ASX:RRL

Stock Analysis Report

Executive Summary

Regis Resources Limited, together with its subsidiaries, explores for, evaluates, and develops gold projects in Australia.


Snowflake Analysis

Flawless balance sheet second-rate dividend payer.


Similar Companies

Share Price & News

How has Regis Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RRL has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

7.0%

RRL

0.3%

AU Metals and Mining

0.02%

AU Market


1 Year Return

-12.3%

RRL

5.8%

AU Metals and Mining

14.6%

AU Market

Return vs Industry: RRL underperformed the Australian Metals and Mining industry which returned 5.8% over the past year.

Return vs Market: RRL underperformed the Australian Market which returned 14.6% over the past year.


Shareholder returns

RRLIndustryMarket
7 Day7.0%0.3%0.02%
30 Day6.8%-4.3%0.2%
90 Day2.2%4.3%5.4%
1 Year-9.6%-12.3%11.3%5.8%19.7%14.6%
3 Year48.6%33.3%57.1%38.0%38.7%20.2%
5 Year183.2%136.0%83.6%40.5%50.6%17.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

15.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RRL (A$4.72) is trading below our estimate of fair value (A$5.57)

Significantly Below Fair Value: RRL is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: RRL is poor value based on its PE Ratio (13.6x) compared to the Metals and Mining industry average (13x).

PE vs Market: RRL is good value based on its PE Ratio (13.6x) compared to the Australian market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: RRL is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: RRL is overvalued based on its PB Ratio (3.1x) compared to the AU Metals and Mining industry average (1.4x).


Next Steps

Future Growth

How is Regis Resources forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

7.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RRL's forecast earnings growth (7.7% per year) is above the savings rate (1.1%).

Earnings vs Market: RRL's earnings (7.7% per year) are forecast to grow slower than the Australian market (9.3% per year).

High Growth Earnings: RRL's earnings are forecast to grow, but not significantly.

Revenue vs Market: RRL's revenue (4.3% per year) is forecast to grow faster than the Australian market (4.2% per year).

High Growth Revenue: RRL's revenue (4.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RRL's Return on Equity is forecast to be low in 3 years time (19.9%).


Next Steps

Past Performance

How has Regis Resources performed over the past 5 years?

29.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RRL has a high level of non-cash earnings.

Growing Profit Margin: RRL's current net profit margins (24.9%) are lower than last year (27.1%).


Past Earnings Growth Analysis

Earnings Trend: RRL has become profitable over the past 5 years, growing earnings by 29.1% per year.

Accelerating Growth: RRL's earnings growth over the past year (4.2%) is below its 5-year average (29.1% per year).

Earnings vs Industry: RRL earnings growth over the past year (4.2%) underperformed the Metals and Mining industry 14.8%.


Return on Equity

High ROE: RRL's Return on Equity (23%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Regis Resources's financial position?


Financial Position Analysis

Short Term Liabilities: RRL's short term assets (A$227.1M) exceed its short term liabilities (A$97.3M).

Long Term Liabilities: RRL's short term assets (A$227.1M) exceed its long term liabilities (A$183.5M).


Debt to Equity History and Analysis

Debt Level: RRL's debt to equity ratio (0%) is considered satisfactory.

Reducing Debt: RRL's debt to equity ratio has reduced from 5.4% to 0% over the past 5 years.

Debt Coverage: RRL's debt is well covered by operating cash flow (29618600%).

Interest Coverage: RRL's interest payments on its debt are well covered by EBIT (348.7x coverage).


Balance Sheet

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

Debt Coverage by Assets: RRL's debt is covered by short term assets (assets are 227123x debt).


Next Steps

Dividend

What is Regis Resources's current dividend yield, its reliability and sustainability?

3.39%

Current Dividend Yield


Upcoming Dividend Payment

TodayFeb 24 2020Ex Dividend DateMar 02 2020Dividend Pay DateMar 18 202016 days from Ex DividendBuy in the next 6 days to receive upcoming dividend

Dividend Yield vs Market

Notable Dividend: RRL's dividend (3.39%) is higher than the bottom 25% of dividend payers in the Australian market (2.29%).

High Dividend: RRL's dividend (3.39%) is low compared to the top 25% of dividend payers in the Australian market (5.39%).


Stability and Growth of Payments

Stable Dividend: RRL has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: RRL's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (46%), RRL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RRL's dividends in 3 years are forecast to be well covered by earnings (39.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.8yrs

Average management tenure


CEO

Jim Beyer 0

1.3yrs

Tenure

AU$1,077,273

Compensation

Mr. Jim Beyer, B.Eng (Mining), Mausimm, has been Chief Executive Officer and Managing Director at Regis Resources Limited since October 15, 2018 and serves as its Director. He was the Chief Executive Offic ...


CEO Compensation Analysis

Compensation vs Market: Jim's total compensation ($USD714.80K) is below average for companies of similar size in the Australian market ($USD1.37M).

Compensation vs Earnings: Insufficient data to compare Jim's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Jim Beyer
CEO, MD & Director1.3yrsAU$1.08m0.0057% A$131.2k
Jon Latto
Company Secretary & CFO0.6yrsAU$433.14kno data
Stuart Gula
Chief Operating Officer0.2yrsno datano data
Tara French
General Manager of Exploration1.1yrsno datano data

0.8yrs

Average Tenure

Experienced Management: RRL's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Jim Beyer
CEO, MD & Director1.3yrsAU$1.08m0.0057% A$131.2k
Lynda Burnett
Independent Non Executive Director0.3yrsno data0.0012% A$27.1k
Stephen Scudamore
Independent Non-Executive Director0.8yrsAU$18.53k0.0015% A$34.2k
James Mactier
Non-Executive Chairman1.3yrsAU$157.96k0.0069% A$158.3k
Fiona Morgan
Independent Non-Executive Director3.3yrsAU$125.93k0.10% A$2.3m

1.0yrs

Average Tenure

Experienced Board: RRL's board of directors are not considered experienced ( 1 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Regis Resources Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Regis Resources Limited
  • Ticker: RRL
  • Exchange: ASX
  • Founded: 1986
  • Industry: Gold
  • Sector: Materials
  • Market Cap: AU$2.297b
  • Shares outstanding: 508.18m
  • Website: https://www.regisresources.com.au

Location

  • Regis Resources Limited
  • 516 Hay Street
  • Level 2
  • Perth
  • Western Australia
  • 6008
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RGRN.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
RRLASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
RKQDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
RRLCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992

Biography

Regis Resources Limited, together with its subsidiaries, explores for, evaluates, and develops gold projects in Australia. The company primarily owns 100% interests in the Duketon project located in the North Eastern Goldfields of Western Australia; and the McPhillamys project situated in the Central Western region of New South Wales. Regis Resources Limited was incorporated in 1986 and 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 Analysis2020/02/24 10:37
End of Day Share Price2020/02/24 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.