ASX:RDG

Stock Analysis Report

Resource Development Group

Executive Summary

Resource Development Group Limited provides contracting, remedial, and construction services to the resource, infrastructure, energy, government, utilities, and defense sectors in Australia.


Snowflake Analysis

Flawless balance sheet and fair value.

Share Price & News

How has Resource Development Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

11.8%

RDG

0.8%

AU Metals and Mining

0.7%

AU Market


1 Year Return

-17.4%

RDG

6.2%

AU Metals and Mining

15.5%

AU Market

Return vs Industry: RDG underperformed the Australian Metals and Mining industry which returned 6.2% over the past year.

Return vs Market: RDG underperformed the Australian Market which returned 15.5% over the past year.


Shareholder returns

RDGIndustryMarket
7 Day11.8%0.8%0.7%
30 Day11.8%-5.1%0.8%
90 Day26.7%5.9%6.1%
1 Year-17.4%-17.4%11.7%6.2%20.6%15.5%
3 Year-29.6%-29.6%55.5%36.4%38.1%19.7%
5 Year-63.5%-63.5%85.7%41.9%51.8%17.9%

Price Volatility Vs. Market

How volatile is Resource Development Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Resource Development Group 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: RDG (A$0.02) is trading below our estimate of fair value (A$0.2)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: RDG is good value based on its PB Ratio (0.8x) compared to the AU Metals and Mining industry average (1.4x).


Next Steps

Future Growth

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

-1.7%

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 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 SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Resource Development Group performed over the past 5 years?

-72.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RDG is currently unprofitable.

Growing Profit Margin: RDG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RDG is unprofitable, and losses have increased over the past 5 years at a rate of -72.8% per year.

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

Earnings vs Industry: RDG is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (16.7%).


Return on Equity

High ROE: RDG has a negative Return on Equity (-17.37%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Resource Development Group's financial position?


Financial Position Analysis

Short Term Liabilities: RDG's short term assets (A$16.8M) exceed its short term liabilities (A$10.3M).

Long Term Liabilities: RDG's short term assets (A$16.8M) exceed its long term liabilities (A$4.3M).


Debt to Equity History and Analysis

Debt Level: RDG is debt free.

Reducing Debt: RDG has no debt compared to 5 years ago when its debt to equity ratio was 5.6%.


Balance Sheet

Inventory Level: RDG has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if RDG's debt is covered by short term assets.


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: RDG has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: RDG has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

What is Resource Development Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%5.4%industryaverage4.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate RDG's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if RDG's dividends per share have been stable in the past.

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

0.5yrs

Average board tenure


CEO

Andrew Ellison (57yo)

4.9yrs

Tenure

AU$167,000

Compensation

Mr. Andrew Blair Ellison has been Executive Chairman of Resource Development Group Limited since August 2019. He has been a Managing Director of Resource Development Group Limited since March 10, 2015. Mr ...


CEO Compensation Analysis

Compensation vs Market: Andrew's total compensation ($USD0.00) is below average for companies of similar size in the Australian market ($USD253.04K).

Compensation vs Earnings: Andrew's compensation has increased whilst the company is unprofitable.


Board Members

NamePositionTenureCompensationOwnership
Andrew Ellison
Executive Chairman & MD4.9yrsAU$167.00k16.72% A$2.0m
Gary Reid
Executive Director5.4yrsAU$344.60k16.72% A$2.0m
Ivan Ruefli
Director0.5yrsno datano data

0.5yrs

Average Tenure

Experienced Board: RDG's board of directors are not considered experienced ( 0.5 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.


Ownership Breakdown

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


Top Shareholders

Company Information

Resource Development Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Resource Development Group Limited
  • Ticker: RDG
  • Exchange: ASX
  • Founded:
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: AU$12.009m
  • Shares outstanding: 632.03m
  • Website: https://www.resdevgroup.com.au

Number of Employees


Location

  • Resource Development Group Limited
  • 46 Edward Street
  • Level 1
  • Perth
  • Western Australia
  • 6017
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RDGASX (Australian Securities Exchange)YesOrdinary SharesAUAUDAug 2014
RDGCHIA (Chi-X Australia)YesOrdinary SharesAUAUDAug 2014

Biography

Resource Development Group Limited provides contracting, remedial, and construction services to the resource, infrastructure, energy, government, utilities, and defense sectors in Australia. 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/21 10:41
End of Day Share Price2020/02/20 00:00
Earnings2019/06/30
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.