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
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
It is not possible to calculate the future cash flow value for
Prospect Resources. This is due to cash flow or dividend data being
unavailable. The share price is
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
is considered below, and whether this is a fair price.
Price based on past earnings
Prospect Resources's earnings available for a low price, and how does
this compare to other companies in the same industry?
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 Prospect Resources 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 Simply Wall St do have past financial data. You can see them here.
Show me the analysis anyway
The future performance of a company is measured in the same way as past
performance, by looking at estimated
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
Expected Metals and Mining industry annual growth in earnings.
Earnings growth vs Low Risk Savings
expected to grow at an
Unable to compare Prospect Resources's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Prospect Resources's earnings growth to the Australia market average as no estimate data is available.
Unable to compare Prospect Resources's revenue growth to the Australia market average as no estimate data is available.
Unable to determine if Prospect Resources is high growth as no earnings estimate data is available.
Unable to determine if Prospect Resources is high growth as no revenue estimate data is available.
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.
Prospect Resources's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
Metals and Mining
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
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.
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.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
Prospect Resources's finances.
The net worth of a company is the difference between its assets and liabilities.
Prospect Resources is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Prospect Resources's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Prospect Resources'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
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
High level of physical assets or inventory.
Prospect Resources has no debt, it does not need to be covered by short term assets.
Nearly all companies have debt. Debt in itself isn’t
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.
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.
TENURE AS CEO
Mr. Sam Hosack has been Managing Director of Prospect Resources Ltd. since May 14, 2018. Mr. Hosack has been Director at Prospect Resources Ltd. since 2018. Mr. Hosack serves as an Executive at Prospect Resources Ltd since May 13, 2018. Mr. Hosack holds a Bachelors Engineering Degree (Hons) from Essex University in UK, MBA from Ashcroft Business School (UK) and respective professional registrations. He has hands on experience in the delivery of large scale mining, power and port projects to market, as well as their operations. For the past 12 years he has been employed by First Quantum Minerals Ltd, primarily in their Projects team, where most recently he has project managed the building of a port (coal offloading and copper loading), 120km 230kV transmission line and a 300MW coal fired powerstation for the Minera Panama Project in Panama. His mining and operations experience in North and Southern Africa, Europe, Australia and Central America will be central in delivering the Arcadia Project and in building Prospect into a diversified mining business.
Insufficient data for Sam to compare compensation growth.
Sam's remuneration is about average for companies of similar size in Australia.
Management Team Tenure
Average tenure and age of the
management team in years:
The average tenure for the Prospect Resources management team is less than 2 years, this suggests a new team.
MD & Director
Chief Financial Officer
General Manager of Operations
Africa Chief Financial Officer
Consultant of Metallurgy
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Prospect Resources board of directors is about average.
One Thing To Remember About The Prospect Resources Limited (ASX:PSC) Share Price
If you're interested in Prospect Resources Limited (ASX:PSC), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market.
Can We See Significant Insider Ownership On The Prospect Resources Limited (ASX:PSC) Share Register?
Generally speaking, as a company grows, institutions will increase their ownership. … Prospect Resources is a smaller company with a market capitalization of AU$45m, so it may still be flying under the radar of many institutional investors. … Check out our latest analysis for Prospect Resources
Are Prospect Resources Limited's (ASX:PSC) Interest Costs Too High?
However, it also faces higher cost of capital given interest cost is generally lower than equity. … Does PSC's growth rate justify its decision for financial flexibility over lower cost of capital. … Debt capital generally has lower cost of capital compared to equity funding
Is Prospect Resources Limited (ASX:PSC) A Volatile Stock?
If you're interested in Prospect Resources Limited (ASX:PSC), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. … Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility).
What Investors Should Know About Prospect Resources Limited's (ASX:PSC) Financial Strength
Prospect Resources Limited (ASX:PSC), which has zero-debt on its balance sheet, can maximize capital returns by increasing debt due to its lower cost of capital. … However, the trade-off is PSC will have to follow strict debt obligations which will reduce its financial flexibility. … Does PSC's growth rate justify its decision for financial flexibility over lower cost of capital
Can Prospect Resources Limited (ASX:PSC) Improve Your Portfolio Returns?
Based on this beta value, PSC appears to be a stock that an investor with a high-beta portfolio would look for to reduce risk exposure to the market. … Therefore, this is a type of risk which is associated with higher beta. … I test PSC’s ratio of fixed assets to total assets in order to determine how high the risk is associated with this type of constraint.
Who Are The Largest Shareholders In Prospect Resources Limited (ASX:PSC)?
This level of ownership gives retail investors the power to sway key policy decisions such as board composition, executive compensation, and potential acquisitions. … Private Company Ownership Potential investors in PSC should also look at another important group of investors: private companies, with a stake of 10.95%, who are primarily invested because of strategic and capital gain interests. … As a result, potential investors should further explore the company's business relations with these companies and find out if they can affect shareholder returns in the long-term.Next Steps: The company's high institutional ownership makes margin of safety a very important consideration to existing investors since long bull and bear trends often emerge when these big-ticket investors see a change in long-term potential of the company.
Does Prospect Resources Limited's (ASX:PSC) Earnings Growth Make It An Outperformer?
See our latest analysis for Prospect Resources Were PSC's earnings stronger than its past performances and the industry? … For Prospect Resources, its latest earnings (trailing twelve month) is -AU$5.50M, which, in comparison to last year’s figure, has become less negative. … ASX:PSC Income Statement May 1st 18 We can further analyze Prospect Resources's loss by looking at what the industry has been experiencing over the past few years.
Prospect Resources Limited engages in exploration, evaluation, and development of mineral properties in Zimbabwe. The company primarily explores for lithium and gold deposits. Its flagship project is the Arcadia lithium project that covers an area of approximately 14 square kilometers of granted mining rights located to the east of Harare, Zimbabwe. The company was incorporated in 2007 and is headquartered in Subiaco, Australia.
Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.