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
| GXY | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.1% | 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 Year | 461.8%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
2 weeks ago | Simply Wall St
What Kind Of Investor Owns Most Of Galaxy Resources Limited (ASX:GXY)?1 month ago | Simply Wall St
Need To Know: Galaxy Resources Limited (ASX:GXY) Insiders Have Been Buying Shares2 months ago | Simply Wall St
Should You Consider Galaxy Resources Limited (ASX:GXY)?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
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
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 MÂ ...
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
| Entity | Individual |
| Role | Chairman of the Board Independent Non-Executive Chairman |
| Shares | 50,000 |
| Max Price | US$1.29 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Non-Executive Director |
| Shares | 10,000 |
| Max Price | US$1.48 |
| Entity | Company |
| Shares | 2,377 |
| Max Price | US$1.53 |
| Entity | Company |
| Shares | 4,795,351 |
| Max Price | US$1.53 |
| Entity | Company |
| Shares | 17,577,280.2 |
| Max Price | US$4.28 |
| Entity | Company |
| Shares | 11,234,893.2 |
| Max Price | US$4.40 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Non-Executive Director |
| Shares | 30,000 |
| Max Price | US$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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| GXY | ASX (Australian Securities Exchange) | Yes | Ordinary Shares | AU | AUD | Feb 2007 |
| GALX.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Feb 2007 |
| LK9 | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Feb 2007 |
| GXY | CHIA (Chi-X Australia) | Yes | Ordinary Shares | AU | AUD | Feb 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/14 10:34 |
| End of Day Share Price | 2019/10/14 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.