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NIC

Nickel Industries ASX:NIC Stock Report

Last Price

AU$1.08

Market Cap

AU$3.0b

7D

0.9%

1Y

0.5%

Updated

08 Aug, 2022

Data

Company Financials +
NIC fundamental analysis
Snowflake Score
Valuation4/6
Future Growth6/6
Past Performance3/6
Financial Health5/6
Dividends3/6

NIC Stock Overview

Nickel Industries Limited engages in nickel ore mining and nickel pig iron production operations in Singapore and Indonesia.

Nickel Industries Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Nickel Industries
Historical stock prices
Current Share PriceAU$1.08
52 Week HighAU$1.79
52 Week LowAU$0.89
Beta0.90
1 Month Change13.09%
3 Month Change-6.49%
1 Year Change0.46%
3 Year Change87.83%
5 Year Changen/a
Change since IPO208.57%

Recent News & Updates

Shareholder Returns

NICAU Metals and MiningAU Market
7D0.9%1.4%1.0%
1Y0.5%-16.4%-7.9%

Return vs Industry: NIC exceeded the Australian Metals and Mining industry which returned -16.4% over the past year.

Return vs Market: NIC exceeded the Australian Market which returned -7.9% over the past year.

Price Volatility

Is NIC's price volatile compared to industry and market?
NIC volatility
NIC Average Weekly Movement7.6%
Metals and Mining Industry Average Movement12.1%
Market Average Movement10.6%
10% most volatile stocks in AU Market17.5%
10% least volatile stocks in AU Market4.7%

Stable Share Price: NIC is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: NIC's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
200740,000Justin Wernerhttps://www.nickelindustries.com

Nickel Industries Limited engages in nickel ore mining and nickel pig iron production operations in Singapore and Indonesia. The company holds an 80% interest in the Hengjaya Mine that covers an area of 5,983 hectares located in the Morowali Regency of Central Sulawesi; 80% interest in the Ranger Nickel project; and 70% interest in the Angel Nickel project. It also has an option to acquire a 70% interest in the Oracle Nickel project.

Nickel Industries Fundamentals Summary

How do Nickel Industries's earnings and revenue compare to its market cap?
NIC fundamental statistics
Market CapUS$2.07b
Earnings (TTM)US$137.94m
Revenue (TTM)US$645.94m

14.7x

P/E Ratio

3.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NIC income statement (TTM)
RevenueUS$645.94m
Cost of RevenueUS$393.20m
Gross ProfitUS$252.73m
Other ExpensesUS$114.79m
EarningsUS$137.94m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.051
Gross Margin39.13%
Net Profit Margin21.35%
Debt/Equity Ratio24.6%

How did NIC perform over the long term?

See historical performance and comparison

Dividends

3.6%

Current Dividend Yield

53%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is NIC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NIC?

Other financial metrics that can be useful for relative valuation.

NIC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.9x
Enterprise Value/EBITDA11x
PEG Ratio0.6x

Price to Earnings Ratio vs Peers

How does NIC's PE Ratio compare to its peers?

NIC PE Ratio vs Peers
The above table shows the PE ratio for NIC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average40x
PLS Pilbara Minerals
105.6x10.1%AU$8.5b
ILU Iluka Resources
11.6x-10.0%AU$4.0b
MIN Mineral Resources
14.2x25.0%AU$10.9b
LYC Lynas Rare Earths
32x13.8%AU$8.4b
NIC Nickel Industries
14.7x23.8%AU$3.0b

Price-To-Earnings vs Peers: NIC is good value based on its Price-To-Earnings Ratio (14.7x) compared to the peer average (40x).


Price to Earnings Ratio vs Industry

How does NIC's PE Ratio compare vs other companies in the AU Metals and Mining Industry?

Price-To-Earnings vs Industry: NIC is expensive based on its Price-To-Earnings Ratio (14.7x) compared to the Australian Metals and Mining industry average (9.5x)


Price to Earnings Ratio vs Fair Ratio

What is NIC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NIC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio14.7x
Fair PE Ratio24.8x

Price-To-Earnings vs Fair Ratio: NIC is good value based on its Price-To-Earnings Ratio (14.7x) compared to the estimated Fair Price-To-Earnings Ratio (24.8x).


Share Price vs Fair Value

What is the Fair Price of NIC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NIC (A$1.08) is trading below our estimate of fair value (A$6.32)

Significantly Below Fair Value: NIC is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

How is Nickel Industries forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

Future Growth Score

6/6

Future Growth Score 6/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


23.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NIC's forecast earnings growth (23.8% per year) is above the savings rate (1.8%).

Earnings vs Market: NIC's earnings (23.8% per year) are forecast to grow faster than the Australian market (6.1% per year).

High Growth Earnings: NIC's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NIC's revenue (26.8% per year) is forecast to grow faster than the Australian market (5.7% per year).

High Growth Revenue: NIC's revenue (26.8% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NIC's Return on Equity is forecast to be high in 3 years time (23.5%)


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Past Performance

How has Nickel Industries performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


56.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NIC has high quality earnings.

Growing Profit Margin: NIC's current net profit margins (21.4%) are higher than last year (21.1%).


Past Earnings Growth Analysis

Earnings Trend: NIC has become profitable over the past 5 years, growing earnings by 56% per year.

Accelerating Growth: NIC's earnings growth over the past year (24.7%) is below its 5-year average (56% per year).

Earnings vs Industry: NIC earnings growth over the past year (24.7%) underperformed the Metals and Mining industry 57.3%.


Return on Equity

High ROE: NIC's Return on Equity (13.2%) is considered low.


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Financial Health

How is Nickel Industries's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: NIC's short term assets ($385.2M) exceed its short term liabilities ($73.8M).

Long Term Liabilities: NIC's short term assets ($385.2M) do not cover its long term liabilities ($398.9M).


Debt to Equity History and Analysis

Debt Level: NIC's net debt to equity ratio (14.3%) is considered satisfactory.

Reducing Debt: NIC's debt to equity ratio has reduced from 453.5% to 24.6% over the past 5 years.

Debt Coverage: NIC's debt is well covered by operating cash flow (57.7%).

Interest Coverage: NIC's interest payments on its debt are well covered by EBIT (15.3x coverage).


Balance Sheet


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Dividend

What is Nickel Industries's current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


3.61%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: NIC's dividend (3.61%) is higher than the bottom 25% of dividend payers in the Australian market (2.62%).

High Dividend: NIC's dividend (3.61%) is low compared to the top 25% of dividend payers in the Australian market (6.24%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, NIC has been paying a dividend for less than 10 years.

Growing Dividend: NIC's dividend payments have increased, but the company has only paid a dividend for 2 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (53%), NIC's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (52.1%), NIC's dividend payments are covered by cash flows.


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Management

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

3.0yrs

Average management tenure


CEO

Justin Werner (48 yo)

no data

Tenure

US$432,250

Compensation

Mr. Justin Charles Werner is a Non-Executive Director at Alpha HPA Limited (formerly known as Collerina Cobalt Limited) since December 23, 2010. He serves as Non-Executive Director at Far East Gold Limited...


CEO Compensation Analysis

Compensation vs Market: Justin's total compensation ($USD432.25K) is below average for companies of similar size in the Australian market ($USD1.58M).

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


Leadership Team

Experienced Management: NIC's management team is considered experienced (3 years average tenure).


Board Members

Experienced Board: NIC's board of directors are considered experienced (4.9 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 been diluted in the past year, with total shares outstanding growing by 8.6%.


Top Shareholders

Company Information

Nickel Industries Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Nickel Industries Limited
  • Ticker: NIC
  • Exchange: ASX
  • Founded: 2007
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Implied Market Cap: AU$3.004b
  • Shares outstanding: 2.73b
  • Website: https://www.nickelindustries.com

Number of Employees


Location

  • Nickel Industries Limited
  • 66 Hunter Street
  • Level 2
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/08 00:00
End of Day Share Price2022/08/08 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


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.