ASX:EVN

Stock Analysis Report

Executive Summary

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

Rewards

Trading at 43.2% below its fair value

Earnings are forecast to grow 3.87% per year

Earnings have grown 32.6% per year over the past 5 years

Risk Analysis

Unstable dividend track record



Snowflake Analysis

Flawless balance sheet with acceptable track record.


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

12.2%

EVN

0.2%

AU Metals and Mining

1.4%

AU Market


1 Year Return

12.5%

EVN

7.9%

AU Metals and Mining

16.1%

AU Market

Return vs Industry: EVN exceeded the Australian Metals and Mining industry which returned 7.9% over the past year.

Return vs Market: EVN underperformed the Australian Market which returned 16.1% over the past year.


Shareholder returns

EVNIndustryMarket
7 Day12.2%0.2%1.4%
30 Day8.5%-3.1%0.8%
90 Day8.5%4.5%4.4%
1 Year15.0%12.5%13.4%7.9%21.2%16.1%
3 Year89.8%77.0%50.6%32.1%37.0%18.6%
5 Year472.4%367.4%88.1%44.2%51.7%17.8%

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?

43.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EVN (A$4.23) is trading below our estimate of fair value (A$7.45)

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 (26.2x) compared to the Metals and Mining industry average (12.4x).

PE vs Market: EVN is poor value based on its PE Ratio (26.2x) compared to the Australian market (18.8x).


Price to Earnings Growth Ratio

PEG Ratio: EVN is poor value based on its PEG Ratio (6.8x)


Price to Book Ratio

PB vs Industry: EVN is overvalued based on its PB Ratio (3x) compared to the AU Metals and Mining industry average (1.4x).


Next Steps

Future Growth

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

3.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EVN's forecast earnings growth (3.9% per year) is above the savings rate (1.1%).

Earnings vs Market: EVN's earnings (3.9% per year) are forecast to grow slower than the Australian market (9.3% per year).

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

Revenue vs Market: EVN's revenue (1.7% per year) is forecast to grow slower than the Australian market (4.1% per year).

High Growth Revenue: EVN's revenue (1.7% 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 (11.9%).


Next Steps

Past Performance

How has Evolution Mining performed over the past 5 years?

32.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EVN has high quality earnings.

Growing Profit Margin: EVN's current net profit margins (16.6%) are higher than last year (15.3%).


Past Earnings Growth Analysis

Earnings Trend: EVN's earnings have grown significantly by 32.6% per year over the past 5 years.

Accelerating Growth: EVN's earnings growth over the past year (18.2%) is below its 5-year average (32.6% per year).

Earnings vs Industry: EVN earnings growth over the past year (18.2%) underperformed the Metals and Mining industry 19.1%.


Return on Equity

High ROE: EVN's Return on Equity (11.2%) 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$466.7M) exceed its short term liabilities (A$216.9M).

Long Term Liabilities: EVN's short term assets (A$466.7M) exceed its long term liabilities (A$259.6M).


Debt to Equity History and Analysis

Debt Level: EVN is debt free.

Reducing Debt: EVN has no debt compared to 5 years ago when its debt to equity ratio was 16.3%.

Debt Coverage: EVN has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: EVN has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if EVN's debt is covered by short term assets.


Next Steps

Dividend

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

3.07%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Evolution Mining before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company3.1%marketbottom25%2.3%markettop25%5.5%industryaverage4.4%forecastin3Years3.2%

Current dividend yield vs market & industry

Notable Dividend: EVN's dividend (3.07%) is higher than the bottom 25% of dividend payers in the Australian market (2.29%).

High Dividend: EVN's dividend (3.07%) is low compared to the top 25% of dividend payers in the Australian market (5.5%).


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: At its current payout ratio (80.5%), EVN's 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 (67.6% payout ratio).


Next Steps

Management

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

3.6yrs

Average management tenure


CEO

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


Leadership Team

NamePositionTenureCompensationOwnership
Jacob Klein
Executive Chairman8.3yrsAU$5.26m0.87% A$62.4m
Lawrence Conway
Finance Director8.3yrsAU$1.49m0.056% A$4.0m
Robert Fulker
Chief Operating Officer2yrsAU$995.79kno data
Paul Eagle
Vice President of People & Culture3.6yrsAU$906.82k0.0098% A$706.5k
Glenton Masterman
Vice President of Discovery & Business Development1.1yrsAU$1.04mno data
Evan Elstein
Company Secretary & VP of Information Technology8.3yrsAU$953.62k0.032% A$2.3m
Bryan O'Hara
General Manager of Investor Relations0yrsno datano data

3.6yrs

Average Tenure

Experienced Management: EVN's management team is considered experienced (3.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jacob Klein
Executive Chairman8.3yrsAU$5.26m0.87% A$62.4m
Lawrence Conway
Finance Director8.3yrsAU$1.49m0.056% A$4.0m
James Askew
Non-Executive Director8.3yrsAU$152.90k0.044% A$3.2m
Colin Johnstone
Non-Executive Director6.4yrsAU$164.15k0.0090% A$648.8k
Thomas McKeith
Lead Independent Director1.2yrsAU$166.65k0.012% A$851.4k
Andrea Hall
Non-Executive Director2.3yrsAU$157.90k0.0016% A$119.0k
Jason Attew
Non-Executive Director0.2yrsno datano data

6.4yrs

Average Tenure

58.5yo

Average Age

Experienced Board: EVN's board of directors are considered experienced (6.4 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.


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$7.209b
  • 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 Analysis2020/02/16 10:35
End of Day Share Price2020/02/14 00:00
Earnings2019/12/31
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.