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Market Cap

AU$2.8b

Last Updated

2021/05/07 08:15 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Exceptional growth potential with flawless balance sheet.


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 +/- 9% a week.

Volatility Over Time: NIC's weekly volatility (9%) has been stable over the past year.


Market Performance


7 Day Return

-3.1%

NIC

0.9%

AU Metals and Mining

-0.5%

AU Market


1 Year Return

87.3%

NIC

59.8%

AU Metals and Mining

37.3%

AU Market

Return vs Industry: NIC exceeded the Australian Metals and Mining industry which returned 59.8% over the past year.

Return vs Market: NIC exceeded the Australian Market which returned 37.3% over the past year.


Shareholder returns

NICIndustryMarket
7 Day-3.1%0.9%-0.5%
30 Day-16.9%7.7%2.3%
90 Day-11.2%9.4%2.9%
1 Year97.8%87.3%68.0%59.8%41.4%37.3%
3 Yearn/a70.9%47.0%31.1%15.3%
5 Yearn/a183.9%138.5%62.1%31.8%

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$1.11) is trading below our estimate of fair value (A$10.31)

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 (15.1x) compared to the AU Metals and Mining industry average (14x).

PE vs Market: NIC is good value based on its PE Ratio (15.1x) compared to the Australian market (20.6x).


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 good value based on its PB Ratio (2.3x) compared to the AU Metals and Mining industry average (2.5x).


Future Growth

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

24.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NIC's forecast earnings growth (24.7% per year) is above the savings rate (1.9%).

Earnings vs Market: NIC's earnings (24.7% per year) are forecast to grow faster than the Australian market (14% per year).

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

Revenue vs Market: NIC's revenue (20.6% per year) is forecast to grow faster than the Australian market (5.3% per year).

High Growth Revenue: NIC's revenue (20.6% 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 (25.8%)


Past Performance

How has Nickel Mines performed over the past 5 years?

80.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NIC has high quality earnings.

Growing Profit Margin: NIC's current net profit margins (21.1%) are lower than last year (23.9%).


Past Earnings Growth Analysis

Earnings Trend: NIC has become profitable over the past 5 years, growing earnings by 80.2% per year.

Accelerating Growth: NIC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NIC had negative earnings growth (-2.1%) over the past year, making it difficult to compare to the Metals and Mining industry average (25.6%).


Return on Equity

High ROE: NIC's Return on Equity (14.1%) is considered low.


Financial Health

How is Nickel Mines's financial position?


Financial Position Analysis

Short Term Liabilities: NIC's short term assets ($538.6M) exceed its short term liabilities ($57.7M).

Long Term Liabilities: NIC's short term assets ($538.6M) exceed its long term liabilities ($90.7M).


Debt to Equity History and Analysis

Debt Level: NIC's debt to equity ratio (4.1%) is considered satisfactory.

Reducing Debt: NIC's debt to equity ratio has reduced from 255.3% to 4.1% over the past 5 years.

Debt Coverage: NIC's debt is well covered by operating cash flow (333.2%).

Interest Coverage: NIC's interest payments on its debt are well covered by EBIT (33.2x coverage).


Balance Sheet


Dividend

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

3.53%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NIC's dividend (3.53%) is higher than the bottom 25% of dividend payers in the Australian market (2.03%).

High Dividend: NIC's dividend (3.53%) is low compared to the top 25% of dividend payers in the Australian market (5.25%).


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: With its reasonably low payout ratio (40.8%), NIC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NIC's dividends in 3 years are forecast to be well covered by earnings (27.6% payout ratio).


Next Steps

Management

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

3.1yrs

Average management tenure


CEO

Justin Werner (46 yo)

no data

Tenure

US$404,685

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 ($USD404.69K) is below average for companies of similar size in the Australian market ($USD1.28M).

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 (3.1 years average tenure).


Board Members

Experienced Board: NIC's board of directors are considered experienced (3.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: NIC 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 substantially diluted in the past year, with total shares outstanding growing by 51%.


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$2.792b
  • Shares outstanding: 2.52b
  • Website: https://www.nickelmines.com.au

Location

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

Listings


Biography

Nickel Mines Limited produces and sells 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 5,983 hectares loc...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/07 08:15
End of Day Share Price2021/05/07 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.