ASX:CSE

Stock Analysis Report

Executive Summary

Copper Strike Limited operates as a mineral exploration and development company in Australia.

Rewards

Became profitable this year

Risk Analysis

Debt is not well covered by operating cash flow

Shares are highly illiquid

Makes less than USD$1m in revenue (A$-524)

Does not have a meaningful market cap (A$8M)

+ 1 more risk


Snowflake Analysis

Questionable track record and overvalued.

Share Price & News

How has Copper Strike's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CSE's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

78.4%

CSE

2.6%

AU Metals and Mining

2.0%

AU Market


1 Year Return

-57.4%

CSE

23.6%

AU Metals and Mining

19.8%

AU Market

Return vs Industry: CSE underperformed the Australian Metals and Mining industry which returned 22% over the past year.

Return vs Market: CSE underperformed the Australian Market which returned 19.4% over the past year.


Shareholder returns

CSEIndustryMarket
7 Day78.4%2.6%2.0%
30 Day78.4%4.3%3.5%
90 Day73.7%14.5%5.8%
1 Year-57.4%-57.4%29.7%23.6%25.2%19.8%
3 Year-73.6%-73.6%64.5%44.3%39.6%20.9%
5 Year-72.5%-72.5%110.6%62.0%61.8%25.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Copper Strike undervalued compared to its fair value and its price relative to the market?

20.68x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate CSE's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate CSE's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: CSE is poor value based on its PE Ratio (22.3x) compared to the Metals and Mining industry average (13.2x).

PE vs Market: CSE is poor value based on its PE Ratio (22.3x) compared to the Australian market (18.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: CSE is good value based on its PB Ratio (0.9x) compared to the AU Metals and Mining industry average (1.5x).


Next Steps

Future Growth

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

1.8%

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 Copper Strike 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 Copper Strike performed over the past 5 years?

31.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CSE has a large one-off gain of A$962.1K impacting its June 30 2019 financial results.

Growing Profit Margin: CSE became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: CSE has become profitable over the past 5 years, growing earnings by 31.6% per year.

Accelerating Growth: CSE has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: CSE has become profitable in the last year, making it difficult to compare its past year earnings growth to the Metals and Mining industry (7.8%).


Return on Equity

High ROE: CSE's Return on Equity (4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Copper Strike's financial position?


Financial Position Analysis

Short Term Liabilities: CSE's short term assets (A$2.2M) do not cover its short term liabilities (A$3.9M).

Long Term Liabilities: CSE's short term assets (A$2.2M) exceed its long term liabilities (A$2.2M).


Debt to Equity History and Analysis

Debt Level: CSE's debt to equity ratio (45.4%) is considered high.

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

Debt Coverage: CSE's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if CSE's interest payments on its debt are well covered by EBIT.


Balance Sheet

Inventory Level: CSE has a low level of unsold assets or inventory.

Debt Coverage by Assets: CSE's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

What is Copper Strike's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%5.4%industryaverage4.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate CSE's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CSE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CSE'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 CSE's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

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


CEO

Copper Strike has no CEO, or we have no data on them.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellAU$11,82227 Jun 19
Fortitude Capital
EntityCompany
Shares48,606
Max PriceAU$0.26
SellAU$159,99927 Jun 19
Vantage Infrastructure Holdings Limited
EntityCompany
Shares2,000,000
Max PriceAU$0.08

Ownership Breakdown

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


Management Team

  • Melanie Jaye Leydin (46yo)

    Company secretary

    • Tenure: 8.7yrs
    • Compensation: AU$60.00k

Board Members

  • Mark Stephen Hanlon (59yo)

    Non-Executive Chairman

    • Tenure: 3yrs
    • Compensation: AU$32.85k
  • Tolga Kumova (41yo)

    Non-Executive Director

    • Brendan Jesser

      Non-Executive Director

      • Tenure: 5.6yrs
      • Compensation: AU$32.85k
    • Tim Staermose

      Non-Executive Director

      Company Information

      Copper Strike Limited's company bio, employee growth, exchange listings and data sources


      Key Information

      • Name: Copper Strike Limited
      • Ticker: CSE
      • Exchange: ASX
      • Founded: 2004
      • Industry: Diversified Metals and Mining
      • Sector: Materials
      • Market Cap: AU$7.052m
      • Shares outstanding: 106.84m
      • Website: https://www.copperstrike.com.au

      Location

      • Copper Strike Limited
      • 100 Albert Road
      • Level 4
      • South Melbourne
      • Victoria
      • 3205
      • Australia

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      CSEASX (Australian Securities Exchange)YesOrdinary SharesAUAUDNov 2004
      CSECHIA (Chi-X Australia)YesOrdinary SharesAUAUDNov 2004

      Biography

      Copper Strike Limited operates as a mineral exploration and development company in Australia. The company was founded in 2004 and is headquartered in South Melbourne, Australia. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/19 10:33
      End of Day Share Price2020/01/17 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.