Orocobre
Orocobre Limited engages in the exploration, development, and production of lithium, potash, and boron deposits in Argentina. The last earnings update was 59 days ago. More info.
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ORE Share Price and Events
7 Day Returns
1 Year Returns
ORE Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Orocobre (ORE) | -2.6% | -3.2% | -1.5% | -36.5% | 1.2% | 48.5% |
| AU Metals and Mining | -3.2% | 0.2% | 12.4% | 10.6% | 72.3% | 7.8% |
| AU Market | -0% | 1.4% | 6.5% | 4.9% | 18.2% | 4.8% |
1 Year Return vs Industry and Market
- ORE underperformed the Metals and Mining industry which returned 10.6% over the past year.
- ORE underperformed the Market in Australia which returned 4.9% over the past year.
Value
Is Orocobre undervalued based on future cash flows and its price relative to the stock market?
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Orocobre
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Orocobre.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 7 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 8.8% |
| Perpetual Growth Rate | 10-Year AU Government Bond Rate | 2.3% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year AU Govt Bond Rate | 2.3% |
| Equity Risk Premium | S&P Global | 6% |
| Metals and Mining Unlevered Beta | Simply Wall St/ S&P Global | 1.13 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.133 (1 + (1- 30%) (0.06%)) |
1.089 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.09 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (1.089 * 5.96%) |
8.8% |
Discounted Cash Flow Calculation for ASX:ORE using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Orocobre is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (USD, Millions) | Source |
Present Value Discounted (@ 8.8%) |
|
|---|---|---|---|
| 2019 | -5.98 | Analyst x1 | -5.50 |
| 2020 | -5.25 | Analyst x2 | -4.43 |
| 2021 | -4.60 | Analyst x2 | -3.57 |
| 2022 | 45.13 | Analyst x1 | 32.20 |
| 2023 | 77.35 | Est @ 71.39% | 50.73 |
| 2024 | 116.54 | Est @ 50.66% | 70.25 |
| 2025 | 158.68 | Est @ 36.16% | 87.91 |
| 2026 | 199.94 | Est @ 26% | 101.80 |
| 2027 | 237.72 | Est @ 18.9% | 111.25 |
| 2028 | 270.81 | Est @ 13.92% | 116.48 |
| Present value of next 10 years cash flows | $557.11 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= $270.81 × (1 + 2.31%) ÷ (8.8% – 2.31%) |
$4,268.43 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= $4,268.43 ÷ (1 + 8.8%)10 |
$1,835.90 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= $557.11 + $1,835.90 |
$2,393.01 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $2,393.01 / 261.68 |
$9.14 |
| Calculation | Result | |
|---|---|---|
| Exchange Rate | USD/AUD
(Reporting currency to currency of ASX:ORE) |
1.399 |
| Value per Share (AUD) |
= Value per Share in USD x Exchange Rate (USD/AUD)
= $9.14 x 1.399 |
A$12.79 |
| Value per share (AUD) | From above. | A$12.79 |
| Current discount | Discount to share price of
A$3.37
= -1 x (A$3.37 - A$12.79) / A$12.79 |
73.7% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
Current Discount
Current Discount Checks
- Orocobre's share price is below the future cash flow value, and at a moderate discount (> 20%).
- Orocobre's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Orocobre's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Orocobre's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-12-31) in USD | $0.07 |
| ASX:ORE Share Price ** | ASX (2019-04-18) in AUD | A$3.37 |
| ASX:ORE Share Price converted to USD reporting currency | Exchange rate (AUD/ USD) 0.715 | $2.41 |
| Australia Metals and Mining Industry PE Ratio | Median Figure of 78 Publicly-Listed Metals and Mining Companies | 12.55x |
| Australia Market PE Ratio | Median Figure of 544 Publicly-Listed Companies | 16.14x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Orocobre.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = ASX:ORE Share Price ÷ EPS (both in USD) = 2.41 ÷ 0.07 |
34.83x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Orocobre is overvalued based on earnings compared to the AU Metals and Mining industry average.
- Orocobre is overvalued based on earnings compared to the Australia market.
Price based on expected Growth
Does
Orocobre's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 34.83x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts |
23.5%per year |
| Australia Metals and Mining Industry PEG Ratio | Median Figure of 38 Publicly-Listed Metals and Mining Companies | 0.65x |
| Australia Market PEG Ratio | Median Figure of 360 Publicly-Listed Companies | 1.35x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 34.83x ÷ 23.5% |
1.48x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Orocobre is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
Orocobre's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-12-31) in USD | $2.02 |
| ASX:ORE Share Price * | ASX (2019-04-18) in AUD | A$3.37 |
| ASX:ORE Share Price converted to USD reporting currency | Exchange rate (AUD/ USD) 0.715 | $2.41 |
| Australia Metals and Mining Industry PB Ratio | Median Figure of 584 Publicly-Listed Metals and Mining Companies | 1.52x |
| Australia Market PB Ratio | Median Figure of 1,676 Publicly-Listed Companies | 1.67x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = ASX:ORE Share Price ÷ Book Value per Share (both in USD) = 2.41 ÷ 2.02 |
1.19x |
* Primary Listing of Orocobre.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Orocobre is good value based on assets compared to the AU Metals and Mining industry average.
Value checks
We assess Orocobre's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Metals and Mining industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Metals and Mining industry average (and greater than 0)? (1 check) Orocobre has a total score of 3/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
Future Performance
How is Orocobre expected to perform in the next 1 to 3 years based on estimates from 7 analysts?
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Orocobre's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
- Orocobre's earnings growth is expected to exceed the Australia market average.
- Orocobre's revenue growth is expected to exceed the Australia market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| ASX:ORE Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts | 23.5% |
| ASX:ORE Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts | 40% |
| Australia Metals and Mining Industry Earnings Growth Rate | Market Cap Weighted Average | 1.2% |
| Australia Metals and Mining Industry Revenue Growth Rate | Market Cap Weighted Average | 0.5% |
| Australia Market Earnings Growth Rate | Market Cap Weighted Average | 6.7% |
| Australia Market Revenue Growth Rate | Market Cap Weighted Average | 3.1% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 7 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-06-30 | 56 | |||
| 2022-06-30 | 276 | 59 | 1 | |
| 2021-06-30 | 33 | -7 | 37 | 7 |
| 2020-06-30 | 26 | -7 | 19 | 7 |
| 2019-06-30 | 19 | -7 | 28 | 7 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-12-31 | 19 | -10 | 18 |
| 2018-09-30 | 18 | -12 | 10 |
| 2018-06-30 | 17 | -14 | 2 |
| 2017-12-31 | 17 | -10 | 5 |
| 2017-09-30 | 17 | -8 | 5 |
| 2017-06-30 | 17 | -6 | 5 |
| 2016-12-31 | 15 | -2 | 6 |
| 2016-09-30 | 15 | -4 | -8 |
| 2016-06-30 | 16 | -6 | -22 |
| 2016-03-31 | 17 | -7 | -22 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 7 Analyst Estimates (S&P Global) | See Below |
All data from Orocobre Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-06-30 | ||||
| 2022-06-30 | 0.26 | 0.26 | 0.26 | 1.00 |
| 2021-06-30 | 0.14 | 0.22 | 0.10 | 7.00 |
| 2020-06-30 | 0.08 | 0.14 | 0.05 | 7.00 |
| 2019-06-30 | 0.11 | 0.12 | 0.10 | 4.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2018-12-31 | 0.07 |
| 2018-09-30 | 0.04 |
| 2018-06-30 | 0.01 |
| 2017-12-31 | 0.03 |
| 2017-09-30 | 0.02 |
| 2017-06-30 | 0.02 |
| 2016-12-31 | 0.03 |
| 2016-09-30 | -0.04 |
| 2016-06-30 | -0.12 |
| 2016-03-31 | -0.13 |
*GAAP earnings excluding extraordinary items.
Future performance checks
We assess Orocobre's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Orocobre has a total score of 5/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
Past Performance
How has Orocobre performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Orocobre has delivered over 20% year on year earnings growth in the past 5 years.
- Orocobre's 1-year earnings growth exceeds its 5-year average (228.2% vs 41.1%)
- Orocobre's earnings growth has exceeded the AU Metals and Mining industry average in the past year (228.2% vs 14%).
Earnings and Revenue History
All data from Orocobre Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-12-31 | 18.74 | 17.81 | 13.38 | |
| 2018-09-30 | 18.06 | 9.87 | 14.51 | |
| 2018-06-30 | 17.38 | 1.92 | 15.65 | |
| 2017-12-31 | 16.65 | 5.43 | 12.89 | |
| 2017-09-30 | 16.92 | 5.04 | 11.57 | |
| 2017-06-30 | 17.20 | 4.66 | 10.26 | |
| 2016-12-31 | 15.15 | 5.93 | 12.68 | |
| 2016-09-30 | 15.34 | -7.94 | 12.79 | |
| 2016-06-30 | 15.53 | -21.81 | 12.90 | |
| 2016-03-31 | 17.39 | -21.78 | 11.79 | |
| 2015-12-31 | 20.19 | -22.90 | 11.87 | |
| 2015-09-30 | 19.94 | -11.84 | 11.53 | |
| 2015-06-30 | 19.40 | -0.84 | 11.02 | |
| 2015-03-31 | 17.07 | -1.19 | 9.71 | |
| 2014-12-31 | 17.56 | -1.72 | 9.45 | |
| 2014-09-30 | 19.52 | -3.31 | 9.23 | |
| 2014-06-30 | 21.85 | -5.15 | 9.01 | |
| 2014-03-31 | 21.35 | -4.69 | 9.41 | |
| 2013-12-31 | 20.46 | -4.17 | 9.62 | |
| 2013-09-30 | 20.26 | 89.48 | 11.17 | |
| 2013-06-30 | 16.16 | 87.60 | 10.02 | |
| 2013-03-31 | 12.76 | 100.52 | 8.69 | |
| 2012-12-31 | 7.82 | 101.62 | 6.27 | |
| 2012-09-30 | 4.11 | -2.51 | 3.86 | |
| 2012-06-30 | -2.90 | 3.75 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Orocobre has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
- Orocobre used its assets less efficiently than the AU Metals and Mining industry average last year based on Return on Assets.
- It is difficult to establish if Orocobre improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
Past performance checks
We assess Orocobre's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Metals and Mining industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Orocobre has a total score of 3/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
Health
How is Orocobre's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Orocobre's finances.
The net worth of a company is the difference between its assets and liabilities.
- Orocobre is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- Orocobre's cash and other short term assets cover its long term commitments.
Balance sheet
Assets
Liabilities and shares
- Low level of unsold assets.
- Debt is covered by short term assets, assets are 868.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Orocobre Company Filings, last reported 3 months ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-12-31 | 527.81 | 0.40 | 284.22 |
| 2018-09-30 | 527.81 | 0.40 | 284.22 |
| 2018-06-30 | 502.10 | 0.74 | 316.69 |
| 2017-12-31 | 226.34 | 0.52 | 54.15 |
| 2017-09-30 | 226.34 | 0.52 | 54.15 |
| 2017-06-30 | 218.02 | 0.95 | 61.42 |
| 2016-12-31 | 199.05 | 1.84 | 64.36 |
| 2016-09-30 | 199.05 | 1.84 | 64.36 |
| 2016-06-30 | 189.43 | 3.07 | 35.84 |
| 2016-03-31 | 189.43 | 3.07 | 35.84 |
| 2015-12-31 | 132.00 | 3.20 | 1.68 |
| 2015-09-30 | 127.43 | 3.08 | 1.62 |
| 2015-06-30 | 163.05 | 2.70 | 7.26 |
| 2015-03-31 | 161.55 | 2.68 | 7.20 |
| 2014-12-31 | 138.59 | 5.52 | 3.51 |
| 2014-09-30 | 148.15 | 5.90 | 3.75 |
| 2014-06-30 | 150.50 | 2.56 | 24.81 |
| 2014-03-31 | 147.96 | 2.52 | 24.39 |
| 2013-12-31 | 180.59 | 2.51 | 28.43 |
| 2013-09-30 | 188.74 | 2.62 | 29.71 |
| 2013-06-30 | 168.63 | 3.35 | 9.71 |
| 2013-03-31 | 191.73 | 3.81 | 11.04 |
| 2012-12-31 | 191.69 | 0.00 | 40.48 |
| 2012-09-30 | 59.26 | 0.00 | 7.65 |
| 2012-06-30 | 59.60 | 0.00 | 16.87 |
- Orocobre's level of debt (0.1%) compared to net worth is satisfactory (less than 40%).
- The level of debt compared to net worth has been reduced over the past 5 years (1.4% vs 0.1% today).
- Operating cash flow is negative therefore debt is not well covered.
- Unable to confirm if the interest payments on Orocobre's debt are well covered by earnings due to lack of past financial data.
Financial health checks
We assess Orocobre's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Orocobre has a total score of 4/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
Dividends
What is Orocobre's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
A$2,000 of
Orocobre
shares you are expected to receive
A$0
in your first year as a dividend.
Dividend Amount
- Unable to evaluate Orocobre's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
- Unable to evaluate Orocobre's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 7 Analyst Estimates (S&P Global) | See Below |
| Australia Metals and Mining Industry Average Dividend Yield | Market Cap Weighted Average of 36 Stocks | 3.7% |
| Australia Market Average Dividend Yield | Market Cap Weighted Average of 417 Stocks | 4.3% |
| Australia Minimum Threshold Dividend Yield | 10th Percentile | 1.6% |
| Australia Bottom 25% Dividend Yield | 25th Percentile | 2.5% |
| Australia Top 25% Dividend Yield | 75th Percentile | 5.8% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2023-06-30 | 0.21 | 1.00 |
| 2022-06-30 | 0.11 | 1.00 |
| 2021-06-30 | 0.01 | 7.00 |
| 2020-06-30 | 0.00 | 7.00 |
| 2019-06-30 | 0.00 | 7.00 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Unable to perform a dividend volatility check as Orocobre has not reported any payouts.
- Unable to verify if Orocobre's dividend has been increasing as the company has not reported any payouts.
Income/ dividend checks
We assess Orocobre's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 1.6%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Orocobre afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Orocobre has a total score of 0/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
Management
CEO
| AGE | 47 |
| TENURE AS CEO | 0.4 years |
CEO Bio
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 career spanning engineering, operational improvement, banking, finance and executive management. He is currently the President and CEO of Petroleos Sudamericanos, an oil and gas producer operating in Argentina and Colombia. He joined Petroleos Sudamericanos in 2011 and since that time has established new operations, acquired assets, led major stakeholder management initiatives and was responsible for implementing a significant operational improvement programme responding to the falling oil price. Prior to 2011, he was CFO and head of Corporate Development of GeoPark, a successful oil and gas operator with assets in Argentina and Chile. He was a key member of the Geopark executive team that established its asset base and subsequently listed the company on the Alternative Investment Market (AIM). He joined Geopark from Citigroup where he had spent a decade in the institutional, corporate and restructuring activities of the bank, importantly through the difficult economic times at the turn of the century. He is a qualified industrial engineer from the Instituto Tecnologico de Buenos Aires and has completed management programmes at the Kennedy School of Government, Harvard and Austral University, Argentina.
CEO Compensation
- Insufficient data for Martin to compare compensation growth.
- Insufficient data for Martin to establish whether their remuneration is reasonable compared to companies of similar size in Australia.
Management Team
Neil Kaplan
CFO & Joint Company Secretary
$555K
6.3 yrs
Rick Anthon
Corporate Development Manager
$591K
Martin de Solay
MD, CEO & Director
47
0.4 yrs
Alex Losada-Calderon
Chief Operating Officer
$344K
Andrew Barber
Investor Relations Manager
Christian Cortes
Financial Controller
David Hall
Business Development Manager
Tara Berrie
Commercial Executive
Board of Directors Tenure
Average tenure and age of the Orocobre board of directors in years:
- The tenure for the Orocobre board of directors is about average.
Board of Directors
Rob Hubbard
Non-Executive Chairman
$129K
59
2.8 yrs
Martin de Solay
MD, CEO & Director
47
0.3 yrs
Leanne Heywood
Non-Executive Director
$69K
2.6 yrs
Richard Seville
Non-Executive Director
$1M
56
12 yrs
John Gibson
Non-Executive Director
$69K
60
9.1 yrs
Fernando Oris de Roa
Non-Executive Director
$85K
8.8 yrs
Frederico Nicholson
Non-Executive Director
$69K
8.6 yrs
Masaharu Katayama
Non-Executive Director
$16K
1 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price (A$) | Value (A$) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 06. Mar 19 | Sell | AustralianSuper Pty Ltd | Company | 19. Dec 18 | 04. Mar 19 | -991,126 | A$3.99 | A$-3,954,593 | ||
| 06. Mar 19 | Buy | AustralianSuper Pty Ltd | Company | 20. Dec 18 | 01. Mar 19 | 227,118 | A$4.00 | A$908,086 | ||
| 20. Dec 18 | Sell | AustralianSuper Pty Ltd | Company | 21. Aug 18 | 14. Dec 18 | -242,851 | A$4.92 | A$-1,195,256 | ||
| 20. Dec 18 | Buy | AustralianSuper Pty Ltd | Company | 20. Aug 18 | 14. Dec 18 | 1,276,188 | A$4.95 | A$6,319,398 | ||
| 11. Dec 18 | Sell | BNY Mellon Asset Management | Company | 24. Oct 18 | 10. Dec 18 | -927,556 | A$4.60 | A$-604,028 | ||
| 11. Dec 18 | Buy | BNY Mellon Asset Management | Company | 26. Oct 18 | 05. Dec 18 | 584,400 | A$4.45 | A$400,720 | ||
| 24. Oct 18 | Sell | BNY Mellon Asset Management | Company | 24. Sep 18 | 23. Oct 18 | -259,600 | A$4.64 | A$0 | ||
| 24. Oct 18 | Buy | BNY Mellon Asset Management | Company | 21. Sep 18 | 09. Oct 18 | 11,799 | A$4.27 | A$49,510 | ||
| 16. Sep 18 | Sell | BNY Mellon Asset Management | Company | 23. May 18 | 10. Sep 18 | -768,732 | A$6.13 | A$-4,438,313 | ||
| 16. Sep 18 | Buy | BNY Mellon Asset Management | Company | 16. May 18 | 13. Sep 18 | 987,220 | A$6.08 | A$5,895,400 | ||
| 02. Aug 18 | Buy | Robert Hubbard | Individual | 01. Aug 18 | 01. Aug 18 | 5,000 | A$4.61 | A$23,050 | ||
| 13. Jun 18 | Buy | Robert Hubbard | Individual | 13. Jun 18 | 13. Jun 18 | 5,000 | A$4.95 | A$24,750 | ||
| 13. Jun 18 | Buy | Leanne Heywood | Individual | 12. Jun 18 | 12. Jun 18 | 2,250 | A$5.15 | A$11,588 | ||
Management checks
We assess Orocobre's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Orocobre has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
News
Simply Wall St News
Investors Who Bought Orocobre (ASX:ORE) Shares Five Years Ago Are Now Up 67%
To wit, the Orocobre share price has climbed 67% in five years, easily topping the market return of 4.6% (ignoring dividends). … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … During the five years of share price growth, Orocobre moved from a loss to profitability.
Simply Wall St - – Full articleShould You Consider Orocobre Limited (ASX:ORE)?
Orocobre Limited (ASX:ORE) is a stock with outstanding fundamental characteristics. … When we build an investment case, we need to look at the stock with a holistic perspective. … In the case of ORE, it
Simply Wall St - – Full articleDespite Its High P/E Ratio, Is Orocobre Limited (ASX:ORE) Still Undervalued?
Orocobre has a price to earnings ratio of 39.13, based on the last twelve months. … Price to Earnings Ratio = Price per Share (in the reporting currency) ÷ Earnings per Share (EPS) … P/E of 39.13 = $2.71 (Note: this is the share price in the reporting currency, namely, USD ) ÷ $0.069
Simply Wall St - – Full articleShould You Be Concerned About Orocobre Limited's (ASX:ORE) ROE?
With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … That means that for every A$1 worth of shareholders' equity, it generated A$0.0038 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
Simply Wall St - – Full articleWhat Kind Of Shareholders Own Orocobre Limited (ASX:ORE)?
In this analysis, my focus will be on developing a perspective on Orocobre Limited’s (ASX:ORE) latest ownership structure, a less discussed, but important factor. … When it comes to ownership structure of a company, the impact has been observed in both the long-and short-term performance of shares. … The effect of an active institutional investor with a similar ownership as a passive pension-fund can be vastly different on a company's corporate governance and accountability to shareholders.
Simply Wall St - – Full articleShould You Sell Orocobre Limited (ASX:ORE) At This PE Ratio?
The content of this article will benefit those of you who are starting to educate yourself about investing in the stock market. … and want to better understand how you can grow your money by investing in Orocobre Limited (ASX:ORE). … Orocobre Limited (ASX:ORE) trades with a trailing P/E of 155.2x, which is higher than the industry average of 13.5x.
Simply Wall St - – Full articleBreaking Down Orocobre Limited's (ASX:ORE) Ownership Structure
This size of ownership gives retail investors collective power in deciding on major policy decisions such as executive compensation, appointment of directors and acquisitions of businesses. … Private Company Ownership Potential investors in ORE should also look at another important group of investors: private companies, with a stake of 3.76%, who are primarily invested because of strategic and capital gain interests. … Thus, investors not need worry too much about the consequences of these holdings.Next Steps: ORE's considerably high level of institutional ownership calls for further analysis into its margin of safety.
Simply Wall St - – Full articleAt $5.65, Is Orocobre Limited (ASX:ORE) A Buy?
Orocobre Limited (ASX:ORE), a metals and mining company based in Australia, saw a decent share price growth in the teens level on the ASX over the last few months. … This means that if you believe the current share price should move towards its intrinsic value over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range again. … ORE’s optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value.
Simply Wall St - – Full articleShould You Sell Orocobre Limited (ASX:ORE) At This PE Ratio?
Check out our latest analysis for Orocobre Breaking down the Price-Earnings ratio ASX:ORE PE PEG Gauge Apr 26th 18 P/E is often used for relative valuation since earnings power is a chief driver of investment value. … Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for ORE Price per share = $3.91 Earnings per share = $0.026 ∴ Price-Earnings Ratio = $3.91 ÷ $0.026 = 151.8x The P/E ratio isn’t a metric you view in isolation and only becomes useful when you compare it against other similar companies. … ORE’s P/E of 151.8x is higher than its industry peers (13.4x), which implies that each dollar of ORE’s earnings is being overvalued by investors.
Simply Wall St - – Full articleIs April The Month To Buy Orocobre Limited (ASX:ORE)?
Orocobre is poised for significantly high earnings growth in the near future. … Orocobre is available at price-to-earnings ratio of 146.27x, showing us it is overvalued based on current earnings compared to the metals and mining industry average of 14.02x , and overvalued compared to the AU market average ratio of 16.87x. … A PE ratio of 146.27x and expected year-on-year earnings growth of 31.55% give Orocobre a quite high PEG ratio of 4.64x.
Simply Wall St - – Full articleCompany Info
Description
Orocobre Limited engages in the exploration, development, and production of lithium, potash, and boron deposits in Argentina. The company’s flagship project is the Salar de Olaroz lithium project located in the Jujuy province of northern Argentina. It also produces minerals, refined products, and boric acid. In addition, the company owns 33.5% interest in Advantage Lithium Corp., which manages an 85,543 hectare portfolio of assets in Argentina, including the Cauchari joint venture; and a 100% interest in 5 other lithium properties. Orocobre Limited is based in Milton, Australia.
Details
| Name: | Orocobre Limited |
| ORE | |
| Exchange: | ASX |
| Founded: | |
| A$881,855,109 | |
| 261,678,074 | |
| Website: | http://www.orocobre.com |
| Address: |
Orocobre Limited 349 Coronation Drive, Level 1, Milton, Queensland, 4064, Australia |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| ASX | ORE | Ordinary Shares | Australian Securities Exchange | AU | AUD | 04. Dec 2007 | |
| OTCPK | OROC.F | Ordinary Shares | Pink Sheets LLC | US | USD | 04. Dec 2007 | |
| DB | 3O1 | Ordinary Shares | Deutsche Boerse AG | DE | EUR | 04. Dec 2007 | |
| XTRA | 3O1 | Ordinary Shares | XETRA Trading Platform | DE | EUR | 04. Dec 2007 | |
| LSE | 0TWH | Ordinary Shares | London Stock Exchange | GB | AUD | 04. Dec 2007 | |
| TSX | ORL | Ordinary Shares | The Toronto Stock Exchange | CA | CAD | 04. Dec 2007 | |
| CHIA | ORE | Ordinary Shares | Chi-X Australia | AU | AUD | 04. Dec 2007 |
Number of employees
Current staff
Industry
| Diversified Metals and Mining | |
| Materials |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/04/21 10:34 |
| End of day share price update: | 2019/04/18 00:00 |
| Last estimates confirmation: | 2019/04/18 |
| Last earnings filing: | 2019/02/21 |
| Last earnings reported: | 2018/12/31 |
| Last annual earnings reported: | 2018/06/30 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
