ASX:ENR

Stock Analysis Report

Encounter Resources

Executive Summary

Encounter Resources Limited engages in the exploration and development of mineral deposits in Western Australia.


Snowflake Analysis

Excellent balance sheet with weak fundamentals.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

13.8%

ENR

4.4%

AU Metals and Mining

5.0%

AU Market


1 Year Return

11.0%

ENR

-19.1%

AU Metals and Mining

-19.2%

AU Market

Return vs Industry: ENR exceeded the Australian Metals and Mining industry which returned -22% over the past year.

Return vs Market: ENR exceeded the Australian Market which returned -19.4% over the past year.


Shareholder returns

ENRIndustryMarket
7 Day13.8%4.4%5.0%
30 Day0%-11.2%-20.3%
90 Day-24.2%-21.3%-25.8%
1 Year11.0%11.0%-14.5%-19.1%-15.6%-19.2%
3 Year-20.9%-20.9%28.2%10.4%-3.6%-16.8%
5 Year-2.2%-2.2%62.2%23.4%6.6%-17.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

1.54x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

PE vs Market: ENR 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 ENR's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ENR is overvalued based on its PB Ratio (1.4x) compared to the AU Metals and Mining industry average (1x).


Next Steps

Future Growth

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

0.9%

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 Encounter Resources 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 Encounter Resources performed over the past 5 years?

-25.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ENR is currently unprofitable.

Growing Profit Margin: ENR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ENR is unprofitable, and losses have increased over the past 5 years at a rate of -25.9% per year.

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

Earnings vs Industry: ENR is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-7%).


Return on Equity

High ROE: ENR has a negative Return on Equity (-9.01%), as it is currently unprofitable.


Next Steps

Financial Health

How is Encounter Resources's financial position?


Financial Position Analysis

Short Term Liabilities: ENR's short term assets (A$2.7M) exceed its short term liabilities (A$407.6K).

Long Term Liabilities: ENR has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: ENR is debt free.

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


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if ENR'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: ENR has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: ENR has sufficient cash runway for 2 years if free cash flow continues to grow at historical rates of 10% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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

14.5yrs

Average management tenure


CEO

Will Robinson (47yo)

15.83s

Tenure

AU$292,515

Compensation

Mr. William Michael Robinson, also known as Will, B.Comm, MAusIMM has been Managing Director and Executive Director of Encounter Resources Ltd., since June 30, 2004. Mr. Robinson founded Encounter Resource ...


CEO Compensation Analysis

Compensation vs Market: Will's total compensation ($USD179.45K) is about average for companies of similar size in the Australian market ($USD246.06K).

Compensation vs Earnings: Will's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
William Robinson
MD & Executive Director15.83yrsAU$292.52k8.96% A$2.3m
Peter Bewick
Exploration Director & Executive Director14.5yrsAU$321.09k2.56% A$655.2k
Kevin Hart
Company Secretary14.42yrsno datano data
Daniel Travers
Joint Company Secretary11.42yrsno datano data

14.5yrs

Average Tenure

50yo

Average Age

Experienced Management: ENR's management team is seasoned and experienced (14.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
William Robinson
MD & Executive Director15.83yrsAU$292.52k8.96% A$2.3m
Peter Bewick
Exploration Director & Executive Director14.5yrsAU$321.09k2.56% A$655.2k
Paul Chapman
Non-Executive Chairman14.5yrsAU$65.70k3.36% A$857.4k
Jonathan Hronsky
Non-Executive Director12.92yrsAU$72.33k0.071% A$18.2k
Philip Crutchfield
Independent Non-Executive Director0.50yrno data0.90% A$228.8k

14.5yrs

Average Tenure

50yo

Average Age

Experienced Board: ENR's board of directors are seasoned and experienced ( 14.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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 29.2%.


Top Shareholders

Company Information

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


Key Information

  • Name: Encounter Resources Limited
  • Ticker: ENR
  • Exchange: ASX
  • Founded: 2004
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: AU$25.555m
  • Shares outstanding: 280.82m
  • Website: https://www.encounterresources.com.au

Location

  • Encounter Resources Limited
  • 600 Murray Street
  • Level 7
  • West Perth
  • Western Australia
  • 6005
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ENRASX (Australian Securities Exchange)YesOrdinary SharesAUAUDMar 2006
ENRCHIA (Chi-X Australia)YesOrdinary SharesAUAUDMar 2006

Biography

Encounter Resources Limited engages in the exploration and development of mineral deposits in Western Australia. The company explores for zinc, copper, gold, lead, and cobalt deposits. The company holds exploration tenure covering approximately 2,000 square kilometers of the Paterson Province; and exploration tenure of covering approximately 4,200 square kilometers in the Tanami region in Western Australia. Encounter Resources Limited was founded in 2004 and is based in West Perth, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 12:57
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
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.