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Northern Star Resources

Market Cap

AU$12.7b

Last Updated

2021/04/11 08:16 UTC

Data Sources

Company Financials +

Executive Summary

Northern Star Resources Limited engages in the exploration, development, mining, processing, and sale of gold deposits in Australia. More Details


Snowflake Analysis

Solid track record with reasonable growth potential.


Similar Companies

Share Price & News

How has Northern Star Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NST is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: NST's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

11.2%

NST

3.7%

AU Metals and Mining

2.6%

AU Market


1 Year Return

-5.3%

NST

55.9%

AU Metals and Mining

37.1%

AU Market

Return vs Industry: NST underperformed the Australian Metals and Mining industry which returned 55.9% over the past year.

Return vs Market: NST underperformed the Australian Market which returned 37.1% over the past year.


Shareholder returns

NSTIndustryMarket
7 Day11.2%3.7%2.6%
30 Day16.6%3.0%4.4%
90 Day-14.7%-2.1%3.6%
1 Year-2.9%-5.3%64.0%55.9%41.3%37.1%
3 Year79.4%70.6%75.8%51.3%36.2%19.8%
5 Year234.0%204.5%182.9%129.0%67.4%34.6%

Long-Term Price Volatility Vs. Market

How volatile is Northern Star Resources's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Northern Star Resources undervalued compared to its fair value and its price relative to the market?

44.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NST (A$10.9) is trading below our estimate of fair value (A$19.46)

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


Price To Earnings Ratio

PE vs Industry: NST is poor value based on its PE Ratio (25.5x) compared to the AU Metals and Mining industry average (13.1x).

PE vs Market: NST is poor value based on its PE Ratio (25.5x) compared to the Australian market (20.5x).


Price to Earnings Growth Ratio

PEG Ratio: NST is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: NST is overvalued based on its PB Ratio (3.9x) compared to the AU Metals and Mining industry average (2.6x).


Future Growth

How is Northern Star Resources forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

32.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NST's forecast earnings growth (32.1% per year) is above the savings rate (2%).

Earnings vs Market: NST's earnings (32.1% per year) are forecast to grow faster than the Australian market (15.3% per year).

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

Revenue vs Market: NST's revenue (18.4% per year) is forecast to grow faster than the Australian market (5.8% per year).

High Growth Revenue: NST's revenue (18.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NST's Return on Equity is forecast to be low in 3 years time (13.5%).


Past Performance

How has Northern Star Resources performed over the past 5 years?

10.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NST has high quality earnings.

Growing Profit Margin: NST's current net profit margins (14%) are higher than last year (12.5%).


Past Earnings Growth Analysis

Earnings Trend: NST's earnings have grown by 10.8% per year over the past 5 years.

Accelerating Growth: NST's earnings growth over the past year (58.2%) exceeds its 5-year average (10.8% per year).

Earnings vs Industry: NST earnings growth over the past year (58.2%) exceeded the Metals and Mining industry 26.1%.


Return on Equity

High ROE: NST's Return on Equity (15.1%) is considered low.


Financial Health

How is Northern Star Resources's financial position?


Financial Position Analysis

Short Term Liabilities: NST's short term assets (A$692.5M) exceed its short term liabilities (A$413.4M).

Long Term Liabilities: NST's short term assets (A$692.5M) do not cover its long term liabilities (A$868.1M).


Debt to Equity History and Analysis

Debt Level: NST's debt to equity ratio (17.7%) is considered satisfactory.

Reducing Debt: NST's debt to equity ratio has increased from 0.7% to 17.7% over the past 5 years.

Debt Coverage: NST's debt is well covered by operating cash flow (225.9%).

Interest Coverage: NST's interest payments on its debt are well covered by EBIT (36.9x coverage).


Balance Sheet


Dividend

What is Northern Star Resources's current dividend yield, its reliability and sustainability?

1.74%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NST's dividend (1.74%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (1.99%).

High Dividend: NST's dividend (1.74%) is low compared to the top 25% of dividend payers in the Australian market (5.31%).


Stability and Growth of Payments

Stable Dividend: NST has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: NST's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (44.5%), NST's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NST's dividends in 3 years are forecast to be well covered by earnings (27.3% payout ratio).


Next Steps

Management

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

0.3yrs

Average management tenure


CEO

Stuart Tonkin (44 yo)

4.5yrs

Tenure

AU$2,059,307

Compensation

Mr. Stuart Peter Tonkin, BEng (Hons) has been the Chief Executive Officer at Northern Star Resources Limited since October 29, 2016. Mr. Tonkin served as Chief Operating Officer at Northern Star Resources ...


CEO Compensation Analysis

Compensation vs Market: Stuart's total compensation ($USD1.57M) is below average for companies of similar size in the Australian market ($USD3.43M).

Compensation vs Earnings: Stuart's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: NST's management team is not considered experienced ( 0.3 years average tenure), which suggests a new team.


Board Members

Experienced Board: NST's board of directors are not considered experienced ( 1.8 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: NST 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 57.2%.


Top Shareholders

Company Information

Northern Star Resources Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Northern Star Resources Limited
  • Ticker: NST
  • Exchange: ASX
  • Founded: 2000
  • Industry: Gold
  • Sector: Materials
  • Market Cap: AU$12.682b
  • Shares outstanding: 1.16b
  • Website: https://www.nsrltd.com

Number of Employees


Location

  • Northern Star Resources Limited
  • 388 Hay Street
  • Level 1
  • Subiaco
  • Western Australia
  • 6008
  • Australia

Listings


Biography

Northern Star Resources Limited engages in the exploration, development, mining, processing, and sale of gold deposits in Australia. The company holds interests in the Pogo, Jundee, and Kalgoorlie operatio...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/11 08:16
End of Day Share Price2021/04/09 00:00
Earnings2020/12/31
Annual Earnings2020/06/30


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.