ASX:S2R

Stock Analysis Report

Executive Summary

S2 Resources Ltd engages in the exploration of various mineral properties.

Risk Analysis

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months

Does not have a meaningful market cap (A$25M)



Snowflake Analysis

Flawless balance sheet with weak fundamentals.


Similar Companies

Share Price & News

How has S2 Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: S2R's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.0%

S2R

0.3%

AU Metals and Mining

1.5%

AU Market


1 Year Return

36.6%

S2R

6.2%

AU Metals and Mining

15.6%

AU Market

Return vs Industry: S2R exceeded the Australian Metals and Mining industry which returned 7.9% over the past year.

Return vs Market: S2R exceeded the Australian Market which returned 16.1% over the past year.


Shareholder returns

S2RIndustryMarket
7 Day1.0%0.3%1.5%
30 Day-19.2%-4.7%0.4%
90 Day-15.7%3.8%4.1%
1 Year36.6%36.6%11.6%6.2%20.6%15.6%
3 Year-57.8%-57.8%50.2%31.6%37.1%18.7%
5 Yearn/a88.6%44.4%50.9%17.1%

Price Volatility Vs. Market

How volatile is S2 Resources's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is S2 Resources undervalued compared to its fair value and its price relative to the market?

1.5x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate S2R's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate S2R's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: S2R is unprofitable, so we can't compare its PE Ratio to the Metals and Mining industry average.

PE vs Market: S2R 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 S2R's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: S2R is overvalued based on its PB Ratio (1.5x) compared to the AU Metals and Mining industry average (1.4x).


Next Steps

Future Growth

How is S2 Resources forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

1.0%

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 S2 Resources 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.


Next Steps

Past Performance

How has S2 Resources performed over the past 5 years?

-395.2%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: S2R is currently unprofitable.

Growing Profit Margin: S2R is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if S2R's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Unable to compare S2R's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: S2R is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (19.1%).


Return on Equity

High ROE: S2R has a negative Return on Equity (-51.71%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is S2 Resources's financial position?


Financial Position Analysis

Short Term Liabilities: S2R's short term assets (A$12.5M) exceed its short term liabilities (A$733.6K).

Long Term Liabilities: S2R has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: S2R is debt free.

Reducing Debt: S2R has not had any debt for past 5 years.


Balance Sheet

Inventory Level: S2R has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if S2R's debt is covered by short term assets.


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: S2R has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: S2R has sufficient cash runway for 1.6 years if free cash flow continues to grow at historical rates of 0.2% each year.


Next Steps

Dividend

What is S2 Resources's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%5.5%industryaverage4.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate S2R's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate S2R's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if S2R's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if S2R'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 S2R'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?

3.5yrs

Average management tenure


CEO

Mark Bennett (58yo)

4.8yrs

Tenure

AU$368,651

Compensation

Dr. Mark Anthony Bennett, BSc., Ph.D., MAusIMM, MAICD, FGS, serves as Chief Executive Officer and Managing Director of S2 Resources Ltd. Dr. Bennett served as the Chief Executive Officer and Managing Direc ...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD247.70K) is about average for companies of similar size in the Australian market ($USD254.67K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Mark Bennett
CEO, MD & Director4.8yrsAU$368.65k2.03% A$503.6k
Anna Neuling
Company Secretary & Executive Director4.8yrsAU$84.79k0.15% A$37.5k
John Bartlett
General Manager of Exploration5.1yrsno datano data
Andrew Thompson
General Manager of Geology0.08yrsno datano data

3.5yrs

Average Tenure

Experienced Management: S2R's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mark Bennett
CEO, MD & Director4.8yrsAU$368.65k2.03% A$503.6k
Anna Neuling
Company Secretary & Executive Director4.8yrsAU$84.79k0.15% A$37.5k
Jeffrey Dowling
Non-Executive Chairman4.8yrsAU$82.13k0.28% A$70.0k
Grey Egerton-Warburton
Independent Non-Executive Director3.8yrsAU$49.28k0.42% A$103.0k

4.8yrs

Average Tenure

Experienced Board: S2R's board of directors are considered experienced (4.8 years average tenure).


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

S2 Resources Ltd's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: S2 Resources Ltd
  • Ticker: S2R
  • Exchange: ASX
  • Founded: 2015
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: AU$24.792m
  • Shares outstanding: 247.92m
  • Website: https://www.s2resources.com.au

Location

  • S2 Resources Ltd
  • 4/24 Parkland Road
  • Osborne Park
  • Western Australia
  • 6017
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
S2RASX (Australian Securities Exchange)YesOrdinary SharesAUAUDOct 2015
S2RCHIA (Chi-X Australia)YesOrdinary SharesAUAUDOct 2015

Biography

S2 Resources Ltd engages in the exploration of various mineral properties. The company explores for copper, gold, nickel, and platinum metals. It has properties in Finland, Sweden, the United States, and Australia. The company was incorporated in 2015 and is based in Osborne Park, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 10:44
End of Day Share Price2020/02/17 00:00
Earnings2019/06/30
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.