ASX:PLS

Stock Analysis Report

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Executive Summary

Pilbara Minerals Limited engages in the exploration, development, and operation of mineral resources in Australia.


Snowflake Analysis

Slightly overvalued with limited growth.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: PLS's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

17.1%

PLS

5.5%

AU Metals and Mining

1.9%

AU Market


1 Year Return

-16.3%

PLS

13.4%

AU Metals and Mining

-8.4%

AU Market

Return vs Industry: PLS underperformed the Australian Metals and Mining industry which returned 13.4% over the past year.

Return vs Market: PLS underperformed the Australian Market which returned -8.4% over the past year.


Shareholder returns

PLSIndustryMarket
7 Day17.1%5.5%1.9%
30 Day32.3%9.0%1.7%
90 Day86.4%30.2%13.2%
1 Year-16.3%-16.3%19.2%13.4%-4.6%-8.4%
3 Year6.5%6.5%79.8%54.8%19.4%3.7%
5 Year228.0%228.0%153.9%103.0%39.5%9.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Pilbara 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: PLS (A$0.41) is trading below our estimate of fair value (A$3.81)

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


Price To Earnings Ratio

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

PE vs Market: PLS 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 PLS's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PLS is overvalued based on its PB Ratio (2.2x) compared to the AU Metals and Mining industry average (2x).


Next Steps

Future Growth

How is Pilbara Minerals forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

89.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PLS is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: PLS is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: PLS is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: PLS's revenue (74.3% per year) is forecast to grow faster than the Australian market (4.1% per year).

High Growth Revenue: PLS's revenue (74.3% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PLS is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Pilbara Minerals performed over the past 5 years?

-18.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PLS is currently unprofitable.

Growing Profit Margin: PLS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PLS is unprofitable, and losses have increased over the past 5 years at a rate of 18.1% per year.

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

Earnings vs Industry: PLS is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-7.9%).


Return on Equity

High ROE: PLS has a negative Return on Equity (-19.08%), as it is currently unprofitable.


Next Steps

Financial Health

How is Pilbara Minerals's financial position?


Financial Position Analysis

Short Term Liabilities: PLS's short term assets (A$154.3M) exceed its short term liabilities (A$59.4M).

Long Term Liabilities: PLS's short term assets (A$154.3M) do not cover its long term liabilities (A$156.1M).


Debt to Equity History and Analysis

Debt Level: PLS's debt to equity ratio (33.2%) is considered satisfactory.

Reducing Debt: PLS's debt to equity ratio has increased from 15.4% to 33.2% over the past 5 years.


Balance Sheet


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.

Stable Cash Runway: PLS has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if PLS has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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

0.24%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate PLS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate PLS'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 PLS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PLS'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 PLS'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?

4.1yrs

Average management tenure


CEO

Ken Brinsden

4.58yrs

Tenure

AU$1,368,006

Compensation

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 Direc ...


CEO Compensation Analysis

Compensation vs Market: Ken's total compensation ($USD981.63K) is about average for companies of similar size in the Australian market ($USD981.63K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Kenneth Brinsden
MD, CEO & Director4.58yrsAU$1.37m0.36%
A$ 3.2m
Brian Lynn
Chief Financial Officer4.17yrsAU$772.34k0.046%
A$ 423.1k
Dale Henderson
Chief Operating Officer2.42yrsAU$687.79kno data
Alex Eastwood
Company Secretary & General Counsel4yrsAU$725.48k0.022%
A$ 200.9k

4.1yrs

Average Tenure

Experienced Management: PLS's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kenneth Brinsden
MD, CEO & Director4.58yrsAU$1.37m0.36%
A$ 3.2m
Anthony Kiernan
Independent Non-Executive Chairman4.08yrsAU$387.38k0.026%
A$ 239.0k
Nicholas Cernotta
Independent Non-Executive Director3.5yrsAU$292.96k0.0094%
A$ 85.7k
Stephen Scudamore
Independent Non-Executive Director4.08yrsAU$171.84k0.0064%
A$ 58.6k
Sally-Anne Layman
Independent Non-Executive Director2.33yrsAU$559.03k0.0040%
A$ 36.3k

4.1yrs

Average Tenure

Experienced Board: PLS's board of directors are considered experienced (4.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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 20.2%.


Top Shareholders

Company Information

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


Key Information

  • Name: Pilbara Minerals Limited
  • Ticker: PLS
  • Exchange: ASX
  • Founded: 2005
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: AU$912.142m
  • Shares outstanding: 2.22b
  • Website: https://www.pilbaraminerals.com.au

Number of Employees


Location

  • Pilbara Minerals Limited
  • 88 Colin Street
  • Level 2
  • West Perth
  • Western Australia
  • 6005
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PLSASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJun 2013
PLSCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJun 2013
PLRDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2013
PILB.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 2013

Biography

Pilbara Minerals Limited engages in the exploration, development, and operation of mineral resources in Australia. The company holds a 100% interest in the Pilgangoora lithium-tantalum project located in t ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/09 10:33
End of Day Share Price2020/08/07 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


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.