ASX:EAR

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Exceptional growth potential with flawless balance sheet.

Risks

  • Echo Resources has significant price volatility in the past 3 months.
  • Echo Resources is covered by less than 3 analysts.

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

0%

ASX:EAR

1.8%

AU Metals and Mining

0.7%

AU Market


1 Year Return

153.8%

ASX:EAR

17.9%

AU Metals and Mining

6.2%

AU Market

EAR outperformed the Metals and Mining industry which returned 17.9% over the past year.

EAR outperformed the Market in Australia which returned 6.2% over the past year.


Share holder returns

EARIndustryMarket
7 Day0%1.8%0.7%
30 Day32.0%3.7%3.8%
90 Day106.3%-3.1%0.4%
1 Year155.4%153.8%26.2%17.9%12.4%6.2%
3 Yearn/a83.5%59.6%40.9%21.9%
5 Yearn/a60.1%23.6%49.8%16.3%

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 based on future cash flows and its price relative to the stock market?

32.6x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Unable to calculate intrinsic value for Echo Resources to establish if it is available at moderate discount.

Unable to calculate intrinsic value for Echo Resources to establish if it is available at substantial discount.


Price Based on Earnings

Echo Resources is loss making, we can't compare its value to the AU Metals and Mining industry average.

Echo Resources is loss making, we can't compare the value of its earnings to the Australia market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Echo Resources, we can't assess if its growth is good value.


Price Based on Value of Assets

Echo Resources is overvalued based on assets compared to the AU Metals and Mining industry average.


Next Steps

Future Growth

How is Echo Resources expected 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 Estimates


Future Annual Growth Analysis

Echo Resources's revenue is expected to grow significantly at over 20% yearly.

Echo Resources's earnings are expected to grow significantly at over 20% yearly.

Echo Resources's revenue growth is expected to exceed the Australia market average.

Echo Resources's earnings growth is expected to exceed the Australia market average.

Echo Resources's earnings growth is expected to exceed the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

Echo Resources is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


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

Echo Resources does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Echo Resources's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Echo Resources's 1-year growth to the AU Metals and Mining industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Echo Resources has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Echo Resources has efficiently used its assets last year compared to the AU Metals and Mining industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Echo Resources improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Echo Resources's financial position?


Financial Position Analysis

Echo Resources is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Echo Resources's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Echo Resources has no debt.

Echo Resources has no debt compared to 5 years ago when it was 52.2%.


Balance Sheet

High level of physical assets or inventory.

Echo Resources has no debt, it does not need to be 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.

Echo Resources has sufficient cash runway for 1.2 years based on current free cash flow.

Echo Resources has sufficient cash runway for 1.2 years if free cash flow continues to grow 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 and Payments Analysis

Unable to evaluate Echo Resources's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Echo Resources's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Echo Resources has not reported any payouts.

Unable to verify if Echo Resources's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Echo Resources has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

0.9yrs

Average management tenure


CEO

Victor Rajasooriar 0

0.8yrs

Tenure

AU$376,151

Compensation

Mr. Victor Rajasooriar has been Chief Executive Officer and Executive Director of Echo Resources Ltd. since November 22, 2018 and has been its Managing Director since December 2018. Mr. Rajasooriar is a Mi ...


CEO Compensation Analysis

Victor's remuneration is lower than average for companies of similar size in Australia.

Insufficient data for Victor to compare compensation growth.


Management Age and Tenure

0.9yrs

Average Tenure

The average tenure for the Echo Resources management team is less than 2 years, this suggests a new team.


Board Age and Tenure

0.8yrs

Average Tenure

The average tenure for the Echo Resources board of directors is less than 3 years, this suggests a new board.


Insider Trading

More shares have been bought than sold by Echo Resources individual insiders in the past 3 months.


Recent Insider Transactions

BuyAU$3,400,85704 Sep 19
Northern Star Resources Limited
EntityCompany
Shares26,015,902
Max PriceAU$0.13
BuyAU$3,110,82830 Aug 19
CPMG, Inc.
EntityCompany
Shares9,623,400
Max PriceAU$0.32
BuyAU$1,462,28430 Aug 19
Andrew Axelrod
EntityIndividual
Shares4,523,600
Max PriceAU$0.32
BuyAU$7,646,40930 Aug 19
Maso Capital Arbitrage Fund Limited
EntityCompany
Shares23,654,300
Max PriceAU$0.32
BuyAU$1,680,51630 Aug 19
Maso Capital Investments Limited
EntityCompany
Shares5,198,700
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
Role
Chief Executive Officer
CEO, MD & Executive Director
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
BuyAU$49,39903 Oct 18
Barry Bolitho
EntityIndividual
Shares380,000
Max PriceAU$0.13

Ownership Breakdown


Management Team

  • Simon Coxhell (55yo)

    Consultant

    • Tenure: 0.9yrs
    • Compensation: AU$1.35m
  • Peter Hunt (72yo)

    Executive Chairman

    • Tenure: 0yrs
  • Richard Hill

    Chief Financial Officer

    • Tenure: 0.7yrs
    • Compensation: AU$270.32k
  • Victor Rajasooriar

    CEO, MD & Executive Director

    • Tenure: 0.8yrs
    • Compensation: AU$376.15k
  • Kate Stoney

    GM of Finance & Company Secretary

    • Tenure: 4.4yrs

Board Members

  • Alistair Cowden

    Non-Executive Chairman

    • Tenure: 0.08yrs
  • Mark Stephen Hanlon (59yo)

    Non-Executive Director

    • Tenure: 2.7yrs
    • Compensation: AU$40.00k
  • Anthony McIntosh

    Non-Executive Director

    • Tenure: 6.9yrs
    • Compensation: AU$40.00k
  • Victor Rajasooriar

    CEO, MD & Executive Director

    • Tenure: 0.8yrs
    • Compensation: AU$376.15k
  • 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$231.609m
  • Shares outstanding: 701.84m
  • 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 Analysis2019/09/19 10:40
End of Day Share Price2019/09/19 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.