ASX:OMH

Stock Analysis Report

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Market Cap

AU$563.6m

Last Updated

2021/08/02 15:34 UTC

Data Sources

Company Financials +

Executive Summary

OM Holdings Limited, an investment holding company, engages in mining, smelting, trading, and marketing manganese ores and ferroalloys. More Details


Snowflake Analysis

Reasonable growth potential with questionable track record.


Similar Companies

Share Price & News

How has OM Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: OMH is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: OMH's weekly volatility (10%) has been stable over the past year.


Market Performance


7 Day Return

-8.4%

OMH

2.4%

AU Metals and Mining

-0.1%

AU Market


1 Year Return

131.8%

OMH

36.0%

AU Metals and Mining

27.3%

AU Market

Return vs Industry: OMH exceeded the Australian Metals and Mining industry which returned 36% over the past year.

Return vs Market: OMH exceeded the Australian Market which returned 27.3% over the past year.


Shareholder returns

OMHIndustryMarket
7 Day-8.4%2.4%-0.1%
30 Day-10.5%7.2%0.9%
90 Day-13.6%10.2%4.5%
1 Year131.8%131.8%43.1%36.0%31.9%27.3%
3 Year-35.3%-40.7%89.3%63.9%32.7%16.8%
5 Year752.2%680.6%155.7%112.2%62.5%31.0%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is OM Holdings undervalued compared to its fair value and its price relative to the market?

105.31x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: OMH (A$0.77) is trading above our estimate of fair value (A$0.54)

Significantly Below Fair Value: OMH is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: OMH is poor value based on its PE Ratio (105.3x) compared to the Australian Metals and Mining industry average (12.6x).

PE vs Market: OMH is poor value based on its PE Ratio (105.3x) compared to the Australian market (20.5x).


Price to Earnings Growth Ratio

PEG Ratio: OMH is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: OMH is good value based on its PB Ratio (1.4x) compared to the AU Metals and Mining industry average (2.6x).


Future Growth

How is OM Holdings forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

46.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OMH's forecast earnings growth (46.5% per year) is above the savings rate (1.9%).

Earnings vs Market: OMH's earnings (46.5% per year) are forecast to grow faster than the Australian market (13.6% per year).

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

Revenue vs Market: OMH's revenue (12.8% per year) is forecast to grow faster than the Australian market (5.3% per year).

High Growth Revenue: OMH's revenue (12.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: OMH's Return on Equity is forecast to be low in 3 years time (10.3%).


Past Performance

How has OM Holdings performed over the past 5 years?

34.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OMH has high quality earnings.

Growing Profit Margin: OMH's current net profit margins (0.7%) are lower than last year (5.5%).


Past Earnings Growth Analysis

Earnings Trend: OMH has become profitable over the past 5 years, growing earnings by 34.3% per year.

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

Earnings vs Industry: OMH had negative earnings growth (-90.5%) over the past year, making it difficult to compare to the Metals and Mining industry average (20.2%).


Return on Equity

High ROE: OMH's Return on Equity (-0.6%) is considered low.


Financial Health

How is OM Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: OMH's short term assets (A$347.7M) exceed its short term liabilities (A$298.9M).

Long Term Liabilities: OMH's short term assets (A$347.7M) do not cover its long term liabilities (A$366.3M).


Debt to Equity History and Analysis

Debt Level: OMH's debt to equity ratio (88.6%) is considered high.

Reducing Debt: OMH's debt to equity ratio has reduced from 504% to 88.6% over the past 5 years.

Debt Coverage: OMH's debt is not well covered by operating cash flow (18.4%).

Interest Coverage: OMH's interest payments on its debt are not well covered by EBIT (0.2x coverage).


Balance Sheet


Dividend

What is OM Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate OMH's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate OMH's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if OMH's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if OMH's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: OMH is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of OMH's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

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

12.8yrs

Average board tenure


CEO

Ngee Tong Low (66 yo)

7.33yrs

Tenure

AU$1,548,000

Compensation

Mr. Ngee Tong Low, BEng (Mech), has been Chief Executive Officer of OM Holdings Limited since April 4, 2014 and has been its Executive Chairman since October 2008. Mr. Low has over 35 years experience in t...


CEO Compensation Analysis

Compensation vs Market: Ngee Tong's total compensation ($USD1.14M) is above average for companies of similar size in the Australian market ($USD676.71K).

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


Board Members

Experienced Board: OMH's board of directors are seasoned and experienced ( 12.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: OMH insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

OM Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: OM Holdings Limited
  • Ticker: OMH
  • Exchange: ASX
  • Founded: 1993
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: AU$563.568m
  • Shares outstanding: 736.69m
  • Website: https://www.omholdingsltd.com

Location

  • OM Holdings Limited
  • No. 09-03A, Singapore Post Centre
  • 10 Eunos Road 8
  • Singapore
  • 408600
  • Singapore

Listings


Biography

OM Holdings Limited, an investment holding company, engages in mining, smelting, trading, and marketing manganese ores and ferroalloys. The company operates through Mining, Smelting, and Marketing and Trad...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/02 15:34
End of Day Share Price2021/08/02 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.