ASX:S2R

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet with weak fundamentals.

Risks

  • S2 Resources has significant price volatility in the past 3 months.
  • S2 Resources is not covered by any analysts.

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


Market Performance


7 Day Return

-4.7%

S2R

1.5%

AU Metals and Mining

1.0%

AU Market


1 Year Return

95.2%

S2R

14.5%

AU Metals and Mining

6.9%

AU Market

S2R outperformed the Metals and Mining industry which returned 14.5% over the past year.

S2R outperformed the Market in Australia which returned 6.9% over the past year.


Share holder returns

S2RIndustryMarket
7 Day-4.7%1.5%1.0%
30 Day2.5%6.2%4.2%
90 Day105.0%-3.6%1.6%
1 Year95.2%95.2%22.6%14.5%13.0%6.9%
3 Year-58.6%-58.6%77.8%54.7%39.6%20.9%
5 Yearn/a61.7%25.2%52.8%18.7%

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 based on future cash flows and its price relative to the stock market?

3.17x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Unable to calculate intrinsic value for S2 Resources to establish if it is available at moderate discount.

Unable to calculate intrinsic value for S2 Resources to establish if it is available at substantial discount.


Price Based on Earnings

S2 Resources is loss making, we can't compare its value to the AU Metals and Mining industry average.

S2 Resources is loss making, we can't compare the value of its earnings to the Australia market.


Price Based on Expected Growth

Unable to calculate PEG ratio for S2 Resources, we can't assess if its growth is good value.


Price Based on Value of Assets

S2 Resources is overvalued based on assets compared to the AU Metals and Mining industry average.


Next Steps

Future Growth

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

3.4%

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


Past Earnings Growth Analysis

S2 Resources does not make a profit and there is insufficient past data to establish if their 5 year on year earnings growth rate was positive.

Unable to compare S2 Resources's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare S2 Resources's 1-year growth to the AU Metals and Mining industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if S2 Resources has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if S2 Resources has efficiently used its assets last year compared to the AU Metals and Mining industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if S2 Resources improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is S2 Resources's financial position?


Financial Position Analysis

S2 Resources is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

S2 Resources has no long term commitments.


Debt to Equity History and Analysis

S2 Resources has no debt.

S2 Resources has not taken on any debt in the past 5 years.


Balance Sheet

Low level of unsold assets.

S2 Resources has no debt, it does not need to be 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.

S2 Resources has sufficient cash runway for 1.7 years based on current free cash flow.

S2 Resources has sufficient cash runway for 1.5 years if free cash flow continues to reduce 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 and Payments Analysis

Unable to evaluate S2 Resources's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate S2 Resources's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as S2 Resources has not reported any payouts.

Unable to verify if S2 Resources's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as S2 Resources has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of S2 Resources's salary, the management and board of directors tenure and is there insider trading?

4.0yrs

Average management tenure


CEO

Mark Bennett (58yo)

4.3yrs

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

Mark's remuneration is about average for companies of similar size in Australia.

Mark's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.0yrs

Average Tenure

The tenure for the S2 Resources management team is about average.


Board Age and Tenure

4.3yrs

Average Tenure

The tenure for the S2 Resources board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyAU$1,299,49628 May 19
Merian Global Investors (UK) Limited
EntityCompany
Shares11,300,000
Max PriceAU$0.12
BuyAU$32,47809 May 19
Mark Bennett
EntityIndividual
Role
Chief Executive Officer
CEO, MD & Director
Shares340,867
Max PriceAU$0.095
BuyAU$50,40006 May 19
Grey Egerton Warburton
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares480,000
Max PriceAU$0.10
BuyAU$30,07006 May 19
Anna Neuling
EntityIndividual
Role
Member of the Board of Directors
Company Secretary & Executive Director
Shares325,000
Max PriceAU$0.093

Ownership Breakdown


Management Team

  • Mark Bennett (58yo)

    CEO, MD & Director

    • Tenure: 4.3yrs
    • Compensation: AU$368.65k
  • Anna Neuling

    Company Secretary & Executive Director

    • Tenure: 4.3yrs
    • Compensation: AU$84.79k
  • Andy Thompson

    General Manager of Scandinavia

    • Tenure: 1.8yrs
  • John Bartlett

    General Manager of Exploration

    • Tenure: 4.7yrs
  • Su-Mei Sain

    Chief Financial Officer

    • Tenure: 4yrs
    • Compensation: AU$82.45k

Board Members

  • Jeff Dowling

    Non-Executive Chairman

    • Tenure: 4.3yrs
    • Compensation: AU$82.13k
  • Mark Bennett (58yo)

    CEO, MD & Director

    • Tenure: 4.3yrs
    • Compensation: AU$368.65k
  • Anna Neuling

    Company Secretary & Executive Director

    • Tenure: 4.3yrs
    • Compensation: AU$84.79k
  • Grey Egerton Warburton

    Independent Non-Executive Director

    • Tenure: 3.4yrs
    • Compensation: AU$49.28k

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$50.823m
  • Shares outstanding: 247.92m
  • Website: https://www.s2resources.com.au

Location

  • S2 Resources Ltd
  • North Wing
  • Level 2
  • Scarborough
  • Western Australia
  • 6019
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
S2RASX (Australian Securities Exchange)YesOrdinary SharesAUAUDOct 2015

Biography

S2 Resources Ltd engages in the exploration of various mineral properties in Australia and Scandinavia. The company explores for copper, zinc, gold, nickel, and platinum metals. It holds an 80% interest in ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/21 10:38
End of Day Share Price2019/09/20 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.