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HCH

Hot ChiliASX:HCH Stock Report

Market Cap

AU$218.5m

7D

19.0%

1Y

4.2%

Updated

20 Oct, 2021

Data

Company Financials
HCH fundamental analysis
Snowflake Score
Valuation1/6
Future Growth0/6
Past Performance0/6
Financial Health5/6
Dividends0/6

HCH Overview

Hot Chili Limited operates as a mineral exploration company in Australia and Chile.

Hot Chili Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Hot Chili
Historical stock prices
Current Share PriceAU$0.05
52 Week HighAU$0.032
52 Week LowAU$0.058
Beta2.06
1 Month Change31.58%
3 Month Change35.14%
1 Year Change4.17%
3 Year Change163.16%
5 Year Change47.06%
Change since IPO-76.19%

Recent News & Updates

Mar 17
Is Hot Chili (ASX:HCH) A Risky Investment?

Is Hot Chili (ASX:HCH) A Risky Investment?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

HCHAU Metals and MiningAU Market
7D19.0%3.6%1.7%
1Y4.2%11.3%20.2%

Return vs Industry: HCH underperformed the Australian Metals and Mining industry which returned 11.3% over the past year.

Return vs Market: HCH underperformed the Australian Market which returned 20.2% over the past year.

Price Volatility

Is HCH's price volatile compared to industry and market?
HCH volatility
HCH Beta2.06
Industry Beta0.97
Market Beta1

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

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

About the Company

FoundedEmployeesCEOWebsite
2008n/aChristian Easterdayhttps://www.hotchili.net.au

Hot Chili Limited operates as a mineral exploration company in Australia and Chile. The company explores for copper, gold, and molybdenum, as well as silver deposits. Its flagship property is the Cortadera Copper-Gold Project located along the Chilean coastal range, Chile.

Hot Chili Fundamentals Summary

How do Hot Chili's earnings and revenue compare to its market cap?
HCH fundamental statistics
Market CapAU$218.55m
Earnings (TTM)-AU$9.64m
Revenue (TTM)AU$59.40k

5.0kx

P/S Ratio

-22.7x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HCH income statement (TTM)
RevenueAU$59.40k
Cost of RevenueAU$0
Gross ProfitAU$59.40k
ExpensesAU$9.70m
Earnings-AU$9.64m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.0022
Gross Margin100.00%
Net Profit Margin-16,237.07%
Debt/Equity Ratio3.4%

How did HCH perform over the long term?

See historical performance and comparison

Valuation

Is Hot Chili undervalued compared to its fair value and its price relative to the market?

1.7x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

PE vs Market: HCH 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 HCH's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: HCH is good value based on its PB Ratio (1.7x) compared to the AU Metals and Mining industry average (2.6x).


Future Growth

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

0.7%

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 Hot Chili 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.


Past Performance

How has Hot Chili performed over the past 5 years?

0.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HCH is currently unprofitable.

Growing Profit Margin: HCH is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: HCH is unprofitable, but has reduced losses over the past 5 years at a rate of 0.6% per year.

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

Earnings vs Industry: HCH is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (35.3%).


Return on Equity

High ROE: HCH has a negative Return on Equity (-6.59%), as it is currently unprofitable.


Financial Health

How is Hot Chili's financial position?


Financial Position Analysis

Short Term Liabilities: HCH's short term assets (A$3.6M) do not cover its short term liabilities (A$14.1M).

Long Term Liabilities: HCH has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: HCH's debt to equity ratio (3.4%) is considered satisfactory.

Reducing Debt: HCH's debt to equity ratio has reduced from 9.2% to 3.4% over the past 5 years.


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: HCH has sufficient cash runway for 1 months based on last reported free cash flow, but has since raised additional capital.

Forecast Cash Runway: HCH is forecast to have sufficient cash runway for 10 months based on free cash flow estimates, but has since raised additional capital.


Dividend

What is Hot Chili current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate HCH'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 HCH's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if HCH'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 HCH'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?

1.3yrs

Average management tenure


CEO

Christian Easterday (46 yo)

no data

Tenure

AU$739,975

Compensation

Mr. Christian Ervin Easterday, MSc, BSc, M.Aus.I.Geoscientists, has been Managing Director at Hot Chili Limited since 2008 and also serves as its Executive Director. Mr. Easterday serves as Strategic Consu...


CEO Compensation Analysis

Compensation vs Market: Christian's total compensation ($USD553.25K) is about average for companies of similar size in the Australian market ($USD547.68K).

Compensation vs Earnings: Christian's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: HCH's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

Experienced Board: HCH's board of directors are considered experienced (8.2 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 been substantially diluted in the past year, with total shares outstanding growing by 81%.


Top Shareholders

Company Information

Hot Chili Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Hot Chili Limited
  • Ticker: HCH
  • Exchange: ASX
  • Founded: 2008
  • Industry: Copper
  • Sector: Materials
  • Market Cap: AU$218.549m
  • Shares outstanding: 4.37b
  • Website: https://www.hotchili.net.au

Location

  • Hot Chili Limited
  • 768 Canning Highway
  • First Floor
  • Applecross
  • Western Australia
  • 6153
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/20 15:30
End of Day Share Price2021/10/20 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.