ASX:ORE

Stock Analysis Report

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Executive Summary

Orocobre Limited engages in the exploration, development, and production of lithium in Argentina. More Details


Snowflake Analysis

High growth potential and fair 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 is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: ORE's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

17.6%

ORE

1.3%

AU Metals and Mining

2.3%

AU Market


1 Year Return

45.5%

ORE

13.7%

AU Metals and Mining

-0.3%

AU Market

Return vs Industry: ORE exceeded the Australian Metals and Mining industry which returned 13.7% over the past year.

Return vs Market: ORE exceeded the Australian Market which returned -0.3% over the past year.


Shareholder returns

OREIndustryMarket
7 Day17.6%1.3%2.3%
30 Day39.0%2.6%7.2%
90 Day29.0%0.7%8.7%
1 Year45.5%45.5%19.7%13.7%3.1%-0.3%
3 Year-40.3%-40.5%56.2%35.0%24.2%8.8%
5 Year165.4%164.3%191.1%135.2%55.4%24.4%

Long-Term 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$3.74) is trading below our estimate of fair value (A$19.44)

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


Price To Earnings Ratio

PE vs Industry: ORE is unprofitable, so we can't compare its PE Ratio to the AU Metals and Mining industry average.

PE vs Market: ORE is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ORE's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ORE is good value based on its PB Ratio (1.3x) compared to the AU Metals and Mining industry average (2.5x).


Next Steps

Future Growth

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

72.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ORE is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.3%).

Earnings vs Market: ORE is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: ORE's is expected to become profitable in the next 3 years.

Revenue vs Market: ORE's revenue (31.5% per year) is forecast to grow faster than the Australian market (5.1% per year).

High Growth Revenue: ORE's revenue (31.5% 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 (3.4%).


Next Steps

Past Performance

How has Orocobre performed over the past 5 years?

25.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ORE is currently unprofitable.

Growing Profit Margin: ORE is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ORE is unprofitable, but has reduced losses over the past 5 years at a rate of 25.2% per year.

Accelerating Growth: Unable to compare ORE's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ORE is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (38%).


Return on Equity

High ROE: ORE has a negative Return on Equity (-9.73%), as it is currently unprofitable.


Next Steps

Financial Health

How is Orocobre's financial position?


Financial Position Analysis

Short Term Liabilities: ORE's short term assets ($226.9M) exceed its short term liabilities ($105.6M).

Long Term Liabilities: ORE's short term assets ($226.9M) do not cover its long term liabilities ($349.5M).


Debt to Equity History and Analysis

Debt Level: ORE's debt to equity ratio (33.1%) is considered satisfactory.

Reducing Debt: ORE's debt to equity ratio has increased from 1.7% to 33.1% over the past 5 years.

Debt Coverage: ORE's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if ORE's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is Orocobre current dividend yield, its reliability and sustainability?


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 recent payouts.

High Dividend: Unable to evaluate ORE'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 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?

2.0yrs

Average management tenure


CEO

Martin de Solay (49 yo)

2yrs

Tenure

US$1,544,875

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 ($USD1.54M) is above average for companies of similar size in the Australian market ($USD926.71K).

Compensation vs Earnings: Martin's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Martin de Solay
MD, CEO & Director2yrsUS$1.54m0.044%
$ 571.6k
Neil Kaplan
CFO & Joint Company Secretary7.83yrsUS$613.12k0.11%
$ 1.4m
Hersen Porta
Chief Operations Officer1.17yrsno datano data
Andrew Barber
Chief Investor Relations Officerno datano datano data
Richard Anthon
Corporate Development Managerno dataUS$497.28k0%
$ 0
Christian Cortes
Financial Controllerno datano datano data
Tara Berrie
Commercial Executiveno datano datano data

2.0yrs

Average Tenure

Experienced Management: ORE's management team is considered experienced (2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Martin de Solay
MD, CEO & Director2yrsUS$1.54m0.044%
$ 571.6k
John Gibson
Independent Non-Executive Director10.67yrsUS$66.82k0.011%
$ 141.8k
Richard Seville
Non-Executive Director13.58yrsUS$66.82k1.61%
$ 20.7m
Fernando Oris de Roa
Independent Non-Executive Director10.42yrsUS$66.82k0.029%
$ 374.1k
Frederico Nicholson
Independent Non-Executive Director10.17yrsUS$66.82k0.044%
$ 566.7k
Robert Hubbard
Independent Non-Executive Chairman4.33yrsUS$119.16k0.033%
$ 419.6k
Leanne Heywood
Non-Executive Director4.17yrsUS$66.82k0.0073%
$ 93.5k
Masaharu Katayama
Non-Executive Director2.58yrsUS$66.82kno data

7.3yrs

Average Tenure

59.5yo

Average Age

Experienced Board: ORE's board of directors are considered experienced (7.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: ORE 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 diluted in the past year, with total shares outstanding growing by 31.5%.


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$1.287b
  • Shares outstanding: 344.04m
  • 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 in Argentina. The company’s flagship project is the Olaroz Lithium Facility located in the Jujuy province of northern Arg...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/25 10:31
End of Day Share Price2020/11/25 00:00
Earnings2020/06/30
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.