ENR

Encounter ResourcesASX:ENR Stock Report

Market Cap

AU$75.9m

7D

-2.0%

1Y

29.7%

Updated

23 Sep, 2021

Data

Company Financials
ENR fundamental analysis
Snowflake Score
Valuation0/6
Future Growth0/6
Past Performance0/6
Financial Health6/6
Dividends0/6

ENR Overview

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

Encounter Resources Competitors

Antipa Minerals

ASX:AZY

AU$150.7m

St George Mining

ASX:SGQ

AU$40.7m

Battery Minerals

ASX:BAT

AU$29.4m

Sipa Resources

ASX:SRI

AU$13.5m

Price History & Performance

Summary of all time highs, changes and price drops for Encounter Resources
Historical stock prices
Current Share PriceAU$0.24
52 Week HighAU$0.13
52 Week LowAU$0.34
Beta0.61
1 Month Change41.18%
3 Month Change50.00%
1 Year Change29.73%
3 Year Change344.44%
5 Year Change118.18%
Change since IPO-27.27%

Recent News & Updates

Aug 25
Encounter Resources (ASX:ENR) Is In A Good Position To Deliver On Growth Plans

Encounter Resources (ASX:ENR) Is In A Good Position To Deliver On Growth Plans

Just because a business does not make any money, does not mean that the stock will go down. For example, although...

Mar 28
Encounter Resources (ASX:ENR) Is In A Good Position To Deliver On Growth Plans

Encounter Resources (ASX:ENR) Is In A Good Position To Deliver On Growth Plans

We can readily understand why investors are attracted to unprofitable companies. For example, although Amazon.com made...

Feb 03
How Much Did Encounter Resources' (ASX:ENR) CEO Pocket Last Year?

How Much Did Encounter Resources' (ASX:ENR) CEO Pocket Last Year?

Will Robinson became the CEO of Encounter Resources Limited ( ASX:ENR ) in 2004, and we think it's a good time to look...

Shareholder Returns

ENRAU Metals and MiningAU Market
7D-2.0%-5.9%-2.3%
1Y29.7%13.0%25.4%

Return vs Industry: ENR exceeded the Australian Metals and Mining industry which returned 13% over the past year.

Return vs Market: ENR exceeded the Australian Market which returned 25.4% over the past year.

Price Volatility

Is ENR's price volatile compared to industry and market?
ENR volatility
ENR Beta0.61
Industry Beta0.93
Market Beta1

Stable Share Price: ENR is more volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 16% a week.

Volatility Over Time: ENR's weekly volatility (16%) has been stable over the past year, but is still higher than 75% of Australian stocks.

About the Company

FoundedEmployeesCEOWebsite
2004n/aWill Robinsonhttps://www.encounterresources.com.au

Encounter Resources Limited engages in the exploration and development of mineral deposits in Australia. The company explores for zinc, copper, gold, and cobalt deposits. It holds exploration tenure covering approximately 1,600 square kilometers of the Paterson Province; and exploration tenure in the Tanami region in Western Australia.

Encounter Resources Fundamentals Summary

How do Encounter Resources's earnings and revenue compare to its market cap?
ENR fundamental statistics
Market CapAU$75.90m
Earnings (TTM)-AU$1.02m
Revenue (TTM)AU$180.03k

428.6x

P/S Ratio

-74.3x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ENR income statement (TTM)
RevenueAU$180.03k
Cost of RevenueAU$0
Gross ProfitAU$180.03k
ExpensesAU$1.20m
Earnings-AU$1.02m

Valuation

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

3.43x

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 Australian 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 (3.4x) compared to the AU Metals and Mining industry average (2.6x).


Future Growth

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

0.3%

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.


Past Performance

How has Encounter Resources performed over the past 5 years?

10.2%

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, but has reduced losses over the past 5 years at a rate of 10.2% 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 (44.4%).


Return on Equity

High ROE: ENR has a negative Return on Equity (-4.62%), as it is currently unprofitable.


Financial Health

How is Encounter Resources's financial position?


Financial Position Analysis

Short Term Liabilities: ENR's short term assets (A$7.8M) exceed its short term liabilities (A$1.0M).

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


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 sufficient cash runway for more than a year 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 6.7% each year.


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 recent payouts.

High Dividend: Unable to evaluate ENR'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 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?

15.9yrs

Average management tenure


CEO

Will Robinson (49 yo)

17.25yrs

Tenure

AU$352,624

Compensation

Mr. William Michael Robinson, also known as Will, B.Com., MAusIMM has been Non-Executive Director at Hampton Hill Mining NL since February 01, 2021. He serves as Non-Executive Chair at Hamelin Gold Limited...


CEO Compensation Analysis

Compensation vs Market: Will's total compensation ($USD256.06K) is about average for companies of similar size in the Australian market ($USD281.32K).

Compensation vs Earnings: Will's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: ENR's management team is seasoned and experienced (15.9 years average tenure).


Board Members

Experienced Board: ENR's board of directors are seasoned and experienced ( 15.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: ENR 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 12.6%.


Top Shareholders

Company Information

Encounter Resources Limited's 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$75.902m
  • Shares outstanding: 316.26m
  • Website: https://www.encounterresources.com.au

Location

  • Encounter Resources Limited
  • 1 Alvan Street
  • Suite 2
  • Subiaco
  • Western Australia
  • 6008
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/23 15:59
End of Day Share Price2021/09/23 00:00
Earnings2020/12/31
Annual Earnings2020/06/30


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.