ASX:EAR

Stock Analysis Report

Executive Summary

Echo Resources Limited engages in the exploration and development of gold properties in Australia.

Snowflake

Fundamentals

Flawless balance sheet with moderate growth potential.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-1.5%

EAR

0.05%

AU Metals and Mining

2.5%

AU Market


1 Year Return

164.0%

EAR

10.3%

AU Metals and Mining

11.1%

AU Market

Return vs Industry: EAR exceeded the Australian Metals and Mining industry which returned 10.3% over the past year.

Return vs Market: EAR exceeded the Australian Market which returned 11.1% over the past year.


Shareholder returns

EARIndustryMarket
7 Day-1.5%0.05%2.5%
30 Day1.5%-5.6%0.7%
90 Day57.1%-8.9%1.4%
1 Year165.6%164.0%17.9%10.3%17.5%11.1%
3 Yearn/a62.5%43.1%37.8%19.4%
5 Yearn/a56.0%20.7%51.7%17.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

32.6x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: Insufficient data to calculate EAR's fair value to establish if it is undervalued.

Significantly Undervalued: Insufficient data to calculate EAR's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: EAR is unprofitable, so we can't compare its PE Ratio to the Metals and Mining industry average.

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: EAR is overvalued based on its PB Ratio (32.6x) compared to the AU Metals and Mining industry average (1.6x).


Next Steps

Future Growth

How is Echo Resources forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

133.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EAR is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: EAR is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: EAR is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: EAR's revenue (149.2% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: EAR's revenue (149.2% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: EAR's Return on Equity is forecast to be high in 3 years time (37.8%)


Next Steps

Past Performance

How has Echo Resources performed over the past 5 years?

-44.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: EAR is unprofitable, and losses have increased over the past 5 years at a rate of -44.8% per year.

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

Earnings vs Industry: EAR is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (1.3%).


Return on Equity

High ROE: EAR has a negative Return on Equity (-382.02%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: EAR is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: EAR is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Echo Resources's financial position?


Financial Position Analysis

Short Term Liabilities: EAR's short term assets (A$18.1M) exceeds its short term liabilities (A$1.9M)

Long Term Liabilities: EAR's short term assets (18.1M) exceeds its long term liabilities (13.8M)


Debt to Equity History and Analysis

Debt Level: EAR is debt free.

Reducing Debt: EAR has no debt compared to 5 years ago when its debt to equity ratio was 52.2%.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if EAR's debt is covered by short term assets.


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: EAR has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: EAR has sufficient cash runway for 1.159412 years if free cash flow continues to reduce at historical rates of -49.5% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.5%markettop25%5.6%industryaverage4.8%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

Growing Dividend: Insufficient data to determine if EAR'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 EAR'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 Echo Resources's salary, the management and board of directors tenure and is there insider trading?


CEO

Echo Resources has no CEO, or we have no data on them.


Insider Trading

Insider Buying: EAR insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyAU$12,54013 Oct 19
Northern Star Resources Limited
EntityCompany
Shares38,000
Max PriceAU$0.33
BuyAU$3,513,03708 Oct 19
Northern Star Resources Limited
EntityCompany
Shares10,645,563
Max PriceAU$0.33
BuyAU$3,462,68202 Oct 19
Northern Star Resources Limited
EntityCompany
Shares10,494,694
Max PriceAU$0.33
BuyAU$98,34024 Sep 19
Northern Star Resources Limited
EntityCompany
Shares297,999
Max PriceAU$0.33
BuyAU$4,085,82724 Sep 19
Northern Star Resources Limited
EntityCompany
Shares12,380,253
Max PriceAU$0.33
BuyAU$1,965,04319 Sep 19
Maso Capital Arbitrage Fund Limited
EntityCompany
Shares6,071,741
Max PriceAU$0.32
BuyAU$438,49119 Sep 19
Maso Capital Investments Limited
EntityCompany
Shares1,341,218
Max PriceAU$0.33
BuyAU$379,99319 Sep 19
Andrew Axelrod
EntityIndividual
Shares1,162,316
Max PriceAU$0.33
BuyAU$810,35619 Sep 19
CPMG, Inc.
EntityCompany
Shares2,478,637
Max PriceAU$0.33
BuyAU$3,400,85704 Sep 19
Northern Star Resources Limited
EntityCompany
Shares26,015,902
Max PriceAU$0.13
BuyAU$1,680,51630 Aug 19
Maso Capital Investments Limited
EntityCompany
Shares5,198,700
Max PriceAU$0.32
BuyAU$7,646,40930 Aug 19
Maso Capital Arbitrage Fund Limited
EntityCompany
Shares23,654,300
Max PriceAU$0.32
BuyAU$1,462,28430 Aug 19
Andrew Axelrod
EntityIndividual
Shares4,523,600
Max PriceAU$0.32
BuyAU$3,110,82830 Aug 19
CPMG, Inc.
EntityCompany
Shares9,623,400
Max PriceAU$0.32
BuyAU$1,44325 Jan 19
Barry Bolitho
EntityIndividual
Shares13,743
Max PriceAU$0.10
BuyAU$2,499,97918 Dec 18
Northern Star Resources Limited
EntityCompany
Shares22,727,273
Max PriceAU$0.11
BuyAU$48,00018 Dec 18
Victor Rajasooriar
EntityIndividual
Shares400,000
Max PriceAU$0.12
BuyAU$4,533,96513 Nov 18
Nero Resource Fund Pty Ltd
EntityCompany
Shares26,032,667
Max PriceAU$0.17

Ownership Breakdown


Management Team

  • Simon Coxhell (55yo)

    Consultant

    • Tenure: 1yrs
    • Compensation: AU$1.35m
  • Peter Hunt (72yo)

    Executive Chairman

    • Tenure: 0yrs
  • Kate Stoney

    Interim Company Secretary

    • Tenure: 4.5yrs

Board Members

  • Alan Thom

    Non-Executive Director

    • Tenure: 0.8yrs

Company Information

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


Key Information

  • Name: Echo Resources Limited
  • Ticker: EAR
  • Exchange: ASX
  • Founded: 2004
  • Industry: Gold
  • Sector: Materials
  • Market Cap: AU$233.919m
  • Shares outstanding: 708.84m
  • Website: https://www.echoresources.com.au

Location

  • Echo Resources Limited
  • 7 Rheola Street
  • Level 1
  • West Perth
  • Western Australia
  • 6005
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EARASX (Australian Securities Exchange)YesNew Ordinary SharesAUAUDJan 2017
E1LDB (Deutsche Boerse AG)YesNew Ordinary SharesDEEURJan 2017
EARCHIA (Chi-X Australia)YesNew Ordinary SharesAUAUDJan 2017
E1LBST (Boerse-Stuttgart)YesNew Ordinary SharesDEEURJan 2017

Biography

Echo Resources Limited engages in the exploration and development of gold properties in Australia. Its flagship property is the Yandal gold project, which comprises approximately 1,600 square kilometers lo ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 10:41
End of Day Share Price2019/10/16 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.