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%

ASX:MIN

3.7%

AU Metals and Mining

0.5%

AU Market


1 Year Return

-6.3%

ASX:MIN

20.9%

AU Metals and Mining

6.3%

AU Market

MIN underperformed the Metals and Mining industry which returned 18.2% over the past year.

MIN underperformed the Market in Australia which returned 6.3% over the past year.


Share holder returns

MINIndustryMarket
7 Day4.9%3.7%0.5%
30 Day5.8%4.0%4.6%
90 Day-1.7%-0.08%2.1%
1 Year-3.3%-6.3%29.3%20.9%12.3%6.3%
3 Year48.5%33.2%86.5%62.5%41.4%22.4%
5 Year98.5%64.2%59.9%23.7%49.4%16.6%

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 based on future cash flows and its price relative to the stock market?

16.36x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Mineral Resources's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Mineral Resources's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Mineral Resources is overvalued based on earnings compared to the AU Metals and Mining industry average.

Mineral Resources is good value based on earnings compared to the Australia market.


Price Based on Expected Growth

Mineral Resources is good value based on expected growth next year.


Price Based on Value of Assets

Mineral Resources is overvalued based on assets compared to the AU Metals and Mining industry average.


Next Steps

Future Growth

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

17.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Mineral Resources's revenue is expected to grow by 7.6% yearly, however this is not considered high growth (20% yearly).

Mineral Resources's earnings are expected to grow by 17.6% yearly, however this is not considered high growth (20% yearly).

Mineral Resources's revenue growth is expected to exceed the Australia market average.

Mineral Resources's earnings growth is expected to exceed the Australia market average.

Mineral Resources's earnings growth is expected to exceed the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

Mineral Resources is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

Mineral Resources's year on year earnings growth rate has been positive over the past 5 years.

Mineral Resources's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Mineral Resources's 1-year earnings growth is negative, it can't be compared to the AU Metals and Mining industry average.


Return on Equity

Mineral Resources has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Mineral Resources used its assets less efficiently than the AU Metals and Mining industry average last year based on Return on Assets.


Return on Capital Employed

Mineral Resources has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).


Next Steps

Financial Health

How is Mineral Resources's financial position?


Financial Position Analysis

Mineral Resources is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Mineral Resources's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Mineral Resources's level of debt (71.3%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (9.5% vs 71.3% today).

Debt is not well covered by operating cash flow (18.9%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 11.2x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

5.75%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Mineral Resources's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.44%).

Mineral Resources's dividend is below the markets top 25% of dividend payers in Australia (5.52%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (2x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.6x coverage).


Next Steps

Management

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

1.0yrs

Average management tenure


CEO

Chris Ellison (62yo)

6.8yrs

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

Chris's remuneration is about average for companies of similar size in Australia.

Chris's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

1.0yrs

Average Tenure

The average tenure for the Mineral Resources management team is less than 2 years, this suggests a new team.


Board Age and Tenure

6.8yrs

Average Tenure

55yo

Average Age

The tenure for the Mineral Resources board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


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: 1.1yrs
    • Compensation: AU$10.55m
  • Chris Ellison (62yo)

    MD & Director

    • Tenure: 6.8yrs
    • Compensation: AU$3.02m
  • Derek Oelofse

    Joint Company Secretary

    • Tenure: 0.9yrs
  • Rohan O'Grady

    Chief Operating Officer of Construction

    • Tenure: 1yrs
    • Compensation: AU$823.20k
  • Mike Grey

    Chief Operating Officer of Mining Services

    • Tenure: 0.3yrs
    • Compensation: AU$753.85k

Board Members

  • James McClements

    Lead Independent Non-Executive Director

    • Tenure: 4.7yrs
    • Compensation: AU$153.30k
  • Kelvin Flynn (48yo)

    Independent Non-Executive Director

    • Tenure: 9.5yrs
    • Compensation: AU$153.30k
  • Peter Wade (69yo)

    Non-Executive Chairman

    • Tenure: 6.8yrs
    • Compensation: AU$273.75k
  • Chris Ellison (62yo)

    MD & Director

    • Tenure: 6.8yrs
    • Compensation: AU$3.02m
  • Xi Xi (43yo)

    Independent Non-Executive Director

    • Tenure: 2yrs
    • 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$2.682b
  • 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 Analysis2019/09/16 10:34
End of Day Share Price2019/09/16 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.