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NIC

Nickel MinesASX:NIC Stock Report

Market Cap

AU$3.6b

7D

0.7%

1Y

35.9%

Updated

01 Dec, 2021

Data

Company Financials +
NIC fundamental analysis
Snowflake Score
Valuation3/6
Future Growth6/6
Past Performance4/6
Financial Health6/6
Dividends3/6

NIC Stock Overview

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

Nickel Mines Competitors

IGO

ASX:IGO

AU$7.9b

Western Areas

ASX:WSA

AU$948.8m

Mincor Resources

ASX:MCR

AU$588.5m

Panoramic Resources

ASX:PAN

AU$430.7m

Price History & Performance

Summary of all time highs, changes and price drops for Nickel Mines
Historical stock prices
Current Share PriceAU$1.42
52 Week HighAU$1.54
52 Week LowAU$0.89
Beta0.99
1 Month Change37.20%
3 Month Change39.90%
1 Year Change35.89%
3 Year Change468.00%
5 Year Changen/a
Change since IPO305.71%

Recent News & Updates

Nov 25
Further Upside For Nickel Mines Limited (ASX:NIC) Shares Could Introduce Price Risks After 29% Bounce

Further Upside For Nickel Mines Limited (ASX:NIC) Shares Could Introduce Price Risks After 29% Bounce

Nickel Mines Limited ( ASX:NIC ) shares have continued their recent momentum with a 29% gain in the last month alone...

Oct 03
Is Nickel Mines (ASX:NIC) A Risky Investment?

Is Nickel Mines (ASX:NIC) A Risky Investment?

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Aug 28
Nickel Mines (ASX:NIC) Is Increasing Its Dividend To AU$0.02

Nickel Mines (ASX:NIC) Is Increasing Its Dividend To AU$0.02

The board of Nickel Mines Limited ( ASX:NIC ) has announced that the dividend on 10th of September will be increased to...

Shareholder Returns

NICAU Metals and MiningAU Market
7D0.7%0.4%-1.9%
1Y35.9%10.3%11.7%

Return vs Industry: NIC exceeded the Australian Metals and Mining industry which returned 10.3% over the past year.

Return vs Market: NIC exceeded the Australian Market which returned 11.7% over the past year.

Price Volatility

Is NIC's price volatile compared to industry and market?
NIC volatility
NIC Average Weekly Movement7.1%
Metals and Mining Industry Average Movement10.4%
Market Average Movement8.3%
10% most volatile stocks in AU Market15.9%
10% least volatile stocks in AU Market3.6%

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.

About the Company

FoundedEmployeesCEOWebsite
200740,000Justin Wernerhttps://www.nickelmines.com.au

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 located in the Morowali Regency of Central Sulawesi, Indonesia; Ranger Nickel project; and Angel Nickel Project located in Indonesia. The company also has an option to acquire a 70% interest in the Oracle Nickel project.

Nickel Mines Fundamentals Summary

How do Nickel Mines's earnings and revenue compare to its market cap?
NIC fundamental statistics
Market CapUS$2.53b
Earnings (TTM)US$151.52m
Revenue (TTM)US$584.37m

16.7x

P/E Ratio

4.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NIC income statement (TTM)
RevenueUS$584.37m
Cost of RevenueUS$346.91m
Gross ProfitUS$237.46m
ExpensesUS$85.94m
EarningsUS$151.52m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.06
Gross Margin40.63%
Net Profit Margin25.93%
Debt/Equity Ratio15.5%

How did NIC perform over the long term?

See historical performance and comparison

Dividends

2.8%

Current Dividend Yield

48%

Payout Ratio

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$1.42) is trading below our estimate of fair value (A$10.67)

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 (16.7x) compared to the Australian Metals and Mining industry average (9.1x).

PE vs Market: NIC is poor value based on its PE Ratio (16.7x) compared to the Australian market (12.6x).


Price to Earnings Growth Ratio

PEG Ratio: NIC is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: NIC is overvalued based on its PB Ratio (2.6x) compared to the AU Metals and Mining industry average (1.9x).


Future Growth

How is Nickel Mines forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

45.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NIC's forecast earnings growth (45.4% per year) is above the savings rate (1.9%).

Earnings vs Market: NIC's earnings (45.4% per year) are forecast to grow faster than the Australian market (11.8% per year).

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

Revenue vs Market: NIC's revenue (40% per year) is forecast to grow faster than the Australian market (5.2% per year).

High Growth Revenue: NIC's revenue (40% 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 (21.8%)


Past Performance

How has Nickel Mines performed over the past 5 years?

63.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NIC has high quality earnings.

Growing Profit Margin: NIC's current net profit margins (25.9%) are higher than last year (22.5%).


Past Earnings Growth Analysis

Earnings Trend: NIC has become profitable over the past 5 years, growing earnings by 63.3% per year.

Accelerating Growth: NIC's earnings growth over the past year (35.5%) is below its 5-year average (63.3% per year).

Earnings vs Industry: NIC earnings growth over the past year (35.5%) exceeded the Metals and Mining industry 35.3%.


Return on Equity

High ROE: NIC's Return on Equity (17.1%) is considered low.


Financial Health

How is Nickel Mines's financial position?


Financial Position Analysis

Short Term Liabilities: NIC's short term assets ($386.2M) exceed its short term liabilities ($39.0M).

Long Term Liabilities: NIC's short term assets ($386.2M) exceed its long term liabilities ($229.9M).


Debt to Equity History and Analysis

Debt Level: NIC has more cash than its total debt.

Reducing Debt: NIC's debt to equity ratio has reduced from 276.8% to 15.5% over the past 5 years.

Debt Coverage: NIC's debt is well covered by operating cash flow (90.2%).

Interest Coverage: NIC's interest payments on its debt are well covered by EBIT (38.8x coverage).


Balance Sheet


Dividend

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

2.82%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NIC's dividend (2.82%) is higher than the bottom 25% of dividend payers in the Australian market (2.3%).

High Dividend: NIC's dividend (2.82%) is low compared to the top 25% of dividend payers in the Australian market (5.59%).


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 (48.2%), 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 covered by earnings (80.7% payout ratio).


Next Steps

Management

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

2.4yrs

Average management tenure


CEO

Justin Werner (47 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 ($USD404.69K) is below average for companies of similar size in the Australian market ($USD1.70M).

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 (2.4 years average tenure).


Board Members

Experienced Board: NIC's board of directors are considered experienced (3.7 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 diluted in the past year, with total shares outstanding growing by 18.2%.


Top Shareholders

Company Information

Nickel Mines Limited's 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$3.571b
  • Shares outstanding: 2.52b
  • Website: https://www.nickelmines.com.au

Number of Employees


Location

  • Nickel Mines 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 Analysis2021/12/01 15:53
End of Day Share Price2021/12/01 00:00
Earnings2021/06/30
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.