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RED

Red 5ASX:RED Stock Report

Market Cap

AU$671.6m

7D

9.6%

1Y

-5.0%

Updated

16 Oct, 2021

Data

Company Financials +
RED fundamental analysis
Snowflake Score
Valuation2/6
Future Growth6/6
Past Performance0/6
Financial Health4/6
Dividends0/6

RED Overview

Red 5 Limited engages in the exploration, production, and mining of gold deposits and mineral properties in the Philippines and Australia.

Red 5 Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Red 5
Historical stock prices
Current Share PriceAU$0.28
52 Week HighAU$0.15
52 Week LowAU$0.31
Beta0.36
1 Month Change35.71%
3 Month Change50.00%
1 Year Change-5.00%
3 Year Change383.05%
5 Year Change185.00%
Change since IPO-83.71%

Recent News & Updates

Shareholder Returns

REDAU Metals and MiningAU Market
7D9.6%4.3%0.9%
1Y-5.0%12.2%20.2%

Return vs Industry: RED underperformed the Australian Metals and Mining industry which returned 12.2% over the past year.

Return vs Market: RED underperformed the Australian Market which returned 20.2% over the past year.

Price Volatility

Is RED's price volatile compared to industry and market?
RED volatility
RED Beta0.36
Industry Beta0.97
Market Beta1

Stable Share Price: RED is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: RED's weekly volatility (9%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1995n/aMark Williamshttps://www.red5limited.com

Red 5 Limited engages in the exploration, production, and mining of gold deposits and mineral properties in the Philippines and Australia. The company holds interests in the Siana Gold project located in the Island of Mindanao, the Philippines; King of the Hills Gold project located in the Eastern Goldfields of Western Australia; and Darlot Gold mine situated in the north-east of Perth in Western Australia. Red 5 Limited was incorporated in 1995 and is based in West Perth, Australia.

Red 5 Fundamentals Summary

How do Red 5's earnings and revenue compare to its market cap?
RED fundamental statistics
Market CapAU$671.56m
Earnings (TTM)-AU$9.15m
Revenue (TTM)AU$173.36m

3.9x

P/S Ratio

-73.5x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RED income statement (TTM)
RevenueAU$173.36m
Cost of RevenueAU$171.05m
Gross ProfitAU$2.31m
ExpensesAU$11.46m
Earnings-AU$9.15m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.0039
Gross Margin1.33%
Net Profit Margin-5.28%
Debt/Equity Ratio0%

How did RED perform over the long term?

See historical performance and comparison

Valuation

Is Red 5 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: RED (A$0.29) is trading below our estimate of fair value (A$3.42)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: RED is overvalued based on its PB Ratio (2.9x) compared to the AU Metals and Mining industry average (2.5x).


Future Growth

How is Red 5 forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

80.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RED is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

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

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

Revenue vs Market: RED's revenue (44.5% per year) is forecast to grow faster than the Australian market (5.4% per year).

High Growth Revenue: RED's revenue (44.5% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RED's Return on Equity is forecast to be high in 3 years time (29.4%)


Past Performance

How has Red 5 performed over the past 5 years?

38.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RED is currently unprofitable.

Growing Profit Margin: RED is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RED is unprofitable, but has reduced losses over the past 5 years at a rate of 38.8% per year.

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

Earnings vs Industry: RED is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (35.3%).


Return on Equity

High ROE: RED has a negative Return on Equity (-4.11%), as it is currently unprofitable.


Financial Health

How is Red 5's financial position?


Financial Position Analysis

Short Term Liabilities: RED's short term assets (A$79.5M) exceed its short term liabilities (A$53.9M).

Long Term Liabilities: RED's short term assets (A$79.5M) exceed its long term liabilities (A$60.7M).


Debt to Equity History and Analysis

Debt Level: RED is debt free.

Reducing Debt: RED had no debt 5 years ago.


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: RED has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: RED has less than a year of cash runway if free cash flow continues to reduce at historical rates of 45.8% each year


Dividend

What is Red 5 current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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

5.8yrs

Average management tenure


CEO

Mark Williams

7.5yrs

Tenure

AU$911,678

Compensation

Mr. Mark James Williams, Dip CSM Mining, GAICD, has been the Managing Director of Red 5 Limited since April 15, 2014. Mr. Williams has been an Executive Director of Red 5 Limited since January 16, 2014. He...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD676.67K) is about average for companies of similar size in the Australian market ($USD735.46K).

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


Leadership Team

Experienced Management: RED's management team is seasoned and experienced (5.8 years average tenure).


Board Members

Experienced Board: RED's board of directors are considered experienced (7.2 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 19.6%.


Top Shareholders

Company Information

Red 5 Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Red 5 Limited
  • Ticker: RED
  • Exchange: ASX
  • Founded: 1995
  • Industry: Gold
  • Sector: Materials
  • Market Cap: AU$671.563m
  • Shares outstanding: 2.36b
  • Website: https://www.red5limited.com

Location

  • Red 5 Limited
  • 35 Ventnor Avenue
  • Level 2
  • West Perth
  • Western Australia
  • 6005
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/16 07:04
End of Day Share Price2021/10/15 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.