Executive Summary
Mount Gibson Iron Limited, together with its subsidiaries, engages in mining and processing of hematite iron ore deposits in Australia.
Snowflake
Excellent balance sheet with proven 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
2.5%
MGX
-0.06%
AU Metals and Mining
-0.1%
AU Market
1 Year Return
42.5%
MGX
15.6%
AU Metals and Mining
16.5%
AU Market
Return vs Industry: MGX exceeded the Australian Metals and Mining industry which returned 15.6% over the past year.
Return vs Market: MGX exceeded the Australian Market which returned 16.5% over the past year.
Shareholder returns
| MGX | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.5% | -0.06% | -0.1% |
| 30 Day | 14.2% | 4.5% | 1.5% |
| 90 Day | 12.6% | 0.4% | 3.5% |
| 1 Year | 50.9%42.5% | 24.1%15.6% | 23.2%16.5% |
| 3 Year | 180.9%136.8% | 61.8%39.6% | 41.1%21.9% |
| 5 Year | 133.0%96.3% | 80.8%37.6% | 55.2%20.6% |
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
1 day ago | Simply Wall St
Read This Before You Buy Mount Gibson Iron Limited (ASX:MGX) Because Of Its P/E Ratio2 weeks ago | Simply Wall St
The Mount Gibson Iron (ASX:MGX) Share Price Is Up 146% And Shareholders Are Boasting About It4 weeks ago | Simply Wall St
Are Insiders Selling Mount Gibson Iron Limited (ASX:MGX) Stock?Valuation
Is Mount Gibson Iron undervalued compared to its fair value and its price relative to the market?
6.73x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: MGX (A$0.81) is trading above our estimate of fair value (A$0.27)
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 (6.7x) compared to the Metals and Mining industry average (12.3x).
PE vs Market: MGX is good value based on its PE Ratio (6.7x) compared to the Australian market (18.7x).
Price to Earnings Growth Ratio
PEG Ratio: MGX's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: MGX is overvalued based on its PB Ratio (1.5x) compared to the AU Metals and Mining industry average (1.4x).
Next Steps
Future Growth
How is Mount Gibson Iron forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
-14.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MGX's earnings are forecast to decline over the next 3 years (-14% per year).
Earnings vs Market: MGX's earnings are forecast to decline over the next 3 years (-14% per year).
High Growth Earnings: MGX's earnings are forecast to decline over the next 3 years.
Revenue vs Market: MGX's revenue (13.2% per year) is forecast to grow faster than the Australian market (3.6% per year).
High Growth Revenue: MGX's revenue (13.2% per year) is forecast to grow slower 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 (14.7%).
Next Steps
Past Performance
How has Mount Gibson Iron performed over the past 5 years?
61.0%
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 (47.9%) are higher than last year (39%).
Past Earnings Growth Analysis
Earnings Trend: MGX has become profitable over the past 5 years, growing earnings by 61% per year.
Accelerating Growth: MGX's earnings growth over the past year (34.5%) is below its 5-year average (61% per year).
Earnings vs Industry: MGX earnings growth over the past year (34.5%) exceeded the Metals and Mining industry 7.8%.
Return on Equity
High ROE: MGX's Return on Equity (21.7%) is considered high.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Mount Gibson Iron's financial position?
Financial Position Analysis
Short Term Liabilities: MGX's short term assets (A$447.7M) exceeds its short term liabilities (A$73.1M)
Long Term Liabilities: MGX's short term assets (A$447.7M) exceeds its long term liabilities (43.3M)
Debt to Equity History and Analysis
Debt Level: MGX's debt to equity ratio (0.3%) is considered satisfactory.
Reducing Debt: MGX's debt to equity ratio has increased from 0% to 0.3% over the past 5 years.
Debt Coverage: MGX's debt is well covered by operating cash flow (3387.6%).
Interest Coverage: MGX earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Inventory Level: MGX has a high level of physical assets or inventory.
Debt Coverage by Assets: MGX's debt is covered by short term assets (assets are 255.4x debt).
Next Steps
Dividend
What is Mount Gibson Iron's current dividend yield, its reliability and sustainability?
4.97%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: MGX's dividend (4.97%) is higher than the bottom 25% of dividend payers in the Australian market (2.37%).
High Dividend: MGX's dividend (4.97%) is low compared to the top 25% of dividend payers in the Australian market (5.62%).
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 8 years, and since then payments have not increased.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (33.4%), 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 (19.2% payout ratio).
Next Steps
Management
What is the CEO of Mount Gibson Iron's salary, the management and board of directors tenure and is there insider trading?
1.1yrs
Average management tenure
CEO
Peter Kerr 0
1.1yrs
Tenure
AU$1,150,877
Compensation
Mr. Peter W. Kerr, B.Comm, CA, F.Fin, M.AusIMM, M.AICD., has been the Chief Executive Officer at Mount Gibson Iron Limited since October 1, 2018. He served as the Chief Financial Officer of Mount Gibson Ir ...
CEO Compensation Analysis
Compensation vs Market: Peter's total compensation ($USD784.83K) is about average for companies of similar size in the Australian market ($USD987.60K).
Compensation vs Earnings: Peter's compensation has increased by more than 20% in the past year.
Management Age and Tenure
1.1yrs
Average Tenure
Experienced Management: MGX's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.
Board Age and Tenure
7.8yrs
Average Tenure
51yo
Average Age
Experienced Board: MGX's board of directors are considered experienced (7.8 years average tenure).
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Company |
| Shares | 1,470,355 |
| Max Price | AU$0.77 |
| Entity | Company |
| Shares | 241,782 |
| Max Price | AU$0.72 |
| Entity | Company |
| Shares | 1,225,434 |
| Max Price | AU$0.74 |
| Entity | Company |
| Shares | 372,489 |
| Max Price | AU$0.76 |
| Entity | Company |
| Shares | 401,975 |
| Max Price | AU$0.75 |
| Entity | Company |
| Shares | 550,555 |
| Max Price | AU$0.75 |
| Entity | Company |
| Shares | 955,840 |
| Max Price | AU$0.75 |
| Entity | Company |
| Shares | 1,726,399 |
| Max Price | AU$0.74 |
| Entity | Company |
| Shares | 1,060,000 |
| Max Price | AU$0.71 |
| Entity | Company |
| Shares | 178,595 |
| Max Price | AU$0.67 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Non-Executive Director |
| Shares | 100,000 |
| Max Price | AU$1.17 |
| Entity | Individual |
| Role | Lead Director Lead Independent Non-Executive Director |
| Shares | 24,000 |
| Max Price | AU$0.53 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
Peter Kerr
Chief Executive Officer
- Tenure: 1.1yrs
- Compensation: AU$1.15m
David Stokes
Company Secretary & General Counsel
- Tenure: 7.6yrs
- Compensation: AU$744.93k
J. Fitzgerald
Group Financial Controller
- Tenure: 0yrs
Gillian Dobson
Chief Financial Officer
- Tenure: 1.1yrs
- Compensation: AU$515.30k
Mark Mitchell
Chief Operating Officer
- Tenure: 0.8yrs
Board Members
Russell Barwick
Independent Non-Executive Director
- Tenure: 8yrs
- Compensation: AU$103.50k
Simon Bird
Lead Independent Non-Executive Director
- Tenure: 5.8yrs
- Compensation: AU$111.00k
Shaofeng Li (52yo)
Non-Executive Director
- Tenure: 7.8yrs
Seng-Hui Lee (50yo)
Non-Executive Chairman
- Tenure: 5.8yrs
- Compensation: AU$104.63k
Alan Jones (76yo)
Independent Non-Executive Director
- Tenure: 13.3yrs
- Compensation: AU$103.50k
Andrew Ferguson (46yo)
Alternate Director
- Tenure: 7.2yrs
Paul Dougas
Independent Non-Executive Director
- Tenure: 8yrs
- Compensation: AU$90.50k
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$931.934m
- 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 Mi ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/11/19 10:32 |
| End of Day Share Price | 2019/11/19 00:00 |
| Earnings | 2019/06/30 |
| 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.