ILU

Iluka ResourcesASX:ILU Stock Report

Market Cap

AU$3.9b

7D

-10.8%

1Y

-2.1%

Updated

22 Sep, 2021

Data

Company Financials +
ILU fundamental analysis
Snowflake Score
Valuation0/6
Future Growth3/6
Past Performance3/6
Financial Health6/6
Dividends4/6

ILU Overview

Iluka Resources Limited engages in the exploration, project development, mining, processing, marketing, and rehabilitation of mineral sands.

Iluka Resources Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Iluka Resources
Historical stock prices
Current Share PriceAU$9.24
52 Week HighAU$4.88
52 Week LowAU$10.78
Beta1.45
1 Month Change1.99%
3 Month Change12.41%
1 Year Change-2.12%
3 Year Change-6.10%
5 Year Change44.60%
Change since IPO428.00%

Recent News & Updates

Jul 14
Iluka Resources Limited (ASX:ILU) Shares Could Be 24% Below Their Intrinsic Value Estimate

Iluka Resources Limited (ASX:ILU) Shares Could Be 24% Below Their Intrinsic Value Estimate

How far off is Iluka Resources Limited ( ASX:ILU ) from its intrinsic value? Using the most recent financial data...

Shareholder Returns

ILUAU Metals and MiningAU Market
7D-10.8%-7.9%-2.2%
1Y-2.1%8.6%23.7%

Return vs Industry: ILU underperformed the Australian Metals and Mining industry which returned 8.6% over the past year.

Return vs Market: ILU underperformed the Australian Market which returned 23.7% over the past year.

Price Volatility

Is ILU's price volatile compared to industry and market?
ILU volatility
ILU Beta1.45
Industry Beta0.93
Market Beta1

Stable Share Price: ILU is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: ILU's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19543,354Tom Patrick O’Learyhttps://www.iluka.com

Iluka Resources Limited engages in the exploration, project development, mining, processing, marketing, and rehabilitation of mineral sands. The company operates through Jacinth-Ambrosia/Mid West, Cataby/South West, Sierra Rutile, and United States/Murray Basin segments. It produces zircon; titanium dioxide products of rutile and synthetic rutile; and ilmenite, as well as activated carbon and iron concentrate products.

Iluka Resources Fundamentals Summary

How do Iluka Resources's earnings and revenue compare to its market cap?
ILU fundamental statistics
Market CapAU$3.90b
Earnings (TTM)AU$157.20m
Revenue (TTM)AU$1.28b

24.8x

P/E Ratio

3.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ILU income statement (TTM)
RevenueAU$1.28b
Cost of RevenueAU$643.70m
Gross ProfitAU$640.50m
ExpensesAU$483.30m
EarningsAU$157.20m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Oct 21, 2021

Earnings per share (EPS)0.37
Gross Margin49.88%
Net Profit Margin12.24%
Debt/Equity Ratio3.7%

How did ILU perform over the long term?

See historical performance and comparison

Dividends

2.6%

Current Dividend Yield

38%

Payout Ratio

Valuation

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

24.82x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ILU (A$9.24) is trading above our estimate of fair value (A$5.24)

Significantly Below Fair Value: ILU is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ILU is poor value based on its PE Ratio (24.8x) compared to the Australian Metals and Mining industry average (11.9x).

PE vs Market: ILU is poor value based on its PE Ratio (24.8x) compared to the Australian market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: ILU is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: ILU is overvalued based on its PB Ratio (2.8x) compared to the AU Metals and Mining industry average (2.5x).


Future Growth

How is Iluka Resources forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

11.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ILU's forecast earnings growth (11.8% per year) is above the savings rate (1.9%).

Earnings vs Market: ILU's earnings (11.8% per year) are forecast to grow faster than the Australian market (11.5% per year).

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

Revenue vs Market: ILU's revenue (0.4% per year) is forecast to grow slower than the Australian market (5.6% per year).

High Growth Revenue: ILU's revenue (0.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ILU's Return on Equity is forecast to be high in 3 years time (20.1%)


Past Performance

How has Iluka Resources performed over the past 5 years?

18.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ILU has high quality earnings.

Growing Profit Margin: ILU became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: ILU has become profitable over the past 5 years, growing earnings by 18.4% per year.

Accelerating Growth: ILU has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: ILU has become profitable in the last year, making it difficult to compare its past year earnings growth to the Metals and Mining industry (44.4%).


Return on Equity

High ROE: ILU's Return on Equity (10.9%) is considered low.


Financial Health

How is Iluka Resources's financial position?


Financial Position Analysis

Short Term Liabilities: ILU's short term assets (A$929.2M) exceed its short term liabilities (A$276.7M).

Long Term Liabilities: ILU's short term assets (A$929.2M) exceed its long term liabilities (A$791.0M).


Debt to Equity History and Analysis

Debt Level: ILU's debt to equity ratio (3.7%) is considered satisfactory.

Reducing Debt: ILU's debt to equity ratio has reduced from 14% to 3.7% over the past 5 years.

Debt Coverage: ILU's debt is well covered by operating cash flow (415.8%).

Interest Coverage: ILU's interest payments on its debt are well covered by EBIT (93.3x coverage).


Balance Sheet


Dividend

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

2.60%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ILU's dividend (2.6%) is higher than the bottom 25% of dividend payers in the Australian market (2.32%).

High Dividend: ILU's dividend (2.6%) is low compared to the top 25% of dividend payers in the Australian market (5.55%).


Stability and Growth of Payments

Stable Dividend: ILU's dividend payments have been volatile in the past 10 years.

Growing Dividend: ILU's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (38%), ILU's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ILU's dividends in 3 years are forecast to be well covered by earnings (47.3% payout ratio).


Next Steps

Management

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

3.1yrs

Average management tenure


CEO

Tom Patrick O’Leary (58 yo)

5yrs

Tenure

AU$1,338,592

Compensation

Mr. Tom J. P O'Leary, LLB, B.Juris, has been the Chief Executive Officer and Managing Director of Iluka Resources Limited since September 5, 2016. He joined Iluka Resources Limited in 2016. Mr. O'Leary se...


CEO Compensation Analysis

Compensation vs Market: Tom's total compensation ($USD967.26K) is below average for companies of similar size in the Australian market ($USD1.83M).

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


Leadership Team

Experienced Management: ILU's management team is considered experienced (3.1 years average tenure).


Board Members

Experienced Board: ILU's board of directors are considered experienced (3.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: ILU 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

Iluka Resources Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Iluka Resources Limited
  • Ticker: ILU
  • Exchange: ASX
  • Founded: 1954
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: AU$3.901b
  • Shares outstanding: 422.24m
  • Website: https://www.iluka.com

Number of Employees


Location

  • Iluka Resources Limited
  • 240 St Georges Terrace
  • Level 17
  • Perth
  • Western Australia
  • 6000
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/22 15:10
End of Day Share Price2021/09/22 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.