ASX:MIN

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Average dividend payer with moderate growth potential.


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


Market Performance


7 Day Return

-4.9%

MIN

0.7%

AU Metals and Mining

1.0%

AU Market


1 Year Return

-19.3%

MIN

12.9%

AU Metals and Mining

11.7%

AU Market

Return vs Industry: MIN underperformed the Australian Metals and Mining industry which returned 12.9% over the past year.

Return vs Market: MIN underperformed the Australian Market which returned 11.7% over the past year.


Shareholder returns

MINIndustryMarket
7 Day-4.9%0.7%1.0%
30 Day-9.8%-2.2%-0.2%
90 Day-12.5%-7.4%0.3%
1 Year-16.8%-19.3%20.7%12.9%18.1%11.7%
3 Year31.8%18.2%68.3%47.9%37.4%19.0%
5 Year88.0%55.5%60.8%24.4%51.7%17.6%

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?

14.82x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: MIN (A$12.91) is trading above our estimate of fair value (A$9.77)

Significantly Undervalued: 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 (14.8x) compared to the Metals and Mining industry average (12.6x).

PE vs Market: MIN is good value based on its PE Ratio (14.8x) compared to the Australian market (17.9x).


Price to Earnings Growth Ratio

Low PEG Ratio: MIN is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: MIN is overvalued based on its PB Ratio (1.8x) compared to the AU Metals and Mining industry average (1.6x).


Next Steps

Future Growth

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

13.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MIN's forecast earnings growth (13.4% per year) is above the savings rate (2.3%).

Earnings vs Market: MIN's earnings (13.4% per year) are forecast to grow faster than the Australian market (10.2% per year).

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

Revenue vs Market: MIN's revenue (8.1% per year) is forecast to grow faster than the Australian market (3.5% per year).

High Growth Revenue: MIN's revenue (8.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: MIN's Return on Equity is forecast to be low in 3 years time (10.5%).


Next Steps

Past Performance

How has Mineral Resources performed over the past 5 years?

19.8%

Historical annual earnings growth


Earnings and Revenue History


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 (1.3%).


Return on Equity

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


Return on Assets

ROA vs Industry: MIN's Return on Assets is below or equal to the Metals and Mining industry average last year.


Return on Capital Employed

ROCE Improving: MIN's Return on Capital Employed has declined over the past 3 years.


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) exceeds its short term liabilities (A$424.8M)

Long Term Liabilities: MIN's short term assets (1.2B) do not cover its long term liabilities (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 1.226640x debt).


Next Steps

Dividend

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

3.41%

Current Dividend Yield


Dividend Yield vs Market

company3.4%marketbottom25%2.5%markettop25%5.6%industryaverage4.7%forecastin3Years5.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: MIN's dividend (3.41%) is higher than the bottom 25% of dividend payers in the Australian market (2.47%).

High Dividend: MIN's dividend (3.41%) is low compared to the top 25% of dividend payers in the Australian market (5.58%).

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 (53.4% 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?

1.1yrs

Average management tenure


CEO

Chris Ellison (62yo)

6.9yrs

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 ($USD2.04M) is about average for companies of similar size in the Australian market ($USD1.53M).

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


Management Age and Tenure

1.1yrs

Average Tenure

Experienced Management: MIN's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Age and Tenure

6.9yrs

Average Tenure

55yo

Average Age

Experienced Board: MIN's board of directors are considered experienced (6.9 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

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
BuyAU$29,605,72704 Dec 18
Timothy Roberts
EntityIndividual
Shares2,000,387
Max PriceAU$14.80
BuyAU$1,916,22326 Nov 18
Perpetual Limited
EntityCompany
Shares126,676
Max PriceAU$15.26
SellAU$3,140,40426 Nov 18
Perpetual Limited
EntityCompany
Shares200,000
Max PriceAU$15.70
SellAU$22,932,82823 Nov 18
Perpetual Limited
EntityCompany
Shares1,467,390
Max PriceAU$15.63
BuyAU$23,192,39823 Nov 18
Perpetual Limited
EntityCompany
Shares1,648,761
Max PriceAU$14.07

Ownership Breakdown


Management Team

  • Mark Wilson (52yo)

    CFO & Company Secretary

    • Tenure: 1.2yrs
    • Compensation: AU$10.55m
  • Chris Ellison (62yo)

    MD & Director

    • Tenure: 6.9yrs
    • Compensation: AU$3.02m
  • Derek Oelofse

    Joint Company Secretary

    • Tenure: 1yrs
  • Mike Grey

    Chief Operating Officer of Mining Services

    • Tenure: 0.4yrs
    • Compensation: AU$753.85k

Board Members

  • James McClements

    Lead Independent Non-Executive Director

    • Tenure: 4.8yrs
    • Compensation: AU$153.30k
  • Kelvin Flynn (48yo)

    Independent Non-Executive Director

    • Tenure: 9.6yrs
    • Compensation: AU$153.30k
  • Peter Wade (69yo)

    Non-Executive Chairman

    • Tenure: 6.9yrs
    • Compensation: AU$273.75k
  • Chris Ellison (62yo)

    MD & Director

    • Tenure: 6.9yrs
    • Compensation: AU$3.02m
  • Xi Xi (43yo)

    Independent Non-Executive Director

    • Tenure: 2.1yrs
    • 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$2.461b
  • Shares outstanding: 187.30m
  • Website: https://www.mineralresources.com.au

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, Minin ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 10:33
End of Day Share Price2019/10/15 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.