ASX:GRR

Stock Analysis Report

Executive Summary

Grange Resources Limited engages in the integrated iron ore mining and pellet production business in the northwest region of Tasmania.

Snowflake

Fundamentals

Excellent balance sheet and fair value.

Risks

  • Grange Resources has significant price volatility in the past 3 months.
  • Grange Resources is not covered by any analysts.

Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-6.3%

ASX:GRR

3.7%

AU Metals and Mining

0.5%

AU Market


1 Year Return

4.7%

ASX:GRR

20.9%

AU Metals and Mining

6.3%

AU Market

GRR underperformed the Metals and Mining industry which returned 20.9% over the past year.

GRR underperformed the Market in Australia which returned 6.3% over the past year.


Share holder returns

GRRIndustryMarket
7 Day-6.3%3.7%0.5%
30 Day2.3%4.0%4.6%
90 Day-16.7%-0.08%2.1%
1 Year13.4%4.7%29.3%20.9%12.3%6.3%
3 Year150.7%104.5%86.5%62.5%41.4%22.4%
5 Year174.1%95.7%59.9%23.7%49.4%16.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Grange Resources undervalued based on future cash flows and its price relative to the stock market?

16%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Grange Resources's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Grange Resources's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Grange Resources is good value based on earnings compared to the AU Metals and Mining industry average.

Grange Resources is good value based on earnings compared to the Australia market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Grange Resources, we can't assess if its growth is good value.


Price Based on Value of Assets

Grange Resources is good value based on assets compared to the AU Metals and Mining industry average.


Next Steps

Future Growth

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

8.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Grange Resources is high growth as no revenue estimate data is available.

Grange Resources's earnings are expected to grow by 8.8% yearly, however this is not considered high growth (20% yearly).

Unable to compare Grange Resources's revenue growth to the Australia market average as no estimate data is available.

Grange Resources's earnings growth is positive but not above the Australia market average.

Grange Resources's earnings growth is expected to exceed the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Grange Resources will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Grange Resources performed over the past 5 years?

56.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Grange Resources has delivered over 20% year on year earnings growth in the past 5 years.

Grange Resources's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Grange Resources's 1-year earnings growth is negative, it can't be compared to the AU Metals and Mining industry average.


Return on Equity

Grange Resources has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Grange Resources used its assets more efficiently than the AU Metals and Mining industry average last year based on Return on Assets.


Return on Capital Employed

Grange Resources has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).


Next Steps

Financial Health

How is Grange Resources's financial position?


Financial Position Analysis

Grange Resources is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Grange Resources's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Grange Resources's level of debt (2.8%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (0.1% vs 2.8% today).

Debt is well covered by operating cash flow (460.2%, greater than 20% of total debt).

Grange Resources earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 20.7x debt.


Next Steps

Dividend

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

8.89%

Current Dividend Yield


Dividend Yield and Payments Analysis

Grange Resources's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.44%).

Grange Resources's dividend is above the markets top 25% of dividend payers in Australia (5.56%).

Grange Resources has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Grange Resources has only been paying a dividend for 8 years, and since then dividends per share have fallen.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.9x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

4.9yrs

Average management tenure


CEO

Honglin Zhao (66yo)

4.5yrs

Tenure

AU$810,165

Compensation

Mr. Hong Lin Zhao has been the Chief Executive Officer of Grange Resources Limited since March 6, 2015 and serves as its Managing Director. Mr. Zhao serves as Managing Director of Southdown Project Managem ...


CEO Compensation Analysis

Honglin's remuneration is about average for companies of similar size in Australia.

Honglin's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

4.9yrs

Average Tenure

The tenure for the Grange Resources management team is about average.


Board Age and Tenure

5.2yrs

Average Tenure

59yo

Average Age

The tenure for the Grange Resources board of directors is about average.


Insider Trading

More shares have been bought than sold by Grange Resources individual insiders in the past 3 months, but not in substantial volumes.


Recent Insider Transactions

BuyAU$7,69505 Jul 19
Michael Dontschuk
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares28,500
Max PriceAU$0.27

Ownership Breakdown


Management Team

  • Piers Lewis

    Company Secretary

    • Tenure: 4.9yrs
  • Honglin Zhao (66yo)

    CEO, MD & Executive Director

    • Tenure: 4.5yrs
    • Compensation: AU$810.17k
  • Philip Gao

    Chief Commercial Manager

    • Tenure: 9yrs
  • Steven Phan

    Chief Financial Officer

    • Tenure: 3.4yrs
    • Compensation: AU$406.58k
  • Ben Maynard

    General Manager of Operations

    • Tenure: 6.7yrs
    • Compensation: AU$489.41k

Board Members

  • Michael Dontschuk

    Independent Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: AU$96.75k
  • David Woodall (59yo)

    Director

    • Tenure: 0.5yrs
  • Dan Tenardi (73yo)

    Independent Non-Executive Director

    • Tenure: 5.5yrs
    • Compensation: AU$107.25k
  • Honglin Zhao (66yo)

    CEO, MD & Executive Director

    • Tenure: 4.5yrs
    • Compensation: AU$810.17k
  • Michelle Li (54yo)

    Independent Non-Executive Chairperson

    • Tenure: 5.9yrs
    • Compensation: AU$170.00k
  • Yan Jia (37yo)

    Non-Executive Deputy Chairperson

    • Tenure: 4.8yrs
    • Compensation: AU$99.50k

Company Information

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


Key Information

  • Name: Grange Resources Limited
  • Ticker: GRR
  • Exchange: ASX
  • Founded:
  • Industry: Steel
  • Sector: Materials
  • Market Cap: AU$260.401m
  • Shares outstanding: 1.16b
  • Website: https://www.grangeresources.com.au

Location

  • Grange Resources Limited
  • 34A Alexander Street
  • Burnie
  • Tasmania
  • 7320
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GRRASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 2007
GRRDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 2007
GRRCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 2007

Biography

Grange Resources Limited engages in the integrated iron ore mining and pellet production business in the northwest region of Tasmania. The company is involved in the mining, processing, and sale of iron or ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/17 10:35
End of Day Share Price2019/09/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.