ASX:ORE

Stock Analysis Report

Executive Summary

Orocobre Limited engages in the exploration, development, and production of lithium, potassium, boron, and potash deposits in Argentina.


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

OREIndustryMarket
7 Day1.5%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

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

NamePositionTenureCompensationOwnership
Martin de Solay
MD, CEO & Director1.25yrsUS$1.02m0.058% $320.9k
Neil Kaplan
CFO & Joint Company Secretary7.17yrsUS$550.88k0.15% $809.1k
Richard Anthon
Corporate Development Managerno dataUS$497.28k0.29% $1.6m
Hersen Porta
Chief Operations Officer0.42yrno datano data
Andrew Barber
Investor Relations Managerno datano datano data
Christian Cortes
Financial Controllerno datano datano data
Tara Berrie
Commercial Executiveno datano datano 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

NamePositionTenureCompensationOwnership
Martin de Solay
MD, CEO & Director1.25yrsUS$1.02m0.058% $320.9k
John Gibson
Non-Executive Director10yrsUS$70.67k0.014% $79.6k
Richard Seville
Non-Executive Director12.83yrsUS$799.20k2.08% $11.4m
Fernando Oris de Roa
Non-Executive Director9.67yrsUS$70.67k0.038% $210.0k
Frederico Nicholson
Non-Executive Director9.42yrsUS$70.67k0.29% $1.6m
Robert Hubbard
Non-Executive Chairman3.67yrsUS$132.50k0.038% $210.6k
Leanne Heywood
Non-Executive Director3.42yrsUS$70.66k0.0073% $40.0k
Masaharu Katayama
Non-Executive Director1.83yrsUS$70.67kno 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OREASX (Australian Securities Exchange)YesOrdinary SharesAUAUDDec 2007
3O1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2007
3O1XTRA (XETRA Trading Platform)YesOrdinary SharesDEEURDec 2007
OROC.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 2007
ORLTSX (The Toronto Stock Exchange)YesOrdinary SharesCACADDec 2007
ORECHIA (Chi-X Australia)YesOrdinary SharesAUAUDDec 2007
0TWHLSE (London Stock Exchange)YesOrdinary SharesGBAUDDec 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 10:45
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


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.