ASX:POS

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Poseidon Nickel Limited engages in the exploration, development, mining, and production of nickel and other mineral properties in Australia. More Details


Snowflake Analysis

Adequate balance sheet with weak fundamentals.


Similar Companies

Share Price & News

How has Poseidon Nickel's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

5.8%

POS

-2.7%

AU Metals and Mining

-1.6%

AU Market


1 Year Return

5.8%

POS

9.8%

AU Metals and Mining

-10.9%

AU Market

Return vs Industry: POS underperformed the Australian Metals and Mining industry which returned 9.8% over the past year.

Return vs Market: POS exceeded the Australian Market which returned -10.9% over the past year.


Shareholder returns

POSIndustryMarket
7 Day5.8%-2.7%-1.6%
30 Day-5.2%-4.4%-3.7%
90 Day103.7%2.6%-1.4%
1 Year5.8%5.8%14.9%9.8%-7.7%-10.9%
3 Year120.0%120.0%60.4%38.3%16.2%1.3%
5 Year-11.3%-11.3%123.8%80.7%37.8%9.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Poseidon Nickel undervalued compared to its fair value and its price relative to the market?

2.37x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate POS's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate POS's fair value to establish if it is undervalued.


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: POS is overvalued based on its PB Ratio (2.4x) compared to the AU Metals and Mining industry average (2.2x).


Next Steps

Future Growth

How is Poseidon Nickel forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

2.6%

Forecasted Materials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Poseidon Nickel has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Poseidon Nickel performed over the past 5 years?

37.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: POS is currently unprofitable.

Growing Profit Margin: POS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: POS is unprofitable, but has reduced losses over the past 5 years at a rate of 37.4% per year.

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

Earnings vs Industry: POS is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (19.4%).


Return on Equity

High ROE: POS has a negative Return on Equity (-20.98%), as it is currently unprofitable.


Next Steps

Financial Health

How is Poseidon Nickel's financial position?


Financial Position Analysis

Short Term Liabilities: POS's short term assets (A$45.9M) exceed its short term liabilities (A$30.2M).

Long Term Liabilities: POS's short term assets (A$45.9M) do not cover its long term liabilities (A$48.2M).


Debt to Equity History and Analysis

Debt Level: POS's debt to equity ratio (40.3%) is considered high.

Reducing Debt: POS's debt to equity ratio has reduced from 72% to 40.3% 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: POS has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: POS has sufficient cash runway for more than 3 years if free cash flow continues to grow at historical rates of 3.3% each year


Next Steps

Dividend

What is Poseidon Nickel current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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

1.0yrs

Average management tenure


CEO

Peter Harold (57 yo)

0.92

Tenure

AU$543,085

Compensation

Mr. Peter John Harold, B.AppSc (Chem), AFAICD, serves as Chief Executive Officer and Director of Poseidon Nickel Limited since November 22, 2019 and its Managing Director since March 2020. He serves as an ...


CEO Compensation Analysis

Compensation vs Market: Peter's total compensation ($USD389.31K) is above average for companies of similar size in the Australian market ($USD279.42K).

Compensation vs Earnings: Insufficient data to compare Peter's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Peter Harold
MD, CEO & Director0.92yrAU$543.09kno data
Brendan Shalders
CFO & Joint Company Secretary1.08yrsAU$302.50kno data
Steve Warriner
Chief Geologist1.67yrsno datano data
Andrea Betti
Joint Company Secretary0.92yrno datano data

1.0yrs

Average Tenure

Experienced Management: POS's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Peter Harold
MD, CEO & Director0.92yrAU$543.09kno data
Peter Muccilli
Independent Non-Executive Director0.17yrno datano data
Derek La Ferla
Independent Non-Executive Chairman0.83yrAU$96.65kno data
Felicity Gooding
Non-Executive Director2yrsAU$74.09kno data
Dean Hildebrand
Non-Executive Director0.25yrno datano data

0.8yrs

Average Tenure

Experienced Board: POS's board of directors are not considered experienced ( 0.8 years average tenure), which suggests a new board.


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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Poseidon Nickel Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Poseidon Nickel Limited
  • Ticker: POS
  • Exchange: ASX
  • Founded: 1993
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: AU$140.063m
  • Shares outstanding: 2.64b
  • Website: https://poseidon-nickel.com.au

Location

  • Poseidon Nickel Limited
  • Churchill Court
  • Unit 8
  • Subiaco
  • Western Australia
  • 6008
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
POSASX (Australian Securities Exchange)YesOrdinary SharesAUAUDDec 1993
NYG1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 1993
PSDN.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 1993
POSCHIA (Chi-X Australia)YesOrdinary SharesAUAUDDec 1993

Biography

Poseidon Nickel Limited engages in the exploration, development, mining, and production of nickel and other mineral properties in Australia. It holds interests in the Mt Windarra, the Black Swan, and the L ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/01 10:40
End of Day Share Price2020/10/01 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.