GBM Resources (ASX:GBZ) - Share price, News & Analysis

GBZ fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	0/6
Past Performance	2/6
Financial Health	3/6
Dividends	0/6

GBZ Overview

GBM Resources Limited engages in the exploration and development of mineral properties in Australia.

Rewards

Became profitable this year

Risk Analysis

High level of non-cash earnings

Shareholders have been substantially diluted in the past year

Makes less than USD$1m in revenue (A$81K)

Does not have a meaningful market cap (A$73M)

Price History & Performance

Summary of all time highs, changes and price drops for GBM Resources
Historical stock prices
Current Share Price	AU$0.14
52 Week High	AU$0.093
52 Week Low	AU$0.20
Beta	0.96
1 Month Change	27.27%
3 Month Change	7.69%
1 Year Change	-26.32%
3 Year Change	180.00%
5 Year Change	-12.50%
Change since IPO	-93.00%

Shareholder Returns

	GBZ	AU Metals and Mining	AU Market
7D	16.7%	3.6%	1.7%
1Y	-26.3%	11.3%	20.2%

Return vs Industry: GBZ underperformed the Australian Metals and Mining industry which returned 11.3% over the past year.

Return vs Market: GBZ underperformed the Australian Market which returned 20.2% over the past year.

Price Volatility

Is GBZ's price volatile compared to industry and market?
GBZ volatility
GBZ Beta	0.96
Industry Beta	0.97
Market Beta	1

Stable Share Price: GBZ is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: GBZ's weekly volatility (9%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2007	n/a	Peter Rohner	https://www.gbmr.com.au

GBM Resources Limited engages in the exploration and development of mineral properties in Australia. It explores for gold, silver, copper, and iron oxide. The company’s flagship project is the Mount Coolon gold project located in the Drummond basin in Queensland.

GBM Resources Fundamentals Summary

How do GBM Resources's earnings and revenue compare to its market cap?
GBZ fundamental statistics
Market Cap	AU$73.49m
Earnings (TTM)	AU$267.85k
Revenue (TTM)	AU$80.87k

269.2x

P/E Ratio

933.3x

P/S Ratio

Is GBZ overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
GBZ income statement (TTM)
Revenue	AU$80.87k
Cost of Revenue	AU$0
Gross Profit	AU$80.87k
Expenses	-AU$186.98k
Earnings	AU$267.85k

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.00052
Gross Margin	100.00%
Net Profit Margin	331.20%
Debt/Equity Ratio	0.2%

How did GBZ perform over the long term?

See historical performance and comparison

Valuation

Is GBM Resources undervalued compared to its fair value and its price relative to the market?

269.23x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate GBZ's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate GBZ's fair value to establish if it is undervalued.

Price To Earnings Ratio

PE vs Industry: GBZ is poor value based on its PE Ratio (269.2x) compared to the Australian Metals and Mining industry average (14.3x).

PE vs Market: GBZ is poor value based on its PE Ratio (269.2x) compared to the Australian market (19.7x).

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate GBZ's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: GBZ is good value based on its PB Ratio (2.4x) compared to the AU Metals and Mining industry average (2.6x).

Future Growth

How is GBM Resources forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

0.7%

Forecasted Materials industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as GBM Resources has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Past Performance

How has GBM Resources performed over the past 5 years?

-22.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: GBZ has a high level of non-cash earnings.

Growing Profit Margin: GBZ became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: GBZ has become profitable over the past 5 years, growing earnings by -22.2% per year.

Accelerating Growth: GBZ has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: GBZ has become profitable in the last year, making it difficult to compare its past year earnings growth to the Metals and Mining industry (35.3%).

Return on Equity

High ROE: GBZ's Return on Equity (0.9%) is considered low.

Financial Health

How is GBM Resources's financial position?

Financial Position Analysis

Short Term Liabilities: GBZ's short term assets (A$7.6M) exceed its short term liabilities (A$2.4M).

Long Term Liabilities: GBZ's short term assets (A$7.6M) exceed its long term liabilities (A$6.3M).

Debt to Equity History and Analysis

Debt Level: GBZ's debt to equity ratio (0.2%) is considered satisfactory.

Reducing Debt: GBZ's debt to equity ratio has increased from 0.1% to 0.2% over the past 5 years.

Debt Coverage: GBZ's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if GBZ's interest payments on its debt are well covered by EBIT.

Balance Sheet

Dividend

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

Dividend Yield vs Market

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

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

Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if GBZ'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 GBZ's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.

Next Steps

Explore strong dividend paying companies in the Materials industry.

Management

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

1.9yrs

Average management tenure

CEO

Peter Rohner

1.92yrs

Tenure

AU$250,000

Compensation

Mr. Peter Rohner, B.Sc (Metallurgy), Grad Dip Applied Finance & Investment, has been the Managing Director and Executive Director of GBM Resources Limited since November 25, 2019 and was its Chief Executiv...

CEO Compensation Analysis

Compensation vs Market: Peter's total compensation ($USD186.92K) is below average for companies of similar size in the Australian market ($USD302.06K).

Compensation vs Earnings: Peter's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: GBZ's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.

Board Members

Experienced Board: GBZ's board of directors are not considered experienced ( 1.9 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 53.9%.

Data	Last Updated (UTC time)
Company Analysis	2021/10/20 07:03
End of Day Share Price	2021/10/20 00:00
Earnings	2021/06/30
Annual Earnings	2021/06/30

Market Cap

7D

1Y

Updated

Data