ASX:OZL

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Excellent balance sheet 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


Market Performance


7 Day Return

2.4%

OZL

-1.4%

AU Metals and Mining

0.1%

AU Market


1 Year Return

9.6%

OZL

10.2%

AU Metals and Mining

11.9%

AU Market

Return vs Industry: OZL matched the Australian Metals and Mining industry which returned 10.2% over the past year.

Return vs Market: OZL underperformed the Australian Market which returned 11.9% over the past year.


Shareholder returns

OZLIndustryMarket
7 Day2.4%-1.4%0.1%
30 Day2.5%-6.2%-1.1%
90 Day-2.4%-11.8%-1.4%
1 Year12.2%9.6%18.2%10.2%18.5%11.9%
3 Year75.1%63.2%57.7%38.7%36.4%18.1%
5 Year191.1%157.0%70.4%29.8%50.9%16.7%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OZL (A$9.92) is trading below our estimate of fair value (A$28.55)

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 (23.1x) compared to the Metals and Mining industry average (13x).

PE vs Market: OZL is poor value based on its PE Ratio (23.1x) compared to the Australian market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: OZL is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: OZL is good value based on its PB Ratio (1.1x) compared to the AU Metals and Mining industry average (1.5x).


Next Steps

Future Growth

How is OZ Minerals forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

22.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OZL's forecast earnings growth (22.1% per year) is above the savings rate (2.3%).

Earnings vs Market: OZL's earnings (22.1% per year) are forecast to grow faster than the Australian market (10.2% per year).

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

Revenue vs Market: OZL's revenue (10.7% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: OZL's revenue (10.7% 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 (8.8%).


Next Steps

Past Performance

How has OZ Minerals performed over the past 5 years?

31.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: OZL has become profitable over the past 5 years, growing earnings by 31.1% per year.

Accelerating Growth: OZL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: OZL had negative earnings growth (-50.2%) over the past year, making it difficult to compare to the Metals and Mining industry average (14.4%).


Return on Equity

High ROE: OZL's Return on Equity (4.8%) is considered low.


Return on Assets

ROA vs Industry: OZL's Return on Assets is below or equal to the Metals and Mining industry average last year.


Return on Capital Employed

ROCE Improving: OZL's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is OZ Minerals's financial position?


Financial Position Analysis

Short Term Liabilities: OZL's short term assets (A$634.4M) exceeds its short term liabilities (A$221.7M)

Long Term Liabilities: OZL's short term assets (634.4M) exceeds its long term liabilities (440.1M)


Debt to Equity History and Analysis

Debt Level: OZL's debt to equity ratio (0.1%) 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 (10710.8%).

Interest Coverage: OZL's interest payments on its debt are well covered by EBIT (328.2x coverage).


Balance Sheet

Inventory Level: OZL has a high level of physical assets or inventory.

Debt Coverage by Assets: OZL's debt is covered by short term assets (assets are 171.459450x debt).


Next Steps

Dividend

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

2.32%

Current Dividend Yield


Dividend Yield vs Market

company2.3%marketbottom25%2.4%markettop25%5.6%industryaverage4.8%forecastin3Years2.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: OZL's dividend (2.32%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.44%).

High Dividend: OZL's dividend (2.32%) is low compared to the top 25% of dividend payers in the Australian market (5.58%).

Stable Dividend: OZL has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: OZL has only been paying a dividend for 9 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (53.6%), OZL's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: OZL's dividends in 3 years are forecast to be well covered by earnings (26.5% payout ratio).


Next Steps

Management

What is the CEO of OZ Minerals's salary, the management and board of directors tenure and is there insider trading?

1.3yrs

Average management tenure


CEO

Andrew Cole 0

4.8yrs

Tenure

AU$2,438,970

Compensation

Mr. Andrew Cole has been Managing Director, Chief Executive Officer and Director of OZ Minerals Limited since December 03, 2014. Mr. Cole has been Non-Executive Chairman of Avanco Resources Limited since J ...


CEO Compensation Analysis

Compensation vs. Market: Andrew's total compensation ($USD1.67M) is about average for companies of similar size in the Australian market ($USD1.43M).

Compensation vs Earnings: Andrew's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

1.3yrs

Average Tenure

Experienced Management: OZL's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Age and Tenure

2.4yrs

Average Tenure

57.5yo

Average Age

Experienced Board: OZL's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

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Max PriceAU$9.29
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Ownership Breakdown


Management Team

  • Warrick R. Ranson (53yo)

    Chief Financial Officer

    • Tenure: 1.8yrs
    • Compensation: AU$1.16m
  • Mark Irwin (51yo)

    Chief Commercial Officer & COO

    • Tenure: 0yrs
    • Compensation: AU$991.00k
  • Richard Hedstrom

    Head of Corporate Development

    • Tenure: 0yrs
    • Compensation: AU$765.45k
  • Natalie Worley

    Head of Investor Relations

    • Tenure: 0yrs
  • Sheila Chan

    General Manager of Marketing & Sales

    • Tenure: 0yrs
  • Steve McClare

    Chief Technical Officer

    • Tenure: 0.4yrs
  • Andrew Cole

    MD, CEO & Director

    • Tenure: 4.8yrs
    • Compensation: AU$2.44m
  • Kerrina Chadwick

    Chief Corporate Affairs Officer

    • Tenure: 2.8yrs
  • Tania Davey

    Chief Transformation Officer

    • Tenure: 0.8yrs
  • Fiona Blakely

    Chief People Officer

    • Tenure: 0.7yrs

Board Members

  • Peter Wasow (60yo)

    Independent Non-Executive Director

    • Tenure: 1.9yrs
    • Compensation: AU$186.47k
  • Charlie Sartain (58yo)

    Independent Non-Executive Director

    • Tenure: 1.2yrs
    • Compensation: AU$78.70k
  • Tonianne Dwyer (57yo)

    Non-Executive Director

    • Tenure: 2.6yrs
    • Compensation: AU$183.05k
  • Rebecca McGrath (54yo)

    Independent Chairman of the Board

    • Tenure: 2.4yrs
    • Compensation: AU$348.75k
  • Andrew Cole

    MD, CEO & Director

    • Tenure: 4.8yrs
    • Compensation: AU$2.44m

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$3.216b
  • Shares outstanding: 323.87m
  • 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 mining projects in Australia. The company primarily explores for copper, gold, silver, nickel, iron oxide, zinc, and l ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 10:32
End of Day Share Price2019/10/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.