ASX:HIP

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Hipo Resources Limited engages in the exploration and exploitation of mineral properties.


Snowflake Analysis

Excellent balance sheet with weak fundamentals.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: HIP's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

6.7%

HIP

-1.8%

AU Metals and Mining

3.8%

AU Market


1 Year Return

60.0%

HIP

2.0%

AU Metals and Mining

-10.6%

AU Market

Return vs Industry: HIP exceeded the Australian Metals and Mining industry which returned 1.5% over the past year.

Return vs Market: HIP exceeded the Australian Market which returned -11.2% over the past year.


Shareholder returns

HIPIndustryMarket
7 Day6.7%-1.8%3.8%
30 Day60.0%11.6%9.9%
90 Day23.1%2.4%-13.0%
1 Year60.0%60.0%7.2%2.0%-6.9%-10.6%
3 Year4.0%-23.8%60.0%39.1%12.7%-2.1%
5 Year5.1%-77.1%97.2%59.4%27.9%0.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Hipo Resources undervalued compared to its fair value and its price relative to the market?

7.69x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: HIP is overvalued based on its PB Ratio (7.7x) compared to the AU Metals and Mining industry average (1.4x).


Next Steps

Future Growth

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

4.5%

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 Hipo Resources 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 Hipo Resources performed over the past 5 years?

51.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HIP is currently unprofitable.

Growing Profit Margin: HIP is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: HIP is unprofitable, but has reduced losses over the past 5 years at a rate of 51.4% per year.

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

Earnings vs Industry: HIP is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-7.9%).


Return on Equity

High ROE: HIP has a negative Return on Equity (-74.07%), as it is currently unprofitable.


Next Steps

Financial Health

How is Hipo Resources's financial position?


Financial Position Analysis

Short Term Liabilities: HIP's short term assets (A$473.2K) exceed its short term liabilities (A$424.9K).

Long Term Liabilities: HIP has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: HIP is debt free.

Reducing Debt: HIP has no debt compared to 5 years ago when its debt to equity ratio was 62.4%.


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

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


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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

1.9yrs

Average board tenure


CEO

Hipo Resources has no CEO, or we have no data on them.


Board Members

NamePositionTenureCompensationOwnership
Maurice Feilich
Executive Chairman1.92yrsAU$120.00k1.86% A$115.2k
Daniel John Edward Alexander Smith
Independent Non-Executive Director & Company Secretary1.92yrsAU$36.00kno data
Benjamin Jarvis
Independent Non-Executive Director0.58yrno datano data

1.9yrs

Average Tenure

Experienced Board: HIP's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.


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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Hipo Resources Limited
  • Ticker: HIP
  • Exchange: ASX
  • Founded: 2010
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: AU$6.184m
  • Shares outstanding: 386.51m
  • Website: https://www.hiporesources.com.au

Location

  • Hipo Resources Limited
  • 34 Colin Street
  • Level 2
  • West Perth
  • Western Australia
  • 6005
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HIPASX (Australian Securities Exchange)YesOrdinary SharesAUAUDFeb 2011
HIPCHIA (Chi-X Australia)YesOrdinary SharesAUAUDFeb 2011

Biography

Hipo Resources Limited engages in the exploration and exploitation of mineral properties. It holds a 60% interest in the Kamola lithium project located in the Manono and Kitolo Lithium pegmatite belt of the Democratic Republic of Congo; and a 24% interest in the Busumbu Phosphate project located in Uganda. The company was formerly known as Black Mountain Resources Limited and changed its name to Hipo Resources Limited in June 2018. Hipo Resources Limited was incorporated in 2010 and is headquartered in West Perth, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/28 10:40
End of Day Share Price2020/05/27 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


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.