ASX:GRR

Stock Analysis Report

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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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.0%

GRR

0.6%

AU Metals and Mining

-0.1%

AU Market


1 Year Return

11.1%

GRR

3.5%

AU Metals and Mining

-12.0%

AU Market

Return vs Industry: GRR exceeded the Australian Metals and Mining industry which returned 3.5% over the past year.

Return vs Market: GRR exceeded the Australian Market which returned -12% over the past year.


Shareholder returns

GRRIndustryMarket
7 Day-2.0%0.6%-0.1%
30 Day-3.8%-4.3%-2.9%
90 Day-3.8%11.0%1.1%
1 Year21.5%11.1%8.5%3.5%-8.7%-12.0%
3 Year151.4%92.3%68.0%44.7%17.7%2.6%
5 Year226.9%133.6%155.7%106.4%44.5%14.1%

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 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$0.25) is trading below our estimate of fair value (A$3.09)

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 (2.3x) compared to the AU Metals and Mining industry average (13.3x).

PE vs Market: GRR is good value based on its PE Ratio (2.3x) compared to the Australian market (19.8x).


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 (0.5x) compared to the AU Metals and Mining industry average (2.3x).


Next Steps

Future Growth

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

6.9%

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

Past Performance

How has Grange Resources performed over the past 5 years?

54.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GRR has high quality earnings.

Growing Profit Margin: GRR's current net profit margins (26.7%) are higher than last year (20.5%).


Past Earnings Growth Analysis

Earnings Trend: GRR has become profitable over the past 5 years, growing earnings by 54% per year.

Accelerating Growth: GRR's earnings growth over the past year (82.6%) exceeds its 5-year average (54% per year).

Earnings vs Industry: GRR earnings growth over the past year (82.6%) exceeded the Metals and Mining industry 7.8%.


Return on Equity

High ROE: GRR's Return on Equity (20.7%) is considered high.


Next Steps

Financial Health

How is Grange Resources's financial position?


Financial Position Analysis

Short Term Liabilities: GRR's short term assets (A$329.5M) exceed its short term liabilities (A$69.6M).

Long Term Liabilities: GRR's short term assets (A$329.5M) exceed its long term liabilities (A$76.3M).


Debt to Equity History and Analysis

Debt Level: GRR's debt to equity ratio (2.2%) is considered satisfactory.

Reducing Debt: GRR's debt to equity ratio has reduced from 3.2% to 2.2% over the past 5 years.

Debt Coverage: GRR's debt is well covered by operating cash flow (1396.5%).

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?

8.00%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GRR's dividend (8%) is higher than the bottom 25% of dividend payers in the Australian market (2.39%).

High Dividend: GRR's dividend (8%) is in the top 25% of dividend payers in the Australian market (5.66%)


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 low payout ratio (18.8%), 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?

5.9yrs

Average management tenure


CEO

Honglin Zhao (67 yo)

5.5yrs

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 ($USD664.00K) is above average for companies of similar size in the Australian market ($USD503.98K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Honglin Zhao
CEO, MD & Executive Director5.5yrsAU$907.68k0.11%
A$ 321.9k
Steven Phan
Chief Financial Officer4.42yrsAU$443.32kno data
Ben Maynard
General Manager of Operations7.67yrsAU$524.23k0.0059%
A$ 17.0k
Philip Gao
Chief Commercial Manager10yrsno datano data
Piers Lewis
Company Secretary5.92yrsno datano data

5.9yrs

Average Tenure

Experienced Management: GRR's management team is seasoned and experienced (5.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Honglin Zhao
CEO, MD & Executive Director5.5yrsAU$907.68k0.11%
A$ 321.9k
Michael Dontschuk
Independent Non-Executive Director3.25yrsAU$96.75k0.0011%
A$ 3.2k
David Woodall
Non Executive Director1.5yrsAU$67.51kno data
Michelle Li
Independent Non-Executive Chairperson6.92yrsAU$170.00k0.0012%
A$ 3.4k
Yan Jia
Non-Executive Deputy Chairperson5.83yrsAU$99.50kno data

5.8yrs

Average Tenure

57.5yo

Average Age

Experienced Board: GRR's board of directors are considered experienced (5.8 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 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$289.335m
  • 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 Analysis2020/09/18 19:06
End of Day Share Price2020/09/18 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.