ASX:EUC

Stock Analysis Report

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Executive Summary

European Cobalt Limited engages in the acquisition, exploration, and evaluation of resource based projects in Canada, Australia, Indonesia, and Europe. More Details


Snowflake Analysis

Flawless balance sheet with weak fundamentals.

Share Price & News

How has European Cobalt's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: EUC is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: EUC's weekly volatility has decreased from 17% to 10% over the past year.


Market Performance


7 Day Return

-4.8%

EUC

1.3%

AU Metals and Mining

-0.6%

AU Market


1 Year Return

90.5%

EUC

15.6%

AU Metals and Mining

0.009%

AU Market

Return vs Industry: EUC exceeded the Australian Metals and Mining industry which returned 15.6% over the past year.

Return vs Market: EUC exceeded the Australian Market which returned 0% over the past year.


Shareholder returns

EUCIndustryMarket
7 Day-4.8%1.3%-0.6%
30 Day-7.0%9.2%11.0%
90 Day5.3%1.5%8.8%
1 Year90.5%90.5%21.8%15.6%3.4%0.009%
3 Year-82.2%-82.2%58.6%36.7%23.0%7.8%
5 Year-97.7%-97.9%210.4%151.5%58.4%26.1%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is European Cobalt undervalued compared to its fair value and its price relative to the market?

3.23x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: EUC is overvalued based on its PB Ratio (3.2x) compared to the AU Metals and Mining industry average (2.5x).


Next Steps

Future Growth

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

2.7%

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 European Cobalt 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 European Cobalt performed over the past 5 years?

-29.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EUC is currently unprofitable.

Growing Profit Margin: EUC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: EUC is unprofitable, and losses have increased over the past 5 years at a rate of 29.5% per year.

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

Earnings vs Industry: EUC is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (38%).


Return on Equity

High ROE: EUC has a negative Return on Equity (-17.14%), as it is currently unprofitable.


Next Steps

Financial Health

How is European Cobalt's financial position?


Financial Position Analysis

Short Term Liabilities: EUC's short term assets (A$9.5M) exceed its short term liabilities (A$153.4K).

Long Term Liabilities: EUC has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: EUC is debt free.

Reducing Debt: EUC currently has no debt however we can't compare to 5 years ago as we have no data for that period.


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: EUC has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: EUC has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of 15.4% each year


Next Steps

Dividend

What is European Cobalt current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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

0.08yrs

Average management tenure


CEO

R. Ginn

0.083

Tenure

AU$10,500

Compensation

Mr. R. Dale Ginn is Managing Director and Director of European Cobalt Limited since November 09, 2020. Mr. Ginn served as Chief Operating Officer of Gatling Exploration Inc. since February 26, 2019 until 2...


Leadership Team

NamePositionTenureCompensationOwnership
R. Ginn
MD & Director0.083yrAU$10.50kno data
Robert Jewson
Executive Corporate Director & Director3.58yrsAU$238.71k6.22%
A$ 2.2m
Oonagh Malone
Company Secretary1.42yrsno datano data

0.08yrs

Average Tenure

Experienced Management: EUC's management team is not considered experienced ( 0.1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
R. Ginn
MD & Director0.083yrAU$10.50kno data
Robert Jewson
Executive Corporate Director & Director3.58yrsAU$238.71k6.22%
A$ 2.2m
Tolga Kumova
Non-Executive Chairman3.58yrsAU$55.50k8.73%
A$ 3.1m

3.6yrs

Average Tenure

Experienced Board: EUC's board of directors are considered experienced (3.6 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 13.8%.


Top Shareholders

Company Information

European Cobalt Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: European Cobalt Limited
  • Ticker: EUC
  • Exchange: ASX
  • Founded: 2010
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: AU$35.535m
  • Shares outstanding: 866.70m
  • Website: https://www.europeancobalt.com

Location

  • European Cobalt Limited
  • 513 Hay Street
  • Suite 23
  • Subiaco
  • Western Australia
  • 6008
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EUCASX (Australian Securities Exchange)YesOrdinary SharesAUAUDMar 2011
WMNN.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMar 2011
EUCCHIA (Chi-X Australia)YesOrdinary SharesAUAUDMar 2011
28WDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 2011

Biography

European Cobalt Limited engages in the acquisition, exploration, and evaluation of resource based projects in Canada, Australia, Indonesia, and Europe. The company explores for cobalt, nickel, copper, gold...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/02 07:01
End of Day Share Price2020/12/02 00:00
Earnings2020/06/30
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.