ASX:NIC

Stock Analysis Report

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Executive Summary

Nickel Mines Limited produces nickel pig iron used in the production of stainless steel. More Details


Snowflake Analysis

Excellent balance sheet and good value.


Similar Companies

Share Price & News

How has Nickel Mines's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NIC is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: NIC's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

-1.2%

NIC

-0.6%

AU Metals and Mining

-0.3%

AU Market


1 Year Return

72.0%

NIC

26.4%

AU Metals and Mining

-1.6%

AU Market

Return vs Industry: NIC exceeded the Australian Metals and Mining industry which returned 26.4% over the past year.

Return vs Market: NIC exceeded the Australian Market which returned -1.6% over the past year.


Shareholder returns

NICIndustryMarket
7 Day-1.2%-0.6%-0.3%
30 Day7.0%7.5%1.5%
90 Day28.8%22.1%9.2%
1 Year78.9%72.0%33.2%26.4%1.7%-1.6%
3 Yearn/a73.3%49.2%26.2%10.7%
5 Yearn/a282.4%211.4%68.7%35.5%

Long-Term Price Volatility Vs. Market

How volatile is Nickel Mines's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Nickel Mines undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NIC (A$1.23) is trading below our estimate of fair value (A$3.01)

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


Price To Earnings Ratio

PE vs Industry: NIC is poor value based on its PE Ratio (13.7x) compared to the AU Metals and Mining industry average (13.1x).

PE vs Market: NIC is good value based on its PE Ratio (13.7x) compared to the Australian market (22.6x).


Price to Earnings Growth Ratio

PEG Ratio: NIC is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: NIC is overvalued based on its PB Ratio (3.7x) compared to the AU Metals and Mining industry average (2.8x).


Next Steps

Future Growth

How is Nickel Mines forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

24.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NIC's forecast earnings growth (24.2% per year) is above the savings rate (2%).

Earnings vs Market: NIC's earnings (24.2% per year) are forecast to grow faster than the Australian market (18.1% per year).

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

Revenue vs Market: NIC's revenue (18.5% per year) is forecast to grow faster than the Australian market (5.1% per year).

High Growth Revenue: NIC's revenue (18.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NIC's Return on Equity is forecast to be low in 3 years time (19.7%).


Next Steps

Past Performance

How has Nickel Mines performed over the past 5 years?

3,673.8%

Last years revenue growth


Earnings and Revenue History

Quality Earnings: NIC has a high level of non-cash earnings.

Growing Profit Margin: NIC became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if NIC's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: NIC has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: NIC has become profitable in the last year, making it difficult to compare its past year earnings growth to the Metals and Mining industry (38%).


Return on Equity

High ROE: NIC's Return on Equity (25.3%) is considered high.


Next Steps

Financial Health

How is Nickel Mines's financial position?


Financial Position Analysis

Short Term Liabilities: NIC's short term assets ($204.6M) exceed its short term liabilities ($58.1M).

Long Term Liabilities: NIC's short term assets ($204.6M) exceed its long term liabilities ($117.2M).


Debt to Equity History and Analysis

Debt Level: NIC's debt to equity ratio (9%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if NIC's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: NIC's debt is well covered by operating cash flow (117.6%).

Interest Coverage: NIC's interest payments on its debt are well covered by EBIT (37.7x coverage).


Balance Sheet


Next Steps

Dividend

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

1.48%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NIC's dividend (1.48%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.11%).

High Dividend: NIC's dividend (1.48%) is low compared to the top 25% of dividend payers in the Australian market (5.03%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether NIC's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if NIC's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NIC's dividends in 3 years are forecast to be well covered by earnings (29.7% payout ratio).


Next Steps

Management

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

2.8yrs

Average board tenure


CEO

Justin Werner (46 yo)

no data

Tenure

US$202,282

Compensation

Mr. Justin Charles Werner is a Non-Executive Director at Alpha HPA Limited (formerly known as Collerina Cobalt Limited) since December 23, 2010. Mr. Werner serves as Managing Director of Nickel Mines Limit...


CEO Compensation Analysis

Compensation vs Market: Justin's total compensation ($USD0.00) is below average for companies of similar size in the Australian market ($USD1.27M).

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


Board Members

NamePositionTenureCompensationOwnership
Justin Werner
MD & Directorno dataUS$202.28k1.21%
$ 36.8m
Norman Seckold
Executive Deputy Chairman2.75yrsUS$70.31k5.11%
$ 155.9m
Peter Nightingale
CFO & Executive Director13.33yrsUS$131.00k1.14%
$ 34.8m
James Crombie
Independent Non-Executive Director12.67yrsUS$30.35k0.27%
$ 8.3m
Robert Neale
Independent Non-Executive Chairman2.75yrsUS$91.03k0.029%
$ 881.9k
Mark Lochtenberg
Independent Non-Executive Director3.83yrsUS$30.35k1.43%
$ 43.5m
Stephanus Eka Sutantio
Non-Executive Director0.67yrno datano data
Yuanyuan Xu
Non-Executive Director2.75yrsUS$30.35kno data
Weifeng Huang
Non-Executive Director2.75yrsUS$30.35k0.060%
$ 1.8m

2.8yrs

Average Tenure

62yo

Average Age

Experienced Board: NIC's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: NIC insiders have only sold shares 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 45.3%.


Top Shareholders

Company Information

Nickel Mines Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Nickel Mines Limited
  • Ticker: NIC
  • Exchange: ASX
  • Founded: 2007
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: AU$3.050b
  • Shares outstanding: 2.42b
  • Website: https://www.nickelmines.com.au

Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NICASX (Australian Securities Exchange)YesOrdinary SharesAUAUDAug 2018
NICCHIA (Chi-X Australia)YesOrdinary SharesAUAUDAug 2018
NICM.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDAug 2018

Biography

Nickel Mines Limited produces nickel pig iron used in the production of stainless steel. It holds an 80% interest in the Hengjaya Mineralindo Nickel Mine that covers an area of 6,249 hectares located in th...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/18 07:07
End of Day Share Price2021/01/18 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.