ASX:FEX

Stock Analysis Report

Executive Summary

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

Rewards

Trading at 98.3% below its fair value

Earnings are forecast to grow 77.89% per year

Risk Analysis

Has less than 1 year of cash runway

Shareholders have been substantially diluted in the past year

Makes less than USD$1m in revenue (A$19K)

Does not have a meaningful market cap (A$11M)

+ 1 more risk


Snowflake Analysis

Excellent 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

5.4%

FEX

-1.8%

AU Metals and Mining

-2.0%

AU Market


1 Year Return

34.5%

FEX

20.2%

AU Metals and Mining

16.7%

AU Market

Return vs Industry: FEX exceeded the Australian Metals and Mining industry which returned 20.2% over the past year.

Return vs Market: FEX exceeded the Australian Market which returned 16.7% over the past year.


Shareholder returns

FEXIndustryMarket
7 Day5.4%-1.8%-2.0%
30 Day-15.2%-1.4%-0.7%
90 Day-43.5%-1.1%0.4%
1 Year34.5%34.5%28.9%20.2%22.5%16.7%
3 Year-29.1%-29.1%53.6%32.6%35.4%16.8%
5 Year-2.5%-2.5%105.1%56.6%60.6%24.4%

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$0.04) is trading below our estimate of fair value (A$2.31)

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 good value based on its PB Ratio (1.3x) compared to the AU Metals and Mining industry average (1.4x).


Next Steps

Future Growth

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

77.9%

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: FEX is forecast to have no revenue next year.

High Growth Revenue: FEX is forecast to have no revenue next year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FEX's Return on Equity is forecast to be high in 3 years time (32.1%)


Next Steps

Past Performance

How has Fenix Resources performed over the past 5 years?

1.3%

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 1.3% 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 (7.8%).


Return on Equity

High ROE: FEX has a negative Return on Equity (-31.97%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Fenix Resources's financial position?


Financial Position Analysis

Short Term Liabilities: FEX's short term assets (A$4.4M) exceed its short term liabilities (A$635.2K).

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 sufficient cash runway for more than a year 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 -76.4% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.4%markettop25%5.6%industryaverage4.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

1.4yrs

Average board tenure


CEO

Rob Brierley (53yo)

0.8yrs

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 ($USD403.84K) is above average for companies of similar size in the Australian market ($USD255.57K).

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


Board Age and Tenure

1.4yrs

Average Tenure

Experienced Board: FEX's board of directors are not considered experienced ( 1.4 years average tenure), which suggests a new board.


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$428,74329 Jan 19
Regal Funds Management Pty Limited
EntityCompany
Shares8,750,000
Max PriceAU$0.049

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 240.6%.


Management Team

  • Rob Brierley (53yo)

    MD & Director

    • Tenure: 0.8yrs
    • Compensation: AU$589.29k
  • Matt Foy

    Company Secretary

    • Tenure: 2.9yrs
    • Compensation: AU$33.94k
  • Garry Plowright

    Executive Director

    • Tenure: 1.3yrs
    • Compensation: AU$115.09k

Board Members

  • Bevan Nigel Tarratt (42yo)

    Independent Non-Executive Chairman

    • Tenure: 1.3yrs
    • Compensation: AU$136.23k
  • Rob Brierley (53yo)

    MD & Director

    • Tenure: 0.8yrs
    • Compensation: AU$589.29k
  • Petar Tomasevic

    Non-Executive Director

    • Tenure: 2.1yrs
    • Compensation: AU$104.16k
  • Garry Plowright

    Executive Director

    • Tenure: 1.3yrs
    • Compensation: AU$115.09k

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$10.687m
  • Shares outstanding: 274.02m
  • 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 an ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/07 10:34
End of Day Share Price2019/12/05 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.