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IGO

IGO ASX:IGO Stock Report

Last Price

AU$13.70

Market Cap

AU$10.4b

7D

-6.8%

1Y

59.3%

Updated

02 Oct, 2022

Data

Company Financials +
IGO fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance5/6
Financial Health4/6
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$13.70
52 Week HighAU$15.26
52 Week LowAU$8.33
Beta1.09
1 Month Change8.82%
3 Month Change37.55%
1 Year Change59.30%
3 Year Change121.68%
5 Year Change268.28%
Change since IPO4,974.07%

Recent News & Updates

Sep 04
Here's Why IGO (ASX:IGO) Has Caught The Eye Of Investors

Here's Why IGO (ASX:IGO) Has Caught The Eye Of Investors

The excitement of investing in a company that can reverse its fortunes is a big draw for some speculators, so even...

Shareholder Returns

IGOAU Metals and MiningAU Market
7D-6.8%-1.2%-1.7%
1Y59.3%4.0%-10.8%

Return vs Industry: IGO exceeded the Australian Metals and Mining industry which returned 4% over the past year.

Return vs Market: IGO exceeded the Australian Market which returned -10.8% over the past year.

Price Volatility

Is IGO's price volatile compared to industry and market?
IGO volatility
IGO Average Weekly Movement6.5%
Metals and Mining Industry Average Movement11.3%
Market Average Movement9.4%
10% most volatile stocks in AU Market16.5%
10% least volatile stocks in AU Market4.2%

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 to the east northeast of Norseman in the Great Western Woodlands of Western Australia; a 100% interest in the Cosmos nickel operation located to the north of Leinster in Western Australia; and a 100% interest in the Forrestania nickel operation located to the east of Perth in Western Australia. The company also focuses on investing in lithium mines, as well as holds 100% interest in the downstream processing refinery at Kwinana in Western Australia to produce battery grade lithium hydroxide.

IGO Fundamentals Summary

How do IGO's earnings and revenue compare to its market cap?
IGO fundamental statistics
Market CapAU$10.37b
Earnings (TTM)AU$330.90m
Revenue (TTM)AU$902.80m

31.3x

P/E Ratio

11.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
IGO income statement (TTM)
RevenueAU$902.80m
Cost of RevenueAU$207.90m
Gross ProfitAU$694.90m
Other ExpensesAU$364.00m
EarningsAU$330.90m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Oct 26, 2022

Earnings per share (EPS)0.44
Gross Margin76.97%
Net Profit Margin36.65%
Debt/Equity Ratio25.9%

How did IGO perform over the long term?

See historical performance and comparison

Dividends

0.7%

Current Dividend Yield

23%

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

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

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/Revenue12x
Enterprise Value/EBITDA20.6x
PEG Ratio7.4x

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 Average15x
S32 South32
4x-17.7%AU$16.7b
MIN Mineral Resources
35.5x18.1%AU$12.4b
ILU Iluka Resources
7.8x-21.2%AU$3.8b
LYC Lynas Rare Earths
12.7x13.7%AU$6.8b
IGO IGO
31.3x4.2%AU$10.4b

Price-To-Earnings vs Peers: IGO is expensive based on its Price-To-Earnings Ratio (31.3x) compared to the peer average (15x).


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 (31.3x) compared to the Australian Metals and Mining industry average (8.4x)


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 Ratio31.3x
Fair PE Ratio17.9x

Price-To-Earnings vs Fair Ratio: IGO is expensive based on its Price-To-Earnings Ratio (31.3x) compared to the estimated Fair Price-To-Earnings Ratio (17.9x).


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$13.7) is trading below our estimate of fair value (A$23.53)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

How is IGO forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


4.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IGO's forecast earnings growth (4.2% per year) is above the savings rate (1.8%).

Earnings vs Market: IGO's earnings (4.2% per year) are forecast to grow slower than the Australian market (6.5% per year).

High Growth Earnings: IGO's earnings are forecast to grow, but not significantly.

Revenue vs Market: IGO's revenue (1% per year) is forecast to grow slower than the Australian market (3.7% per year).

High Growth Revenue: IGO's revenue (1% 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 low in 3 years time (16.7%).


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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


44.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: IGO has high quality earnings.

Growing Profit Margin: IGO's current net profit margins (36.7%) are higher than last year (17.4%).


Past Earnings Growth Analysis

Earnings Trend: IGO's earnings have grown significantly by 44.3% per year over the past 5 years.

Accelerating Growth: IGO's earnings growth over the past year (183.3%) exceeds its 5-year average (44.3% per year).

Earnings vs Industry: IGO earnings growth over the past year (183.3%) exceeded the Metals and Mining industry 22.7%.


Return on Equity

High ROE: IGO's Return on Equity (9.6%) is considered low.


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Financial Health

How is IGO's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • 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$745.2M) exceed its short term liabilities (A$440.0M).

Long Term Liabilities: IGO's short term assets (A$745.2M) do not cover its long term liabilities (A$970.0M).


Debt to Equity History and Analysis

Debt Level: IGO's net debt to equity ratio (11.5%) is considered satisfactory.

Reducing Debt: IGO's debt to equity ratio has increased from 11.2% to 25.9% over the past 5 years.

Debt Coverage: IGO's debt is well covered by operating cash flow (40.1%).

Interest Coverage: IGO's interest payments on its debt are well covered by EBIT (66.5x coverage).


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

  • Cash Flow Coverage


0.73%

Current Dividend Yield

Dividend Yield vs Market

IGO Dividend Yield vs Market
How does IGO dividend yield compare to the market?
SegmentDividend Yield
Company (IGO)0.7%
Market Bottom 25% (AU)2.8%
Market Top 25% (AU)7.2%
Industry Average (Metals and Mining)10.3%
Analyst forecast in 3 Years (IGO)2.3%

Notable Dividend: IGO's dividend (0.73%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.8%).

High Dividend: IGO's dividend (0.73%) is low compared to the top 25% of dividend payers in the Australian market (7.16%).


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?

5.8yrs

Average management tenure


CEO

Peter J. Bradford (63 yo)

8.58yrs

Tenure

AU$2,791,281

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

Peter J. Bradford's Compensation vs IGO Earnings
How has Peter J. Bradford's remuneration changed compared to IGO's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022AU$3mAU$1m

AU$331m

Mar 31 2022n/an/a

AU$259m

Dec 31 2021n/an/a

AU$188m

Sep 30 2021n/an/a

AU$152m

Jun 30 2021AU$3mAU$871k

AU$117m

Dec 31 2020n/an/a

AU$6m

Sep 30 2020n/an/a

AU$46m

Jun 30 2020AU$2mAU$856k

AU$86m

Mar 31 2020n/an/a

AU$165m

Dec 31 2019n/an/a

AU$175m

Sep 30 2019n/an/a

AU$126m

Jun 30 2019AU$2mAU$787k

AU$76m

Mar 31 2019n/an/a

AU$63m

Dec 31 2018n/an/a

AU$50m

Sep 30 2018n/an/a

AU$52m

Jun 30 2018AU$2mAU$768k

AU$53m

Mar 31 2018n/an/a

AU$26m

Dec 31 2017n/an/a

-AU$35k

Sep 30 2017n/an/a

AU$8m

Jun 30 2017AU$1mAU$789k

AU$17m

Mar 31 2017n/an/a

AU$28m

Dec 31 2016n/an/a

AU$39m

Sep 30 2016n/an/a

-AU$10m

Jun 30 2016AU$1mAU$718k

-AU$59m

Compensation vs Market: Peter J.'s total compensation ($USD1.80M) is below average for companies of similar size in the Australian market ($USD2.94M).

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 (5.8 years average tenure).


Board Members

Experienced Board: IGO's board of directors are considered experienced (5.8 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

ASX:IGO Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
07 Sep 22BuyAU$50,801Debra BakkerIndividual4,000AU$12.70
31 Aug 22BuyAU$169,027State Street Global Advisors, Inc.Company2,835,269AU$13.27
24 Jun 22BuyAU$20,009Kathleen BozanicIndividual1,985AU$10.08
01 Jun 22SellAU$34,752,300New York Life Investment Management LLCCompany3,091,010AU$11.24
23 May 22BuyAU$1,398,816New York Life Investment Management LLCCompany120,000AU$11.66
20 May 22BuyAU$22,850,900New York Life Investment Management LLCCompany1,966,981AU$11.62
18 May 22SellAU$21,294,441New York Life Investment Management LLCCompany1,809,315AU$11.77
21 Apr 22SellAU$50,655,325New York Life Investment Management LLCCompany3,942,098AU$12.85
20 Apr 22BuyAU$30,632,882New York Life Investment Management LLCCompany2,472,699AU$12.39
11 Mar 22SellAU$5,930,361Peter J. BradfordIndividual453,296AU$13.10
09 Mar 22BuyAU$197,405Michael P. NossalIndividual15,000AU$13.16

Ownership Breakdown

What is the ownership structure of IGO?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders3,966,9430.5%
Private Companies85,518,34111.3%
General Public319,458,31142.2%
Institutions348,003,82846.0%

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


Top Shareholders

Top 25 shareholders own 54% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
8.86%
Yandal Investments Pty Ltd
67,103,153A$919.3m0%no data
7.93%
T. Rowe Price Group, Inc.
60,020,001A$822.3m0%0.06%
6.02%
Fidelity International Ltd
45,566,028A$624.3m0%0.22%
4.87%
State Street Global Advisors, Inc.
36,844,421A$504.8m5009.68%0.02%
4.61%
New York Life Investment Management LLC
34,902,136A$478.2m-10.93%2.15%
4.21%
The Vanguard Group, Inc.
31,889,211A$436.9m1.95%0.01%
3.96%
Dimensional Fund Advisors LP
29,985,815A$410.8m0%0.07%
3.53%
First Sentier Investors (Australia) IM Ltd
26,713,849A$366.0m0%0.56%
1.77%
Fraserx PTY Ltd
13,415,188A$183.8m0%no data
1.45%
Morgan Stanley, Investment Banking and Brokerage Investments
10,985,754A$150.5m0%0.02%
0.92%
Commonwealth Superannuation Corporation
6,964,144A$95.4m-11.24%1.19%
0.89%
Norges Bank Investment Management
6,753,190A$92.5m0%0.01%
0.75%
J.P. Morgan Asset Management, Inc.
5,700,817A$78.1m-0.69%0.01%
0.66%
Perth Select Seafoods Pty Ltd
5,000,000A$68.5m-5.66%no data
0.52%
Colonial First State Investments Limited
3,970,232A$54.4m12.17%0.45%
0.49%
Argo Investments Limited
3,680,970A$50.4m19.47%0.92%
0.41%
Van Eck Associates Corporation
3,081,085A$42.2m17.36%0.06%
0.33%
Ninety One UK Limited
2,525,268A$34.6m0%0.04%
0.32%
Nordea Investment Management AB
2,388,774A$32.7m17.76%0.02%
0.29%
Kenneth Hall
2,173,918A$29.8m0%no data
0.26%
Konwave AG
1,975,000A$27.1m0%2.24%
0.24%
Strategic Advisers LLC
1,852,605A$25.4m-2.27%0.01%
0.24%
1832 Asset Management L.P.
1,844,821A$25.3m-8.22%0.03%
0.23%
American Century Investment Management Inc
1,709,173A$23.4m-2.41%0.01%
0.22%
Mirae Asset Global Investments Co., Ltd
1,671,606A$22.9m456.68%0.02%

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$10.370b
  • Shares outstanding: 756.95m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IPGD.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 2002
IGOASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 2002
IDZDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 2002
IGOCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 2002
IIDD.YOTCPK (Pink Sheets LLC)SPON ADS EACH REP 2 ORD SHSUSUSDNov 2017
IDZ1DB (Deutsche Boerse AG)SPON ADS EACH REP 2 ORD SHSDEEURNov 2017

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/02 00:00
End of Day Share Price2022/09/30 00:00
Earnings2022/06/30
Annual Earnings2022/06/30


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.