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Pilbara Minerals

ASX:PLS
Snowflake Description

Exceptional growth potential and slightly overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
PLS
ASX
A$1B
Market Cap
  1. Home
  2. AU
  3. Materials
Company description

Pilbara Minerals Limited engages in the exploration, evaluation, and development of mineral resources in Australia. The last earnings update was 65 days ago. More info.


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PLS Share Price and Events
7 Day Returns
-1.5%
ASX:PLS
-0.6%
AU Metals and Mining
1.7%
AU Market
1 Year Returns
-26.1%
ASX:PLS
10.4%
AU Metals and Mining
5.9%
AU Market
PLS Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Pilbara Minerals (PLS) -1.5% -5.8% -2.3% -26.1% 12.1% 2854.5%
AU Metals and Mining -0.6% 1.1% 14% 10.4% 76.1% 9.2%
AU Market 1.7% 4% 8.6% 5.9% 21.4% 7.4%
1 Year Return vs Industry and Market
  • PLS underperformed the Metals and Mining industry which returned 10.4% over the past year.
  • PLS underperformed the Market in Australia which returned 5.9% over the past year.
Price Volatility
PLS
Industry
5yr Volatility vs Market

Value

 Is Pilbara Minerals 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 Pilbara Minerals 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.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Pilbara Minerals.

ASX:PLS Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.2%
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.

Calculation of Discount Rate/ Cost of Equity for ASX:PLS
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))
= 1.132 (1 + (1- 30%) (11.8%))
1.151
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.15
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (1.151 * 5.96%)
9.17%

Discounted Cash Flow Calculation for ASX:PLS using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Pilbara Minerals 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.

ASX:PLS DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (AUD, Millions) Source Present Value
Discounted (@ 9.17%)
2019 -114.00 Analyst x1 -104.42
2020 -114.98 Est @ 0.86% -96.48
2021 360.00 Analyst x1 276.67
2022 364.67 Est @ 1.3% 256.72
2023 370.52 Est @ 1.6% 238.92
2024 377.24 Est @ 1.82% 222.82
2025 384.65 Est @ 1.96% 208.10
2026 392.61 Est @ 2.07% 194.56
2027 401.02 Est @ 2.14% 182.03
2028 409.81 Est @ 2.19% 170.40
Present value of next 10 years cash flows A$1,549.32
ASX:PLS DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= A$409.81 × (1 + 2.31%) ÷ (9.17% – 2.31%)
A$6,111.80
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= A$6,111.80 ÷ (1 + 9.17%)10
A$2,541.24
ASX:PLS Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= A$1,549.32 + A$2,541.24
A$4,090.57
Equity Value per Share
(AUD)
= Total value / Shares Outstanding
= A$4,090.57 / 1,848.42
A$2.21
ASX:PLS Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$2.21
Current discount Discount to share price of A$0.65
= -1 x (A$0.65 - A$2.21) / A$2.21
70.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Pilbara Minerals is available for.
Intrinsic value
>50%
Share price is A$0.65 vs Future cash flow value of A$2.21
Current Discount Checks
For Pilbara Minerals to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Pilbara Minerals's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Pilbara Minerals'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 Pilbara Minerals's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Pilbara Minerals's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:PLS PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in AUD A$-0.01
ASX:PLS Share Price ** ASX (2019-04-24) in AUD A$0.65
Australia Metals and Mining Industry PE Ratio Median Figure of 78 Publicly-Listed Metals and Mining Companies 12.32x
Australia Market PE Ratio Median Figure of 543 Publicly-Listed Companies 16.28x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Pilbara Minerals.

ASX:PLS PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:PLS Share Price ÷ EPS (both in AUD)

= 0.65 ÷ -0.01

-52.51x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Pilbara Minerals is loss making, we can't compare its value to the AU Metals and Mining industry average.
  • Pilbara Minerals is loss making, we can't compare the value of its earnings to the Australia market.
Price based on expected Growth
Does Pilbara Minerals's expected growth come at a high price?
Raw Data
ASX:PLS PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -52.51x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
85.3%per year
Australia Metals and Mining Industry PEG Ratio Median Figure of 38 Publicly-Listed Metals and Mining Companies 0.67x
Australia Market PEG Ratio Median Figure of 359 Publicly-Listed Companies 1.36x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Pilbara Minerals, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Pilbara Minerals's assets?
Raw Data
ASX:PLS PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in AUD A$0.19
ASX:PLS Share Price * ASX (2019-04-24) in AUD A$0.65
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 1.66x
ASX:PLS PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:PLS Share Price ÷ Book Value per Share (both in AUD)

= 0.65 ÷ 0.19

3.41x

* Primary Listing of Pilbara Minerals.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Pilbara Minerals is overvalued based on assets compared to the AU Metals and Mining industry average.
X
Value checks
We assess Pilbara Minerals's value by looking at:
  1. 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. )
  2. 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)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Metals and Mining industry average (and greater than 0)? (1 check)
  5. Pilbara Minerals has a total score of 2/6, 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 Pilbara Minerals expected to perform in the next 1 to 3 years based on estimates from 5 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!
Annual Growth Rate
85.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Pilbara Minerals expected to grow at an attractive rate?
  • Pilbara Minerals's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • Pilbara Minerals's earnings growth is expected to exceed the Australia market average.
  • Pilbara Minerals's revenue growth is expected to exceed the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:PLS Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:PLS Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 85.3%
ASX:PLS Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 67.8%
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 0.2%
Australia Market Earnings Growth Rate Market Cap Weighted Average 6.8%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3%

*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
Raw Data
ASX:PLS Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:PLS Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-06-30 1,049 381 286 1
2021-06-30 703 269 249 5
2020-06-30 369 117 91 5
2019-06-30 89 36 -16 4
ASX:PLS Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2018-12-31 25 -11 -21
2018-09-30 17 -10 -20
2018-06-30 10 -9 -19
2018-03-31 6 -10 -18
2017-12-31 0 -11 -17
2017-09-30 0 -14 -21
2017-06-30 -16 -26
2017-03-31 0 -17 -44
2016-12-31 0 -18 -62
2016-09-30 0 -16 -59
2016-06-30 0 -15 -56
2016-03-31 0 -11 -37

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Pilbara Minerals's earnings are expected to grow significantly at over 20% yearly.
  • Pilbara Minerals's revenue is expected to grow significantly at over 20% yearly.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:PLS 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 5 Analyst Estimates (S&P Global) See Below

All data from Pilbara Minerals Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:PLS Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-06-30 0.15 0.15 0.15 1.00
2021-06-30 0.15 0.18 0.12 3.00
2020-06-30 0.06 0.08 0.05 3.00
2019-06-30 -0.01 -0.01 -0.02 3.00
ASX:PLS Past Financials Data
Date (Data in AUD Millions) EPS *
2018-12-31 -0.01
2018-09-30 -0.01
2018-06-30 -0.01
2018-03-31 -0.01
2017-12-31 -0.01
2017-09-30 -0.02
2017-06-30 -0.02
2017-03-31 -0.04
2016-12-31 -0.06
2016-09-30 -0.06
2016-06-30 -0.07
2016-03-31 -0.05

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Pilbara Minerals is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Pilbara Minerals's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Pilbara Minerals has a total score of 6/6, 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 Pilbara Minerals 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
Below we compare Pilbara Minerals's growth in the last year to its industry (Metals and Mining).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Pilbara Minerals does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Pilbara Minerals's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Pilbara Minerals's 1-year growth to the AU Metals and Mining industry average as it is not currently profitable.
Earnings and Revenue History
Pilbara Minerals's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Pilbara Minerals Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:PLS Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 24.58 -21.34 24.42
2018-09-30 17.38 -20.38 23.15
2018-06-30 10.19 -19.42 21.89
2018-03-31 5.63 -18.07 20.60
2017-12-31 -0.08 -16.73 19.32
2017-09-30 -0.04 -21.34 24.63
2017-06-30 -25.95 29.95
2017-03-31 0.04 -44.21 40.85
2016-12-31 0.08 -62.47 51.75
2016-09-30 0.04 -59.04 46.80
2016-06-30 0.00 -55.61 41.85
2016-03-31 0.01 -36.81 28.25
2015-12-31 0.02 -18.01 14.65
2015-09-30 0.02 -12.32 9.52
2015-06-30 0.03 -6.62 4.39
2015-03-31 0.02 -4.32 1.59
2014-12-31 0.02 -3.14 0.16
2014-09-30 0.01 -3.16 0.32
2014-06-30 -3.19 0.48
2014-03-31 -2.55 0.84
2013-12-31 -1.92 1.20
2013-09-30 -1.54 0.85
2013-06-30 -1.16 0.51
2012-06-30 0.03 -2.08 0.26

*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.
  • It is difficult to establish if Pilbara Minerals has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Pilbara Minerals has efficiently used its assets last year compared to the AU Metals and Mining industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Pilbara Minerals improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Pilbara Minerals's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Metals and Mining industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Pilbara Minerals has a total score of 0/6, 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 Pilbara Minerals'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 Pilbara Minerals's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Pilbara Minerals is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Pilbara Minerals's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Pilbara Minerals's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.8x 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.
Raw Data

All data from Pilbara Minerals Company Filings, last reported 3 months ago.

ASX:PLS Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 333.13 141.73 70.26
2018-09-30 333.13 141.73 70.26
2018-06-30 343.24 131.14 119.98
2018-03-31 343.24 131.14 119.98
2017-12-31 264.74 122.72 71.97
2017-09-30 264.74 122.72 71.97
2017-06-30 200.17 124.43 87.25
2017-03-31 200.17 124.43 87.25
2016-12-31 139.56 0.13 80.39
2016-09-30 139.56 0.13 80.39
2016-06-30 98.43 0.35 100.04
2016-03-31 98.43 0.35 100.04
2015-12-31 21.52 8.03 12.89
2015-09-30 21.52 8.03 12.89
2015-06-30 3.90 2.62 3.22
2015-03-31 5.44 2.62 3.22
2014-12-31 6.19 0.94 2.24
2014-09-30 6.19 0.94 2.24
2014-06-30 2.38 1.39 1.09
2014-03-31 2.38 1.39 1.09
2013-12-31 4.13 0.00 0.21
2013-09-30 4.13 0.00 0.21
2013-06-30 4.06 0.00 0.24
2012-06-30 1.90 0.00 0.16
  • Pilbara Minerals's level of debt (42.5%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0.4% vs 42.5% today).
CASH RUNWAY ANALYSIS

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

  • Pilbara Minerals has less than a year of cash runway based on current free cash flow.
  • Pilbara Minerals has less than a year of cash runway if free cash flow continues to grow at historical rates of 87.7% each year.
X
Financial health checks
We assess Pilbara Minerals's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Pilbara Minerals has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. 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 Pilbara Minerals'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
Dividend payments
0%
Current annual income from Pilbara Minerals dividends. Estimated to be 0.06% next year.
If you bought A$2,000 of Pilbara Minerals shares you are expected to receive A$0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Pilbara Minerals's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Pilbara Minerals'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.
Raw Data
ASX:PLS Annualized Past and Future Dividends
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 5 Analyst Estimates (S&P Global) See Below
Australia Metals and Mining Industry Average Dividend Yield Market Cap Weighted Average of 36 Stocks 3.8%
Australia Market Average Dividend Yield Market Cap Weighted Average of 417 Stocks 4.2%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.5%
Australia Bottom 25% Dividend Yield 25th Percentile 2.5%
Australia Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:PLS Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2022-06-30
2021-06-30 0.00 4.00
2020-06-30 0.00 4.00
2019-06-30 0.00 4.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Pilbara Minerals has not reported any payouts.
  • Unable to verify if Pilbara Minerals's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Pilbara Minerals's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Pilbara Minerals has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Pilbara Minerals's dividends in 3 years as they are not expected to pay a notable one for Australia.
X
Income/ dividend checks
We assess Pilbara Minerals's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.5%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Pilbara Minerals afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Pilbara Minerals 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

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Ken Brinsden
COMPENSATION A$1,703,209
TENURE AS CEO 3.3 years
CEO Bio

Mr. Kenneth Edward Brinsden, also known as Ken, B.Eng (Mining), WASM, MAusIMM, MAICD, has been the Chief Executive Officer at Pilbara Minerals Limited since January 18, 2016 and has been its Managing Director since May 4, 2016. Mr. Brinsden served as the Managing Director of Atlas Iron Ltd., from February 2012 to June 11, 2015 and served as its Chief Development Officer until February 2012. He served as the Chief Operating Officer of Atlas Iron Ltd and its Executive Director Commercial until December 02, 2014. He served as Executive Director of Atlas Iron Limited from June 11, 2015 to September 1, 2015. He served as Operations Manager at Atlas Iron Limited since May 22, 2006. Mr. Brinsden is a Mining Engineer with over 23 years experience in surface and underground mining operations. Mr. Brinsden has worked for major mining companies including WMC Resources, Normandy Mining Limited, Central Norseman Gold Corporation, Goldfields and Iluka Resources in a range of production, management, brownfields and greenfields mine development roles. Prior to commencing with Atlas Iron. He was Mining Manager with Iluka Resources Limited, responsible for the green fields development of Iluka's Murray Basin Mining Operations in Sth West Victoria. Mr. Brinsden held Senior Mine Management and Project Development roles with Gold Fields and WMC Resources. He has been a Director of Pilbara Minerals Limited since May 04, 2016. He served as a Non-Executive Director of Atlas Iron Limited from September 1, 2015 to May 6, 2016. He was Non Executive Director of Rolek Resources Limited (formerly, Shaw River Manganese Limited) since February 19, 2009 until August 31, 2012. He is a graduate of the Western Australian School of Mines.

CEO Compensation
  • Ken's compensation has been consistent with company performance over the past year.
  • Ken's remuneration is about average for companies of similar size in Australia.
Management Team Tenure

Average tenure of the Pilbara Minerals management team in years:

2.8
Average Tenure
  • The tenure for the Pilbara Minerals management team is about average.
Management Team

Ken Brinsden

TITLE
MD, CEO & Director
COMPENSATION
A$2M
TENURE
3.3 yrs

Brian Lynn

TITLE
Chief Financial Officer
COMPENSATION
A$923K
TENURE
2.8 yrs

Dale Henderson

TITLE
Chief Operating Officer
COMPENSATION
A$788K
TENURE
1.1 yrs

Alex Eastwood

TITLE
Company Secretary & General Counsel
COMPENSATION
A$822K
TENURE
2.6 yrs

Phil Tribbick

TITLE
Mining Consultant of Operations
TENURE
4.5 yrs
Board of Directors Tenure

Average tenure of the Pilbara Minerals board of directors in years:

2.8
Average Tenure
  • The average tenure for the Pilbara Minerals board of directors is less than 3 years, this suggests a new board.
Board of Directors

Tony Kiernan

TITLE
Non-Executive Chairman
COMPENSATION
A$996K
AGE
67
TENURE
2.8 yrs

Ken Brinsden

TITLE
MD, CEO & Director
COMPENSATION
A$2M
TENURE
2.9 yrs

Steve Scudamore

TITLE
Independent Non-Executive Director
COMPENSATION
A$296K
AGE
66
TENURE
2.8 yrs

Nick Cernotta

TITLE
Independent Non-Executive Director
COMPENSATION
A$752K
TENURE
2.2 yrs

Sally-Anne Layman

TITLE
Independent Non-Executive Director
COMPENSATION
A$14K
TENURE
1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
22. Oct 18 Buy Sally-Anne Layman Individual 19. Oct 18 19. Oct 18 88,600 A$0.80 A$70,437
X
Management checks
We assess Pilbara Minerals's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Pilbara Minerals 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

Why I Like Pilbara Minerals Limited (ASX:PLS)

As an investor, I look for investments which does not compromise one fundamental factor for another. … By this I mean, I look at stocks holistically, from their financial health to their future outlook. … financial health as well as

Simply Wall St -

What You Must Know About Pilbara Minerals Limited's (ASX:PLS) Major Investors

In this article, I will take a quick look at Pilbara Minerals Limited’s (ASX:PLS) recent ownership structure – an unconventional investing subject, but an important one. … The impact of a company's ownership structure affects both its short- and long-term performance. … Differences in ownership structure of companies can have a profound effect on how management's incentives are aligned with shareholder returns, and whether they adhere to corporate governance best practices.

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Pilbara Minerals Limited (ASX:PLS) Investors Are Paying Above The Intrinsic Value

by taking the expected future cash flows and discounting them to their present value. … Discounted Cash Flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model

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Intrinsic Calculation For Pilbara Minerals Limited (ASX:PLS) Shows Investors Are Overpaying

Today, I will calculate the stock's intrinsic value by projecting its future cash flows and then discounting them to today's value. … 5-year cash flow estimate 2018 2019 2020 2021 2022 Levered FCF (A$, Millions) A$-243.00 A$28.00 A$91.00 A$106.47 A$123.51 Source Analyst x1 Analyst x1 Analyst x1 Extrapolated @ (17%, capped from 128.53%) Extrapolated @ (16%, capped from 128.53%) Present Value Discounted @ 9.98% A$-220.95 A$23.15 A$68.41 A$72.78 A$76.76 Present Value of 5-year Cash Flow (PVCF)= A$20 After calculating the present value of future cash flows in the intial 5-year period we need to calculate the Terminal Value, which accounts for all the future cash flows beyond the first stage. … Terminal Value (TV) = FCF2022 × (1 + g) ÷ (r – g) = A$124 × (1 + 2.8%) ÷ (10% – 2.8%) = A$1,758 Present Value of Terminal Value (PVTV) = TV / (1 + r)5 = A$1,758 / ( 1 + 10%)5 = A$1,093 The total value is the sum of cash flows for the next five years and the discounted terminal value, which results in the Total Equity Value, which in this case is A$1,113.

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Does Pilbara Minerals Limited's (ASX:PLS) CEO Pay Matter?

See our latest analysis for Pilbara Minerals What has been the trend in PLS's earnings? … Despite the fact that no standard benchmark exists, as remuneration should account for specific factors of the company and market, we can gauge a high-level base line to see if PLS deviates substantially from its peers. … Usually I would use earnings and market cap to account for variations in performance, however, PLS's negative earnings reduces the usefulness of my formula.

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Pilbara Minerals Limited's (ASX:PLS) Shift From Loss To Profit

Many investors are wondering the rate at which PLS will turn a profit, with the big question being “when will the company breakeven?” In this article, I will touch on the expectations for PLS’s growth and when analysts expect the company to become profitable. … So, a high growth rate is not out of the ordinary, particularly when a company is in a period of investment. … Next Steps: This article is not intended to be a comprehensive analysis on PLS, so if you are interested in understanding the company at a deeper level, take a look at PLS’s company page on Simply Wall St.

Simply Wall St -

Did Pilbara Minerals Limited's (ASX:PLS) Earnings Growth Outperform The Industry?

When Pilbara Minerals Limited (ASX:PLS) released its most recent earnings update (31 December 2017), I compared it against two factor: its historical earnings track record, and the performance of its industry peers on average. … Check out our latest analysis for Pilbara Minerals Commentary On PLS's Past Performance For the most up-to-date info, I use the ‘latest twelve-month’ data, which annualizes the most recent half-year data, or in some cases, the latest annual report is already the most recent financial year data. … ASX:PLS Income Statement Mar 24th 18 We can further assess Pilbara Minerals's loss by looking at what the industry has been experiencing over the past few years.

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Who Are The Largest Shareholders In Pilbara Minerals Limited (ASX:PLS)?

In this article, I'm going to take a look at Pilbara Minerals Limited’s (ASX:PLS) latest ownership structure, a non-fundamental factor which is important, but remains a less discussed subject among investors. … Insider Ownership Insiders form another group of important ownership types as they manage the company's operations and decide the best use of capital. … 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.

Simply Wall St -

Pilbara Minerals Limited (ASX:PLS): Time For A Financial Health Check

Given that PLS is not presently profitable, it’s vital to understand the current state of its operations and pathway to profitability. … Over the past year, PLS has ramped up its debt from AU$346.00K to AU$124.43M – this includes both the current and long-term debt. … Maintaining a high level of debt, while revenues are still below costs, can be dangerous as liquidity tends to dry up in unexpected downturns.Next Steps: PLS’s cash flow coverage indicates it could improve its operating efficiency in order to meet demand for debt repayments should unforeseen events arise.

Simply Wall St -

An Intrinsic Value Calculation For Pilbara Minerals Limited (ASX:PLS) Shows It's 32.79% Undervalued

Today, I will calculate the stock's intrinsic value by taking the expected future cash flows and discounting them to their present value. … 5-year cash flow estimate 2018 2019 2020 2021 2022 Levered FCF (A$, Millions) A$-221.00 A$62.00 A$153.00 A$179.01 A$207.65 Source Analyst x1 Analyst x1 Analyst x1 Extrapolated @ (17%, capped from 161.78%) Extrapolated @ (16%, capped from 161.78%) Present Value Discounted @ 10.11% A$-200.70 A$51.14 A$114.60 A$121.77 A$128.28 Present Value of 5-year Cash Flow (PVCF)= A$215 We now need to calculate the Terminal Value, which accounts for all the future cash flows after the five years. … ASX:PLS Intrinsic Value Feb 8th 18 Important assumptions I'd like to point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.

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Company Info

Description

Pilbara Minerals Limited engages in the exploration, evaluation, and development of mineral resources in Australia. The company focuses on the development of Pilgangoora lithium-tantalum project located in the Pilbara region of Western Australia. Pilbara Minerals Limited is headquartered in West Perth, Australia.

Details
Name: Pilbara Minerals Limited
PLS
Exchange: ASX
Founded:
A$1,201,472,529
1,848,419,276
Website: http://www.pilbaraminerals.com.au
Address: Pilbara Minerals Limited
88 Colin Street,
Level 2,
West Perth,
Western Australia, 6005,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX PLS Ordinary Shares Australian Securities Exchange AU AUD 01. Jun 2013
OTCPK PILB.F Ordinary Shares Pink Sheets LLC US USD 01. Jun 2013
DB PLR Ordinary Shares Deutsche Boerse AG DE EUR 01. Jun 2013
CHIA PLS Ordinary Shares Chi-X Australia AU AUD 01. Jun 2013
Number of employees
Current staff
Staff numbers
0
Pilbara Minerals employees.
Industry
Diversified Metals and Mining
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/25 10:35
End of day share price update: 2019/04/24 00:00
Last estimates confirmation: 2019/04/21
Last earnings filing: 2019/02/19
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.