ASX:RRL

Stock Analysis Report

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Executive Summary

Regis Resources Limited, together with its subsidiaries, engages in the exploration, evaluation, and development of gold projects in Australia. More Details


Snowflake Analysis

Very undervalued with flawless balance sheet.


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 is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: RRL's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-2.6%

RRL

3.4%

AU Metals and Mining

2.4%

AU Market


1 Year Return

-21.1%

RRL

12.6%

AU Metals and Mining

-0.6%

AU Market

Return vs Industry: RRL underperformed the Australian Metals and Mining industry which returned 13.7% over the past year.

Return vs Market: RRL underperformed the Australian Market which returned -0.3% over the past year.


Shareholder returns

RRLIndustryMarket
7 Day-2.6%3.4%2.4%
30 Day-16.7%5.1%8.0%
90 Day-30.8%0.6%8.8%
1 Year-18.1%-21.1%18.6%12.6%2.7%-0.6%
3 Year3.7%-6.5%54.2%33.4%24.3%9.0%
5 Year130.4%91.8%194.4%138.0%56.9%25.7%

Long-Term 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?

33.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RRL (A$3.75) is trading below our estimate of fair value (A$5.66)

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


Price To Earnings Ratio

PE vs Industry: RRL is good value based on its PE Ratio (9.6x) compared to the AU Metals and Mining industry average (11.2x).

PE vs Market: RRL is good value based on its PE Ratio (9.6x) compared to the Australian market (22.7x).


Price to Earnings Growth Ratio

PEG Ratio: RRL is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: RRL is good value based on its PB Ratio (2.3x) compared to the AU Metals and Mining industry average (2.5x).


Next Steps

Future Growth

How is Regis Resources forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

17.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RRL's forecast earnings growth (17.6% per year) is above the savings rate (2.3%).

Earnings vs Market: RRL's earnings (17.6% per year) are forecast to grow slower than the Australian market (17.8% per year).

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

Revenue vs Market: RRL's revenue (8.3% per year) is forecast to grow faster than the Australian market (5.1% per year).

High Growth Revenue: RRL's revenue (8.3% 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 high in 3 years time (20.2%)


Next Steps

Past Performance

How has Regis Resources performed over the past 5 years?

15.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RRL has high quality earnings.

Growing Profit Margin: RRL's current net profit margins (26.4%) are higher than last year (24.9%).


Past Earnings Growth Analysis

Earnings Trend: RRL's earnings have grown by 15% per year over the past 5 years.

Accelerating Growth: RRL's earnings growth over the past year (22.2%) exceeds its 5-year average (15% per year).

Earnings vs Industry: RRL earnings growth over the past year (22.2%) underperformed the Metals and Mining industry 38%.


Return on Equity

High ROE: RRL's Return on Equity (23.9%) is considered high.


Next Steps

Financial Health

How is Regis Resources's financial position?


Financial Position Analysis

Short Term Liabilities: RRL's short term assets (A$277.7M) exceed its short term liabilities (A$101.5M).

Long Term Liabilities: RRL's short term assets (A$277.7M) exceed its long term liabilities (A$215.3M).


Debt to Equity History and Analysis

Debt Level: RRL is debt free.

Reducing Debt: RRL has no debt compared to 5 years ago when its debt to equity ratio was 4.9%.

Debt Coverage: RRL has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: RRL has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

4.27%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RRL's dividend (4.27%) is higher than the bottom 25% of dividend payers in the Australian market (2.09%).

High Dividend: RRL's dividend (4.27%) is low compared to the top 25% of dividend payers in the Australian market (5%).


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 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (40.8%), 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 (28.7% payout ratio).


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Jim Beyer

2.08yrs

Tenure

AU$1,354,370

Compensation

Mr. Jim Beyer, B.Eng (Mining), Mausimm, MGeoSc, AMEC 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 Ex...


CEO Compensation Analysis

Compensation vs Market: Jim's total compensation ($USD995.71K) is about average for companies of similar size in the Australian market ($USD1.31M).

Compensation vs Earnings: Jim's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Jim Beyer
CEO, MD & Director2.08yrsAU$1.35m0.012%
A$ 221.6k
Jon Latto
Company Secretary & CFO1.33yrsAU$613.45kno data
Stuart Gula
Chief Operating Officer0.92yrAU$550.74k0.00039%
A$ 7.3k
Tim Conversi
General Manager of People & Capability0.58yrno datano data
Tara French
General Manager of Exploration1.83yrsno datano data

1.3yrs

Average Tenure

Experienced Management: RRL's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Jim Beyer
CEO, MD & Director2.08yrsAU$1.35m0.012%
A$ 221.6k
Russell Barwick
Independent Non Executive Director0.67yrAU$42.12kno data
Lynda Burnett
Independent Non Executive Director1yrAU$78.27k0.0024%
A$ 43.8k
Stephen Scudamore
Independent Non-Executive Director1.5yrsAU$139.59k0.0040%
A$ 75.0k
James Mactier
Independent Non-Executive Chairman2yrsAU$175.20k0.0098%
A$ 182.1k
Fiona Morgan
Independent Non-Executive Director4yrsAU$125.93k0.10%
A$ 1.9m

1.5yrs

Average Tenure

Experienced Board: RRL's board of directors are not considered experienced ( 1.5 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: RRL 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$1.862b
  • Shares outstanding: 511.49m
  • 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, engages in the exploration, evaluation, and development of gold projects in Australia. The company owns 100% interests in the Duketon project locate...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/25 10:33
End of Day Share Price2020/11/25 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.