ASX:MIN

Stock Analysis Report

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Executive Summary

Mineral Resources Limited, together with subsidiaries, operates as a mining services and processing company in Australia, China, and Singapore. More Details


Snowflake Analysis

Solid track record with adequate balance sheet and pays a dividend.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-10.4%

MIN

0.6%

AU Metals and Mining

-0.1%

AU Market


1 Year Return

78.6%

MIN

3.5%

AU Metals and Mining

-12.0%

AU Market

Return vs Industry: MIN exceeded the Australian Metals and Mining industry which returned 5.4% over the past year.

Return vs Market: MIN exceeded the Australian Market which returned -10.5% over the past year.


Shareholder returns

MINIndustryMarket
7 Day-10.4%0.6%-0.1%
30 Day-13.5%-4.3%-2.9%
90 Day27.2%11.0%1.1%
1 Year85.8%78.6%8.5%3.5%-8.7%-12.0%
3 Year79.2%60.8%68.0%44.7%17.7%2.6%
5 Year635.4%513.0%155.7%106.4%44.5%14.1%

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?

4.68x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MIN (A$24.95) is trading above our estimate of fair value (A$16.31)

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


Price To Earnings Ratio

PE vs Industry: MIN is good value based on its PE Ratio (4.7x) compared to the AU Metals and Mining industry average (13.5x).

PE vs Market: MIN is good value based on its PE Ratio (4.7x) compared to the Australian market (19.9x).


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 good value based on its PB Ratio (2.1x) compared to the AU Metals and Mining industry average (2.3x).


Next Steps

Future Growth

How is Mineral Resources forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

-39.9%

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 (-39.9% per year).

Earnings vs Market: MIN's earnings are forecast to decline over the next 3 years (-39.9% per year).

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

Revenue vs Market: MIN's revenue (7.5% per year) is forecast to grow faster than the Australian market (4.4% per year).

High Growth Revenue: MIN's revenue (7.5% 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 (12.7%).


Next Steps

Past Performance

How has Mineral Resources performed over the past 5 years?

60.2%

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 (47.2%) are higher than last year (11.1%).


Past Earnings Growth Analysis

Earnings Trend: MIN's earnings have grown significantly by 60.2% per year over the past 5 years.

Accelerating Growth: MIN's earnings growth over the past year (496.3%) exceeds its 5-year average (60.2% per year).

Earnings vs Industry: MIN earnings growth over the past year (496.3%) exceeded the Metals and Mining industry 7.8%.


Return on Equity

High ROE: MIN's Return on Equity (43.7%) is considered outstanding.


Next Steps

Financial Health

How is Mineral Resources's financial position?


Financial Position Analysis

Short Term Liabilities: MIN's short term assets (A$1.9B) exceed its short term liabilities (A$924.3M).

Long Term Liabilities: MIN's short term assets (A$1.9B) exceed its long term liabilities (A$1.4B).


Debt to Equity History and Analysis

Debt Level: MIN's debt to equity ratio (43.9%) is considered high.

Reducing Debt: MIN's debt to equity ratio has increased from 0% to 43.9% over the past 5 years.

Debt Coverage: MIN's debt is well covered by operating cash flow (59%).

Interest Coverage: MIN's interest payments on its debt are well covered by EBIT (4.8x coverage).


Balance Sheet


Next Steps

Dividend

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

4.01%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MIN's dividend (4.01%) is higher than the bottom 25% of dividend payers in the Australian market (2.36%).

High Dividend: MIN's dividend (4.01%) is low compared to the top 25% of dividend payers in the Australian market (5.7%).


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 low payout ratio (18.8%), MIN's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MIN's dividends in 3 years are forecast to be well covered by earnings (49.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.9yrs

Average management tenure


CEO

Chris Ellison (63 yo)

7.83yrs

Tenure

AU$3,615,321

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 ($USD2.65M) is about average for companies of similar size in the Australian market ($USD2.13M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Christopher Ellison
MD & Director7.83yrsAU$3.62m11.8%
A$ 553.1m
Mark Wilson
CFO & Company Secretary2.08yrsAU$1.46m0.013%
A$ 626.8k
Michael Grey
Chief Executive of Mining Services0.25yrAU$1.23mno data
Paul Brown
Chief Executive of Commodities0.67yrAU$512.75k0.0057%
A$ 269.6k
James Bruce
Head of Investor Relationsno datano datano data
Derek Oelofse
Joint Company Secretary1.92yrsno datano data

1.9yrs

Average Tenure

Experienced Management: MIN's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Christopher Ellison
MD & Director7.83yrsAU$3.62m11.8%
A$ 553.1m
Michael Grey
Chief Executive of Mining Services0.25yrAU$1.23mno data
James McClements
Lead Independent Non-Executive Director5.67yrsAU$153.30k0.0085%
A$ 399.0k
Kelvin Flynn
Independent Non-Executive Director10.5yrsAU$153.30k0.0085%
A$ 399.0k
Peter Wade
Non-Executive Chairman12.67yrsAU$273.75k0.18%
A$ 8.6m
Xi Xi
Independent Non-Executive Director3yrsAU$153.30k0.0078%
A$ 364.7k

8.1yrs

Average Tenure

56yo

Average Age

Experienced Board: MIN's board of directors are considered experienced (8.1 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 not been meaningfully diluted in the past year.


Top Shareholders

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$4.688b
  • Shares outstanding: 187.90m
  • 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, together with subsidiaries, operates as a mining services and processing company in Australia, China, and Singapore. It operates through three segments: Mining Services, Commodit ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/17 19:07
End of Day Share Price2020/09/17 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.