ASX:PLS

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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

Rewards

Earnings are forecast to grow 105.81% per year

Risk Analysis

No risks detected for PLS from our risk checks.


Snowflake Analysis

High growth potential with excellent balance sheet.


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 is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: PLS's weekly volatility (11%) has been stable over the past year.


Market Performance


7 Day Return

18.7%

PLS

4.5%

AU Metals and Mining

1.7%

AU Market


1 Year Return

143.3%

PLS

14.1%

AU Metals and Mining

-1.6%

AU Market

Return vs Industry: PLS exceeded the Australian Metals and Mining industry which returned 14.1% over the past year.

Return vs Market: PLS exceeded the Australian Market which returned -1.6% over the past year.


Shareholder returns

PLSIndustryMarket
7 Day18.7%4.5%1.7%
30 Day87.2%8.2%9.5%
90 Day111.6%3.0%9.2%
1 Year143.3%143.3%20.3%14.1%1.8%-1.6%
3 Year-29.1%-29.1%60.6%38.4%24.8%9.2%
5 Year139.3%139.3%202.4%143.9%56.1%25.0%

Long-Term 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?

4.2x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: PLS (A$0.73) is trading above our estimate of fair value (A$0.36)

Significantly Below Fair Value: PLS is trading above our estimate of fair value.


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 (4.2x) compared to the AU Metals and Mining industry average (2.5x).


Next Steps

Future Growth

How is Pilbara Minerals forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

105.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: PLS's revenue (43.9% per year) is forecast to grow faster than the Australian market (5% per year).

High Growth Revenue: PLS's revenue (43.9% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PLS's Return on Equity is forecast to be low in 3 years time (2.9%).


Next Steps

Past Performance

How has Pilbara Minerals performed over the past 5 years?

-22.3%

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 22.3% 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 (38%).


Return on Equity

High ROE: PLS has a negative Return on Equity (-25.65%), 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$113.6M) exceed its short term liabilities (A$75.4M).

Long Term Liabilities: PLS's short term assets (A$113.6M) do not cover its long term liabilities (A$140.1M).


Debt to Equity History and Analysis

Debt Level: PLS's debt to equity ratio (34.7%) is considered satisfactory.

Reducing Debt: PLS's debt to equity ratio has reduced from 63.9% to 34.7% 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 sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: PLS has sufficient cash runway for 1.6 years if free cash flow continues to reduce at historical rates of 39.7% each year.


Next Steps

Dividend

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

0.61%

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?

4.3yrs

Average management tenure


CEO

Ken Brinsden

4.83yrs

Tenure

AU$1,167,890

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 ($USD859.63K) is about average for companies of similar size in the Australian market ($USD944.21K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Kenneth Brinsden
MD, CEO & Director4.83yrsAU$1.17m0.38%
A$ 6.2m
Brian Lynn
Chief Financial Officer4.42yrsAU$755.24k0.056%
A$ 902.5k
Dale Henderson
Chief Operating Officer2.67yrsAU$753.62k0.0089%
A$ 144.6k
Alex Eastwood
Company Secretary & General Counsel4.25yrsAU$755.25k0.031%
A$ 506.9k

4.3yrs

Average Tenure

Experienced Management: PLS's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kenneth Brinsden
MD, CEO & Director4.83yrsAU$1.17m0.38%
A$ 6.2m
Anthony Kiernan
Independent Non-Executive Chairman4.33yrsAU$170.00k0.019%
A$ 311.3k
Nicholas Cernotta
Independent Non-Executive Director3.75yrsAU$117.50k0.0094%
A$ 152.5k
Stephen Scudamore
Independent Non-Executive Director4.33yrsAU$117.50k0.0064%
A$ 104.2k
Sally-Anne Layman
Independent Non-Executive Director2.58yrsAU$198.08k0.0040%
A$ 64.7k

4.3yrs

Average Tenure

Experienced Board: PLS's board of directors are considered experienced (4.3 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


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$1.626b
  • Shares outstanding: 2.23b
  • 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 primarily holds a 100% interest in the Pilgangoora lithium-tantalum project lo...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/27 07:02
End of Day Share Price2020/11/27 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.