ASX:FEX

Stock Analysis Report

Executive Summary

Fenix Resources Limited engages in the exploration of metal properties in Western Australia.

Rewards

Trading at 98.9% below its fair value

Earnings are forecast to grow 92.57% per year

Earnings have grown 8.7% per year over the past 5 years

Risk Analysis

Has less than 1 year of cash runway

Shareholders have been substantially diluted in the past year

Does not have a meaningful market cap (A$8M)

Highly volatile share price over past 3 months



Snowflake Analysis

Adequate balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Fenix Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FEX's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

13.8%

FEX

1.2%

AU Metals and Mining

7.1%

AU Market


1 Year Return

-46.8%

FEX

-22.0%

AU Metals and Mining

-19.4%

AU Market

Return vs Industry: FEX underperformed the Australian Metals and Mining industry which returned -19.1% over the past year.

Return vs Market: FEX underperformed the Australian Market which returned -18.8% over the past year.


Shareholder returns

FEXIndustryMarket
7 Day13.8%1.2%7.1%
30 Day-13.2%-14.6%-21.3%
90 Day-41.1%-24.0%-24.8%
1 Year-46.8%-46.8%-17.6%-22.0%-15.8%-19.4%
3 Year-26.7%-26.7%26.8%9.3%-2.4%-15.8%
5 Year-5.7%-5.7%56.5%19.0%8.4%-16.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Fenix Resources 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: FEX (A$0.03) is trading below our estimate of fair value (A$2.95)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: FEX is overvalued based on its PB Ratio (1.1x) compared to the AU Metals and Mining industry average (1x).


Next Steps

Future Growth

How is Fenix Resources forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

92.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FEX is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.1%).

Earnings vs Market: FEX is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: FEX's is expected to become profitable in the next 3 years.

Revenue vs Market: Insufficient data to determine if FEX's revenue is forecast to grow faster than the Australian market.

High Growth Revenue: Insufficient data to determine if FEX's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FEX's Return on Equity is forecast to be very high in 3 years time (44.5%).


Next Steps

Past Performance

How has Fenix Resources performed over the past 5 years?

8.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FEX is currently unprofitable.

Growing Profit Margin: FEX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: FEX is unprofitable, but has reduced losses over the past 5 years at a rate of 8.7% per year.

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

Earnings vs Industry: FEX is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-7%).


Return on Equity

High ROE: FEX has a negative Return on Equity (-21.48%), as it is currently unprofitable.


Next Steps

Financial Health

How is Fenix Resources's financial position?


Financial Position Analysis

Short Term Liabilities: FEX's short term assets (A$2.3M) exceed its short term liabilities (A$52.9K).

Long Term Liabilities: FEX has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: FEX is debt free.

Reducing Debt: FEX had no debt 5 years ago.


Balance Sheet

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

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


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: FEX has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: FEX has less than a year of cash runway if free cash flow continues to reduce at historical rates of -41.1% each year


Next Steps

Dividend

What is Fenix Resources's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate FEX's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if FEX's dividends per share have been stable in the past.

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

1.6yrs

Average board tenure


CEO

Rob Brierley (53yo)

1.08s

Tenure

AU$589,288

Compensation

Mr. Robert James Shaw Brierley, also known as Rob, BEng(Mining), Grad Dip., GA, serves as Director and Managing director of Fenix Resources Limited since April 2019 and was its Executive Chairman until Apr ...


CEO Compensation Analysis

Compensation vs Market: Rob's total compensation ($USD362.97K) is above average for companies of similar size in the Australian market ($USD245.57K).

Compensation vs Earnings: Rob's compensation has increased whilst the company is unprofitable.


Board Members

NamePositionTenureCompensationOwnership
Robert James Brierley
MD & Director1.08yrsAU$589.29k1.84% A$162.8k
Garry Plowright
Executive Director1.58yrsAU$115.09k1.78% A$157.9k
Garret Dixon
Non-Executive Chairman0.25yrno datano data

1.6yrs

Average Tenure

Experienced Board: FEX's board of directors are not considered experienced ( 1.4 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: 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 been substantially diluted in the past year, with total shares outstanding growing by 292.7%.


Top Shareholders

Company Information

Fenix Resources Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Fenix Resources Limited
  • Ticker: FEX
  • Exchange: ASX
  • Founded: 2007
  • Industry: Steel
  • Sector: Materials
  • Market Cap: AU$8.859m
  • Shares outstanding: 285.77m
  • Website: https://fenixresources.com.au

Location

  • Fenix Resources Limited
  • 89 St Georges Terrace
  • Level 1
  • Perth
  • Western Australia
  • 6000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FEXASX (Australian Securities Exchange)YesOrdinary SharesAUAUDAug 2008
FEXCHIA (Chi-X Australia)YesOrdinary SharesAUAUDAug 2008

Biography

Fenix Resources Limited engages in the exploration of metal properties in Western Australia. The company’s flagship property is the Ridge iron ore project located in Perth. It also explores for vanadium and manganese deposits. The company was formerly known as Emergent Resources Limited. Fenix Resources Limited was incorporated in 2007 and is based in Perth, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 11:07
End of Day Share Price2020/04/01 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.