ASX:EVN

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Evolution Mining Limited engages in identifying, developing, and operating gold related projects in Australia and New Zealand. More Details


Snowflake Analysis

Proven track record with adequate balance sheet.


Similar Companies

Share Price & News

How has Evolution Mining's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: EVN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.6%

EVN

-0.2%

AU Metals and Mining

0.01%

AU Market


1 Year Return

45.1%

EVN

15.3%

AU Metals and Mining

-5.7%

AU Market

Return vs Industry: EVN exceeded the Australian Metals and Mining industry which returned 17.4% over the past year.

Return vs Market: EVN exceeded the Australian Market which returned -5.6% over the past year.


Shareholder returns

EVNIndustryMarket
7 Day-3.6%-0.2%0.01%
30 Day-5.6%-1.5%5.4%
90 Day-8.5%-0.3%4.0%
1 Year49.7%45.1%20.7%15.3%-2.4%-5.7%
3 Year183.5%161.8%60.6%38.8%18.0%3.0%
5 Year338.8%286.2%131.6%87.5%42.1%13.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Evolution Mining undervalued compared to its fair value and its price relative to the market?

27.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EVN (A$5.89) is trading below our estimate of fair value (A$8.07)

Significantly Below Fair Value: EVN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: EVN is poor value based on its PE Ratio (33.3x) compared to the AU Metals and Mining industry average (12x).

PE vs Market: EVN is poor value based on its PE Ratio (33.3x) compared to the Australian market (21.4x).


Price to Earnings Growth Ratio

PEG Ratio: EVN is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: EVN is overvalued based on its PB Ratio (4.1x) compared to the AU Metals and Mining industry average (2.6x).


Next Steps

Future Growth

How is Evolution Mining forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

15.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EVN's forecast earnings growth (15.4% per year) is above the savings rate (2.3%).

Earnings vs Market: EVN's earnings (15.4% per year) are forecast to grow slower than the Australian market (17.5% per year).

High Growth Earnings: EVN's earnings are forecast to grow, but not significantly.

Revenue vs Market: EVN's revenue (3% per year) is forecast to grow slower than the Australian market (4.6% per year).

High Growth Revenue: EVN's revenue (3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EVN's Return on Equity is forecast to be low in 3 years time (16.4%).


Next Steps

Past Performance

How has Evolution Mining performed over the past 5 years?

30.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EVN has a large one-off loss of A$167.9M impacting its June 30 2020 financial results.

Growing Profit Margin: EVN's current net profit margins (15.5%) are higher than last year (14.5%).


Past Earnings Growth Analysis

Earnings Trend: EVN's earnings have grown significantly by 30.9% per year over the past 5 years.

Accelerating Growth: EVN's earnings growth over the past year (38%) exceeds its 5-year average (30.9% per year).

Earnings vs Industry: EVN earnings growth over the past year (38%) exceeded the Metals and Mining industry 22.2%.


Return on Equity

High ROE: EVN's Return on Equity (12.2%) is considered low.


Next Steps

Financial Health

How is Evolution Mining's financial position?


Financial Position Analysis

Short Term Liabilities: EVN's short term assets (A$723.8M) exceed its short term liabilities (A$355.8M).

Long Term Liabilities: EVN's short term assets (A$723.8M) do not cover its long term liabilities (A$855.1M).


Debt to Equity History and Analysis

Debt Level: EVN's debt to equity ratio (22.8%) is considered satisfactory.

Reducing Debt: EVN's debt to equity ratio has increased from 1.2% to 22.8% over the past 5 years.

Debt Coverage: EVN's debt is well covered by operating cash flow (178.9%).

Interest Coverage: EVN's interest payments on its debt are well covered by EBIT (36.9x coverage).


Balance Sheet


Next Steps

Dividend

What is Evolution Mining current dividend yield, its reliability and sustainability?

3.06%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: EVN's dividend (3.06%) is higher than the bottom 25% of dividend payers in the Australian market (2.13%).

High Dividend: EVN's dividend (3.06%) is low compared to the top 25% of dividend payers in the Australian market (5.51%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, EVN has been paying a dividend for less than 10 years.

Growing Dividend: EVN's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (90.3%), EVN's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EVN's dividends in 3 years are forecast to be covered by earnings (55.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.3yrs

Average management tenure


CEO

Evolution Mining has no CEO, or we have no data on them.


Leadership Team

NamePositionTenureCompensationOwnership
Jacob Klein
Executive Chairman9yrsAU$3.72m0.90%
A$ 90.7m
Lawrence Conway
Finance Director9yrsAU$1.90m0.065%
A$ 6.6m
Robert Fulker
Chief Operating Officer2.67yrsAU$1.54mno data
Paul Eagle
Vice President of People & Culture4.25yrsAU$1.16m0.0098%
A$ 983.2k
Evan Elstein
Company Secretary & VP of Information Technology9yrsAU$1.18m0.033%
A$ 3.3m
Glenton Masterman
Vice President of Discovery & Business Development1.75yrsAU$1.27mno data
Bryan O'Hara
General Manager of Investor Relationsno datano datano data
Andrew Millar
General Manager of Kalgoorlie Operationno datano datano data
Fiona Murfitt
Vice President of Sustainabilityno datano datano data
John Penhall
General Manager of Cowal Operationsno datano datano data

4.3yrs

Average Tenure

Experienced Management: EVN's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jacob Klein
Executive Chairman9yrsAU$3.72m0.90%
A$ 90.7m
Lawrence Conway
Finance Director9yrsAU$1.90m0.065%
A$ 6.6m
James Askew
Non-Executive Director9yrsAU$206.11k0.044%
A$ 4.5m
Thomas McKeith
Lead Independent Director1.83yrsAU$227.24k0.012%
A$ 1.2m
Victoria Binns
Non-Executive Director0.50yrAU$35.00kno data
Peter Smith
Non-Executive Director0.50yrAU$35.00kno data
Andrea Hall
Non-Executive Director3yrsAU$214.03k0.0016%
A$ 166.1k
Jason Attew
Non-Executive Director0.83yrAU$121.69kno data

2.4yrs

Average Tenure

59yo

Average Age

Experienced Board: EVN's board of directors are not considered experienced ( 2.4 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: EVN insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Evolution Mining Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Evolution Mining Limited
  • Ticker: EVN
  • Exchange: ASX
  • Founded: 1998
  • Industry: Gold
  • Sector: Materials
  • Market Cap: AU$10.064b
  • Shares outstanding: 1.71b
  • Website: https://evolutionmining.com.au

Number of Employees


Location

  • Evolution Mining Limited
  • 175 Liverpool Street
  • Level 24
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EVNASX (Australian Securities Exchange)YesOrdinary SharesAUAUDAug 2002
CAHP.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDAug 2002
WE7DB (Deutsche Boerse AG)YesOrdinary SharesDEEURAug 2002
EVNCHIA (Chi-X Australia)YesOrdinary SharesAUAUDAug 2002

Biography

Evolution Mining Limited engages in identifying, developing, and operating gold related projects in Australia and New Zealand. It also explores for copper and silver deposits. As of June 30, 2020, the comp ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 10:34
End of Day Share Price2020/10/20 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.