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GRR

Grange ResourcesASX:GRR Stock Report

Market Cap

AU$706.0m

7D

6.0%

1Y

156.3%

Updated

26 Oct, 2021

Data

Company Financials
GRR fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance6/6
Financial Health6/6
Dividends3/6

GRR Overview

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

Grange Resources Competitors

Fortescue Metals Group

ASX:FMG

AU$44.7b

Champion Iron

ASX:CIA

AU$2.4b

Mount Gibson Iron

ASX:MGX

AU$544.8m

Red Hill Iron

ASX:RHI

AU$334.5m

Price History & Performance

Summary of all time highs, changes and price drops for Grange Resources
Historical stock prices
Current Share PriceAU$0.61
52 Week HighAU$0.23
52 Week LowAU$0.91
Beta0.96
1 Month Change20.59%
3 Month Change-29.71%
1 Year Change156.25%
3 Year Change192.86%
5 Year Change459.09%
Change since IPO75.71%

Recent News & Updates

Sep 10
Grange Resources' (ASX:GRR) Upcoming Dividend Will Be Larger Than Last Year's

Grange Resources' (ASX:GRR) Upcoming Dividend Will Be Larger Than Last Year's

Grange Resources Limited ( ASX:GRR ) will increase its dividend on the 30th of September to AU$0.02. Although the...

Aug 27
Grange Resources (ASX:GRR) Is Paying Out A Larger Dividend Than Last Year

Grange Resources (ASX:GRR) Is Paying Out A Larger Dividend Than Last Year

Grange Resources Limited ( ASX:GRR ) has announced that it will be increasing its dividend on the 30th of September to...

Aug 02
Shareholders Would Enjoy A Repeat Of Grange Resources' (ASX:GRR) Recent Growth In Returns

Shareholders Would Enjoy A Repeat Of Grange Resources' (ASX:GRR) Recent Growth In Returns

Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key...

Shareholder Returns

GRRAU Metals and MiningAU Market
7D6.0%-0.4%0.8%
1Y156.3%15.6%24.4%

Return vs Industry: GRR exceeded the Australian Metals and Mining industry which returned 15.6% over the past year.

Return vs Market: GRR exceeded the Australian Market which returned 24.4% over the past year.

Price Volatility

Is GRR's price volatile compared to industry and market?
GRR volatility
GRR Beta0.96
Industry Beta0.97
Market Beta1

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

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

About the Company

FoundedEmployeesCEOWebsite
1985n/aHonglin Zhaohttps://www.grangeresources.com.au

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 ore; and exploration, evaluation, and development of mineral resources. It owns interests in the Savage River project in Tasmania; and Southdown magnetite project that covers an area of approximately 1700 hectares located in Western Australia.

Grange Resources Fundamentals Summary

How do Grange Resources's earnings and revenue compare to its market cap?
GRR fundamental statistics
Market CapAU$705.98m
Earnings (TTM)AU$343.09m
Revenue (TTM)AU$734.88m

2.1x

P/E Ratio

1.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GRR income statement (TTM)
RevenueAU$734.88m
Cost of RevenueAU$324.76m
Gross ProfitAU$410.12m
ExpensesAU$67.03m
EarningsAU$343.09m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.30
Gross Margin55.81%
Net Profit Margin46.69%
Debt/Equity Ratio1.6%

How did GRR perform over the long term?

See historical performance and comparison

Dividends

6.5%

Current Dividend Yield

13%

Payout Ratio

Valuation

Is Grange 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: GRR (A$0.62) is trading below our estimate of fair value (A$17.6)

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


Price To Earnings Ratio

PE vs Industry: GRR is good value based on its PE Ratio (2.1x) compared to the Australian Metals and Mining industry average (14.6x).

PE vs Market: GRR is good value based on its PE Ratio (2.1x) compared to the Australian market (20x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: GRR is good value based on its PB Ratio (0.8x) compared to the AU Metals and Mining industry average (2.6x).


Future Growth

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

-0.5%

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 Grange 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 Grange Resources performed over the past 5 years?

41.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GRR has high quality earnings.

Growing Profit Margin: GRR's current net profit margins (46.7%) are higher than last year (26.7%).


Past Earnings Growth Analysis

Earnings Trend: GRR has become profitable over the past 5 years, growing earnings by 41.9% per year.

Accelerating Growth: GRR's earnings growth over the past year (178.6%) exceeds its 5-year average (41.9% per year).

Earnings vs Industry: GRR earnings growth over the past year (178.6%) exceeded the Metals and Mining industry 35.3%.


Return on Equity

High ROE: GRR's Return on Equity (38.3%) is considered high.


Financial Health

How is Grange Resources's financial position?


Financial Position Analysis

Short Term Liabilities: GRR's short term assets (A$639.2M) exceed its short term liabilities (A$131.6M).

Long Term Liabilities: GRR's short term assets (A$639.2M) exceed its long term liabilities (A$65.1M).


Debt to Equity History and Analysis

Debt Level: GRR's debt to equity ratio (1.6%) is considered satisfactory.

Reducing Debt: GRR's debt to equity ratio has reduced from 3.4% to 1.6% over the past 5 years.

Debt Coverage: GRR's debt is well covered by operating cash flow (2657.4%).

Interest Coverage: GRR earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

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

6.50%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GRR's dividend (6.5%) is higher than the bottom 25% of dividend payers in the Australian market (2.23%).

High Dividend: GRR's dividend (6.5%) is in the top 25% of dividend payers in the Australian market (5.32%)


Stability and Growth of Payments

Stable Dividend: GRR's dividend payments have been volatile in the past 10 years.

Growing Dividend: GRR's dividend payments have not increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (13.5%), GRR's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

7.0yrs

Average management tenure


CEO

Honglin Zhao (68 yo)

6.58yrs

Tenure

AU$887,812

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

Compensation vs Market: Honglin's total compensation ($USD665.53K) is about average for companies of similar size in the Australian market ($USD723.99K).

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


Leadership Team

Experienced Management: GRR's management team is seasoned and experienced (7 years average tenure).


Board Members

Experienced Board: GRR's board of directors are considered experienced (6.9 years average tenure).


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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Grange Resources Limited
  • Ticker: GRR
  • Exchange: ASX
  • Founded: 1985
  • Industry: Steel
  • Sector: Materials
  • Market Cap: AU$705.977m
  • Shares outstanding: 1.16b
  • Website: https://www.grangeresources.com.au

Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/26 07:01
End of Day Share Price2021/10/26 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.