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IGO

IGO ASX:IGO Stock Report

Last Price

AU$9.83

Market Cap

AU$7.4b

7D

-2.3%

1Y

23.3%

Updated

01 Jul, 2022

Data

Company Financials +
IGO fundamental analysis
Snowflake Score
Valuation4/6
Future Growth5/6
Past Performance5/6
Financial Health6/6
Dividends0/6

IGO Stock Overview

IGO Limited operates as an exploration and mining company that engages in discovering, developing, and operating assets focused on metals to enable clean energy in Australia.

IGO Competitors

Price History & Performance

Summary of all time highs, changes and price drops for IGO
Historical stock prices
Current Share PriceAU$9.83
52 Week HighAU$15.26
52 Week LowAU$7.91
Beta1.05
1 Month Change-15.26%
3 Month Change-31.78%
1 Year Change23.34%
3 Year Change98.59%
5 Year Change209.12%
Change since IPO3,540.74%

Recent News & Updates

Jun 01
Here's Why I Think IGO (ASX:IGO) Might Deserve Your Attention Today

Here's Why I Think IGO (ASX:IGO) Might Deserve Your Attention Today

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

Shareholder Returns

IGOAU Metals and MiningAU Market
7D-2.3%-2.0%-0.5%
1Y23.3%-15.3%-12.2%

Return vs Industry: IGO exceeded the Australian Metals and Mining industry which returned -13.6% over the past year.

Return vs Market: IGO exceeded the Australian Market which returned -11.9% over the past year.

Price Volatility

Is IGO's price volatile compared to industry and market?
IGO volatility
IGO Average Weekly Movement6.8%
Metals and Mining Industry Average Movement11.6%
Market Average Movement9.9%
10% most volatile stocks in AU Market16.6%
10% least volatile stocks in AU Market4.4%

Stable Share Price: IGO is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: IGO's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2000n/aPeter J. Bradfordhttps://www.igo.com.au

IGO Limited operates as an exploration and mining company that engages in discovering, developing, and operating assets focused on metals to enable clean energy in Australia. It owns and operates a 100% interest in the Nova nickel-copper-cobalt operation located in the Great Western Woodlands, northeast of Norseman. The company’s primary properties are the Fraser Range nickel-copper and Paterson copper projects.

IGO Fundamentals Summary

How do IGO's earnings and revenue compare to its market cap?
IGO fundamental statistics
Market CapAU$7.44b
Earnings (TTM)AU$187.77m
Revenue (TTM)AU$736.54m

39.6x

P/E Ratio

10.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
IGO income statement (TTM)
RevenueAU$736.54m
Cost of RevenueAU$192.58m
Gross ProfitAU$543.96m
Other ExpensesAU$356.20m
EarningsAU$187.77m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Jul 27, 2022

Earnings per share (EPS)0.25
Gross Margin73.85%
Net Profit Margin25.49%
Debt/Equity Ratio0%

How did IGO perform over the long term?

See historical performance and comparison

Dividends

1.0%

Current Dividend Yield

60%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is IGO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for IGO?

Other financial metrics that can be useful for relative valuation.

IGO key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue9.2x
Enterprise Value/EBITDA15.5x
PEG Ratio0.7x

Price to Earnings Ratio vs Peers

How does IGO's PE Ratio compare to its peers?

IGO PE Ratio vs Peers
The above table shows the PE ratio for IGO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average16x
LYC Lynas Rare Earths
29.7x11.7%AU$8.1b
S32 South32
12.1x-14.5%AU$17.9b
MIN Mineral Resources
11.3x24.1%AU$8.7b
ILU Iluka Resources
11x-8.4%AU$4.0b
IGO IGO
39.6x59.2%AU$7.4b

Price-To-Earnings vs Peers: IGO is expensive based on its Price-To-Earnings Ratio (39.6x) compared to the peer average (16x).


Price to Earnings Ratio vs Industry

How does IGO's PE Ratio compare vs other companies in the AU Metals and Mining Industry?

Price-To-Earnings vs Industry: IGO is expensive based on its Price-To-Earnings Ratio (39.6x) compared to the Australian Metals and Mining industry average (9.1x)


Price to Earnings Ratio vs Fair Ratio

What is IGO's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

IGO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio39.6x
Fair PE Ratio62.4x

Price-To-Earnings vs Fair Ratio: IGO is good value based on its Price-To-Earnings Ratio (39.6x) compared to the estimated Fair Price-To-Earnings Ratio (62.4x).


Share Price vs Fair Value

What is the Fair Price of IGO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: IGO (A$9.83) is trading below our estimate of fair value (A$16.4)

Significantly Below Fair Value: IGO is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: IGO is good value based on its PEG Ratio (0.7x)


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Future Growth

How is IGO forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


59.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IGO's forecast earnings growth (59.2% per year) is above the savings rate (1.8%).

Earnings vs Market: IGO's earnings (59.2% per year) are forecast to grow faster than the Australian market (5.6% per year).

High Growth Earnings: IGO's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: IGO's revenue (10% per year) is forecast to grow faster than the Australian market (5.1% per year).

High Growth Revenue: IGO's revenue (10% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IGO's Return on Equity is forecast to be high in 3 years time (31.9%)


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Past Performance

How has IGO performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


36.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: IGO has high quality earnings.

Growing Profit Margin: IGO's current net profit margins (25.5%) are higher than last year (1.4%).


Past Earnings Growth Analysis

Earnings Trend: IGO's earnings have grown significantly by 36.1% per year over the past 5 years.

Accelerating Growth: IGO's earnings growth over the past year (3070.1%) exceeds its 5-year average (36.1% per year).

Earnings vs Industry: IGO earnings growth over the past year (3070.1%) exceeded the Metals and Mining industry 57.3%.


Return on Equity

High ROE: IGO's Return on Equity (5.8%) is considered low.


Discover strong past performing companies

Financial Health

How is IGO's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: IGO's short term assets (A$803.3M) exceed its short term liabilities (A$267.6M).

Long Term Liabilities: IGO's short term assets (A$803.3M) exceed its long term liabilities (A$172.8M).


Debt to Equity History and Analysis

Debt Level: IGO is debt free.

Reducing Debt: IGO has no debt compared to 5 years ago when its debt to equity ratio was 11.2%.

Debt Coverage: IGO has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: IGO has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


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Dividend

What is IGO current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


1.02%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: IGO's dividend (1.02%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.76%).

High Dividend: IGO's dividend (1.02%) is low compared to the top 25% of dividend payers in the Australian market (6.94%).


Stability and Growth of Payments

Stable Dividend: IGO is not paying a notable dividend for the Australian market, therefore no need to check if payments are stable.

Growing Dividend: IGO is not paying a notable dividend for the Australian market, therefore no need to check if payments are increasing.


Earnings Payout to Shareholders

Earnings Coverage: IGO is not paying a notable dividend for the Australian market.


Cash Payout to Shareholders

Cash Flow Coverage: IGO is not paying a notable dividend for the Australian market.


Discover strong dividend paying companies

Management

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

5.5yrs

Average management tenure


CEO

Peter J. Bradford (63 yo)

8.33yrs

Tenure

AU$2,557,791

Compensation

Mr. Peter J. L. Bradford, B.App.Sc., Extractive Metallurgy, FAusIMM, MSMME, MAIC, has been the Chief Executive Officer and Managing Director of IGO Limited (formerly known as Independence Group NL) since M...


CEO Compensation Analysis

Compensation vs Market: Peter J.'s total compensation ($USD1.76M) is below average for companies of similar size in the Australian market ($USD2.53M).

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


Leadership Team

Experienced Management: IGO's management team is seasoned and experienced (5.5 years average tenure).


Board Members

Experienced Board: IGO's board of directors are considered experienced (5.6 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

IGO Limited's employee growth, exchange listings and data sources


Key Information

  • Name: IGO Limited
  • Ticker: IGO
  • Exchange: ASX
  • Founded: 2000
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Implied Market Cap: AU$7.440b
  • Shares outstanding: 756.88m
  • Website: https://www.igo.com.au

Number of Employees


Location

  • IGO Limited
  • South Shore Centre
  • Suite 4, Level 5
  • Perth
  • Western Australia
  • 6151
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/07/01 00:00
End of Day Share Price2022/07/01 00:00
Earnings2021/12/31
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.