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 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


Market Performance


7 Day Return

-2.2%

GRR

-3.4%

AU Metals and Mining

0.4%

AU Market


1 Year Return

10.0%

GRR

8.1%

AU Metals and Mining

9.8%

AU Market

Return vs Industry: GRR exceeded the Australian Metals and Mining industry which returned 8.1% over the past year.

Return vs Market: GRR matched the Australian Market which returned 9.8% over the past year.


Shareholder returns

GRRIndustryMarket
7 Day-2.2%-3.4%0.4%
30 Day0%-6.8%-1.1%
90 Day-18.5%-12.0%-0.6%
1 Year19.2%10.0%15.6%8.1%16.1%9.8%
3 Year145.2%100.0%55.8%37.1%36.1%17.9%
5 Year137.1%69.2%53.9%19.0%49.4%15.7%

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?

16.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: GRR (A$0.22) is trading below our estimate of fair value (A$0.26)

Significantly Undervalued: 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 (12.9x).

PE vs Market: GRR is good value based on its PE Ratio (3.8x) compared to the Australian market (18.2x).


Price to Earnings Growth Ratio

Low 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 (1.5x).


Next Steps

Future Growth

How is Grange Resources forecast 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 Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GRR's forecast earnings growth (8.8% per year) is above the savings rate (2.3%).

Earnings vs Market: GRR's earnings (8.8% per year) are forecast to grow slower than the Australian market (10.3% per year).

High Growth Earnings: GRR's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if GRR's revenue is forecast to grow faster than the Australian market.

High Growth Revenue: Insufficient data to determine if GRR's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if GRR's Return on Equity is forecast to be high in 3 years time


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

Earnings Trend: GRR has become profitable over the past 5 years, growing earnings by 56.9% 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 (-40.8%) over the past year, making it difficult to compare to the Metals and Mining industry average (1.3%).


Return on Equity

High ROE: GRR's Return on Equity (13.8%) is considered low.


Return on Assets

ROA vs Industry: GRR has a higher Return on Assets than the Metals and Mining industry average last year.


Return on Capital Employed

ROCE Improving: GRR's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Grange Resources's financial position?


Financial Position Analysis

Short Term Liabilities: GRR's short term assets (A$282.3M) exceeds its short term liabilities (A$58.1M)

Long Term Liabilities: GRR's short term assets (282.3M) exceeds its long term liabilities (71.9M)


Debt to Equity History and Analysis

Debt Level: GRR's debt to equity ratio (2.8%) is considered satisfactory

Reducing Debt: GRR's debt to equity ratio has increased from 0.07% to 2.8% over the past 5 years.

Debt Coverage: GRR's debt is well covered by operating cash flow (460.2%).

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


Balance Sheet

Inventory Level: GRR has a high level of physical assets or inventory.

Debt Coverage by Assets: GRR's debt is covered by short term assets (assets are 20.665490x debt).


Next Steps

Dividend

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

9.09%

Current Dividend Yield


Dividend Yield vs Market

company9.1%marketbottom25%2.4%markettop25%5.6%industryaverage4.9%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: GRR's dividend (9.09%) is higher than the bottom 25% of dividend payers in the Australian market (2.44%).

High Dividend: GRR's dividend (9.09%) is in the top 25% of dividend payers in the Australian market (5.59%)

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 8 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (34.3%), 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

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

5.0yrs

Average management tenure


CEO

Honglin Zhao (66yo)

4.6yrs

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

Compensation vs. Market: Honglin's total compensation ($USD554.64K) is about average for companies of similar size in the Australian market ($USD464.93K).

Compensation vs Earnings: 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

5.0yrs

Average Tenure

Experienced Management: GRR's management team is seasoned and experienced (5 years average tenure).


Board Age and Tenure

5.3yrs

Average Tenure

59yo

Average Age

Experienced Board: GRR's board of directors are considered experienced (5.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


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: 5yrs
  • Honglin Zhao (66yo)

    CEO, MD & Executive Director

    • Tenure: 4.6yrs
    • Compensation: AU$810.17k
  • Philip Gao

    Chief Commercial Manager

    • Tenure: 9.1yrs
  • Steven Phan

    Chief Financial Officer

    • Tenure: 3.5yrs
    • Compensation: AU$406.58k
  • Ben Maynard

    General Manager of Operations

    • Tenure: 6.8yrs
    • Compensation: AU$489.41k

Board Members

  • Michael Dontschuk

    Independent Non-Executive Director

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

    Director

    • Tenure: 0.6yrs
  • Dan Tenardi (73yo)

    Independent Non-Executive Director

    • Tenure: 5.6yrs
    • Compensation: AU$107.25k
  • Honglin Zhao (66yo)

    CEO, MD & Executive Director

    • Tenure: 4.6yrs
    • Compensation: AU$810.17k
  • Michelle Li (54yo)

    Independent Non-Executive Chairperson

    • Tenure: 6yrs
    • Compensation: AU$170.00k
  • Yan Jia (37yo)

    Non-Executive Deputy Chairperson

    • Tenure: 4.9yrs
    • 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$254.615m
  • 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 Analysis2019/10/19 10:32
End of Day Share Price2019/10/18 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.