| Snowflake Score | |
|---|---|
| Valuation | 4/6 |
| Future Growth | 6/6 |
| Past Performance | 0/6 |
| Financial Health | 1/6 |
| Dividends | 0/6 |
RED Stock Overview
Red 5 Limited engages in the exploration, production, and mining of gold deposits and mineral properties in the Philippines and Australia.
Rewards
Risk Analysis
No risks detected for RED from our risk checks.
Red 5 Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | AU$0.30 |
| 52 Week High | AU$0.47 |
| 52 Week Low | AU$0.17 |
| Beta | 0.73 |
| 1 Month Change | 30.44% |
| 3 Month Change | -13.04% |
| 1 Year Change | 62.16% |
| 3 Year Change | -9.09% |
| 5 Year Change | 614.29% |
| Change since IPO | -82.86% |
Recent News & Updates
Shareholder Returns
| RED | AU Metals and Mining | AU Market | |
|---|---|---|---|
| 7D | 13.2% | 4.5% | 0.7% |
| 1Y | 62.2% | -13.6% | -8.0% |
Return vs Industry: RED exceeded the Australian Metals and Mining industry which returned -16.4% over the past year.
Return vs Market: RED exceeded the Australian Market which returned -7.9% over the past year.
Price Volatility
| RED volatility | |
|---|---|
| RED Average Weekly Movement | 8.9% |
| Metals and Mining Industry Average Movement | 12.2% |
| Market Average Movement | 10.5% |
| 10% most volatile stocks in AU Market | 17.6% |
| 10% least volatile stocks in AU Market | 4.6% |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1995 | n/a | Mark Williams | https://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
| RED fundamental statistics | |
|---|---|
| Market Cap | AU$707.03m |
| Earnings (TTM) | -AU$35.58m |
| Revenue (TTM) | AU$155.72m |
4.5x
P/S Ratio-19.9x
P/E RatioIs RED overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| RED income statement (TTM) | |
|---|---|
| Revenue | AU$155.72m |
| Cost of Revenue | AU$178.98m |
| Gross Profit | -AU$23.26m |
| Other Expenses | AU$12.32m |
| Earnings | -AU$35.58m |
Last Reported Earnings
Dec 31, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | -0.015 |
| Gross Margin | -14.94% |
| Net Profit Margin | -22.85% |
| Debt/Equity Ratio | 36.6% |
How did RED perform over the long term?
See historical performance and comparisonValuation
Is RED undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
4/6Valuation Score 4/6
Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast
Key Valuation Metric
Which metric is best to use when looking at relative valuation for RED?
Other financial metrics that can be useful for relative valuation.
| What is RED's n/a Ratio? | |
|---|---|
| n/a Ratio | 0x |
| n/a | n/a |
| Market Cap | AU$707.03m |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 5x |
| Enterprise Value/EBITDA | -47.1x |
| PEG Ratio | n/a |
Price to Sales Ratio vs Peers
How does RED's PS Ratio compare to its peers?
| RED PS Ratio vs Peers |
|---|
| Company | PS | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 1.9x | ||
WGX Westgold Resources | 1.1x | 14.2% | AU$629.9m |
ALK Alkane Resources | 3.5x | 4.2% | AU$494.3m |
SBM St Barbara | 1.4x | 7.4% | AU$995.2m |
RMS Ramelius Resources | 1.6x | 3.7% | AU$936.8m |
RED Red 5 | 4.5x | 56.0% | AU$707.0m |
Price-To-Sales vs Peers: RED is expensive based on its Price-To-Sales Ratio (4.5x) compared to the peer average (1.9x).
Price to Earnings Ratio vs Industry
How does RED's PE Ratio compare vs other companies in the AU Metals and Mining Industry?
Price-To-Sales vs Industry: RED is good value based on its Price-To-Sales Ratio (4.5x) compared to the Australian Metals and Mining industry average (43.2x)
Price to Sales Ratio vs Fair Ratio
What is RED's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
| Fair Ratio | |
|---|---|
| Current PS Ratio | 4.5x |
| Fair PS Ratio | 3.1x |
Price-To-Sales vs Fair Ratio: RED is expensive based on its Price-To-Sales Ratio (4.5x) compared to the estimated Fair Price-To-Sales Ratio (3.1x).
Share Price vs Fair Value
What is the Fair Price of RED when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: RED (A$0.3) is trading below our estimate of fair value (A$6.18)
Significantly Below Fair Value: RED is trading below fair value by more than 20%.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.
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Future Growth
How is Red 5 forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
Future Growth Score
6/6Future Growth Score 6/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
119.6%
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 (1.8%).
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 is expected to become profitable in the next 3 years.
Revenue vs Market: RED's revenue (56% per year) is forecast to grow faster than the Australian market (5.7% per year).
High Growth Revenue: RED's revenue (56% 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 (20.6%)
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Past Performance
How has Red 5 performed over the past 5 years?
Past Performance Score
0/6Past Performance Score 0/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
54.1%
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 54.1% 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 (57.3%).
Return on Equity
High ROE: RED has a negative Return on Equity (-17.55%), as it is currently unprofitable.
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Financial Health
How is Red 5's financial position?
Financial Health Score
1/6Financial Health Score 1/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway
Financial Position Analysis
Short Term Liabilities: RED's short term assets (A$65.2M) do not cover its short term liabilities (A$65.8M).
Long Term Liabilities: RED's short term assets (A$65.2M) do not cover its long term liabilities (A$121.8M).
Debt to Equity History and Analysis
Debt Level: RED's net debt to equity ratio (29.2%) is considered satisfactory.
Reducing Debt: Insufficient data to determine if RED's debt to equity ratio has reduced 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: Insufficient data to determine if RED has enough cash runway based on its current free cash flow.
Forecast Cash Runway: Insufficient data to determine if RED has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.
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Dividend
What is Red 5 current dividend yield, its reliability and sustainability?
Dividend Score
0/6Dividend Score 0/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage
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.
Earnings Payout to Shareholders
Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: Unable to calculate sustainability of dividends as RED has not reported any payouts.
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Management
How experienced are the management team and are they aligned to shareholders interests?
6.7yrs
Average management tenure
CEO
Mark Williams
8.33yrs
Tenure
AU$974,421
Compensation
Mr. Mark James Williams, Dip CSM Mining, GAICD, has been the Managing Director of Red 5 Limited since April 15, 2014. Mr. Williams has been an Executive Director of Red 5 Limited since January 16, 2014. He...
CEO Compensation Analysis
Compensation vs Market: Mark's total compensation ($USD671.74K) is about average for companies of similar size in the Australian market ($USD791.44K).
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 (6.7 years average tenure).
Board Members
Experienced Board: RED's board of directors are considered experienced (8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: RED 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
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
- Implied Market Cap: AU$707.032m
- 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/08/08 00:00 |
| End of Day Share Price | 2022/08/08 00:00 |
| Earnings | 2021/12/31 |
| Annual Earnings | 2021/06/30 |
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.