Executive Summary
Mount Gibson Iron Limited, together with its subsidiaries, engages in mining and processing of hematite iron ore deposits in Australia.
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet with solid track record.
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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
0.7%
MGX
0.7%
AU Metals and Mining
5.0%
AU Market
1 Year Return
-44.3%
MGX
3.4%
AU Metals and Mining
-10.3%
AU Market
Return vs Industry: MGX underperformed the Australian Metals and Mining industry which returned 1.7% over the past year.
Return vs Market: MGX underperformed the Australian Market which returned -9.4% over the past year.
Shareholder returns
| MGX | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.7% | 0.7% | 5.0% |
| 30 Day | 7.1% | 12.1% | 8.8% |
| 90 Day | -1.4% | 9.1% | -9.9% |
| 1 Year | -41.0%-44.3% | 8.6%3.4% | -6.6%-10.3% |
| 3 Year | 169.0%126.7% | 59.8%39.1% | 11.1%-3.5% |
| 5 Year | 284.2%223.8% | 99.9%62.0% | 28.9%1.1% |
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
2 months ago | Simply Wall St
Is Mount Gibson Iron Limited (ASX:MGX) The Right Choice For A Smart Dividend Investor?3 months ago | Simply Wall St
Read This Before You Buy Mount Gibson Iron Limited (ASX:MGX) Because Of Its P/E Ratio3 months ago | Simply Wall St
Boasting A 22% Return On Equity, Is Mount Gibson Iron Limited (ASX:MGX) A Top Quality Stock?Valuation
Is Mount Gibson Iron undervalued compared to its fair value and its price relative to the market?
5.79x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: MGX (A$0.68) is trading above our estimate of fair value (A$0.36)
Significantly Below Fair Value: MGX is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: MGX is good value based on its PE Ratio (5.8x) compared to the Metals and Mining industry average (10.3x).
PE vs Market: MGX is good value based on its PE Ratio (5.8x) compared to the Australian market (15.4x).
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 (1.2x) compared to the AU Metals and Mining industry average (1.5x).
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Future Growth
How is Mount Gibson Iron forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?
21.7%
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 (2.3%).
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 (21.7% per year) is forecast to grow faster than the Australian market (4.2% per year).
High Growth Revenue: MGX's revenue (21.7% 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 low in 3 years time (17.3%).
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Past Performance
How has Mount Gibson Iron performed over the past 5 years?
74.4%
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 (37.4%) are higher than last year (20.4%).
Past Earnings Growth Analysis
Earnings Trend: MGX has become profitable over the past 5 years, growing earnings by 74.4% per year.
Accelerating Growth: MGX's earnings growth over the past year (107.1%) exceeds its 5-year average (74.4% per year).
Earnings vs Industry: MGX earnings growth over the past year (107.1%) exceeded the Metals and Mining industry -7.9%.
Return on Equity
High ROE: MGX's Return on Equity (21%) is considered high.
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Financial Health
How is Mount Gibson Iron's financial position?
Financial Position Analysis
Short Term Liabilities: MGX's short term assets (A$454.0M) exceed its short term liabilities (A$74.4M).
Long Term Liabilities: MGX's short term assets (A$454.0M) exceed its long term liabilities (A$52.9M).
Debt to Equity History and Analysis
Debt Level: MGX is debt free.
Reducing Debt: MGX had no debt 5 years ago.
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
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Dividend
What is Mount Gibson Iron's current dividend yield, its reliability and sustainability?
5.88%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: MGX's dividend (5.88%) is higher than the bottom 25% of dividend payers in the Australian market (2.68%).
High Dividend: MGX's dividend (5.88%) is low compared to the top 25% of dividend payers in the Australian market (6.6%).
Stability and Growth of Payments
Stable Dividend: MGX has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: MGX has only been paying a dividend for 9 years, and since then payments have not increased.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (34%), 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 (24.3% payout ratio).
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Management
How experienced are the management team and are they aligned to shareholders interests?
1.6yrs
Average management tenure
CEO
Peter Kerr
1.58yrs
Tenure
AU$1,150,877
Compensation
Mr. Peter W. Kerr, B.Comm, CA, F.Fin, M.AusIMM, M.AICD., has been the Chief Executive Officer at Mount Gibson Iron Limited since October 1, 2018. He served as the Chief Financial Officer of Mount Gibson Ir ...
CEO Compensation Analysis
Compensation vs Market: Peter's total compensation ($USD766.18K) is about average for companies of similar size in the Australian market ($USD772.90K).
Compensation vs Earnings: Peter's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chief Executive Officer | 1.58yrs | AU$1.15m | 0.26% A$2.1m | |
| Chief Financial Officer | 1.58yrs | AU$515.30k | no data | |
| Company Secretary & General Counsel | 8.08yrs | AU$744.93k | 0.16% A$1.3m | |
| Chief Operating Officer | 1.33yrs | no data | no data | |
| Group Financial Controller | no data | no data | no data |
1.6yrs
Average Tenure
Experienced Management: MGX's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Independent Non-Executive Director | 8.5yrs | AU$103.50k | no data | |
| Lead Independent Non-Executive Director | 6.33yrs | AU$111.00k | 0.0041% A$32.6k | |
| Non-Executive Chairman | 6.17yrs | AU$104.63k | no data | |
| Independent Non-Executive Director | 13.83yrs | AU$103.50k | 0.026% A$204.0k | |
| Alternate Director | 7.67yrs | no data | no data | |
| Independent Non-Executive Director | 8.5yrs | AU$90.50k | 0.063% A$498.0k | |
| Non-Executive Director | 0.42yr | no data | no data |
7.7yrs
Average Tenure
52yo
Average Age
Experienced Board: MGX's board of directors are considered experienced (7.7 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 2.6%.
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$787.224m
- Shares outstanding: 1.16b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| MGX | ASX (Australian Securities Exchange) | Yes | Ordinary Shares | AU | AUD | Jan 2002 |
| FWQ | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jan 2002 |
| MTGR.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jan 2002 |
| MGX | CHIA (Chi-X Australia) | Yes | Ordinary Shares | AU | AUD | Jan 2002 |
| MTGR.Y | OTCPK (Pink Sheets LLC) | UNSPONSORED ADR | US | USD | Jan 2012 |
Biography
Mount Gibson Iron Limited, together with its subsidiaries, engages in mining and processing of hematite iron ore deposits in Australia. The company primarily operates the Extension Hill mine site in the Mid-West region of Western Australia; and haulage of the ore via road and rail for export from the Geraldton Port. It is also involved in mining and direct shipment of hematite iron ore at the Koolan Island mine site in the Kimberley region of Western Australia; and the treasury management activities. The company was founded in 1996 and is based in West Perth, Australia.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/05/30 10:31 |
| End of Day Share Price | 2020/05/29 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/06/30 |
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.