Fenix Resources Limited

ASX:FEX Stock Report

Market Cap: AU$187.4m

Fenix Resources Valuation

Is FEX undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of FEX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: FEX (A$0.26) is trading below our estimate of fair value (A$1.86)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for FEX?

Key metric: As FEX is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for FEX. This is calculated by dividing FEX's market cap by their current earnings.
What is FEX's PE Ratio?
PE Ratio5.5x
EarningsAU$33.64m
Market CapAU$187.36m

Price to Earnings Ratio vs Peers

How does FEX's PE Ratio compare to its peers?

The above table shows the PE ratio for FEX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average18.8x
BIS Bisalloy Steel Group
12.1xn/aAU$190.2m
BRL Bathurst Resources
4.2xn/aAU$145.4m
GRR Grange Resources
2.6xn/aAU$277.8m
MGX Mount Gibson Iron
56.5xn/aAU$363.1m
FEX Fenix Resources
5.5x12.3%AU$183.8m

Price-To-Earnings vs Peers: FEX is good value based on its Price-To-Earnings Ratio (5.5x) compared to the peer average (18.8x).

Price to Earnings Ratio vs Industry

How does FEX's PE Ratio compare vs other companies in the AU Metals and Mining Industry?

9 CompaniesPrice / EarningsEstimated GrowthMarket Cap
KCN Kingsgate Consolidated
1.7x-13.3%US$225.14m
GRR Grange Resources
2.6xn/aUS$181.06m
RHI Red Hill Minerals
1.8xn/aUS$179.75m
PTN Patronus Resources
2.4xn/aUS$66.01m
FEX 5.5xIndustry Avg. 11.9xNo. of Companies13PE01224364860+
9 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: FEX is good value based on its Price-To-Earnings Ratio (5.5x) compared to the Australian Metals and Mining industry average (11.9x).

Price to Earnings Ratio vs Fair Ratio

What is FEX's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

FEX PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio5.5x
Fair PE Ratio14.1x

Price-To-Earnings vs Fair Ratio: FEX is good value based on its Price-To-Earnings Ratio (5.5x) compared to the estimated Fair Price-To-Earnings Ratio (14.1x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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