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DRR

Deterra RoyaltiesASX:DRR Stock Report

Market Cap

AU$2.1b

7D

2.3%

1Y

-13.5%

Updated

22 Oct, 2021

Data

Company Financials +
DRR fundamental analysis
Snowflake Score
Valuation0/6
Future Growth1/6
Past Performance4/6
Financial Health6/6
Dividends2/6

DRR Overview

Deterra Royalties Limited operates as a royalty investment company in Australia.

Price History & Performance

Summary of all time highs, changes and price drops for Deterra Royalties
Historical stock prices
Current Share PriceAU$3.98
52 Week HighAU$3.52
52 Week LowAU$5.35
Beta0
1 Month Change2.58%
3 Month Change-16.74%
1 Year Change-13.48%
3 Year Changen/a
5 Year Changen/a
Change since IPO-13.48%

Recent News & Updates

Aug 19
Deterra Royalties Limited (ASX:DRR) Just Reported Annual Earnings: Have Analysts Changed Their Mind On The Stock?

Deterra Royalties Limited (ASX:DRR) Just Reported Annual Earnings: Have Analysts Changed Their Mind On The Stock?

Deterra Royalties Limited ( ASX:DRR ) just released its yearly report and things are looking bullish. The company beat...

Shareholder Returns

DRRAU Metals and MiningAU Market
7D2.3%-0.3%0.7%
1Y-13.5%12.5%21.4%

Return vs Industry: DRR underperformed the Australian Metals and Mining industry which returned 12.5% over the past year.

Return vs Market: DRR underperformed the Australian Market which returned 21.4% over the past year.

Price Volatility

Is DRR's price volatile compared to industry and market?
DRR volatility
DRR Beta0
Industry Beta0.97
Market Beta1

Stable Share Price: DRR is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: DRR's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2020n/aJulian Andrewshttps://deterraroyalties.com

Deterra Royalties Limited operates as a royalty investment company in Australia. The company’s principal asset is the Mining Area C Royalty, an iron ore located in the Pilbara, Western Australia. It is also involved in the management and acquisition of a portfolio of royalties across bulk commodities, base metals, and battery metals.

Deterra Royalties Fundamentals Summary

How do Deterra Royalties's earnings and revenue compare to its market cap?
DRR fundamental statistics
Market CapAU$2.10b
Earnings (TTM)AU$94.26m
Revenue (TTM)AU$145.21m

22.3x

P/E Ratio

14.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
DRR income statement (TTM)
RevenueAU$145.21m
Cost of RevenueAU$4.97m
Gross ProfitAU$140.24m
ExpensesAU$45.98m
EarningsAU$94.26m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.18
Gross Margin96.58%
Net Profit Margin64.91%
Debt/Equity Ratio0%

How did DRR perform over the long term?

See historical performance and comparison

Dividends

3.5%

Current Dividend Yield

78%

Payout Ratio

Valuation

Is Deterra Royalties undervalued compared to its fair value and its price relative to the market?

22.32x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DRR (A$3.98) is trading above our estimate of fair value (A$3.3)

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


Price To Earnings Ratio

PE vs Industry: DRR is poor value based on its PE Ratio (22.3x) compared to the Australian Metals and Mining industry average (14.3x).

PE vs Market: DRR is poor value based on its PE Ratio (22.3x) compared to the Australian market (19.8x).


Price to Earnings Growth Ratio

PEG Ratio: DRR's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: DRR is overvalued based on its PB Ratio (34.1x) compared to the AU Metals and Mining industry average (2.6x).


Future Growth

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

-4.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DRR's earnings are forecast to decline over the next 3 years (-4.2% per year).

Earnings vs Market: DRR's earnings are forecast to decline over the next 3 years (-4.2% per year).

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

Revenue vs Market: DRR's revenue is expected to decline over the next 3 years (-1.2% per year).

High Growth Revenue: DRR's revenue is forecast to decline over the next 3 years (-1.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DRR's Return on Equity is forecast to be very high in 3 years time (175.8%).


Past Performance

How has Deterra Royalties performed over the past 5 years?

59.5%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: DRR has high quality earnings.

Growing Profit Margin: DRR's current net profit margins (64.9%) are higher than last year (64%).


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if DRR's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Insufficient data to compare DRR's past year earnings growth to its 5-year average.

Earnings vs Industry: DRR earnings growth over the past year (59.5%) exceeded the Metals and Mining industry 35.3%.


Return on Equity

High ROE: DRR's Return on Equity (152.7%) is considered outstanding.


Financial Health

How is Deterra Royalties's financial position?


Financial Position Analysis

Short Term Liabilities: DRR's short term assets (A$79.8M) exceed its short term liabilities (A$11.8M).

Long Term Liabilities: DRR's short term assets (A$79.8M) exceed its long term liabilities (A$15.5M).


Debt to Equity History and Analysis

Debt Level: DRR is debt free.

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

Debt Coverage: DRR has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: DRR has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Deterra Royalties's current dividend yield, its reliability and sustainability?

3.51%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DRR's dividend (3.51%) is higher than the bottom 25% of dividend payers in the Australian market (2.27%).

High Dividend: DRR's dividend (3.51%) is low compared to the top 25% of dividend payers in the Australian market (5.31%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether DRR's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if DRR's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (78.3%), DRR's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DRR's dividends in 3 years are not forecast to be well covered by earnings (98% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.1yrs

Average management tenure


CEO

Julian Andrews

1.33yrs

Tenure

AU$1,140,494

Compensation

Mr. Julian Andrews, B.Com (Hons), PhD, CFA, GAICD is the MD and Director at Deterra Royalties Limited since June 15, 2020 and its CEO since November 2, 2020. He served as Head of Business Development at Il...


CEO Compensation Analysis

Compensation vs Market: Julian's total compensation ($USD854.11K) is below average for companies of similar size in the Australian market ($USD1.38M).

Compensation vs Earnings: Insufficient data to compare Julian's compensation with company performance.


Leadership Team

Experienced Management: DRR's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

Experienced Board: DRR's board of directors are not considered experienced ( 1.3 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: DRR insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: DRR only recently listed within the past 12 months.


Top Shareholders

Company Information

Deterra Royalties Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Deterra Royalties Limited
  • Ticker: DRR
  • Exchange: ASX
  • Founded: 2020
  • Industry: Steel
  • Sector: Materials
  • Market Cap: AU$2.098b
  • Shares outstanding: 528.50m
  • Website: https://deterraroyalties.com

Location

  • Deterra Royalties Limited
  • 216 St Georges Terrace
  • Level 5
  • Perth
  • Western Australia
  • 6000
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/22 07:04
End of Day Share Price2021/10/22 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.