ASX:GXY

Stock Analysis Report

Executive Summary

Galaxy Resources Limited engages in the production of lithium concentrate, and exploration of minerals in Australia, Canada, and Argentina.

Snowflake

Fundamentals

Adequate balance sheet and overvalued.


Similar Companies

Share Price & News

How has Galaxy Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

2.1%

GXY

1.1%

AU Metals and Mining

1.3%

AU Market


1 Year Return

-59.0%

GXY

10.7%

AU Metals and Mining

9.9%

AU Market

Return vs Industry: GXY underperformed the Australian Metals and Mining industry which returned 10.7% over the past year.

Return vs Market: GXY underperformed the Australian Market which returned 9.9% over the past year.


Share holder returns

GXYIndustryMarket
7 Day2.1%1.1%1.3%
30 Day-15.5%-2.7%-0.7%
90 Day-30.0%-7.7%-0.4%
1 Year-59.0%-59.0%18.4%10.7%16.3%9.9%
3 Year-41.2%-41.2%66.1%46.1%35.8%17.6%
5 Year461.8%461.8%60.6%24.2%51.9%17.8%

Price Volatility Vs. Market

How volatile is Galaxy Resources's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Galaxy Resources undervalued based on future cash flows and its price relative to the stock market?

0.71x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: GXY (A$0.96) is trading above our estimate of fair value (A$0.04)

Significantly Undervalued: GXY is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: GXY is unprofitable, so we can't compare its PE Ratio to the Metals and Mining industry average.

PE vs Market: GXY is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price Based on Expected Growth

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


Price Based on Value of Assets

PB vs Industry: GXY is good value based on its PB Ratio (0.7x) compared to the AU Metals and Mining industry average (1.6x).


Next Steps

Future Growth

How is Galaxy Resources expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

133.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: GXY is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: GXY is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: GXY is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: GXY's revenue (13.5% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: GXY's revenue (13.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: GXY is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Galaxy Resources performed over the past 5 years?

45.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: GXY is unprofitable, but has reduced losses over the past 5 years at a rate of 45.6% per year.

Accelerating Growth: Unable to compare GXY's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: GXY is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (1.3%).


Return on Equity

High ROE: GXY has a negative Return on Equity (-8.81%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: GXY is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: GXY is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Galaxy Resources's financial position?


Financial Position Analysis

Short Term Liabilities: GXY's short term assets ($220.5M) exceeds its short term liabilities ($44.4M)

Long Term Liabilities: GXY's short term assets (220.5M) exceeds its long term liabilities (27.6M)


Debt to Equity History and Analysis

Debt Level: GXY is debt free.

Reducing Debt: GXY has no debt compared to 5 years ago when its debt to equity ratio was 87.7%.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if GXY's debt is covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Insufficient data to determine if GXY has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if GXY has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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

0.34%

Expected Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%2.5%markettop25%5.6%industryaverage3.5%forecastin3Years0.3%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: Unable to evaluate GXY's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate GXY's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if GXY's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GXY's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GXY's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

Simon Hay 0

0.3yrs

Tenure

0

Mr. Simon Hay, BSc (Hons), MAppSc, Grad Dip, MAICD, has been Head of Resource Development at Iluka Resources Limited since March 2016 and served as its General Manager of Zircon since February 2014 until M ...


Management Age and Tenure

2.5yrs

Average Tenure

Experienced Management: GXY's management team is considered experienced (2.5 years average tenure).


Board Age and Tenure

2.8yrs

Average Tenure

57yo

Average Age

Experienced Board: GXY's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


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

BuyUS$64,75024 Jun 19
Martin Rowley
EntityIndividual
Role
Chairman of the Board
Independent Non-Executive Chairman
Shares50,000
Max PriceUS$1.29
BuyUS$14,77018 Jun 19
John Stephen Turner
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares10,000
Max PriceUS$1.48
BuyUS$3,52105 May 19
BlackRock, Inc.
EntityCompany
Shares2,377
Max PriceUS$1.53
SellUS$005 May 19
BlackRock, Inc.
EntityCompany
Shares4,795,351
Max PriceUS$1.53
BuyUS$28,64630 Apr 19
BlackRock, Inc.
EntityCompany
Shares17,577,280.2
Max PriceUS$4.28
SellUS$57,02430 Apr 19
BlackRock, Inc.
EntityCompany
Shares11,234,893.2
Max PriceUS$4.40
BuyUS$49,50025 Apr 19
John Stephen Turner
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares30,000
Max PriceUS$1.65

Ownership Breakdown


Management Team

  • Alan Rule (57yo)

    Chief Financial Officer

    • Tenure: 2.5yrs
    • Compensation: US$566.39k
  • John Sanders

    General Counsel & Company Secretary

    • Tenure: 2.3yrs
  • Anthony Tse (48yo)

    Executive Director

    • Tenure: 9yrs
    • Compensation: US$1.33m
  • Laura Lu

    Financial Controller of Jiangsu Lithium Carbonate Plant

    • Tenure: 9.9yrs
  • Joe Lowry

    Marketing & Sales Consultant

    • Tenure: 6.8yrs
  • Simon Hay

    Chief Executive Officer

    • Tenure: 0.3yrs
  • Nick Rowley

    Director of Corporate Development

    • Tenure: 3.5yrs
    • Compensation: US$444.02k
  • Brian Talbot

    Acting Chief Operations Officer

    • Tenure: 1.4yrs
    • Compensation: US$373.35k
  • Mike Nelson

    Project Director

    • Tenure: 0.8yrs

Board Members

  • Martin Rowley (64yo)

    Independent Non-Executive Chairman

    • Tenure: 5.9yrs
    • Compensation: US$940.41k
  • John Stephen Turner (57yo)

    Independent Non-Executive Director

    • Tenure: 2.8yrs
    • Compensation: US$179.68k
  • Peter Bacchus (50yo)

    Independent Non-Executive Director

    • Tenure: 2.8yrs
    • Compensation: US$179.68k
  • Alan Fitzpatrick (69yo)

    Independent Non-Executive Director

    • Tenure: 0.8yrs
  • Anthony Tse (48yo)

    Executive Director

    • Tenure: 9yrs
    • Compensation: US$1.33m
  • Florencia Heredia

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: US$100.00k

Company Information

Galaxy Resources Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Galaxy Resources Limited
  • Ticker: GXY
  • Exchange: ASX
  • Founded: 1996
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: AU$384.911m
  • Shares outstanding: 409.48m
  • Website: https://www.gxy.com

Location

  • Galaxy Resources Limited
  • 21 Kintail Road
  • Level 4
  • Perth
  • Western Australia
  • 6153
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GXYASX (Australian Securities Exchange)YesOrdinary SharesAUAUDFeb 2007
GALX.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDFeb 2007
LK9DB (Deutsche Boerse AG)YesOrdinary SharesDEEURFeb 2007
GXYCHIA (Chi-X Australia)YesOrdinary SharesAUAUDFeb 2007

Biography

Galaxy Resources Limited engages in the production of lithium concentrate, and exploration of minerals in Australia, Canada, and Argentina. The company holds interests in the Sal de Vida project in Argenti ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 10:34
End of Day Share Price2019/10/14 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.

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