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REE

RareXASX:REE Stock Report

Market Cap

AU$45.2m

7D

-2.0%

1Y

-30.0%

Updated

22 Oct, 2021

Data

Company Financials
REE fundamental analysis
Snowflake Score
Valuation0/6
Future Growth0/6
Past Performance0/6
Financial Health4/6
Dividends0/6

REE Overview

RareX Limited explores for and develops mineral properties in Australia.

Price History & Performance

Summary of all time highs, changes and price drops for RareX
Historical stock prices
Current Share PriceAU$0.098
52 Week HighAU$0.069
52 Week LowAU$0.16
Beta2.02
1 Month Change0%
3 Month Change15.29%
1 Year Change-30.00%
3 Year Change56.80%
5 Year Change30.67%
Change since IPO-98.04%

Recent News & Updates

Shareholder Returns

REEAU Metals and MiningAU Market
7D-2.0%-0.3%0.7%
1Y-30.0%12.5%21.4%

Return vs Industry: REE underperformed the Australian Metals and Mining industry which returned 12.5% over the past year.

Return vs Market: REE underperformed the Australian Market which returned 21.4% over the past year.

Price Volatility

Is REE's price volatile compared to industry and market?
REE volatility
REE Beta2.02
Industry Beta0.97
Market Beta1

Stable Share Price: REE is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: REE's weekly volatility (11%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2003n/aJeremy Robinsonhttps://www.rarex.com.au

RareX Limited explores for and develops mineral properties in Australia. The company primarily explores for nickel, cobalt, copper, gold, and rare earths deposits. It holds 100% interest in the Cummins Range Rare Earths project located in the East Kimbley region of Western Australia.

RareX Fundamentals Summary

How do RareX's earnings and revenue compare to its market cap?
REE fundamental statistics
Market CapAU$45.16m
Earnings (TTM)-AU$6.26m
Revenue (TTM)n/a

0x

P/S Ratio

-7.1x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
REE income statement (TTM)
RevenueAU$0
Cost of RevenueAU$3.65m
Gross Profit-AU$3.65m
ExpensesAU$2.61m
Earnings-AU$6.26m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.014
Gross Margin0.00%
Net Profit Margin0.00%
Debt/Equity Ratio0%

How did REE perform over the long term?

See historical performance and comparison

Valuation

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

5.38x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: REE is overvalued based on its PB Ratio (5.4x) compared to the AU Metals and Mining industry average (2.6x).


Future Growth

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

-0.07%

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 RareX 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.


Past Performance

How has RareX performed over the past 5 years?

-41.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: REE is currently unprofitable.

Growing Profit Margin: REE is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: REE is unprofitable, and losses have increased over the past 5 years at a rate of 41.3% per year.

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

Earnings vs Industry: REE 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: REE has a negative Return on Equity (-76.03%), as it is currently unprofitable.


Financial Health

How is RareX's financial position?


Financial Position Analysis

Short Term Liabilities: REE's short term assets (A$4.7M) exceed its short term liabilities (A$813.4K).

Long Term Liabilities: REE's short term assets (A$4.7M) exceed its long term liabilities (A$314.1K).


Debt to Equity History and Analysis

Debt Level: REE is debt free.

Reducing Debt: REE has not had any debt for 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: REE has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: REE has less than a year of cash runway if free cash flow continues to reduce at historical rates of 28.3% each year


Dividend

What is RareX current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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

1.9yrs

Average board tenure


CEO

Jeremy Robinson

2.08yrs

Tenure

AU$281,937

Compensation

Mr. Jeremy Kim Robinson, BComm, has been Executive Chair of Cosmos Exploration Ltd since March 22, 2021. He has been Managing Director and Director of RareX Limited (formerly, Sagon Resources Limited) sinc...


CEO Compensation Analysis

Compensation vs Market: Jeremy's total compensation ($USD211.14K) is below average for companies of similar size in the Australian market ($USD303.33K).

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


Board Members

Experienced Board: REE's board of directors are not considered experienced ( 1.9 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 19.4%.


Top Shareholders

Company Information

RareX Limited's employee growth, exchange listings and data sources


Key Information

  • Name: RareX Limited
  • Ticker: REE
  • Exchange: ASX
  • Founded: 2003
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: AU$45.159m
  • Shares outstanding: 451.59m
  • Website: https://www.rarex.com.au

Location

  • RareX Limited
  • Unit 6
  • 94 Rokeby Road
  • Subiaco
  • Western Australia
  • 6008
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/22 07:05
End of Day Share Price2021/10/22 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.