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DNK

DanakaliASX:DNK Stock Report

Market Cap

AU$167.6m

7D

1.1%

1Y

11.0%

Updated

20 Oct, 2021

Data

Company Financials +
DNK fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance0/6
Financial Health6/6
Dividends0/6

DNK Overview

Danakali Limited engages in the exploration of minerals in Eritrea, East Africa.

Price History & Performance

Summary of all time highs, changes and price drops for Danakali
Historical stock prices
Current Share PriceAU$0.46
52 Week HighAU$0.26
52 Week LowAU$0.64
Beta0.99
1 Month Change13.75%
3 Month Change1.11%
1 Year Change10.98%
3 Year Change-39.33%
5 Year Change19.74%
Change since IPO71.70%

Recent News & Updates

Shareholder Returns

DNKAU ChemicalsAU Market
7D1.1%0.2%1.7%
1Y11.0%12.9%20.2%

Return vs Industry: DNK underperformed the Australian Chemicals industry which returned 12.9% over the past year.

Return vs Market: DNK underperformed the Australian Market which returned 20.2% over the past year.

Price Volatility

Is DNK's price volatile compared to industry and market?
DNK volatility
DNK Beta0.99
Industry Beta0.80
Market Beta1

Stable Share Price: DNK is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: DNK's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2001n/an/ahttps://www.danakali.com.au

Danakali Limited engages in the exploration of minerals in Eritrea, East Africa. It focuses on the development of the Colluli potash project located in the Danakil Depression region of Eritrea. The company was formerly known as South Boulder Mines Ltd.

Danakali Fundamentals Summary

How do Danakali's earnings and revenue compare to its market cap?
DNK fundamental statistics
Market CapAU$167.59m
Earnings (TTM)-AU$7.06m
Revenue (TTM)AU$67.50k

2.5kx

P/S Ratio

-23.7x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
DNK income statement (TTM)
RevenueAU$67.50k
Cost of RevenueAU$0
Gross ProfitAU$67.50k
ExpensesAU$7.13m
Earnings-AU$7.06m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.019
Gross Margin100.00%
Net Profit Margin-10,459.13%
Debt/Equity Ratio0.0%

How did DNK perform over the long term?

See historical performance and comparison

Valuation

Is Danakali 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: DNK (A$0.46) is trading below our estimate of fair value (A$7.4)

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


Price To Earnings Ratio

PE vs Industry: DNK is unprofitable, so we can't compare its PE Ratio to the Australian Chemicals industry average.

PE vs Market: DNK is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: DNK is good value based on its PB Ratio (2.2x) compared to the AU Chemicals industry average (4x).


Future Growth

How is Danakali forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

61.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DNK is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: DNK is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: DNK's is expected to become profitable in the next 3 years.

Revenue vs Market: DNK's revenue is expected to decline over the next 3 years (-45.5% per year).

High Growth Revenue: DNK's revenue is forecast to decline over the next 3 years (-45.5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DNK's Return on Equity is forecast to be low in 3 years time (2.9%).


Past Performance

How has Danakali performed over the past 5 years?

-1.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DNK is currently unprofitable.

Growing Profit Margin: DNK is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: DNK is unprofitable, and losses have increased over the past 5 years at a rate of 1.7% per year.

Accelerating Growth: Unable to compare DNK's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: DNK is unprofitable, making it difficult to compare its past year earnings growth to the Chemicals industry (-61.8%).


Return on Equity

High ROE: DNK has a negative Return on Equity (-9.4%), as it is currently unprofitable.


Financial Health

How is Danakali's financial position?


Financial Position Analysis

Short Term Liabilities: DNK's short term assets (A$26.2M) exceed its short term liabilities (A$588.2K).

Long Term Liabilities: DNK's short term assets (A$26.2M) exceed its long term liabilities (A$39.9K).


Debt to Equity History and Analysis

Debt Level: DNK is debt free.

Reducing Debt: DNK has not had any debt for past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: DNK has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: DNK has sufficient cash runway for 1.3 years if free cash flow continues to reduce at historical rates of 10.8% each year.


Dividend

What is Danakali current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate DNK'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 DNK's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if DNK'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 DNK'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?

0.8yrs

Average management tenure


CEO

Danakali has no CEO, or we have no data on them.


Leadership Team

Experienced Management: DNK's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: DNK's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: DNK 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 15.6%.


Top Shareholders

Company Information

Danakali Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Danakali Limited
  • Ticker: DNK
  • Exchange: ASX
  • Founded: 2001
  • Industry: Fertilizers and Agricultural Chemicals
  • Sector: Materials
  • Market Cap: AU$167.592m
  • Shares outstanding: 368.33m
  • Website: https://www.danakali.com.au

Location

  • Danakali Limited
  • 2A /300 Fitzgerald Street
  • Level 1
  • Perth
  • Western Australia
  • 6006
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/20 15:23
End of Day Share Price2021/10/20 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.