Executive Summary
Grange Resources Limited engages in the integrated iron ore mining and pellet production business in the northwest region of Tasmania.
Rewards
Risk Analysis
Snowflake Analysis
Excellent balance sheet and good value.
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
Stable Share Price: GRR's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
4.1%
GRR
3.1%
AU Metals and Mining
4.0%
AU Market
1 Year Return
0%
GRR
5.0%
AU Metals and Mining
-7.0%
AU Market
Return vs Industry: GRR underperformed the Australian Metals and Mining industry which returned 5% over the past year.
Return vs Market: GRR exceeded the Australian Market which returned -7% over the past year.
Shareholder returns
| GRR | Industry | Market | |
|---|---|---|---|
| 7 Day | 4.1% | 3.1% | 4.0% |
| 30 Day | 10.9% | 17.3% | 12.2% |
| 90 Day | 15.9% | 14.2% | -2.5% |
| 1 Year | 9.9%0% | 10.6%5.0% | -3.1%-7.0% |
| 3 Year | 129.4%82.1% | 71.4%48.1% | 19.0%3.3% |
| 5 Year | 145.6%82.1% | 100.8%60.4% | 33.9%5.0% |
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
1 week ago | Simply Wall St
Calculating The Intrinsic Value Of Grange Resources Limited (ASX:GRR)3 weeks ago | Simply Wall St
CEO, MD & Executive Director Honglin Zhao Just Bought 1740% More Shares In Grange Resources Limited (ASX:GRR)3 weeks ago | Simply Wall St
Read This Before Buying Grange Resources Limited (ASX:GRR) For Its DividendValuation
Is Grange Resources undervalued compared to its fair value and its price relative to the market?
15.1%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: GRR (A$0.26) is trading below our estimate of fair value (A$0.3)
Significantly Below Fair Value: GRR is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: GRR is good value based on its PE Ratio (3.8x) compared to the Metals and Mining industry average (10.1x).
PE vs Market: GRR is good value based on its PE Ratio (3.8x) compared to the Australian market (16x).
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 (0.6x) compared to the AU Metals and Mining industry average (1.6x).
Next Steps
Future Growth
How is Grange Resources forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
3.2%
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.
Next Steps
- Examine whether Grange Resources is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
- Grange Resources competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Materials industry.
Past Performance
How has Grange Resources performed over the past 5 years?
55.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: GRR has a high level of non-cash earnings.
Growing Profit Margin: GRR's current net profit margins (21.1%) are lower than last year (30.8%).
Past Earnings Growth Analysis
Earnings Trend: GRR has become profitable over the past 5 years, growing earnings by 55.4% per year.
Accelerating Growth: GRR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: GRR had negative earnings growth (-31.5%) over the past year, making it difficult to compare to the Metals and Mining industry average (-7.9%).
Return on Equity
High ROE: GRR's Return on Equity (14.5%) is considered low.
Next Steps
Financial Health
How is Grange Resources's financial position?
Financial Position Analysis
Short Term Liabilities: GRR's short term assets (A$339.6M) exceed its short term liabilities (A$91.7M).
Long Term Liabilities: GRR's short term assets (A$339.6M) exceed its long term liabilities (A$64.1M).
Debt to Equity History and Analysis
Debt Level: GRR's debt to equity ratio (3.1%) is considered satisfactory.
Reducing Debt: GRR's debt to equity ratio has increased from 0.03% to 3.1% over the past 5 years.
Debt Coverage: GRR's debt is well covered by operating cash flow (332.7%).
Interest Coverage: GRR earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Next Steps
Dividend
What is Grange Resources's current dividend yield, its reliability and sustainability?
7.84%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: GRR's dividend (7.84%) is higher than the bottom 25% of dividend payers in the Australian market (2.47%).
High Dividend: GRR's dividend (7.84%) is in the top 25% of dividend payers in the Australian market (6.45%)
Stability and Growth of Payments
Stable Dividend: GRR has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: GRR has only been paying a dividend for 9 years, and since then payments have fallen.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (29.8%), GRR's dividend payments are well 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?
5.7yrs
Average management tenure
CEO
Honglin Zhao (66yo)
5.25yrs
Tenure
AU$907,684
Compensation
Mr. Hong Lin Zhao has been the Chief Executive Officer of Grange Resources Limited since March 6, 2015 and serves as its Managing Director. Mr. Zhao serves as Managing Director of Southdown Project Managem ...
CEO Compensation Analysis
Compensation vs Market: Honglin's total compensation ($USD634.12K) is above average for companies of similar size in the Australian market ($USD471.32K).
Compensation vs Earnings: Honglin's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, MD & Executive Director | 5.25yrs | AU$907.68k | 0.11% A$328.4k | |
| Chief Financial Officer | 4.17yrs | AU$443.32k | no data | |
| General Manager of Operations | 7.42yrs | AU$524.23k | 0.0059% A$17.4k | |
| Chief Commercial Manager | 9.75yrs | no data | no data | |
| Company Secretary | 5.67yrs | no data | no data |
5.7yrs
Average Tenure
Experienced Management: GRR's management team is seasoned and experienced (5.7 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, MD & Executive Director | 5.25yrs | AU$907.68k | 0.11% A$328.4k | |
| Independent Non-Executive Director | 3yrs | AU$96.75k | 0.0011% A$3.3k | |
| Non Executive Director | 1.25yrs | AU$67.51k | no data | |
| Independent Non-Executive Chairperson | 6.67yrs | AU$170.00k | 0.0012% A$3.5k | |
| Non-Executive Deputy Chairperson | 5.58yrs | AU$99.50k | no data |
5.6yrs
Average Tenure
56.5yo
Average Age
Experienced Board: GRR's board of directors are considered experienced (5.6 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: GRR 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 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$295.121m
- Shares outstanding: 1.16b
- Website: https://www.grangeresources.com.au
Location
- Grange Resources Limited
- 34A Alexander Street
- Burnie
- Tasmania
- 7320
- Australia
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| GRR | ASX (Australian Securities Exchange) | Yes | Ordinary Shares | AU | AUD | Jan 2007 |
| GRR | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jan 2007 |
| GRR | CHIA (Chi-X Australia) | Yes | Ordinary Shares | AU | AUD | Jan 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 ore; and exploration, evaluation, and development of mineral resources at the Southdown Magnetite and related Pellet plant projects. It owns interests in the Savage River magnetite iron ore mine located to the southwest of the city of Burnie. The company is based in Burnie, Australia.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/06/06 10:43 |
| End of Day Share Price | 2020/06/05 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.