Executive Summary
Orocobre Limited engages in the exploration, development, and production of lithium, potassium, boron, and potash deposits in Argentina.
Rewards
Risk Analysis
Snowflake Analysis
High growth potential and good value.
Similar Companies
Share Price & News
How has Orocobre's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: ORE's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
1.5%
ORE
11.0%
AU Metals and Mining
13.4%
AU Market
1 Year Return
-40.8%
ORE
-19.1%
AU Metals and Mining
-18.8%
AU Market
Return vs Industry: ORE underperformed the Australian Metals and Mining industry which returned -19.1% over the past year.
Return vs Market: ORE underperformed the Australian Market which returned -18.8% over the past year.
Shareholder returns
| ORE | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.5% | 11.0% | 13.4% |
| 30 Day | -22.6% | -11.6% | -20.7% |
| 90 Day | -21.1% | -21.4% | -24.4% |
| 1 Year | -40.8%-40.8% | -14.6%-19.1% | -15.2%-18.8% |
| 3 Year | -26.1%-26.4% | 28.6%12.3% | -2.8%-15.9% |
| 5 Year | -4.6%-5.0% | 61.1%22.9% | 9.3%-15.3% |
Price Volatility Vs. Market
How volatile is Orocobre's share price compared to the market and industry in the last 5 years?
Simply Wall St News
6 days ago | Simply Wall St
Can We See Significant Insider Ownership On The Orocobre Limited (ASX:ORE) Share Register?3 weeks ago | Simply Wall St
A Sliding Share Price Has Us Looking At Orocobre Limited's (ASX:ORE) P/E Ratio4 weeks ago | Simply Wall St
Don't Ignore The Fact That This Insider Just Sold Some Shares In Orocobre Limited (ASX:ORE)Valuation
Is Orocobre 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: ORE (A$2.09) is trading below our estimate of fair value (A$5.86)
Significantly Below Fair Value: ORE is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: ORE is poor value based on its PE Ratio (21.5x) compared to the Metals and Mining industry average (7.4x).
PE vs Market: ORE is poor value based on its PE Ratio (21.5x) compared to the Australian market (12.9x).
Price to Earnings Growth Ratio
PEG Ratio: ORE is good value based on its PEG Ratio (0.3x)
Price to Book Ratio
PB vs Industry: ORE is good value based on its PB Ratio (0.5x) compared to the AU Metals and Mining industry average (1x).
Next Steps
Future Growth
How is Orocobre forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
77.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ORE's forecast earnings growth (77.7% per year) is above the savings rate (1.1%).
Earnings vs Market: ORE's earnings (77.7% per year) are forecast to grow faster than the Australian market (9.7% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: ORE's revenue (40.4% per year) is forecast to grow faster than the Australian market (4% per year).
High Growth Revenue: ORE's revenue (40.4% per year) is forecast to grow faster than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: ORE's Return on Equity is forecast to be low in 3 years time (7.8%).
Next Steps
Past Performance
How has Orocobre performed over the past 5 years?
64.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ORE has a high level of non-cash earnings.
Growing Profit Margin: ORE's current net profit margins (13%) are lower than last year (95%).
Past Earnings Growth Analysis
Earnings Trend: ORE has become profitable over the past 5 years, growing earnings by 64.4% per year.
Accelerating Growth: ORE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: ORE had negative earnings growth (-11.9%) over the past year, making it difficult to compare to the Metals and Mining industry average (-7%).
Return on Equity
High ROE: ORE's Return on Equity (1.6%) is considered low.
Next Steps
Financial Health
How is Orocobre's financial position?
Financial Position Analysis
Short Term Liabilities: ORE's short term assets ($265.1M) exceed its short term liabilities ($102.1M).
Long Term Liabilities: ORE's short term assets ($265.1M) do not cover its long term liabilities ($299.8M).
Debt to Equity History and Analysis
Debt Level: ORE's debt to equity ratio (25.6%) is considered satisfactory.
Reducing Debt: ORE's debt to equity ratio has increased from 4% to 25.6% over the past 5 years.
Debt Coverage: ORE's debt is not well covered by operating cash flow (5.1%).
Interest Coverage: ORE's interest payments on its debt are not well covered by EBIT (0.2x coverage).
Balance Sheet
Inventory Level: ORE has a high level of physical assets or inventory.
Debt Coverage by Assets: ORE's debt is covered by short term assets (assets are 1.4x debt).
Next Steps
Dividend
What is Orocobre's current dividend yield, its reliability and sustainability?
0.039%
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate ORE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate ORE's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if ORE's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if ORE's dividend payments have been increasing.
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: No need to calculate the sustainability of ORE'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?
1.3yrs
Average management tenure
CEO
Martin de Solay (48yo)
1.25s
Tenure
US$1,023,215
Compensation
Mr. Martin Perez de Solay, (I.ENG), has been CEO and Managing Director of Orocobre Limited since November 23, 2018 and its Director since January 18, 2018. He is a qualified industrial engineer with a care ...
CEO Compensation Analysis
Compensation vs Market: Martin's total compensation ($USD1.02M) is about average for companies of similar size in the Australian market ($USD815.27K).
Compensation vs Earnings: Insufficient data to compare Martin's compensation with company performance.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD, CEO & Director | 1.25yrs | US$1.02m | 0.058% $320.9k | |
| CFO & Joint Company Secretary | 7.17yrs | US$550.88k | 0.15% $809.1k | |
| Corporate Development Manager | no data | US$497.28k | 0.29% $1.6m | |
| Chief Operations Officer | 0.42yr | no data | no data | |
| Investor Relations Manager | no data | no data | no data | |
| Financial Controller | no data | no data | no data | |
| Commercial Executive | no data | no data | no data |
1.3yrs
Average Tenure
Experienced Management: ORE's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD, CEO & Director | 1.25yrs | US$1.02m | 0.058% $320.9k | |
| Non-Executive Director | 10yrs | US$70.67k | 0.014% $79.6k | |
| Non-Executive Director | 12.83yrs | US$799.20k | 2.08% $11.4m | |
| Non-Executive Director | 9.67yrs | US$70.67k | 0.038% $210.0k | |
| Non-Executive Director | 9.42yrs | US$70.67k | 0.29% $1.6m | |
| Non-Executive Chairman | 3.67yrs | US$132.50k | 0.038% $210.6k | |
| Non-Executive Director | 3.42yrs | US$70.66k | 0.0073% $40.0k | |
| Non-Executive Director | 1.83yrs | US$70.67k | no data |
6.5yrs
Average Tenure
58.5yo
Average Age
Experienced Board: ORE's board of directors are considered experienced (6.5 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: ORE insiders have only sold shares 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
Orocobre Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Orocobre Limited
- Ticker: ORE
- Exchange: ASX
- Founded: 2005
- Industry: Diversified Metals and Mining
- Sector: Materials
- Market Cap: AU$550.153m
- Shares outstanding: 261.98m
- Website: https://www.orocobre.com
Number of Employees
Location
- Orocobre Limited
- Riparian Plaza
- Level 35
- Brisbane
- Queensland
- 4000
- Australia
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| ORE | ASX (Australian Securities Exchange) | Yes | Ordinary Shares | AU | AUD | Dec 2007 |
| 3O1 | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Dec 2007 |
| 3O1 | XTRA (XETRA Trading Platform) | Yes | Ordinary Shares | DE | EUR | Dec 2007 |
| OROC.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Dec 2007 |
| ORL | TSX (The Toronto Stock Exchange) | Yes | Ordinary Shares | CA | CAD | Dec 2007 |
| ORE | CHIA (Chi-X Australia) | Yes | Ordinary Shares | AU | AUD | Dec 2007 |
| 0TWH | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | AUD | Dec 2007 |
Biography
Orocobre Limited engages in the exploration, development, and production of lithium, potassium, boron, and potash deposits in Argentina. The company’s flagship project is the Salar de Olaroz project located in the Jujuy province of northern Argentina. It also operates 2 open pit mines situated in Tincalayu and Sijes producing minerals, refined products, and boric acid. In addition, the company owns 34.7% interest in Advantage Lithium Corp., which manages a portfolio of assets in Argentina, including the Cauchari joint venture; and a 100% interest in 4 other lithium properties. Orocobre Limited was incorporated in 2005 and is based in Brisbane, Australia.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/31 10:45 |
| End of Day Share Price | 2020/03/31 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/06/30 |
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.