ASX:RED

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

High growth potential with adequate balance sheet.

Share Price & News

How has Red 5's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

12.2%

RED

3.6%

AU Metals and Mining

3.6%

AU Market


1 Year Return

9.5%

RED

-3.2%

AU Metals and Mining

-10.7%

AU Market

Return vs Industry: RED exceeded the Australian Metals and Mining industry which returned -3.2% over the past year.

Return vs Market: RED exceeded the Australian Market which returned -10.7% over the past year.


Shareholder returns

REDIndustryMarket
7 Day12.2%3.6%3.6%
30 Day-19.3%1.5%3.1%
90 Day27.8%27.3%21.3%
1 Year9.5%9.5%1.9%-3.2%-7.1%-10.7%
3 Year666.7%666.7%67.4%44.1%17.6%2.0%
5 Year139.6%139.6%118.6%74.7%36.1%6.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Red 5 undervalued compared to its fair value and its price relative to the market?

199.65x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate RED's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate RED's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: RED is poor value based on its PE Ratio (199.7x) compared to the Metals and Mining industry average (10.4x).

PE vs Market: RED is poor value based on its PE Ratio (199.7x) compared to the Australian market (16x).


Price to Earnings Growth Ratio

PEG Ratio: RED is poor value based on its PEG Ratio (3.5x)


Price to Book Ratio

PB vs Industry: RED is overvalued based on its PB Ratio (3x) compared to the AU Metals and Mining industry average (1.7x).


Next Steps

Future Growth

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

57.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RED's forecast earnings growth (57.8% per year) is above the savings rate (2.3%).

Earnings vs Market: RED's earnings (57.8% per year) are forecast to grow faster than the Australian market (15.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: RED's revenue (16.4% per year) is forecast to grow faster than the Australian market (4.2% per year).

High Growth Revenue: RED's revenue (16.4% per year) is forecast to grow slower 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 (24.8%)


Next Steps

Past Performance

How has Red 5 performed over the past 5 years?

12.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RED has a large one-off gain of A$645.8K impacting its December 31 2004 financial results.

Growing Profit Margin: RED became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: RED has become profitable over the past 5 years, growing earnings by 12.5% per year.

Accelerating Growth: RED has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: RED has become profitable in the last year, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-8.4%).


Return on Equity

High ROE: RED's Return on Equity (1.6%) is considered low.


Next Steps

Financial Health

How is Red 5's financial position?


Financial Position Analysis

Short Term Liabilities: RED's short term assets (A$57.4M) do not cover its short term liabilities (A$70.8M).

Long Term Liabilities: RED's short term assets (A$57.4M) exceed its long term liabilities (A$46.5M).


Debt to Equity History and Analysis

Debt Level: RED's debt to equity ratio (21.7%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if RED's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: RED's debt is well covered by operating cash flow (274.8%).

Interest Coverage: RED's interest payments on its debt are well covered by EBIT (3.1x coverage).


Balance Sheet


Next Steps

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?

4.6yrs

Average management tenure


CEO

Mark Williams

6.25yrs

Tenure

AU$962,114

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 ($USD665.45K) is about average for companies of similar size in the Australian market ($USD755.25K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Mark Williams
MD & Executive Director6.25yrsAU$962.11k0.38% A$1.7m
John Tasovac
Chief Financial Officer2.92yrsAU$568.30k0.037% A$166.2k
Brendon Shadlow
General Manager2yrsAU$452.97kno data
Patrick Duffy
Chief Corporate Development Officerno datano datano data
Chris Witt
Chief Metallurgistno datano datano data
Byron Dumpleton
Chief Geologistno datano datano data
Frank Campagna
Company Secretary18.08yrsAU$157.30kno data
Love Manigsaca
President and Concurrent Director for Finance & Services of Greenstone Resources Corporationno datano datano data

4.6yrs

Average Tenure

Experienced Management: RED's management team is considered experienced (4.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mark Williams
MD & Executive Director6.25yrsAU$962.11k0.38% A$1.7m
Kevin Dundo
Independent Non-Executive Chairman6.67yrsAU$131.40k0.082% A$368.1k
Ian MacPherson
Independent Non-Executive Director6.25yrsAU$114.98k0.058% A$263.2k
John Loosemore
Independent Non-Executive Director5.58yrsAU$104.03k0.22% A$976.4k
Steven Tombs
Non-Executive Director1.92yrsAU$191.41k0.12% A$525.4k

6.3yrs

Average Tenure

68yo

Average Age

Experienced Board: RED's board of directors are considered experienced (6.3 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 been substantially diluted in the past year, with total shares outstanding growing by 57.6%.


Top Shareholders

Company Information

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


Key Information

  • Name: Red 5 Limited
  • Ticker: RED
  • Exchange: ASX
  • Founded:
  • Industry: Gold
  • Sector: Materials
  • Market Cap: AU$450.534m
  • Shares outstanding: 1.96b
  • Website: https://www.red5limited.com

Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
REDASX (Australian Securities Exchange)YesOrdinary SharesAUAUDOct 1996
RKMDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 1996
REDCHIA (Chi-X Australia)YesOrdinary SharesAUAUDOct 1996

Biography

Red 5 Limited, together with its subsidiaries, 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 is based in West Perth, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/03 10:34
End of Day Share Price2020/07/03 00:00
Earnings2019/12/31
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.