Executive Summary
Mount Gibson Iron Limited, together with its subsidiaries, engages in mining and processing of hematite iron ore in Australia. More Details
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet and undervalued.
Similar Companies
Share Price & News
How has Mount Gibson Iron's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: MGX is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: MGX's weekly volatility (5%) has been stable over the past year.
Market Performance
7 Day Return
-8.0%
MGX
2.7%
AU Metals and Mining
0.01%
AU Market
1 Year Return
21.1%
MGX
37.6%
AU Metals and Mining
27.8%
AU Market
Return vs Industry: MGX underperformed the Australian Metals and Mining industry which returned 37.6% over the past year.
Return vs Market: MGX underperformed the Australian Market which returned 27.8% over the past year.
Shareholder returns
| MGX | Industry | Market | |
|---|---|---|---|
| 7 Day | -8.0% | 2.7% | 0.01% |
| 30 Day | -7.0% | 8.2% | 1.8% |
| 90 Day | -7.0% | 9.6% | 4.7% |
| 1 Year | 25.9%21.1% | 44.7%37.6% | 32.6%27.8% |
| 3 Year | 134.1%100.0% | 91.6%64.2% | 34.4%18.1% |
| 5 Year | 265.9%196.6% | 170.7%121.6% | 66.2%33.9% |
Long-Term Price Volatility Vs. Market
How volatile is Mount Gibson Iron's share price compared to the market and industry in the last 5 years?
Simply Wall St News
4 days ago | Simply Wall St
Returns On Capital Are Showing Encouraging Signs At Mount Gibson Iron (ASX:MGX)2 months ago | Simply Wall St
Shareholders of Mount Gibson Iron (ASX:MGX) Must Be Delighted With Their 447% Total Return2 months ago | Simply Wall St
Is Mount Gibson Iron Limited's(ASX:MGX) Recent Stock Performance Tethered To Its Strong Fundamentals?Valuation
Is Mount Gibson Iron 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: MGX (A$0.86) is trading below our estimate of fair value (A$6.7)
Significantly Below Fair Value: MGX is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: MGX is good value based on its PE Ratio (8.7x) compared to the Australian Metals and Mining industry average (12.4x).
PE vs Market: MGX is good value based on its PE Ratio (8.7x) compared to the Australian market (20.5x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate MGX's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: MGX is good value based on its PB Ratio (1.4x) compared to the AU Metals and Mining industry average (2.6x).
Future Growth
How is Mount Gibson Iron forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
33.6%
Forecasted annual revenue growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: Insufficient data to determine if MGX's forecast earnings growth is above the savings rate (1.9%).
Earnings vs Market: Insufficient data to determine if MGX's earnings are forecast to grow faster than the Australian market
High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: MGX's revenue (33.6% per year) is forecast to grow faster than the Australian market (4.9% per year).
High Growth Revenue: MGX's revenue (33.6% per year) is forecast to grow faster than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: MGX's Return on Equity is forecast to be high in 3 years time (35.7%)
Past Performance
How has Mount Gibson Iron performed over the past 5 years?
22.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MGX has a high level of non-cash earnings.
Growing Profit Margin: MGX's current net profit margins (25.4%) are lower than last year (37.3%).
Past Earnings Growth Analysis
Earnings Trend: MGX has become profitable over the past 5 years, growing earnings by 22.4% per year.
Accelerating Growth: MGX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: MGX had negative earnings growth (-13.8%) over the past year, making it difficult to compare to the Metals and Mining industry average (22.9%).
Return on Equity
High ROE: MGX's Return on Equity (15.7%) is considered low.
Financial Health
How is Mount Gibson Iron's financial position?
Financial Position Analysis
Short Term Liabilities: MGX's short term assets (A$507.5M) exceed its short term liabilities (A$80.6M).
Long Term Liabilities: MGX's short term assets (A$507.5M) exceed its long term liabilities (A$55.9M).
Debt to Equity History and Analysis
Debt Level: MGX is debt free.
Reducing Debt: MGX has no debt compared to 5 years ago when its debt to equity ratio was 0.6%.
Debt Coverage: MGX has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: MGX has no debt, therefore coverage of interest payments is not a concern.
Balance Sheet
Dividend
What is Mount Gibson Iron current dividend yield, its reliability and sustainability?
3.49%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: MGX's dividend (3.49%) is higher than the bottom 25% of dividend payers in the Australian market (1.99%).
High Dividend: MGX's dividend (3.49%) is low compared to the top 25% of dividend payers in the Australian market (4.98%).
Stability and Growth of Payments
Stable Dividend: MGX's dividend payments have been volatile in the past 10 years.
Growing Dividend: MGX's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (30.4%), MGX's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: MGX's dividends in 3 years are forecast to be well covered by earnings (23.8% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.8yrs
Average management tenure
CEO
Peter Kerr
2.75yrs
Tenure
AU$991,648
Compensation
Mr. Peter W. Kerr, B.Comm, CA, F.Fin, M.AusIMM, M.AICD., has been the Chief Executive Officer at Mount Gibson Iron Limited since October 1, 2018. He served as the Chief Financial Officer of Mount Gibson Ir...
CEO Compensation Analysis
Compensation vs Market: Peter's total compensation ($USD728.51K) is about average for companies of similar size in the Australian market ($USD894.99K).
Compensation vs Earnings: Peter's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: MGX's management team is considered experienced (2.8 years average tenure).
Board Members
Experienced Board: MGX's board of directors are considered experienced (8.8 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
Mount Gibson Iron Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Mount Gibson Iron Limited
- Ticker: MGX
- Exchange: ASX
- Founded: 1996
- Industry: Steel
- Sector: Materials
- Market Cap: AU$1.022b
- Shares outstanding: 1.19b
- Website: https://www.mtgibsoniron.com.au
Number of Employees
Location
- Mount Gibson Iron Limited
- 2 Kings Park Road
- Level 1
- West Perth
- Western Australia
- 6005
- Australia
Listings
Biography
Mount Gibson Iron Limited, together with its subsidiaries, engages in mining and processing of hematite iron ore in Australia. It operates in two segments, Extension Hill and Koolan Island. The company pri...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/07/31 08:12 |
| End of Day Share Price | 2021/07/30 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/06/30 |
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.