ASX:ILU

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Excellent balance sheet with high growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: ILU is more volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 14% a week.

Volatility Over Time: ILU's weekly volatility has increased from 9% to 14% over the past year.


Market Performance


7 Day Return

3.6%

ILU

4.6%

AU Metals and Mining

1.3%

AU Market


1 Year Return

-43.1%

ILU

14.7%

AU Metals and Mining

-1.7%

AU Market

Return vs Industry: ILU underperformed the Australian Metals and Mining industry which returned 17.7% over the past year.

Return vs Market: ILU underperformed the Australian Market which returned -1.8% over the past year.


Shareholder returns

ILUIndustryMarket
7 Day3.6%4.6%1.3%
30 Day9.9%9.5%10.4%
90 Day-46.4%2.7%8.8%
1 Year13.1%-43.1%20.8%14.7%1.7%-1.7%
3 Year23.5%-41.6%59.4%37.5%23.1%7.9%
5 Year121.1%0.9%200.7%143.5%57.2%26.0%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ILU (A$5.42) is trading below our estimate of fair value (A$15.73)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: ILU is overvalued based on its PB Ratio (2.9x) compared to the AU Metals and Mining industry average (2.5x).


Next Steps

Future Growth

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

29.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ILU is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.3%).

Earnings vs Market: ILU is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: ILU's is expected to become profitable in the next 3 years.

Revenue vs Market: ILU's revenue (8.7% per year) is forecast to grow faster than the Australian market (5.3% per year).

High Growth Revenue: ILU's revenue (8.7% 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 (21%)


Next Steps

Past Performance

How has Iluka Resources performed over the past 5 years?

0.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ILU is currently unprofitable.

Growing Profit Margin: ILU is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ILU is unprofitable, but has reduced losses over the past 5 years at a rate of 0.5% per year.

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

Earnings vs Industry: ILU is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (38%).


Return on Equity

High ROE: ILU has a negative Return on Equity (-41.03%), as it is currently unprofitable.


Next Steps

Financial Health

How is Iluka Resources's financial position?


Financial Position Analysis

Short Term Liabilities: ILU's short term assets (A$682.0M) exceed its short term liabilities (A$367.8M).

Long Term Liabilities: ILU's short term assets (A$682.0M) do not cover its long term liabilities (A$817.0M).


Debt to Equity History and Analysis

Debt Level: ILU's debt to equity ratio (11.2%) is considered satisfactory.

Reducing Debt: ILU's debt to equity ratio has reduced from 11.3% to 11.2% 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: Whilst unprofitable ILU has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: ILU is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 4.8% per year.


Next Steps

Dividend

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

2.96%

Forecast Dividend Yield


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if ILU's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: ILU is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ILU'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?

3.9yrs

Average management tenure


CEO

Tom Patrick O’Leary (57 yo)

4.17yrs

Tenure

AU$3,181,077

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. Mr. O'Leary served as Managing Director of Wesfarmers Chem...


CEO Compensation Analysis

Compensation vs Market: Tom's total compensation ($USD2.35M) is above average for companies of similar size in the Australian market ($USD1.37M).

Compensation vs Earnings: Tom's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Thomas Patrick O’Leary
MD, CEO & Director4.17yrsAU$3.18m0.082%
A$ 1.9m
Adele Stratton
CFO & Head of Development2.25yrsAU$965.34k0.012%
A$ 265.7k
Matthew Blackwell
Head of Major Projects & Marketing0.83yrAU$1.22m0.019%
A$ 445.9k
Steven Wickham
Chief Operating Officer of Mineral Sands6.42yrsAU$1.46m0.019%
A$ 437.9k
Daniel McGrath
Chief Technical Officer & Head of Rare Earths0.83yrno datano data
Susan Wilson
General Counsel & Company Secretary3.92yrsno datano data
Sarah Hodgson
General Manager of People & Sustainability3.5yrsno datano data
Michael Fechner
Manager of Exploration & Geologyno datano datano data
Nigel Tinley
Joint Company Secretary7.42yrsno datano data
Rob Hattingh
Chief Executive Officer of Sierra Rutile3.92yrsno datano data

3.9yrs

Average Tenure

Experienced Management: ILU's management team is considered experienced (3.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Thomas Patrick O’Leary
MD, CEO & Director4.17yrsAU$3.18m0.082%
A$ 1.9m
Gregory John Martin
Independent Non-Executive Chairman6.92yrsAU$342.17k0.0071%
A$ 162.6k
Marcelo De Almeida Bastos
Independent Non-Executive Director6.75yrsAU$160.86k0.0034%
A$ 78.8k
Robert Cole
Independent Non-Executive Director2.67yrsAU$157.84k0.0028%
A$ 65.0k
James Ranck
Independent Non-Executive Director7.83yrsAU$189.41k0.0031%
A$ 69.9k
Susan Corlett
Independent Non-Executive Director1.42yrsAU$93.83k0.0024%
A$ 54.1k
Lynne Saint
Independent Non-Executive Director1.08yrsAU$30.31k0.00083%
A$ 19.0k

4.1yrs

Average Tenure

57yo

Average Age

Experienced Board: ILU'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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Iluka Resources Limited's company bio, 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$2.290b
  • Shares outstanding: 422.57m
  • Website: https://www.iluka.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ILKA.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
ILUASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
ILZDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
ILUCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992
ILKA.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDDec 2008

Biography

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/S...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/28 07:02
End of Day Share Price2020/11/27 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.