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ESS

Essential MetalsASX:ESS Stock Report

Market Cap

AU$45.8m

7D

30.0%

1Y

99.0%

Updated

20 Oct, 2021

Data

Company Financials
ESS fundamental analysis
Snowflake Score
Valuation1/6
Future Growth0/6
Past Performance0/6
Financial Health4/6
Dividends0/6

ESS Overview

Essential Metals Limited explores for and develops mineral properties in Australia and Canada.

Price History & Performance

Summary of all time highs, changes and price drops for Essential Metals
Historical stock prices
Current Share PriceAU$0.20
52 Week HighAU$0.076
52 Week LowAU$0.27
Beta0.41
1 Month Change-13.33%
3 Month Change30.00%
1 Year Change98.98%
3 Year Change8.33%
5 Year Change14.71%
Change since IPO-89.17%

Recent News & Updates

Jul 02
Calculating The Fair Value Of Essential Metals Limited (ASX:ESS)

Calculating The Fair Value Of Essential Metals Limited (ASX:ESS)

Today we will run through one way of estimating the intrinsic value of Essential Metals Limited ( ASX:ESS ) by taking...

Shareholder Returns

ESSAU Metals and MiningAU Market
7D30.0%3.6%1.7%
1Y99.0%11.3%20.2%

Return vs Industry: ESS exceeded the Australian Metals and Mining industry which returned 11.3% over the past year.

Return vs Market: ESS exceeded the Australian Market which returned 20.2% over the past year.

Price Volatility

Is ESS's price volatile compared to industry and market?
ESS volatility
ESS Beta0.41
Industry Beta0.97
Market Beta1

Stable Share Price: ESS is more volatile than 90% of Australian stocks over the past 3 months, typically moving +/- 24% a week.

Volatility Over Time: ESS's weekly volatility has increased from 15% to 24% over the past year.

About the Company

FoundedEmployeesCEOWebsite
20035Tim Spencerhttps://essmetals.com.au

Essential Metals Limited explores for and develops mineral properties in Australia and Canada. The company primarily explores for lithium, caesium, gold, and nickel deposits. Its flagship project is the 100% owned Pioneer Dome Project located in Western Australia.

Essential Metals Fundamentals Summary

How do Essential Metals's earnings and revenue compare to its market cap?
ESS fundamental statistics
Market CapAU$45.76m
Earnings (TTM)-AU$1.38m
Revenue (TTM)AU$106.00k

443.2x

P/S Ratio

-34.0x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ESS income statement (TTM)
RevenueAU$106.00k
Cost of RevenueAU$1.00k
Gross ProfitAU$105.00k
ExpensesAU$1.49m
Earnings-AU$1.38m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.0057
Gross Margin99.06%
Net Profit Margin-1,304.72%
Debt/Equity Ratio0%

How did ESS perform over the long term?

See historical performance and comparison

Valuation

Is Essential Metals undervalued compared to its fair value and its price relative to the market?

2.3x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: ESS is good value based on its PB Ratio (2.3x) compared to the AU Metals and Mining industry average (2.6x).


Future Growth

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

0.7%

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 Essential Metals 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 Essential Metals performed over the past 5 years?

29.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ESS is currently unprofitable.

Growing Profit Margin: ESS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ESS is unprofitable, but has reduced losses over the past 5 years at a rate of 29.4% per year.

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

Earnings vs Industry: ESS is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (35.3%).


Return on Equity

High ROE: ESS has a negative Return on Equity (-6.78%), as it is currently unprofitable.


Financial Health

How is Essential Metals's financial position?


Financial Position Analysis

Short Term Liabilities: ESS's short term assets (A$5.8M) exceed its short term liabilities (A$1.0M).

Long Term Liabilities: ESS's short term assets (A$5.8M) exceed its long term liabilities (A$132.0K).


Debt to Equity History and Analysis

Debt Level: ESS is debt free.

Reducing Debt: ESS had no debt 5 years ago.


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: Insufficient data to determine if ESS has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if ESS has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Dividend

What is Essential Metals's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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

1.7yrs

Average management tenure


CEO

Tim Spencer

1.75yrs

Tenure

AU$298,450

Compensation

Mr. Timothy Gerard Spencer, also known as Tim, C.P.A., serves as Managing Director and Director at Essential Metals Limited (formerly Pioneer Resources Limited) since March 31, 2020. Mr. Spencer served as...


CEO Compensation Analysis

Compensation vs Market: Tim's total compensation ($USD223.14K) is about average for companies of similar size in the Australian market ($USD302.06K).

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


Leadership Team

Experienced Management: ESS's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

Experienced Board: ESS's board of directors are not considered experienced ( 1.7 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: ESS 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 substantially diluted in the past year, with total shares outstanding growing by 59.6%.


Top Shareholders

Company Information

Essential Metals Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Essential Metals Limited
  • Ticker: ESS
  • Exchange: ASX
  • Founded: 2003
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: AU$45.760m
  • Shares outstanding: 240.84m
  • Website: https://essmetals.com.au

Number of Employees


Location

  • Essential Metals Limited
  • 46 Ord Street
  • Level 3
  • West Perth
  • Western Australia
  • 6005
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/20 07:03
End of Day Share Price2021/10/20 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.