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Resource Development Group

ASX:RDG
Snowflake Description

Fair value with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
RDG
ASX
A$15M
Market Cap
  1. Home
  2. AU
  3. Materials
Company description

Resource Development Group Limited provides contracting, remedial, and construction services to the resource, infrastructure, energy, government, utilities, and defense sectors in Australia and internationally. The last earnings update was 50 days ago. More info.


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RDG Share Price and Events
7 Day Returns
0%
ASX:RDG
-3.5%
AU Metals and Mining
0.7%
AU Market
1 Year Returns
20%
ASX:RDG
10.1%
AU Metals and Mining
4.7%
AU Market
RDG Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Resource Development Group (RDG) 0% -11.1% -7.7% 20% 200% -
AU Metals and Mining -3.5% 0.1% 12.3% 10.1% 68.6% 8.1%
AU Market 0.7% 1.1% 6.5% 4.7% 17.5% 4.9%
1 Year Return vs Industry and Market
  • RDG outperformed the Metals and Mining industry which returned 10.1% over the past year.
  • RDG outperformed the Market in Australia which returned 4.7% over the past year.
Price Volatility
RDG
Industry
5yr Volatility vs Market

RDG Value

 Is Resource Development Group 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 Resource Development Group 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 Resource Development Group.

ASX:RDG Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 10.4%
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:RDG
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%) (49.52%))
1.352
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.35
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (1.352 * 5.96%)
10.37%

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

The calculations below outline how an intrinsic value for Resource Development Group 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:RDG DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (AUD, Millions) Source Present Value
Discounted (@ 10.37%)
2019 17.01 Est @ 63.41% 15.41
2020 24.68 Est @ 45.08% 20.26
2021 32.64 Est @ 32.25% 24.28
2022 40.24 Est @ 23.27% 27.12
2023 47.07 Est @ 16.98% 28.74
2024 52.99 Est @ 12.58% 29.32
2025 58.03 Est @ 9.5% 29.09
2026 62.29 Est @ 7.34% 28.29
2027 65.92 Est @ 5.83% 27.13
2028 69.07 Est @ 4.78% 25.75
Present value of next 10 years cash flows A$255.39
ASX:RDG DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= A$69.07 × (1 + 2.31%) ÷ (10.37% – 2.31%)
A$877.14
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= A$877.14 ÷ (1 + 10.37%)10
A$327.05
ASX:RDG Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= A$255.39 + A$327.05
A$582.44
Equity Value per Share
(AUD)
= Total value / Shares Outstanding
= A$582.44 / 632.03
A$0.92
ASX:RDG Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$0.92
Current discount Discount to share price of A$0.02
= -1 x (A$0.02 - A$0.92) / A$0.92
97.4%

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

Current Discount
Amount off the current price Resource Development Group is available for.
Intrinsic value
>50%
Share price is A$0.024 vs Future cash flow value of A$0.92154
Current Discount Checks
For Resource Development Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Resource Development Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Resource Development Group'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 Resource Development Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Resource Development Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:RDG PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in AUD A$0.00
ASX:RDG Share Price ** ASX (2019-04-15) in AUD A$0.02
Australia Metals and Mining Industry PE Ratio Median Figure of 78 Publicly-Listed Metals and Mining Companies 12.55x
Australia Market PE Ratio Median Figure of 545 Publicly-Listed Companies 16.18x

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

** Primary Listing of Resource Development Group.

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

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

= 0.02 ÷ 0.00

111.11x

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

  • Resource Development Group is overvalued based on earnings compared to the AU Metals and Mining industry average.
  • Resource Development Group is overvalued based on earnings compared to the Australia market.
Price based on expected Growth
Does Resource Development Group's expected growth come at a high price?
Raw Data
ASX:RDG PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 111.11x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
Not available
Australia Metals and Mining Industry PEG Ratio Median Figure of 39 Publicly-Listed Metals and Mining Companies 0.56x
Australia Market PEG Ratio Median Figure of 361 Publicly-Listed Companies 1.38x

*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 Resource Development Group, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Resource Development Group's assets?
Raw Data
ASX:RDG PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in AUD A$0.03
ASX:RDG Share Price * ASX (2019-04-15) in AUD A$0.02
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 1.68x
ASX:RDG PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 0.02 ÷ 0.03

0.85x

* Primary Listing of Resource Development Group.

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

  • Resource Development Group is good value based on assets compared to the AU Metals and Mining industry average.
X
Value checks
We assess Resource Development Group'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. Resource Development Group has a total score of 3/6, 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.

RDG Future Performance

 How is Resource Development Group expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

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 Resource Development Group 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 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
1.2%
Expected Metals and Mining industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Resource Development Group expected to grow at an attractive rate?
  • Unable to compare Resource Development Group's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare Resource Development Group's earnings growth to the Australia market average as no estimate data is available.
  • Unable to compare Resource Development Group's revenue growth to the Australia market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
ASX:RDG Future Growth Rates Data Sources
Data Point Source Value (per year)
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 0.5%
Australia Market Earnings Growth Rate Market Cap Weighted Average 6.6%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3.1%

*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:RDG Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:RDG Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2018-12-31 34 11 0
2018-09-30 25 7 0
2018-06-30 16 3 -1
2018-03-31 11 0 -1
2017-12-31 7 -4 -2
2017-09-30 8 -4 -1
2017-06-30 9 -4 -1
2017-03-31 22 -1 1
2016-12-31 34 1 3
2016-09-30 52 6 4
2016-06-30 69 10 6

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if Resource Development Group is high growth as no earnings estimate data is available.
  • Unable to determine if Resource Development Group 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.
Raw Data
ASX:RDG 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 0 Analyst Estimates (S&P Global) See Below

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

ASX:RDG Past Financials Data
Date (Data in AUD Millions) EPS *
2018-12-31 0.00
2018-09-30 0.00
2018-06-30 0.00
2018-03-31 0.00
2017-12-31 0.00
2017-09-30 0.00
2017-06-30 0.00
2017-03-31 0.00
2016-12-31 0.00
2016-09-30 0.01
2016-06-30 0.01

*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.
  • Unable to establish if Resource Development Group will efficiently use shareholders’ funds in the future without estimates of Return on Equity.

Next steps:

  1. Examine whether Resource Development Group is trading at Resource Development Group'san attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  2. Resource Development Group's future outlook can be gauged by looking at industry trends and market size, and determining how well-positioned the company is compared to its competitors. Take a look at other high-growth Materials companies here
  3. Resource Development Group's competitive advantages and company strategy can generally be found in its financial reports archived here.
  4. Use fundamentals to screen for another stock to analyse from our database of over 75,000 companies worldwide
X
Future performance checks
We assess Resource Development Group'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.
Resource Development Group has a total score of 0/6, 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.

RDG Past Performance

  How has Resource Development Group 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 Resource Development Group'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.
  • Resource Development Group's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Resource Development Group has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Resource Development Group has become profitable in the last year making it difficult to compare the AU Metals and Mining industry average.
Earnings and Revenue History
Resource Development Group'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 Resource Development Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:RDG 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 34.37 0.14 16.42
2018-09-30 25.22 -0.19 11.65
2018-06-30 16.07 -0.51 6.89
2018-03-31 11.38 -1.11 5.12
2017-12-31 6.77 -1.70 3.35
2017-09-30 8.01 -1.43 3.49
2017-06-30 9.26 -1.17 3.64
2017-03-31 21.67 0.86 8.32
2016-12-31 34.09 2.88 13.00
2016-09-30 51.67 4.28 23.18
2016-06-30 69.26 5.68 33.35
2015-12-31 93.19 8.35 43.07
2015-09-30 163.24 10.44 73.16
2015-06-30 233.29 12.52 103.24
2014-12-31 297.14 13.56 141.08
2014-09-30 244.27 14.51 117.09
2014-06-30 191.41 15.46 93.10

*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 Resource Development Group has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • Resource Development Group used its assets less efficiently than the AU Metals and Mining industry average last year based on Return on Assets.
  • Resource Development Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Resource Development Group'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.
Resource Development Group 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.

RDG Health

 How is Resource Development Group'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 Resource Development Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Resource Development Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Resource Development Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Resource Development Group'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 covered by short term assets, assets are 2.5x 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 Resource Development Group Company Filings, last reported 3 months ago.

ASX:RDG Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 18.34 7.51 13.87
2018-09-30 18.34 7.51 13.87
2018-06-30 17.49 0.00 13.32
2018-03-31 17.49 0.00 13.32
2017-12-31 17.73 0.00 9.04
2017-09-30 17.73 0.00 9.04
2017-06-30 17.97 0.00 10.13
2017-03-31 17.97 0.00 10.13
2016-12-31 19.41 0.00 12.46
2016-09-30 19.41 0.00 12.46
2016-06-30 19.13 0.00 13.19
2015-12-31 16.52 28.72 36.11
2015-09-30 16.52 28.72 36.11
2015-06-30 13.45 37.25 34.32
2014-12-31 12.40 44.09 20.41
2014-09-30 12.40 44.09 20.41
2014-06-30 34.05 10.72 15.68
  • Resource Development Group's level of debt (41%) compared to net worth is high (greater than 40%).
  • Unable to establish if Resource Development Group's debt level has increased without past 5-year debt data.
  • Debt is well covered by operating cash flow (140.4%, greater than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.5x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Resource Development Group'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. Resource Development Group has a total score of 3/6, 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.

RDG Dividends

 What is Resource Development Group'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 Resource Development Group dividends.
If you bought A$2,000 of Resource Development Group 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 Resource Development Group's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Resource Development Group'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:RDG 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 0 Analyst Estimates (S&P Global) See Below
Australia Metals and Mining Industry Average Dividend Yield Market Cap Weighted Average of 36 Stocks 3.7%
Australia Market Average Dividend Yield Market Cap Weighted Average of 417 Stocks 4.3%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.6%
Australia Bottom 25% Dividend Yield 25th Percentile 2.5%
Australia Top 25% Dividend Yield 75th Percentile 5.8%

Industry and Market average data is calculated daily.

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

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

  • Unable to perform a dividend volatility check as Resource Development Group has not reported any payouts.
  • Unable to verify if Resource Development Group's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Resource Development Group's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Resource Development Group has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Resource Development Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.6%) - 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 Resource Development Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Resource Development Group 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.

RDG Management

 What is the CEO of Resource Development Group'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
Andrew Ellison
COMPENSATION A$167,000
AGE 56
TENURE AS CEO 4.1 years
CEO Bio

Mr. Andrew Blair Ellison has been a Managing Director of Resource Development Group Limited since March 10, 2015. Mr. Ellison was a Owner of Cimeco Group Pty Ltd. (Cimeco Pty Ltd.) and served as its Managing Director until July 31, 2012. Mr. Ellison served as an Executive General Manager of Forge Group Limited until September 1, 2009. He has extensive management experience and served many and varying management positions over the past twenty years in multi-disciplined businesses such as engineering and maintenance support organizations operating throughout Western Australia and overseas. Mr. Ellison served as Managing Director of Kiam Corporation Limited. He has extensive commercial and contractual experience, managed a number of large scale plant shutdowns and modification projects and has managed business with an annual turnover of in excess of $70M. He served major shareholdings, Directorships, Managing Director and General Management positions in a number of successful companies. He has over 30 years' experience in maintenance and construction contracting across Australia and West Africa including civil/concrete, commercial building, structural mechanical and piping, tanks and electrical services. He served as the Chairman of Resource Development Group Limited since September 19, 2014 until March 2019. He has been a Director of Centrals since August 2012. At Centrals, Mr. Ellison is responsible for strategic business development, development of new capabilities and services, identification of new territories and markets and key client relationship management. He served as a Director of Cimeco Group Pty Ltd. He has been an Executive Director of Resource Development Group Limited since August 2012. Mr. Ellison served as an Executive Director of Forge Group Ltd. from June 6, 2007 to July 31, 2012. He served as a Director of Phillips River Mining Limited (formerly Tectonic Resources NL) from February 2011 to July 3, 2012.

CEO Compensation
  • Andrew's compensation has increased in line with Resource Development Group recently becoming profitable.
  • Andrew's remuneration is lower than average for companies of similar size in Australia.
Management Team

Andrew Ellison

TITLE
MD & Director
COMPENSATION
A$167K
AGE
56
TENURE
4.1 yrs

Michael Kenyon

TITLE
CFO & Company Secretary
COMPENSATION
A$64K
TENURE
3.8 yrs

Gary Reid

TITLE
Executive Director
COMPENSATION
A$345K
Board of Directors Tenure

Average tenure of the Resource Development Group board of directors in years:

4.6
Average Tenure
  • The tenure for the Resource Development Group board of directors is about average.
Board of Directors

Andy Haslam

TITLE
Chairman
AGE
59
TENURE
0.1 yrs

Andrew Ellison

TITLE
MD & Director
COMPENSATION
A$167K
AGE
56
TENURE
6.7 yrs

Gary Reid

TITLE
Executive Director
COMPENSATION
A$345K
TENURE
4.6 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
X
Management checks
We assess Resource Development Group'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. Resource Development Group 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.

RDG News

Simply Wall St News

Why Resource Development Group Limited’s (ASX:RDG) Use Of Investor Capital Doesn’t Look Great

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Return On Capital Employed (ROCE): What is it? … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

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How Much Of Resource Development Group Limited (ASX:RDG) Do Insiders Own?

A look at the shareholders of Resource Development Group Limited (ASX:RDG) can tell us which group is most powerful. … Resource Development Group is a smaller company with a market capitalization of AU$15m, so it may still be flying under the radar of many institutional investors. … Check out our latest analysis for Resource Development Group

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Can You Imagine How Chuffed Resource Development Group's Shareholders Feel About Its 167% Share Price Gain?

For instance the Resource Development Group Limited (ASX:RDG) share price is 167% higher than it was three years ago. … Resource Development Group isn't yet profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. … In the last 3 years Resource Development Group saw its revenue shrink by 105% per year.

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What Investors Should Know About Resource Development Group Limited's (ASX:RDG) Financial Strength

The direct benefit for Resource Development Group Limited (ASX:RDG), which sports a zero-debt capital structure, to include debt in its capital structure is the reduced cost of capital. … However, the trade-off is RDG will have to adhere to stricter debt covenants and have less financial flexibility. … Is RDG right in choosing financial flexibility over lower cost of capital

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Can We See Significant Insider Ownership On The Resource Development Group Limited (ASX:RDG) Share Register?

If you want to know who really controls Resource Development Group Limited (ASX:RDG), then you'll have to look at the makeup of its share registry. … Resource Development Group is not a large company by global standards. … See our latest analysis for Resource Development Group

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Is Resource Development Group Limited's (ASX:RDG) CEO Paid At A Competitive Rate?

Andrew Ellison became the CEO of Resource Development Group Limited (ASX:RDG) in 2015. … Our data indicates that Resource Development Group Limited is worth AU$12m, and total annual CEO compensation is AU$167k. … A first glance this seems like a real positive for shareholders, since Andrew Ellison is paid less than the average compensation paid by similar sized companies.

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What You Must Know About Resource Development Group Limited's (ASX:RDG) Major Investors

In this analysis, my focus will be on developing a perspective on Resource Development Group Limited’s (ASX:RDG) latest ownership structure, a less discussed, but important factor. … The implications of these institutions’ actions can either benefit or hinder individual investors, so it is important to understand the ownership composition of your stock investment. … Therefore, it is beneficial for us to examine RDG's ownership structure in more detail.

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Is Resource Development Group Limited's (ASX:RDG) CEO Paid At A Competitive Rate?

Check out our latest analysis for Resource Development Group What has RDG's performance been like? … Performance can be measured based on factors such as earnings and total shareholder return (TSR). … Normally I'd use market cap and profit as factors determining performance, however, RDG's negative earnings lower the usefulness of my formula.

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What You Must Know About Resource Development Group Limited's (ASX:RDG) Major Investors

Today, I will be analyzing Resource Development Group Limited’s (ASX:RDG) recent ownership structure, an important but not-so-popular subject among individual investors. … Insider Ownership Another important group of shareholders are company insiders. … This level of ownership gives retail investors the power to sway key policy decisions such as board composition, executive compensation, and potential acquisitions.

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Should You Be Concerned About Resource Development Group Limited's (ASX:RDG) -120.55% Earnings Decline?

Assessing Resource Development Group Limited's (ASX:RDG) performance as a company requires looking at more than just a years' earnings data. … Below, I will run you through a simple sense check to build perspective on how Resource Development Group is doing by comparing its most recent earnings with its historical trend, in addition to the performance of its metals and mining industry peers. … View our latest analysis for Resource Development Group Commentary On RDG's Past Performance To account for any quarterly or half-yearly updates, I use data from the most recent 12 months, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data.

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RDG Company Info

Description

Resource Development Group Limited provides contracting, remedial, and construction services to the resource, infrastructure, energy, government, utilities, and defense sectors in Australia and internationally. The company multi-disciplinary construction services; ancillary, remedial, and protective maintenance services; EPCM, PMC, or integrated team project delivery solutions; EPC project delivery solutions; design and construct package delivery solutions; and optimizing services. It also builds and develops residential properties. Resource Development Group Limited is headquartered in Perth, Australia.

Details
Name: Resource Development Group Limited
RDG
Exchange: ASX
Founded:
A$15,168,697
632,029,067
Website: http://www.resdevgroup.com.au
Address: Resource Development Group Limited
46 Edward Street,
Level 1,
Perth,
Western Australia, 6017,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX RDG Ordinary Shares Australian Securities Exchange AU AUD 07. Oct 2014
Number of employees
Current staff
Staff numbers
125
Resource Development Group employees.
Industry
Diversified Metals and Mining
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/19 10:34
End of day share price update: 2019/04/15 00:00
Last earnings filing: 2019/02/28
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.