ASX:EVN

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


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

-3.3%

EVN

2.5%

AU Metals and Mining

0.6%

AU Market


1 Year Return

0.5%

EVN

27.5%

AU Metals and Mining

20.2%

AU Market

Return vs Industry: EVN underperformed the Australian Metals and Mining industry which returned 22% over the past year.

Return vs Market: EVN underperformed the Australian Market which returned 19.4% over the past year.


Shareholder returns

EVNIndustryMarket
7 Day-3.3%2.5%0.6%
30 Day4.7%6.2%4.3%
90 Day-9.2%12.9%4.9%
1 Year2.7%0.5%33.9%27.5%25.6%20.2%
3 Year90.7%77.8%58.6%38.9%39.4%20.7%
5 Year413.0%318.9%115.7%65.9%60.8%24.6%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EVN (A$3.85) is trading below our estimate of fair value (A$8.82)

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 (29.9x) compared to the Metals and Mining industry average (13.2x).

PE vs Market: EVN is poor value based on its PE Ratio (29.9x) compared to the Australian market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: EVN is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: EVN is overvalued based on its PB Ratio (2.7x) compared to the AU Metals and Mining industry average (1.5x).


Next Steps

Future Growth

How is Evolution Mining forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

20.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EVN's forecast earnings growth (20.9% per year) is above the savings rate (1.1%).

Earnings vs Market: EVN's earnings (20.9% per year) are forecast to grow faster than the Australian market (9.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: EVN's revenue (7.4% per year) is forecast to grow faster than the Australian market (3.8% per year).

High Growth Revenue: EVN's revenue (7.4% 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 (13.6%).


Next Steps

Past Performance

How has Evolution Mining performed over the past 5 years?

35.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EVN has high quality earnings.

Growing Profit Margin: EVN's current net profit margins (14.5%) are lower than last year (17.1%).


Past Earnings Growth Analysis

Earnings Trend: EVN's earnings have grown significantly by 35.6% per year over the past 5 years.

Accelerating Growth: EVN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: EVN had negative earnings growth (-17.2%) over the past year, making it difficult to compare to the Metals and Mining industry average (7.8%).


Return on Equity

High ROE: EVN's Return on Equity (9.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Evolution Mining's financial position?


Financial Position Analysis

Short Term Liabilities: EVN's short term assets (A$682.7M) exceed its short term liabilities (A$295.0M).

Long Term Liabilities: EVN's short term assets (A$682.7M) exceed its long term liabilities (A$392.4M).


Debt to Equity History and Analysis

Debt Level: EVN's debt to equity ratio (12.2%) is considered satisfactory.

Reducing Debt: EVN's debt to equity ratio has reduced from 17.4% to 12.2% over the past 5 years.

Debt Coverage: EVN's debt is well covered by operating cash flow (210%).

Interest Coverage: EVN's interest payments on its debt are well covered by EBIT (24.3x coverage).


Balance Sheet

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

Debt Coverage by Assets: EVN's debt is covered by short term assets (assets are 2.3x debt).


Next Steps

Dividend

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

2.52%

Current Dividend Yield


Dividend Yield vs Market

company2.5%marketbottom25%2.3%markettop25%5.6%industryaverage4.2%forecastin3Years3.9%

Current dividend yield vs market & industry

Notable Dividend: EVN's dividend (2.47%) is higher than the bottom 25% of dividend payers in the Australian market (2.34%).

High Dividend: EVN's dividend (2.47%) is low compared to the top 25% of dividend payers in the Australian market (5.47%).


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 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (73.9%), EVN's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EVN's dividends in 3 years are forecast to be covered by earnings (80% payout ratio).


Next Steps

Management

What is the CEO of Evolution Mining's salary, the management and board of directors tenure and is there insider trading?

3.5yrs

Average management tenure


CEO

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


Management Age and Tenure

3.5yrs

Average Tenure

Experienced Management: EVN's management team is considered experienced (3.5 years average tenure).


Board Age and Tenure

6.3yrs

Average Tenure

58.5yo

Average Age

Experienced Board: EVN's board of directors are considered experienced (6.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellAU$63,976,43601 Jan 20
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Jacob Klein
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Executive Chairman
Shares2,500,000
Max PriceAU$3.78

Ownership Breakdown

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


Management Team

  • Jake Klein (53yo)

    Executive Chairman

    • Tenure: 8.3yrs
    • Compensation: AU$5.26m
  • Glen Masterman (49yo)

    Vice President of Discovery & Business Development

    • Tenure: 1yrs
    • Compensation: AU$1.04m
  • Evan Elstein

    Company Secretary & VP of Information Technology

    • Tenure: 8.3yrs
    • Compensation: AU$953.62k
  • Lawrie Conway

    Finance Director

    • Tenure: 8.3yrs
    • Compensation: AU$1.49m
  • Paul Eagle

    Vice President of People & Culture

    • Tenure: 3.5yrs
    • Compensation: AU$906.82k
  • Bob Fulker

    Chief Operating Officer

    • Tenure: 1.9yrs
    • Compensation: AU$995.79k
  • Bryan O'Hara

    General Manager of Investor Relations


    Board Members

    • Jim Askew (71yo)

      Non-Executive Director

      • Tenure: 8.3yrs
      • Compensation: AU$152.90k
    • Jake Klein (53yo)

      Executive Chairman

      • Tenure: 8.3yrs
      • Compensation: AU$5.26m
    • Cobb Johnstone (62yo)

      Non-Executive Director

      • Tenure: 6.3yrs
      • Compensation: AU$164.15k
    • Tommy McKeith (55yo)

      Lead Independent Director

      • Tenure: 1.1yrs
      • Compensation: AU$166.65k
    • Lawrie Conway

      Finance Director

      • Tenure: 8.3yrs
      • Compensation: AU$1.49m
    • Andrea Hall

      Non-Executive Director

      • Tenure: 2.3yrs
      • Compensation: AU$157.90k
    • Jason Attew

      Non-Executive Director

      • Tenure: 0.08yrs

    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$6.425b
    • Shares outstanding: 1.70b
    • 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 primarily explores for gold, copper, and silver deposits. As of June 30, 2019, the company operated five wholly-owned gold mines located Cowal in New South Wales; Cracow, Mt Carlton, and Mt Rawdon in Queensland; and Mungari in Western Australia, as well as had an economic interest in the Ernest Henry copper-gold operation in Queensland. The company was formerly known as Catalpa Resources Limited and changed its name to Evolution Mining Limited in November 2011. Evolution Mining Limited was incorporated in 1998 and is based in Sydney, Australia. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/24 10:33
    End of Day Share Price2020/01/24 00:00
    Earnings2019/06/30
    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.