenure: 8.8yrs
    • Compensation: AU$131.15k
  • Lip Jen Tee

    Non-Executive Director

    • Tenure: 8.8yrs
    • Compensation: AU$120.00k

Company Information

CI Resources Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CI Resources Limited
  • Ticker: CII
  • Exchange: ASX
  • Founded: 1987
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: AU$154.301m
  • Shares outstanding: 115.58m
  • Website: https://www.ciresources.com.au

Location

  • CI Resources Limited
  • 6 Thorogood Street
  • Burswood
  • Western Australia
  • 6100
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CIIASX (Australian Securities Exchange)YesOrdinary SharesAUAUDMar 1992
CIICHIA (Chi-X Australia)YesOrdinary SharesAUAUDMar 1992

Biography

CI Resources Limited, together with its subsidiaries, engages in the mining, processing, and sale of phosphate rock, phosphate dust, and chalk in Australia and Malaysia. It operates through Mining and Farm ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/13 10:31
End of Day Share Price2019/12/12 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.