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GLN

Galan Lithium ASX:GLN Stock Report

Last Price

AU$1.38

Market Cap

AU$418.7m

7D

1.9%

1Y

13.6%

Updated

14 Aug, 2022

Data

Company Financials
GLN fundamental analysis
Snowflake Score
Valuation0/6
Future Growth0/6
Past Performance0/6
Financial Health6/6
Dividends0/6

GLN Stock Overview

Galan Lithium Limited acquires, explores for, evaluates, and develops mineral projects.

Galan Lithium Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Galan Lithium
Historical stock prices
Current Share PriceAU$1.38
52 Week HighAU$2.33
52 Week LowAU$0.90
Beta2.65
1 Month Change41.75%
3 Month Change-0.72%
1 Year Change13.64%
3 Year Change733.33%
5 Year Change2,650.00%
Change since IPO525.00%

Recent News & Updates

Jul 21
Galan Lithium (ASX:GLN) Is In A Strong Position To Grow Its Business

Galan Lithium (ASX:GLN) Is In A Strong Position To Grow Its Business

We can readily understand why investors are attracted to unprofitable companies. For example, although Amazon.com made...

Shareholder Returns

GLNAU Metals and MiningAU Market
7D1.9%3.1%0.7%
1Y13.6%-14.4%-8.5%

Return vs Industry: GLN exceeded the Australian Metals and Mining industry which returned -14.4% over the past year.

Return vs Market: GLN exceeded the Australian Market which returned -8.5% over the past year.

Price Volatility

Is GLN's price volatile compared to industry and market?
GLN volatility
GLN Average Weekly Movement10.1%
Metals and Mining Industry Average Movement12.4%
Market Average Movement10.6%
10% most volatile stocks in AU Market18.1%
10% least volatile stocks in AU Market4.6%

Stable Share Price: GLN is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: GLN's weekly volatility (10%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2011n/aJP de la Vegahttps://www.galanlithium.com.au

Galan Lithium Limited acquires, explores for, evaluates, and develops mineral projects. It primarily explores for lithium, tin, and other deposits. The company holds interests in the Hombre Muerto West lithium brine project that comprises six exploration permits covering an area of approximately 9,493 hectares located in the Catamarca province in Argentina; and the Candelas lithium brine project located in the Catamarca province, Argentina.

Galan Lithium Fundamentals Summary

How do Galan Lithium's earnings and revenue compare to its market cap?
GLN fundamental statistics
Market CapAU$418.73m
Earnings (TTM)-AU$2.07m
Revenue (TTM)AU$2.51k

0.0x

P/S Ratio

-202.5x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GLN income statement (TTM)
RevenueAU$2.51k
Cost of RevenueAU$0
Gross ProfitAU$2.51k
Other ExpensesAU$2.07m
Earnings-AU$2.07m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.0068
Gross Margin100.00%
Net Profit Margin-82,456.88%
Debt/Equity Ratio0.0%

How did GLN perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

0/6

Valuation Score 0/6

  • Price-To-Book vs Peers

  • Price-To-Book vs Industry

  • Price-To-Book vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

GLN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue143214.2x
Enterprise Value/EBITDA-130x
PEG Ration/a

Price to Book Ratio vs Peers

How does GLN's PB Ratio compare to its peers?

GLN PB Ratio vs Peers
The above table shows the PB ratio for GLN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPBEstimated GrowthMarket Cap
Peer Average3x
AVL Australian Vanadium
5.4xn/aAU$204.9m
NCZ New Century Resources
2.6x20.6%AU$246.3m
HAS Hastings Technology Metals
2.1x79.4%AU$466.7m
JRV Jervois Global
1.7x64.9%AU$691.5m
GLN Galan Lithium
4.9xn/aAU$418.7m

Price-To-Book vs Peers: GLN is expensive based on its Price-To-Book Ratio (4.9x) compared to the peer average (3x).


Price to Earnings Ratio vs Industry

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

Price-To-Book vs Industry: GLN is expensive based on its Price-To-Book Ratio (4.9x) compared to the Australian Metals and Mining industry average (2.1x)


Price to Book Ratio vs Fair Ratio

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

GLN PB Ratio vs Fair Ratio.
Fair Ratio
Current PB Ratio4.9x
Fair PB Ration/a

Price-To-Book vs Fair Ratio: Insufficient data to calculate GLN's Price-To-Book Fair Ratio for valuation analysis.


Share Price vs Fair Value

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

Below Fair Value: Insufficient data to calculate GLN's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate GLN's fair value for valuation analysis.


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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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-8.4%

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 Galan Lithium 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.


Discover growth companies

  • Examine Galan Lithium's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
  • Galan Lithium competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Galan Lithium performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-20.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: GLN is currently unprofitable.

Growing Profit Margin: GLN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GLN is unprofitable, and losses have increased over the past 5 years at a rate of 20.6% per year.

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

Earnings vs Industry: GLN is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (57.3%).


Return on Equity

High ROE: GLN has a negative Return on Equity (-2.4%), as it is currently unprofitable.


Discover strong past performing companies

Financial Health

How is Galan Lithium's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: GLN's short term assets (A$59.5M) exceed its short term liabilities (A$990.3K).

Long Term Liabilities: GLN has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: GLN is debt free.

Reducing Debt: GLN has not had any debt for past 5 years.


Balance Sheet


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: GLN has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: GLN has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of 39.3% each year


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Dividend

What is Galan Lithium current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

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

High Dividend: Unable to evaluate GLN'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 GLN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GLN's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as GLN has not reported any payouts.


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Management

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

4.2yrs

Average management tenure


CEO

JP de la Vega

4.17yrs

Tenure

AU$414,220

Compensation

Mr. Juan Pablo Vargas de la Vega, also known as JP, has been Managing Director and Director of Galan Lithium Limited (formerly, Dempsey Minerals Limited) since June 2018. He served as General Manager of Ga...


CEO Compensation Analysis

Compensation vs Market: JP's total compensation ($USD294.21K) is below average for companies of similar size in the Australian market ($USD564.35K).

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


Leadership Team

Experienced Management: GLN's management team is considered experienced (4.2 years average tenure).


Board Members

Experienced Board: GLN's board of directors are considered experienced (4.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: GLN 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 diluted in the past year, with total shares outstanding growing by 24.1%.


Top Shareholders

Company Information

Galan Lithium Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Galan Lithium Limited
  • Ticker: GLN
  • Exchange: ASX
  • Founded: 2011
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Implied Market Cap: AU$418.726m
  • Shares outstanding: 304.53m
  • Website: https://www.galanlithium.com.au

Location

  • Galan Lithium Limited
  • 30 Richardson Street
  • Level 3
  • West Perth
  • Western Australia
  • 6005
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/14 00:00
End of Day Share Price2022/08/12 00:00
Earnings2021/12/31
Annual Earnings2021/06/30


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.