ASX:HCH

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Adequate balance sheet and overvalued.


Similar Companies

Share Price & News

How has Hot Chili's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HCH is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: HCH's weekly volatility (11%) has been stable over the past year.


Market Performance


7 Day Return

0%

HCH

3.4%

AU Metals and Mining

2.4%

AU Market


1 Year Return

48.5%

HCH

12.6%

AU Metals and Mining

-0.6%

AU Market

Return vs Industry: HCH exceeded the Australian Metals and Mining industry which returned 12.6% over the past year.

Return vs Market: HCH exceeded the Australian Market which returned -0.6% over the past year.


Shareholder returns

HCHIndustryMarket
7 Day0%3.4%2.4%
30 Day-3.9%5.1%8.0%
90 Day19.5%0.6%8.8%
1 Year52.7%48.5%18.6%12.6%2.7%-0.6%
3 Year48.6%32.4%54.2%33.4%24.3%9.0%
5 Year-57.7%-62.3%194.4%138.0%56.9%25.7%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

1.06x

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 AU 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 (1.1x) compared to the AU Metals and Mining industry average (2.5x).


Next Steps

Future Growth

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

2.6%

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.


Next Steps

Past Performance

How has Hot Chili performed over the past 5 years?

25.3%

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 25.3% 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 (38%).


Return on Equity

High ROE: HCH has a negative Return on Equity (-1%), as it is currently unprofitable.


Next Steps

Financial Health

How is Hot Chili's financial position?


Financial Position Analysis

Short Term Liabilities: HCH's short term assets (A$6.3M) exceed its short term liabilities (A$6.1M).

Long Term Liabilities: HCH's short term assets (A$6.3M) exceed its long term liabilities (A$4.2M).


Debt to Equity History and Analysis

Debt Level: HCH's debt to equity ratio (3.3%) is considered satisfactory.

Reducing Debt: HCH's debt to equity ratio has reduced from 16.9% to 3.3% 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 less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: HCH has less than a year of cash runway if free cash flow continues to grow at historical rates of 15.3% each year.


Next Steps

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?

1.5yrs

Average management tenure


CEO

Christian Easterday (45 yo)

no data

Tenure

AU$283,824

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 ($USD208.77K) is about average for companies of similar size in the Australian market ($USD280.63K).

Compensation vs Earnings: Christian's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Christian Easterday
MD & Executive Directorno dataAU$283.82k0.42%
A$ 506.3k
Jose Silva
Chief Legal Counsel & Country Manager9.83yrsAU$152.30k0.38%
A$ 458.2k
Grant King
Chief Operating Officer0.17yrno datano data
Steven Garwin
Chief Technical Advisor0.42yrno datano data
Lloyd Flint
Company Secretary2.58yrsno datano data
John Beeson
Lead Consultant of Structural Geologyno datano datano data

1.5yrs

Average Tenure

Experienced Management: HCH's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Christian Easterday
MD & Executive Directorno dataAU$283.82k0.42%
A$ 506.3k
Allan Trench
Independent Non-Executive Chairman0.42yrAU$36.79k0.011%
A$ 12.6k
Murray Black
Non-Executive Chairman of the Board0.42yrAU$62.20k0%
A$ 0
Roberto de Andraca Adriasola
Non-Executive Director7.25yrsAU$36.79k0.25%
A$ 294.0k
Melanie Leighton
GM of Technical Services Group & Corporate Projects Manager5yrsAU$197.10k0.0074%
A$ 8.8k
George Nickson
Independent Non-Executive Director3.25yrsAU$36.79k0.25%
A$ 294.0k

4.1yrs

Average Tenure

56yo

Average Age

Experienced Board: HCH's board of directors are considered experienced (4.1 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 diluted in the past year, with total shares outstanding growing by 46.3%.


Top Shareholders

Company Information

Hot Chili Limited's company bio, 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$119.527m
  • Shares outstanding: 2.44b
  • Website: https://www.hotchili.net.au

Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HCHASX (Australian Securities Exchange)YesOrdinary SharesAUAUDMay 2010
CHCBST (Boerse-Stuttgart)YesOrdinary SharesDEEURMay 2010
HCHCHIA (Chi-X Australia)YesOrdinary SharesAUAUDMay 2010
HHLK.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 2010

Biography

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...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/26 07:07
End of Day Share Price2020/11/13 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.