ASX:IMD

Stock Analysis Report

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Executive Summary

Imdex Limited, together with its subsidiaries, provides mining equipment, technology, and services for the minerals industry in the Asia-Pacific, Africa, Europe, the Americas, and internationally.


Snowflake Analysis

Flawless balance sheet with proven track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

7.1%

IMD

0.1%

AU Metals and Mining

5.1%

AU Market


1 Year Return

16.5%

IMD

1.7%

AU Metals and Mining

-9.4%

AU Market

Return vs Industry: IMD exceeded the Australian Metals and Mining industry which returned 2% over the past year.

Return vs Market: IMD exceeded the Australian Market which returned -10.6% over the past year.


Shareholder returns

IMDIndustryMarket
7 Day7.1%0.1%5.1%
30 Day24.4%13.3%11.1%
90 Day-23.1%7.8%-9.3%
1 Year20.1%16.5%7.1%1.7%-5.7%-9.4%
3 Year104.4%96.7%63.6%41.2%14.4%-0.8%
5 Year345.2%328.6%92.3%53.7%30.9%2.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

11.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IMD (A$1.2) is trading below our estimate of fair value (A$1.36)

Significantly Below Fair Value: IMD is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: IMD is poor value based on its PE Ratio (14.2x) compared to the Metals and Mining industry average (10.1x).

PE vs Market: IMD is good value based on its PE Ratio (14.2x) compared to the Australian market (15.2x).


Price to Earnings Growth Ratio

PEG Ratio: IMD is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: IMD is overvalued based on its PB Ratio (2.1x) compared to the AU Metals and Mining industry average (1.5x).


Next Steps

Future Growth

How is Imdex forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

5.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IMD's forecast earnings growth (5.3% per year) is above the savings rate (2.3%).

Earnings vs Market: IMD's earnings (5.3% per year) are forecast to grow slower than the Australian market (15% per year).

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

Revenue vs Market: IMD's revenue (4.4% per year) is forecast to grow slower than the Australian market (4.5% per year).

High Growth Revenue: IMD's revenue (4.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IMD's Return on Equity is forecast to be low in 3 years time (11.1%).


Next Steps

Past Performance

How has Imdex performed over the past 5 years?

50.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IMD has high quality earnings.

Growing Profit Margin: IMD's current net profit margins (13.1%) are higher than last year (10.1%).


Past Earnings Growth Analysis

Earnings Trend: IMD has become profitable over the past 5 years, growing earnings by 50.9% per year.

Accelerating Growth: IMD's earnings growth over the past year (34.5%) is below its 5-year average (50.9% per year).

Earnings vs Industry: IMD earnings growth over the past year (34.5%) exceeded the Metals and Mining industry -7.9%.


Return on Equity

High ROE: IMD's Return on Equity (14.5%) is considered low.


Next Steps

Financial Health

How is Imdex's financial position?


Financial Position Analysis

Short Term Liabilities: IMD's short term assets (A$128.6M) exceed its short term liabilities (A$39.5M).

Long Term Liabilities: IMD's short term assets (A$128.6M) exceed its long term liabilities (A$40.3M).


Debt to Equity History and Analysis

Debt Level: IMD's debt to equity ratio (2.8%) is considered satisfactory.

Reducing Debt: IMD's debt to equity ratio has reduced from 20.9% to 2.8% over the past 5 years.

Debt Coverage: IMD's debt is well covered by operating cash flow (662.5%).

Interest Coverage: IMD's interest payments on its debt are well covered by EBIT (29.2x coverage).


Balance Sheet


Next Steps

Dividend

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

2.33%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: IMD's dividend (2.33%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.68%).

High Dividend: IMD's dividend (2.33%) is low compared to the top 25% of dividend payers in the Australian market (6.6%).


Stability and Growth of Payments

Stable Dividend: IMD has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: IMD has only been paying a dividend for 9 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (28.3%), IMD's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: IMD's dividends in 3 years are forecast to be well covered by earnings (41% payout ratio).


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Bernie Ridgeway (66yo)

20yrs

Tenure

AU$1,555,681

Compensation

Mr. Bernard William Ridgeway, also known as Bernie, B.Bus (ACCTG) ACA AICD, has been the Managing Director of Imdex Limited since July 3, 2000. He embraces a hands on management style and has Extensive Exp ...


CEO Compensation Analysis

Compensation vs Market: Bernie's total compensation ($USD0.00) is below average for companies of similar size in the Australian market ($USD779.58K).

Compensation vs Earnings: Bernie's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Bernard Ridgeway
MD & Director20yrsAU$1.56m1.02% A$5.1m
Paul Evans
CFO & Company Secretary13.58yrsAU$691.06k0.13% A$654.0k
Derek Loughlin
Global Business Development Director1.75yrsAU$707.41k0.055% A$276.3k
Paul House
Chief Operating Officer1.75yrsno datano data
Mathew Regan
Chief Information & Transformation Officer1.75yrsno datano data
Kym Clements
Investor Relations Officer & Corporate Communicationsno datano datano data
Sarah Standish
General Counsel1.33yrsno datano data
Kingsley Weber
Human Resources Director1.75yrsno datano data
Dieter Goetze
Chief Engineer of System Entwicklungs GmbH (SEG)no datano datano data
Richard Parfitt
Chief Electronics Engineer of Imdex Technology (UK) Limitedno datano datano data

1.8yrs

Average Tenure

56yo

Average Age

Experienced Management: IMD's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Bernard Ridgeway
MD & Director20yrsAU$1.56m1.02% A$5.1m
Kevin Dundo
Independent Non Executive Director16.33yrsAU$98.55k0.053% A$262.8k
Ivan Gustavino
Independent Non-Executive Director4.83yrsAU$98.55k0.016% A$79.8k
Anthony Wooles
Non-Executive Chairman3.83yrsAU$175.00k0.18% A$899.5k
Sally-Anne Layman
Independent Non-Executive Director3.25yrsAU$39.73k0.018% A$90.0k

4.8yrs

Average Tenure

63yo

Average Age

Experienced Board: IMD's board of directors are considered experienced (4.8 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 been diluted in the past year, with total shares outstanding growing by 2.4%.


Top Shareholders

Company Information

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


Key Information

  • Name: Imdex Limited
  • Ticker: IMD
  • Exchange: ASX
  • Founded: 1980
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: AU$498.654m
  • Shares outstanding: 388.06m
  • Website: https://www.imdexlimited.com

Number of Employees


Location

  • Imdex Limited
  • 216 Balcatta Road
  • Balcatta
  • Western Australia
  • 6021
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IMDASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
IMDX.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
IDGDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
IMDCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992

Biography

Imdex Limited, together with its subsidiaries, provides mining equipment, technology, and services for the minerals industry in the Asia-Pacific, Africa, Europe, the Americas, and internationally. The company offers drilling fluids, equipment, technologies, and software used to optimize drilling programs, as well as solutions for the minerals, horizontal directional drilling, water well, and civil construction sectors under the AMC brand. It also provides downhole instrumentation, data management, and analytical software for geological modelling, as well as geo-scientific data analysis and interpretation under the REFLEX brand. The company was formerly known as Pilbara Gold NL and changed its name to Imdex Limited in July 1985. Imdex Limited was incorporated in 1980 and is headquartered in Balcatta, 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 10:31
End of Day Share Price2020/05/28 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.