ASX:MIN

Stock Analysis Report

Executive Summary

Mineral Resources Limited operates as a mining services and processing company in Australia, China, Singapore, and internationally.

Rewards

Revenue is forecast to grow 8.25% per year

Risk Analysis

Earnings are forecast to decline by an average of -11.5% per year for the next 3 years

Debt is not well covered by operating cash flow

High level of non-cash earnings

Unstable dividend track record

+ 2 more risks


Snowflake Analysis

Average dividend payer with imperfect balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.2%

MIN

0.2%

AU Metals and Mining

0.4%

AU Market


1 Year Return

12.5%

MIN

24.9%

AU Metals and Mining

19.5%

AU Market

Return vs Industry: MIN underperformed the Australian Metals and Mining industry which returned 22% over the past year.

Return vs Market: MIN underperformed the Australian Market which returned 19.4% over the past year.


Shareholder returns

MINIndustryMarket
7 Day-0.2%0.2%0.4%
30 Day4.3%5.1%4.4%
90 Day27.3%11.8%5.0%
1 Year16.0%12.5%31.1%24.9%24.9%19.5%
3 Year55.3%39.3%58.9%39.1%38.6%19.9%
5 Year211.8%157.9%112.3%63.2%60.0%24.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

19.96x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MIN (A$17.52) is trading above our estimate of fair value (A$9.2)

Significantly Below Fair Value: MIN is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MIN is poor value based on its PE Ratio (20.1x) compared to the Metals and Mining industry average (13.2x).

PE vs Market: MIN is poor value based on its PE Ratio (20.1x) compared to the Australian market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: MIN's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: MIN is overvalued based on its PB Ratio (2.4x) compared to the AU Metals and Mining industry average (1.5x).


Next Steps

Future Growth

How is Mineral Resources forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

-11.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MIN's earnings are forecast to decline over the next 3 years (-11.5% per year).

Earnings vs Market: MIN's earnings are forecast to decline over the next 3 years (-11.5% per year).

High Growth Earnings: MIN's earnings are forecast to decline over the next 3 years.

Revenue vs Market: MIN's revenue (8.3% per year) is forecast to grow faster than the Australian market (3.8% per year).

High Growth Revenue: MIN's revenue (8.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MIN's Return on Equity is forecast to be low in 3 years time (9.1%).


Next Steps

Past Performance

How has Mineral Resources performed over the past 5 years?

19.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MIN has a high level of non-cash earnings.

Growing Profit Margin: MIN's current net profit margins (10.8%) are lower than last year (16.7%).


Past Earnings Growth Analysis

Earnings Trend: MIN's earnings have grown by 19.8% per year over the past 5 years.

Accelerating Growth: MIN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MIN had negative earnings growth (-39.9%) over the past year, making it difficult to compare to the Metals and Mining industry average (7.8%).


Return on Equity

High ROE: MIN's Return on Equity (12%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Mineral Resources's financial position?


Financial Position Analysis

Short Term Liabilities: MIN's short term assets (A$1.2B) exceed its short term liabilities (A$424.8M).

Long Term Liabilities: MIN's short term assets (A$1.2B) do not cover its long term liabilities (A$1.4B).


Debt to Equity History and Analysis

Debt Level: MIN's debt to equity ratio (71.3%) is considered high.

Reducing Debt: MIN's debt to equity ratio has increased from 9.5% to 71.3% over the past 5 years.

Debt Coverage: MIN's debt is not well covered by operating cash flow (18.9%).

Interest Coverage: MIN's interest payments on its debt are well covered by EBIT (11.2x coverage).


Balance Sheet

Inventory Level: MIN has a high level of physical assets or inventory.

Debt Coverage by Assets: MIN's debt is covered by short term assets (assets are 1.2x debt).


Next Steps

Dividend

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

2.53%

Current Dividend Yield


Dividend Yield vs Market

company2.5%marketbottom25%2.3%markettop25%5.5%industryaverage4.2%forecastin3Years4.2%

Current dividend yield vs market & industry

Notable Dividend: MIN's dividend (2.51%) is higher than the bottom 25% of dividend payers in the Australian market (2.34%).

High Dividend: MIN's dividend (2.51%) is low compared to the top 25% of dividend payers in the Australian market (5.47%).


Stability and Growth of Payments

Stable Dividend: MIN's dividend payments have been volatile in the past 10 years.

Growing Dividend: MIN's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (50.5%), MIN's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MIN's dividends in 3 years are forecast to be covered by earnings (52.6% payout ratio).


Next Steps

Management

What is the CEO of Mineral Resources's salary, the management and board of directors tenure and is there insider trading?

1.3yrs

Average management tenure


CEO

Chris Ellison (62yo)

7.2yrs

Tenure

AU$3,021,243

Compensation

Mr. Christopher James Ellison, also known as Chris, has been the Managing Director of Mineral Resources Limited since November 16, 2012. Mr. Ellison founded PIHA Pty Ltd. in 1992. Over the next three years ...


CEO Compensation Analysis

Compensation vs Market: Chris's total compensation ($USD2.09M) is above average for companies of similar size in the Australian market ($USD1.41M).

Compensation vs Earnings: Chris's compensation has been consistent with company performance over the past year.


Management Age and Tenure

1.3yrs

Average Tenure

Experienced Management: MIN's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Age and Tenure

7.2yrs

Average Tenure

55yo

Average Age

Experienced Board: MIN's board of directors are considered experienced (7.2 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

SellAU$022 Jan 20
Macquarie Group, Ltd., Banking & Securities Investments
EntityCompany
Shares331,905
Max PriceAU$17.58
BuyAU$022 Jan 20
Macquarie Group, Ltd., Banking & Securities Investments
EntityCompany
Shares264,823
Max PriceAU$17.52
SellAU$022 Jan 20
Macquarie Investment Management Limited
EntityCompany
Shares19,539
Max PriceAU$17.33
BuyAU$24,02422 Jan 20
Macquarie Investment Management Limited
EntityCompany
Shares4,665
Max PriceAU$17.09
SellAU$022 Jan 20
Macquarie Capital Investment Management LLC
EntityCompany
Shares10,840
Max PriceAU$17.02
SellAU$1,165,62626 Nov 19
Macquarie Investment Management Limited
EntityCompany
Shares74,004
Max PriceAU$16.11
BuyAU$6,994,05226 Nov 19
Macquarie Investment Management Limited
EntityCompany
Shares467,385
Max PriceAU$16.36
BuyAU$2,015,17326 Nov 19
Macquarie Capital Investment Management LLC
EntityCompany
Shares131,205
Max PriceAU$15.36
SellAU$32,525,24126 Nov 19
Macquarie Group, Ltd., Banking & Securities Investments
EntityCompany
Shares1,960,299
Max PriceAU$16.65
BuyAU$15,452,81026 Nov 19
Macquarie Group, Ltd., Banking & Securities Investments
EntityCompany
Shares925,318
Max PriceAU$16.70
SellAU$595,89226 Nov 19
Macquarie Capital Investment Management LLC
EntityCompany
Shares40,711
Max PriceAU$14.64
BuyAU$142,465,40318 Nov 19
FIL Limited
EntityCompany
Shares9,661,947
Max PriceAU$14.74
BuyAU$26,226,46105 Nov 19
Magellan Asset Management Limited
EntityCompany
Shares1,898,492
Max PriceAU$14.33
BuyAU$24,742,37016 Oct 19
Magellan Asset Management Limited
EntityCompany
Shares1,901,378
Max PriceAU$13.47
BuyAU$18,893,48720 May 19
Timothy Roberts
EntityIndividual
Shares1,269,480
Max PriceAU$14.88
BuyAU$54,51124 Apr 19
Christopher Ellison
EntityIndividual
Role
Chief Executive Officer
MD & Director
Shares3,448
Max PriceAU$15.81

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Mark Wilson (52yo)

    CFO & Company Secretary

    • Tenure: 1.4yrs
    • Compensation: AU$10.55m
  • Chris Ellison (62yo)

    MD & Director

    • Tenure: 7.2yrs
    • Compensation: AU$3.02m
  • Derek Oelofse

    Joint Company Secretary

    • Tenure: 1.3yrs
  • Mike Grey

    Chief Operating Officer of Mining Services

    • Tenure: 0.7yrs
    • Compensation: AU$753.85k

Board Members

  • James McClements

    Lead Independent Non-Executive Director

    • Tenure: 5yrs
    • Compensation: AU$153.30k
  • Kelvin Flynn (48yo)

    Independent Non-Executive Director

    • Tenure: 9.8yrs
    • Compensation: AU$153.30k
  • Peter Wade (69yo)

    Non-Executive Chairman

    • Tenure: 7.2yrs
    • Compensation: AU$273.75k
  • Chris Ellison (62yo)

    MD & Director

    • Tenure: 7.2yrs
    • Compensation: AU$3.02m
  • Xi Xi (43yo)

    Independent Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: AU$153.30k

Company Information

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


Key Information

  • Name: Mineral Resources Limited
  • Ticker: MIN
  • Exchange: ASX
  • Founded: 1993
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: AU$3.260b
  • Shares outstanding: 187.59m
  • Website: https://www.mineralresources.com.au

Number of Employees


Location

  • Mineral Resources Limited
  • 1 Sleat Road
  • Applecross
  • Western Australia
  • 6153
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MINASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJul 2006
MALR.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2006
F5JDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2006
MINCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJul 2006
MALR.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDJan 2012

Biography

Mineral Resources Limited operates as a mining services and processing company in Australia, China, Singapore, and internationally. It operates through three segments: Mining Services and Processing, Mining, and Central. The company offers contract crushing, screening, and processing services on build-own-operate basis for mining companies; mine services, including materials handling, plant and equipment hire, plant and equipment maintenance, tails recovery, and aggregate crushing; and design, engineering, and construction services in the resources sector. It also manages the processing, production, logistics, ship loading, marketing, and export of resource products on behalf of tenement owners. In addition, the company has a portfolio of iron ore assets; and owns interests in the Mount Marion and Wodgina lithium projects located in Western Australia. The company was founded in 1993 and is based in Applecross, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/26 10:38
End of Day Share Price2020/01/24 00:00
Earnings2019/06/30
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.