ASX:GXY

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Flawless balance sheet with limited growth.


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

Stable Share Price: GXY is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: GXY's weekly volatility (10%) has been stable over the past year.


Market Performance


7 Day Return

14.3%

GXY

2.3%

AU Metals and Mining

2.0%

AU Market


1 Year Return

187.0%

GXY

26.2%

AU Metals and Mining

-0.4%

AU Market

Return vs Industry: GXY exceeded the Australian Metals and Mining industry which returned 26.2% over the past year.

Return vs Market: GXY exceeded the Australian Market which returned -0.4% over the past year.


Shareholder returns

GXYIndustryMarket
7 Day14.3%2.3%2.0%
30 Day53.1%9.0%4.4%
90 Day137.0%25.3%12.1%
1 Year189.9%187.0%33.1%26.2%3.0%-0.4%
3 Year-7.1%-8.0%74.1%50.0%27.3%11.6%
5 Year269.4%265.7%284.7%213.6%70.2%35.9%

Long-Term 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 compared to its fair value and its price relative to the market?

4.74x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate GXY's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate GXY's fair value to establish if it is undervalued.


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: GXY is overvalued based on its PB Ratio (4.7x) compared to the AU Metals and Mining industry average (3x).


Next Steps

Future Growth

How is Galaxy Resources forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

46.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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 (28.5% per year) is forecast to grow faster than the Australian market (5.2% per year).

High Growth Revenue: GXY's revenue (28.5% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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?

-49.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GXY is currently unprofitable.

Growing Profit Margin: GXY is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GXY is unprofitable, and losses have increased over the past 5 years at a rate of 49.3% 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 (38%).


Return on Equity

High ROE: GXY has a negative Return on Equity (-62.44%), as it is currently unprofitable.


Next Steps

Financial Health

How is Galaxy Resources's financial position?


Financial Position Analysis

Short Term Liabilities: GXY's short term assets ($139.9M) exceed its short term liabilities ($35.8M).

Long Term Liabilities: GXY's short term assets ($139.9M) exceed its long term liabilities ($19.4M).


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 62.8%.


Balance Sheet


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: GXY has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: GXY has sufficient cash runway for 1.2 years if free cash flow continues to reduce at historical rates of 36.4% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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

3.6yrs

Average management tenure


CEO

Simon Hay

1.5yrs

Tenure

US$476,707

Compensation

Mr. Simon Hay, BSc (Hons), MAppSc, Grad Dip, MAICD, is Chief Executive Officer at Galaxy Resources Limited since July 1, 2019. Mr. Hay joined Iluka in 2009 as Manager, South West Operations based in Capel....


CEO Compensation Analysis

Compensation vs Market: Simon's total compensation ($USD476.71K) is below average for companies of similar size in the Australian market ($USD1.28M).

Compensation vs Earnings: Insufficient data to compare Simon's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Simon Hay
Chief Executive Officer1.5yrsUS$476.71kno data
Anthony Tse
Executive Director10.25yrsUS$581.47k1.34%
$ 21.5m
Alan Rule
Chief Financial Officer3.75yrsUS$298.95kno data
Nicholas Rowley
Director of Corporate Development4.75yrsUS$242.59k0.020%
$ 319.0k
Brian Talbot
Executive of Australian Operations1yrUS$271.24kno data
John Sanders
General Counsel & Company Secretary3.5yrsno datano data
Megan Schmiede
Executive of Human Resources1yrno datano data
Laura Lu
Financial Controller of Jiangsu Lithium Carbonate Plant11.17yrsno datano data
Michael Nelson
Project Director2yrsno datano data
Joe Lowry
Marketing & Sales Consultant8yrsno datano data

3.6yrs

Average Tenure

Experienced Management: GXY's management team is considered experienced (3.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Anthony Tse
Executive Director10.25yrsUS$581.47k1.34%
$ 21.5m
Martin Rowley
Independent Non-Executive Chairman7.17yrsUS$484.28k0.63%
$ 10.1m
John Stephen Turner
Independent Non-Executive Director4yrsUS$122.68k0.036%
$ 581.0k
Peter Bacchus
Independent Non-Executive Director4yrsUS$122.68k0.010%
$ 160.2k
Alan Fitzpatrick
Independent Non-Executive Director2yrsUS$90.81kno data
Florencia Heredia
Independent Non-Executive Director3yrsUS$100.00kno data

4.0yrs

Average Tenure

58yo

Average Age

Experienced Board: GXY's board of directors are considered experienced (4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: GXY insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 23.1%.


Top Shareholders

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$1.608b
  • Shares outstanding: 504.06m
  • Website: https://www.gxy.com

Number of Employees


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. It holds interests in the Sal de Vida project in Argentina; the Mt...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/22 07:03
End of Day Share Price2021/01/22 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.