ASX:OZL

Stock Analysis Report

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Executive Summary

OZ Minerals Limited engages in the exploration, development, mining, and processing of mineral projects in Australia. More Details


Snowflake Analysis

Solid track record with reasonable growth potential.


Similar Companies

Share Price & News

How has OZ Minerals's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: OZL has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

6.0%

OZL

-0.9%

AU Metals and Mining

-0.3%

AU Market


1 Year Return

56.8%

OZL

13.1%

AU Metals and Mining

-6.9%

AU Market

Return vs Industry: OZL exceeded the Australian Metals and Mining industry which returned 13.1% over the past year.

Return vs Market: OZL exceeded the Australian Market which returned -6.9% over the past year.


Shareholder returns

OZLIndustryMarket
7 Day6.0%-0.9%-0.3%
30 Day11.8%2.0%5.1%
90 Day13.7%-0.4%4.2%
1 Year60.6%56.8%19.1%13.1%-3.5%-6.9%
3 Year103.9%90.0%58.6%36.3%18.1%3.0%
5 Year313.5%262.6%141.5%97.3%44.2%15.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is OZ Minerals undervalued compared to its fair value and its price relative to the market?

22.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OZL (A$15.81) is trading below our estimate of fair value (A$20.33)

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


Price To Earnings Ratio

PE vs Industry: OZL is poor value based on its PE Ratio (25.6x) compared to the AU Metals and Mining industry average (11.7x).

PE vs Market: OZL is poor value based on its PE Ratio (25.6x) compared to the Australian market (21.5x).


Price to Earnings Growth Ratio

PEG Ratio: OZL is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: OZL is good value based on its PB Ratio (1.7x) compared to the AU Metals and Mining industry average (2.6x).


Next Steps

Future Growth

How is OZ Minerals forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

22.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OZL's forecast earnings growth (22% per year) is above the savings rate (2.3%).

Earnings vs Market: OZL's earnings (22% per year) are forecast to grow faster than the Australian market (17.7% per year).

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

Revenue vs Market: OZL's revenue (9.8% per year) is forecast to grow faster than the Australian market (4.6% per year).

High Growth Revenue: OZL's revenue (9.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: OZL's Return on Equity is forecast to be low in 3 years time (10.7%).


Next Steps

Past Performance

How has OZ Minerals performed over the past 5 years?

11.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OZL has high quality earnings.

Growing Profit Margin: OZL's current net profit margins (15.8%) are higher than last year (13.8%).


Past Earnings Growth Analysis

Earnings Trend: OZL's earnings have grown by 11.2% per year over the past 5 years.

Accelerating Growth: OZL's earnings growth over the past year (44.1%) exceeds its 5-year average (11.2% per year).

Earnings vs Industry: OZL earnings growth over the past year (44.1%) exceeded the Metals and Mining industry 22.2%.


Return on Equity

High ROE: OZL's Return on Equity (6.6%) is considered low.


Next Steps

Financial Health

How is OZ Minerals's financial position?


Financial Position Analysis

Short Term Liabilities: OZL's short term assets (A$546.5M) exceed its short term liabilities (A$385.6M).

Long Term Liabilities: OZL's short term assets (A$546.5M) do not cover its long term liabilities (A$624.1M).


Debt to Equity History and Analysis

Debt Level: OZL's debt to equity ratio (3.3%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if OZL's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: OZL's debt is well covered by operating cash flow (560.1%).

Interest Coverage: OZL's interest payments on its debt are well covered by EBIT (19.4x coverage).


Balance Sheet


Next Steps

Dividend

What is OZ Minerals's current dividend yield, its reliability and sustainability?

1.45%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: OZL's dividend (1.45%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.09%).

High Dividend: OZL's dividend (1.45%) is low compared to the top 25% of dividend payers in the Australian market (5.45%).


Stability and Growth of Payments

Stable Dividend: OZL's dividend payments have been volatile in the past 10 years.

Growing Dividend: OZL's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (37.3%), OZL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: OZL's dividends in 3 years are forecast to be well covered by earnings (25% payout ratio).


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Andrew Cole

5.83yrs

Tenure

AU$2,443,267

Compensation

Mr. Andrew Cole serves as Director at Cassini Resources Limited since October 5, 2020. He has been Managing Director, Chief Executive Officer and Director of OZ Minerals Limited since December 03, 2014. Mr ...


CEO Compensation Analysis

Compensation vs Market: Andrew's total compensation ($USD1.74M) is about average for companies of similar size in the Australian market ($USD2.01M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Andrew Cole
MD, CEO & Director5.83yrsAU$2.44m0.14%
A$ 7.6m
Warrick R. Ranson
Chief Financial Officer2.83yrsAU$1.27mno data
Mark Irwin
Chief Commercial Officer & COOno dataAU$1.14m0.00030%
A$ 15.7k
Steven McClare
Chief Technical Officer1.42yrsno datano data
Kerrina Chadwick
Head of Investor Relations & Chief Corporate Affairs Officerno datano datano data
Michelle Pole
Company Secretary & Senior Legal Counsel2.83yrsno datano data
Richard Hedstrom
Head of Corporate Developmentno dataAU$765.45kno data
Sheila Chan
General Manager of Marketing & Salesno datano datano data
Fiona Blakely
Chief People Officer1.67yrsno datano data
Tania Davey
Chief Transformation Officer1.75yrsno datano data
Carlos Gonzalez
Chief Executive of Brazil1.75yrsno datano data
Marcel Van Eck
Executive Officer of Exploration and Business Developmentno datano datano data

1.8yrs

Average Tenure

Experienced Management: OZL's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Andrew Cole
MD, CEO & Director5.83yrsAU$2.44m0.14%
A$ 7.6m
Peter Wasow
Independent Non-Executive Director2.92yrsAU$200.21k0.0060%
A$ 316.4k
Charles Sartain
Independent Non-Executive Director2.17yrsAU$191.37k0.039%
A$ 2.1m
Richard Seville
Independent Non-Executive Director0.92yrAU$29.44k0.0035%
A$ 183.3k
Tonianne Dwyer
Independent Non-Executive Director3.58yrsAU$191.37k0.0060%
A$ 314.8k
Rebecca McGrath
Independent Non-Executive Chairman3.42yrsAU$360.17k0.016%
A$ 826.5k

3.2yrs

Average Tenure

58yo

Average Age

Experienced Board: OZL's board of directors are considered experienced (3.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: OZL 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 2.3%.


Top Shareholders

Company Information

OZ Minerals Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: OZ Minerals Limited
  • Ticker: OZL
  • Exchange: ASX
  • Founded: 2008
  • Industry: Copper
  • Sector: Materials
  • Market Cap: AU$5.238b
  • Shares outstanding: 331.29m
  • Website: https://www.ozminerals.com

Number of Employees


Location

  • OZ Minerals Limited
  • 2 Hamra Drive
  • Adelaide Airport
  • Adelaide
  • South Australia
  • 5950
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OZLASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
OXRDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
OZML.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
OZLCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992

Biography

OZ Minerals Limited engages in the exploration, development, mining, and processing of mineral projects in Australia. The company primarily explores for copper, gold, silver, nickel, iron oxide, zinc, and ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/25 10:45
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.