Discounted Cash Flow Calculation for ASX:MXRDA using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value using the 2 stage method. We use
analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.
ASX:MXRDA DCF 1st Stage: Next 5 year cash flow forecast
Amount off the current price
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
Maximus Resources's share price is below the future cash flow value, and at a moderate discount (> 20%).
Maximus Resources's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
Maximus Resources's earnings available for a low price, and how does
this compare to other companies in the same industry?
In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Maximus Resources has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.
This is quite a rare situation as 97% of companies covered by Simply Wall St do have past financial data. You can see them here.
Show me the analysis anyway
The future performance of a company is measured in the same way as past
performance, by looking at estimated
and how much profit it is expected to make.
Future estimates come from
professional analysts. Just like forecasting the weather, they don’t always get
Expected Metals and Mining industry annual growth in earnings.
Earnings growth vs Low Risk Savings
expected to grow at an
Unable to compare Maximus Resources's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Maximus Resources's earnings growth to the Australia market average as no estimate data is available.
Unable to compare Maximus Resources's revenue growth to the Australia market average as no estimate data is available.
Unable to determine if Maximus Resources is high growth as no earnings estimate data is available.
Unable to determine if Maximus Resources is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Maximus Resources's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
Metals and Mining
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
0/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
Maximus Resources's finances.
The net worth of a company is the difference between its assets and liabilities.
Maximus Resources's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
Maximus Resources's long term commitments exceed its cash and other short term assets.
This treemap shows a more detailed breakdown of
Maximus Resources's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
High level of physical assets or inventory.
Debt is covered by short term assets, assets are 5.7x debt.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Mr. Kevin John Malaxos, BEng, MAICD, has been the Managing Director at Maximus Resources Limited since December 13, 2010. Mr. Malaxos has 25 years experience in the resources sector in senior management and executive roles across a suite of commodities including gold, nickel, iron ore, silver, lead, Zinc and chromium. He served as the Chief Executive Officer of Central Asia Resources Limited until February 2008. He served as the Chief Operating Officer of Centrex Metals Limited from February 4, 2008 to December 10, 2010. He served as an Interim Chief Executive Officer of Centrex Metals Limited from July 16, 2010 to August 15, 2010. He was responsible for mine design, recruitment, systems development and materials handling for the Wilgerup hematite mining operations for Centrex Metals Limited. He served as the Chief Executive Officer of Mount Gibson Mining Limited, a subsidiary of Mount Gibson Iron Ltd. until December 18, 2006. He has been a Director of Maximus Resources Limited since December 13, 2010. He served as a Non Executive Director of Flinders Mines Limited from December 21, 2010 to October 19, 2016. Mr. Malaxos holds a Degree in Mining Engineering from WA School of Mines in Kalgoorlie.
Kevin's compensation has increased whilst company is loss making.
Kevin's remuneration is lower than average for companies of similar size in Australia.
Maximus Resources Limited engages in the exploration and development of mineral properties primarily in Western Australia. It primarily explores for gold, lithium, nickel, and base metals deposits. The company holds interest in the Spargoville project in the south of the regional mining center of Kalgoorlie. It also holds royalty interest in the Yandal project and the Adelade Hills project. The company was incorporated in 2004 and is based in Adelaide, Australia.
Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.