Stock Analysis Report

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Last Updated

2021/07/31 08:28 UTC

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Company Financials

Executive Summary

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

Snowflake Analysis

Flawless balance sheet with outstanding track record.

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 is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: GRR's weekly volatility (7%) has been stable over the past year.

Market Performance

7 Day Return




AU Metals and Mining


AU Market

1 Year Return




AU Metals and Mining


AU Market

Return vs Industry: GRR exceeded the Australian Metals and Mining industry which returned 37.6% over the past year.

Return vs Market: GRR exceeded the Australian Market which returned 27.8% over the past year.

Shareholder returns

7 Day1.8%2.4%-0.1%
30 Day43.2%7.6%1.5%
90 Day48.2%9.1%4.4%
1 Year263.9%238.0%43.1%36.0%31.9%27.3%
3 Year504.0%369.4%89.3%63.9%32.7%16.8%
5 Year922.0%604.2%155.7%112.2%62.5%31.0%

Long-Term 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


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


Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: GRR (A$0.85) is trading below our estimate of fair value (A$1.91)

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 (4.8x) compared to the Australian Metals and Mining industry average (12.4x).

PE vs Market: GRR is good value based on its PE Ratio (4.8x) compared to the Australian market (20.5x).

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 (1.4x) 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?


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?


Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: GRR has high quality earnings.

Growing Profit Margin: GRR's current net profit margins (38.8%) are higher than last year (21.1%).

Past Earnings Growth Analysis

Earnings Trend: GRR has become profitable over the past 5 years, growing earnings by 52.5% per year.

Accelerating Growth: GRR's earnings growth over the past year (162.1%) exceeds its 5-year average (52.5% per year).

Earnings vs Industry: GRR earnings growth over the past year (162.1%) exceeded the Metals and Mining industry 22.9%.

Return on Equity

High ROE: GRR's Return on Equity (28.5%) is considered high.

Financial Health

How is Grange Resources's financial position?

Financial Position Analysis

Short Term Liabilities: GRR's short term assets (A$420.4M) exceed its short term liabilities (A$83.5M).

Long Term Liabilities: GRR's short term assets (A$420.4M) exceed its long term liabilities (A$78.2M).

Debt to Equity History and Analysis

Debt Level: GRR's debt to equity ratio (2%) is considered satisfactory.

Reducing Debt: GRR's debt to equity ratio has reduced from 4.8% to 2% over the past 5 years.

Debt Coverage: GRR's debt is well covered by operating cash flow (1442.4%).

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

Balance Sheet


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


Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: GRR's dividend (4.73%) is higher than the bottom 25% of dividend payers in the Australian market (1.99%).

High Dividend: GRR's dividend (4.73%) is low compared to the top 25% of dividend payers in the Australian market (4.98%).

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 (17%), 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


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


Average management tenure


Honglin Zhao (68 yo)





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 ($USD652.23K) is about average for companies of similar size in the Australian market ($USD894.99K).

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 (6.8 years average tenure).

Board Members

Experienced Board: GRR's board of directors are considered experienced (7.2 years average tenure).


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: 1985
  • Industry: Steel
  • Sector: Materials
  • Market Cap: AU$977.951m
  • Shares outstanding: 1.16b
  • Website:


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



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 Analysis2021/07/31 08:28
End of Day Share Price2021/07/30 00:00
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.