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S32

South32 ASX:S32 Stock Report

Last Price

AU$3.63

Market Cap

AU$16.8b

7D

-6.0%

1Y

3.4%

Updated

30 Sep, 2022

Data

Company Financials +
S32 fundamental analysis
Snowflake Score
Valuation6/6
Future Growth0/6
Past Performance5/6
Financial Health5/6
Dividends4/6

S32 Stock Overview

South32 Limited operates as a diversified metals and mining company in Australia, Southern Africa, North America, and South America.

South32 Competitors

Price History & Performance

Summary of all time highs, changes and price drops for South32
Historical stock prices
Current Share PriceAU$3.63
52 Week HighAU$5.44
52 Week LowAU$3.40
Beta1.04
1 Month Change-12.53%
3 Month Change-6.20%
1 Year Change3.42%
3 Year Change49.38%
5 Year Change9.01%
Change since IPO77.07%

Recent News & Updates

Sep 16
Here's Why South32 (ASX:S32) Has Caught The Eye Of Investors

Here's Why South32 (ASX:S32) Has Caught The Eye Of Investors

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Shareholder Returns

S32AU Metals and MiningAU Market
7D-6.0%-1.7%-0.5%
1Y3.4%3.5%-9.7%

Return vs Industry: S32 matched the Australian Metals and Mining industry which returned 3.5% over the past year.

Return vs Market: S32 exceeded the Australian Market which returned -9.7% over the past year.

Price Volatility

Is S32's price volatile compared to industry and market?
S32 volatility
S32 Average Weekly Movement5.8%
Metals and Mining Industry Average Movement11.4%
Market Average Movement9.5%
10% most volatile stocks in AU Market16.7%
10% least volatile stocks in AU Market4.2%

Stable Share Price: S32 is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: S32's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20009,096Graham Kerrhttps://www.south32.net

South32 Limited operates as a diversified metals and mining company in Australia, Southern Africa, North America, and South America. The company operates through Worsley Alumina, Brazil Alumina, Brazil Aluminium, Hillside Aluminium, Mozal Aluminium, Sierra Gorda, Cannington, Hermosa, Cerro Matoso, Illawarra Metallurgical Coal, Australia Manganese, and South Africa Manganese segments. It has a portfolio of assets producing bauxite, alumina, aluminum, copper, silver, lead, zinc, nickel, metallurgical coal, manganese, ferronickel, and other base metals.

South32 Fundamentals Summary

How do South32's earnings and revenue compare to its market cap?
S32 fundamental statistics
Market CapAU$16.82b
Earnings (TTM)AU$4.12b
Revenue (TTM)AU$14.59b

4.1x

P/E Ratio

1.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
S32 income statement (TTM)
RevenueUS$9.45b
Cost of RevenueUS$3.19b
Gross ProfitUS$6.26b
Other ExpensesUS$3.59b
EarningsUS$2.67b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Oct 24, 2022

Earnings per share (EPS)0.58
Gross Margin66.26%
Net Profit Margin28.24%
Debt/Equity Ratio10.9%

How did S32 perform over the long term?

See historical performance and comparison

Dividends

13.2%

Current Dividend Yield

40%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is S32 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for S32?

Other financial metrics that can be useful for relative valuation.

S32 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.1x
Enterprise Value/EBITDA2.5x
PEG Ratio-0.2x

Price to Earnings Ratio vs Peers

How does S32's PE Ratio compare to its peers?

S32 PE Ratio vs Peers
The above table shows the PE ratio for S32 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average21.8x
IGO IGO
31.3x4.2%AU$10.5b
MIN Mineral Resources
35.5x18.1%AU$12.4b
LYC Lynas Rare Earths
12.7x13.7%AU$6.9b
ILU Iluka Resources
7.8x-21.5%AU$3.8b
S32 South32
4.1x-17.4%AU$16.8b

Price-To-Earnings vs Peers: S32 is good value based on its Price-To-Earnings Ratio (4.1x) compared to the peer average (21.8x).


Price to Earnings Ratio vs Industry

How does S32's PE Ratio compare vs other companies in the AU Metals and Mining Industry?

Price-To-Earnings vs Industry: S32 is good value based on its Price-To-Earnings Ratio (4.1x) compared to the Australian Metals and Mining industry average (8.5x)


Price to Earnings Ratio vs Fair Ratio

What is S32's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

S32 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio4.1x
Fair PE Ratio11.4x

Price-To-Earnings vs Fair Ratio: S32 is good value based on its Price-To-Earnings Ratio (4.1x) compared to the estimated Fair Price-To-Earnings Ratio (11.4x).


Share Price vs Fair Value

What is the Fair Price of S32 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: S32 (A$3.63) is trading below our estimate of fair value (A$7.17)

Significantly Below Fair Value: S32 is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

How is South32 forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-17.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: S32's earnings are forecast to decline over the next 3 years (-17.4% per year).

Earnings vs Market: S32's earnings are forecast to decline over the next 3 years (-17.4% per year).

High Growth Earnings: S32's earnings are forecast to decline over the next 3 years.

Revenue vs Market: S32's revenue is expected to decline over the next 3 years (-4.7% per year).

High Growth Revenue: S32's revenue is forecast to decline over the next 3 years (-4.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: S32's Return on Equity is forecast to be low in 3 years time (12.3%).


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Past Performance

How has South32 performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-1.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: S32 has high quality earnings.

Growing Profit Margin: S32's current net profit margins (28.2%) are higher than last year (2.5%).


Past Earnings Growth Analysis

Earnings Trend: S32's earnings have declined by 1.9% per year over the past 5 years.

Accelerating Growth: S32's earnings growth over the past year (1779.6%) exceeds its 5-year average (-1.9% per year).

Earnings vs Industry: S32 earnings growth over the past year (1779.6%) exceeded the Metals and Mining industry 22.7%.


Return on Equity

High ROE: S32's Return on Equity (24.8%) is considered high.


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Financial Health

How is South32's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: S32's short term assets ($4.2B) exceed its short term liabilities ($1.9B).

Long Term Liabilities: S32's short term assets ($4.2B) exceed its long term liabilities ($3.7B).


Debt to Equity History and Analysis

Debt Level: S32 has more cash than its total debt.

Reducing Debt: S32's debt to equity ratio has increased from 4.1% to 10.9% over the past 5 years.

Debt Coverage: S32's debt is well covered by operating cash flow (260.8%).

Interest Coverage: S32's interest payments on its debt are well covered by EBIT (701.4x coverage).


Balance Sheet


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Dividend

What is South32 current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


13.18%

Current Dividend Yield

Dividend Yield vs Market

South32 Dividend Yield vs Market
How does South32 dividend yield compare to the market?
SegmentDividend Yield
Company (South32)13.2%
Market Bottom 25% (AU)2.8%
Market Top 25% (AU)7.2%
Industry Average (Metals and Mining)10.3%
Analyst forecast in 3 Years (South32)7.0%

Notable Dividend: S32's dividend (13.18%) is higher than the bottom 25% of dividend payers in the Australian market (2.77%).

High Dividend: S32's dividend (13.18%) is in the top 25% of dividend payers in the Australian market (7.18%)


Stability and Growth of Payments

Stable Dividend: S32 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: S32's dividend payments have increased, but the company has only paid a dividend for 6 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (39.5%), S32's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (57.6%), S32's dividend payments are covered by cash flows.


Discover strong dividend paying companies

Management

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

3.6yrs

Average management tenure


CEO

Graham Kerr (51 yo)

7.67yrs

Tenure

US$4,401,268

Compensation

Mr. Graham Kerr, BBus, FCPA, has been the Chief Executive Officer and Managing Director of South32 Limited since August 2014 and December 9, 2015 respectively. He is responsible for running all facets of t...


CEO Compensation Analysis

Graham Kerr's Compensation vs South32 Earnings
How has Graham Kerr's remuneration changed compared to South32's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022US$4mUS$1m

US$3b

Mar 31 2022n/an/a

US$2b

Dec 31 2021n/an/a

US$1b

Sep 30 2021n/an/a

US$578m

Jun 30 2021US$5mUS$1m

US$142m

Dec 31 2020n/an/a

US$219m

Sep 30 2020n/an/a

US$189m

Jun 30 2020US$5mUS$1m

US$158m

Mar 31 2020n/an/a

-US$106m

Dec 31 2019n/an/a

-US$147m

Sep 30 2019n/an/a

US$121m

Jun 30 2019US$5mUS$1m

US$389m

Mar 31 2019n/an/a

US$907m

Dec 31 2018n/an/a

US$1b

Sep 30 2018n/an/a

US$1b

Jun 30 2018US$5mUS$1m

US$1b

Mar 31 2018n/an/a

US$1b

Dec 31 2017n/an/a

US$1b

Sep 30 2017n/an/a

US$1b

Jun 30 2017US$6mUS$1m

US$1b

Mar 31 2017n/an/a

US$993m

Dec 31 2016n/an/a

US$754m

Sep 30 2016n/an/a

-US$430m

Jun 30 2016US$5mUS$1m

-US$2b

Compensation vs Market: Graham's total compensation ($USD4.40M) is about average for companies of similar size in the Australian market ($USD3.85M).

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


Leadership Team

Experienced Management: S32's management team is considered experienced (3.6 years average tenure).


Board Members

Experienced Board: S32's board of directors are considered experienced (7.3 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

ASX:S32 Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
16 Sep 22BuyAU$18,306,881State Street Global Advisors, Inc.Company4,718,269AU$3.88
14 Sep 22BuyAU$15,005,325State Street Global Advisors, Inc.Company3,556,208AU$4.30
06 Sep 22SellAU$6,032,726State Street Global Advisors, Inc.Company1,428,706AU$4.28
19 Jul 22BuyAU$125,650State Street Global Advisors, Inc.Company36,003AU$3.49
15 Jul 22SellAU$33,473State Street Global Advisors, Inc.Company9,816AU$3.41
13 Jul 22BuyAU$3,126,876State Street Global Advisors, Inc.Company893,393AU$3.50
12 Jul 22BuyAU$114,548,186State Street Global Advisors, Inc.Company22,355,167AU$5.31
17 Jun 22BuyAU$0The Vanguard Group, Inc.Company18,585,926AU$5.39
17 Jun 22SellAU$0The Vanguard Group, Inc.Company3,715,196AU$5.36
26 Apr 22BuyAU$8,996Ntombifuthi Temperance MtobaIndividual2,000AU$4.50
26 Nov 21SellAU$44,647,523Schroder Investment Management LimitedCompany28,516,641AU$1.88
11 Nov 21BuyAU$5,291,374Schroder Investment Management LimitedCompany1,589,854AU$3.33
11 Nov 21SellAU$150,591,019Schroder Investment Management LimitedCompany48,453,168AU$3.71
05 Nov 21BuyAU$37,936,107The Vanguard Group, Inc.Company9,775,819AU$3.90
05 Nov 21SellAU$9,150,313The Vanguard Group, Inc.Company2,376,853AU$3.97

Ownership Breakdown

What is the ownership structure of S32?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders9,451,8380.2%
Private Companies18,757,0770.4%
State or Government155,716,2973.4%
Institutions1,764,248,28538.3%
General Public2,653,205,48157.7%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 38.24% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
7.04%
BlackRock, Inc.
323,910,608$1.2b0%0.02%
5.2%
State Street Global Advisors, Inc.
239,535,213$869.5m738.33%0.03%
5.11%
The Vanguard Group, Inc.
235,364,454$854.4m0%0.01%
4.94%
Schroder Investment Management Limited
227,419,690$825.5m0%0.44%
3.38%
South Africa
155,716,297$565.3m94.79%no data
2.01%
T. Rowe Price Group, Inc.
92,343,850$335.2m-1.63%0.03%
1.89%
Norges Bank Investment Management
86,894,932$315.4m0%0.03%
1.03%
Colonial First State Investments Limited
47,417,645$172.1m216.7%1.43%
0.97%
Jupiter Fund Management Plc
44,534,796$161.7m3.57%0.37%
0.74%
Dimensional Fund Advisors LP
33,999,442$123.4m4.75%0.02%
0.74%
AllianceBernstein L.P.
33,921,639$123.1m0%0.03%
0.71%
SEI Investments Company
32,527,399$118.1m-1.07%0.13%
0.6%
Geode Capital Management, LLC
27,736,864$100.7m1.99%0.01%
0.56%
Commonwealth Superannuation Corporation
25,602,228$92.9m-4.76%1.18%
0.41%
CPU Share Plans Pty Limited
18,757,077$68.1m-1.96%no data
0.35%
Northern Trust Global Investments
16,323,253$59.3m-6.75%0.01%
0.33%
RBC Global Asset Management Inc.
15,230,048$55.3m0.02%0.03%
0.32%
Wellington Management Group LLP
14,929,664$54.2m78.54%0.01%
0.32%
J O Hambro Capital Management Limited
14,601,174$53.0m0%0.21%
0.29%
Ninety One UK Limited
13,389,942$48.6m0%0.05%
0.28%
Charles Schwab Investment Management, Inc.
12,937,378$47.0m0.76%0.01%
0.28%
MAM Pty Limited
12,714,667$46.2m0%3.05%
0.27%
J.P. Morgan Asset Management, Inc.
12,357,177$44.9m-1.89%0.01%
0.24%
Teachers Insurance and Annuity Association-College Retirement Equities Fund
11,128,576$40.4m-1.77%0.01%
0.24%
BetaShares Capital Limited
11,079,744$40.2m6.11%0.34%

Company Information

South32 Limited's employee growth, exchange listings and data sources


Key Information

  • Name: South32 Limited
  • Ticker: S32
  • Exchange: ASX
  • Founded: 2000
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Implied Market Cap: AU$16.822b
  • Shares outstanding: 4.60b
  • Website: https://www.south32.net

Number of Employees


Location

  • South32 Limited
  • 108 St Georges Terrace
  • Level 35
  • Perth
  • Western Australia
  • 6000
  • Australia


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
S32ASX (Australian Securities Exchange)YesOrdinary SharesAUAUDMay 2015
S32JSE (The Johannesburg Securities Exchange)YesOrdinary SharesZAZARMay 2015
S32LSE (London Stock Exchange)YesOrdinary SharesGBGBPMay 2015
32ZDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 2015
S32CHIA (Chi-X Australia)YesOrdinary SharesAUAUDMay 2015
SHTL.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 2015
S32LBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPMay 2015
SOUH.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDMay 2015

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/30 00:00
End of Day Share Price2022/09/30 00:00
Earnings2022/06/30
Annual Earnings2022/06/30


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.