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South32

ASX:S32
Snowflake Description

Flawless balance sheet and good value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
S32
ASX
A$19B
Market Cap
  1. Home
  2. AU
  3. Materials
Company description

South32 Limited operates as a diversified metals and mining company primarily in Australia, Southern Africa, and South America. The last earnings update was 36 days ago. More info.


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S32 Share Price and Events
7 Day Returns
-0.3%
ASX:S32
0.6%
AU Metals and Mining
0.1%
AU Market
1 Year Returns
13.6%
ASX:S32
12.9%
AU Metals and Mining
1.6%
AU Market
S32 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
South32 (S32) -0.3% -1.3% 20.8% 13.6% 148.5% -
AU Metals and Mining 0.6% -1.5% 15% 12.9% 94% 7.8%
AU Market 0.1% 0.7% 11.2% 1.6% 18.7% 5.1%
1 Year Return vs Industry and Market
  • S32 outperformed the Market in Australia which returned 1.6% over the past year.
Price Volatility
S32
Industry
5yr Volatility vs Market

S32 Value

 Is South32 undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of South32 to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for South32.

ASX:S32 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 21 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:S32
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
Metals and Mining Unlevered Beta Simply Wall St/ S&P Global 1.12
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.122 (1 + (1- 30%) (6.5%))
1.116
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.12
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (1.116 * 5.96%)
8.96%

Discounted Cash Flow Calculation for ASX:S32 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for South32 is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

ASX:S32 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.96%)
2019 1,593.59 Analyst x6 1,462.49
2020 1,377.06 Analyst x12 1,159.80
2021 1,328.51 Analyst x9 1,026.86
2022 1,304.34 Est @ -1.82% 925.23
2023 1,296.77 Est @ -0.58% 844.18
2024 1,300.49 Est @ 0.29% 776.96
2025 1,312.13 Est @ 0.89% 719.42
2026 1,329.45 Est @ 1.32% 668.95
2027 1,350.95 Est @ 1.62% 623.84
2028 1,375.62 Est @ 1.83% 582.97
Present value of next 10 years cash flows $8,790.69
ASX:S32 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $1,375.62 × (1 + 2.31%) ÷ (8.96% – 2.31%)
$21,156.34
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $21,156.34 ÷ (1 + 8.96%)10
$8,965.84
ASX:S32 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $8,790.69 + $8,965.84
$17,756.53
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $17,756.53 / 5,009.96
$3.54
ASX:S32 Discount to Share Price
Calculation Result
Exchange Rate USD/AUD
(Reporting currency to currency of ASX:S32)
1.41
Value per Share
(AUD)
= Value per Share in USD x Exchange Rate (USD/AUD)
= $3.54 x 1.41
A$5
Value per share (AUD) From above. A$5.00
Current discount Discount to share price of A$3.84
= -1 x (A$3.84 - A$5.00) / A$5.00
23.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price South32 is available for.
Intrinsic value
23%
Share price is A$3.84 vs Future cash flow value of A$5
Current Discount Checks
For South32 to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • South32's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • South32's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for South32's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are South32's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:S32 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $0.28
ASX:S32 Share Price ** ASX (2019-03-21) in AUD A$3.84
ASX:S32 Share Price converted to USD reporting currency Exchange rate (AUD/ USD) 0.709 $2.72
Australia Metals and Mining Industry PE Ratio Median Figure of 82 Publicly-Listed Metals and Mining Companies 12.62x
Australia Market PE Ratio Median Figure of 543 Publicly-Listed Companies 16.2x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of South32.

ASX:S32 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:S32 Share Price ÷ EPS (both in USD)

= 2.72 ÷ 0.28

9.76x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • South32 is good value based on earnings compared to the AU Metals and Mining industry average.
  • South32 is good value based on earnings compared to the Australia market.
Price based on expected Growth
Does South32's expected growth come at a high price?
Raw Data
ASX:S32 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 9.76x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 21 Analysts
-5.5%per year
Australia Metals and Mining Industry PEG Ratio Median Figure of 40 Publicly-Listed Metals and Mining Companies 0.7x
Australia Market PEG Ratio Median Figure of 362 Publicly-Listed Companies 1.37x

*Line of best fit is calculated by linear regression .

ASX:S32 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 9.76x ÷ -5.5%

-1.77x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • South32 earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on South32's assets?
Raw Data
ASX:S32 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $2.13
ASX:S32 Share Price * ASX (2019-03-21) in AUD A$3.84
ASX:S32 Share Price converted to USD reporting currency Exchange rate (AUD/ USD) 0.709 $2.72
Australia Metals and Mining Industry PB Ratio Median Figure of 584 Publicly-Listed Metals and Mining Companies 1.58x
Australia Market PB Ratio Median Figure of 1,668 Publicly-Listed Companies 1.67x
ASX:S32 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:S32 Share Price ÷ Book Value per Share (both in USD)

= 2.72 ÷ 2.13

1.28x

* Primary Listing of South32.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • South32 is good value based on assets compared to the AU Metals and Mining industry average.
X
Value checks
We assess South32's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Metals and Mining industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Metals and Mining industry average (and greater than 0)? (1 check)
  5. South32 has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

S32 Future Performance

 How is South32 expected to perform in the next 1 to 3 years based on estimates from 21 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-5.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is South32 expected to grow at an attractive rate?
  • South32's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.3%.
Growth vs Market Checks
  • South32's earnings are expected to decrease over the next 1-3 years, this is below the Australia market average.
  • South32's revenue growth is positive but not above the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:S32 Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:S32 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 21 Analysts -5.5%
ASX:S32 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 21 Analysts 0.2%
Australia Metals and Mining Industry Earnings Growth Rate Market Cap Weighted Average -0.7%
Australia Metals and Mining Industry Revenue Growth Rate Market Cap Weighted Average -0%
Australia Market Earnings Growth Rate Market Cap Weighted Average 6.4%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:S32 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 21 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:S32 Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-06-30 7,803 1,123 2
2022-06-30 7,881 1,867 1,158 3
2021-06-30 7,676 1,919 1,110 19
2020-06-30 7,644 1,989 1,182 21
2019-06-30 7,706 1,981 1,326 16
ASX:S32 Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 7,968 2,426 1,424
2018-09-30 7,848 2,072 1,378
2018-06-30 7,728 1,717 1,332
2018-03-31 7,592 1,750 1,243
2017-12-31 7,456 1,783 1,154
2017-09-30 7,326 1,958 1,193
2017-06-30 7,195 2,132 1,231
2017-03-31 6,765 1,690 993
2016-12-31 6,334 1,247 754
2016-09-30 6,227 1,139 -431
2016-06-30 6,119 1,030 -1,615
2016-03-31 6,288 955 -2,100

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • South32's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • South32's revenue is expected to grow by 0.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:S32 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 21 Analyst Estimates (S&P Global) See Below

All data from South32 Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:S32 Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-06-30 0.18 0.18 0.18 1.00
2022-06-30 0.19 0.23 0.16 3.00
2021-06-30 0.23 0.30 0.17 8.00
2020-06-30 0.23 0.29 0.18 9.00
2019-06-30 0.28 0.33 0.24 5.00
ASX:S32 Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 0.28
2018-09-30 0.27
2018-06-30 0.26
2018-03-31 0.24
2017-12-31 0.22
2017-09-30 0.23
2017-06-30 0.23
2017-03-31 0.19
2016-12-31 0.14
2016-09-30 -0.08
2016-06-30 -0.30
2016-03-31 -0.43

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • South32 is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess South32's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
South32 has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

S32 Past Performance

  How has South32 performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare South32's growth in the last year to its industry (Metals and Mining).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • South32 has delivered over 20% year on year earnings growth in the past 5 years.
  • South32's 1-year earnings growth is less than its 5-year average (23.4% vs 56.8%)
  • South32's earnings growth has exceeded the AU Metals and Mining industry average in the past year (23.4% vs 14%).
Earnings and Revenue History
South32's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from South32 Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:S32 Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 7,968.00 1,424.00 2,239.00
2018-09-30 7,848.00 1,378.00 2,241.50
2018-06-30 7,728.00 1,332.00 2,244.00
2018-03-31 7,592.00 1,243.00 2,130.50
2017-12-31 7,456.00 1,154.00 1,995.00
2017-09-30 7,325.50 1,192.50 1,985.00
2017-06-30 7,195.00 1,231.00 1,975.00
2017-03-31 6,764.50 992.50 1,975.00
2016-12-31 6,334.00 754.00 1,975.00
2016-09-30 6,226.50 -430.50 1,974.50
2016-06-30 6,119.00 -1,615.00 1,974.00
2016-03-31 6,288.00 -2,100.00 1,603.00
2015-12-31 6,457.00 -2,585.00 1,232.00
2015-09-30 5,264.50 -1,755.50 1,230.00
2015-06-30 4,072.00 -926.00 1,228.00
2014-12-31 -3,825.00 -407.00 -1,381.00 16.00
2014-09-30 -1,486.00 -203.50 -477.00 16.00
2014-06-30 853.00 0.00 427.00 16.00
2013-06-30 12,195.00 -1,467.00 4,145.00 18.00
2012-06-30 13,876.00 1,401.00 4,413.00 19.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • South32 has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • South32 used its assets more efficiently than the AU Metals and Mining industry average last year based on Return on Assets.
  • South32 has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess South32's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Metals and Mining industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
South32 has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

S32 Health

 How is South32's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up South32's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • South32 is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • South32's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of South32's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 3.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from South32 Company Filings, last reported 2 months ago.

ASX:S32 Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 10,823.00 887.00 1,565.00
2018-09-30 10,823.00 887.00 1,565.00
2018-06-30 10,709.00 929.00 2,973.00
2018-03-31 10,709.00 929.00 2,973.00
2017-12-31 10,379.00 1,064.00 2,618.00
2017-09-30 10,379.00 1,064.00 2,618.00
2017-06-30 10,235.00 1,035.00 2,705.00
2017-03-31 10,235.00 1,035.00 2,705.00
2016-12-31 10,001.00 1,042.00 1,901.00
2016-09-30 10,001.00 1,042.00 1,901.00
2016-06-30 9,422.00 913.00 1,225.00
2016-03-31 9,422.00 913.00 1,225.00
2015-12-31 9,303.00 813.00 697.00
2015-09-30 9,303.00 813.00 697.00
2015-06-30 11,035.00 1,046.00 644.00
2014-12-31 17,547.00 4,741.00 459.00
2014-09-30 17,547.00 4,741.00 459.00
2014-06-30 1,113.00 833.00 145.00
2013-06-30 10,120.00 4,715.00 382.00
2012-06-30 13,812.00 4,589.00 346.00
  • South32's level of debt (8.2%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (49.5% vs 8.2% today).
  • Debt is well covered by operating cash flow (273.5%, greater than 20% of total debt).
  • South32 earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess South32's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. South32 has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

S32 Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.77%
Current annual income from South32 dividends. Estimated to be 4.3% next year.
If you bought A$2,000 of South32 shares you are expected to receive A$95 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • South32's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.63%).
  • South32's dividend is below the markets top 25% of dividend payers in Australia (5.72%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:S32 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 21 Analyst Estimates (S&P Global) See Below
Australia Metals and Mining Industry Average Dividend Yield Market Cap Weighted Average of 36 Stocks 3.8%
Australia Market Average Dividend Yield Market Cap Weighted Average of 418 Stocks 4.4%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.7%
Australia Bottom 25% Dividend Yield 25th Percentile 2.6%
Australia Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:S32 Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-06-30
2022-06-30 0.09 2.00
2021-06-30 0.11 13.00
2020-06-30 0.13 15.00
2019-06-30 0.12 8.00
ASX:S32 Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-02-13 0.130 4.755
2018-08-22 0.105 4.185
2017-08-23 0.100 3.766
2017-02-15 0.072 3.440
2016-08-24 0.010 0.521
2016-02-24 0.000 0.000
2015-09-24 0.000 0.000
2015-08-24 0.000 0.000
2015-05-18 0.090 6.429

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, South32 has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but South32 only paid a dividend in the past 4 years.
Current Payout to shareholders
What portion of South32's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.1x coverage).
X
Income/ dividend checks
We assess South32's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.7%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can South32 afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. South32 has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

S32 Management

 What is the CEO of South32's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Graham Kerr
COMPENSATION $6,773,000
AGE 47
TENURE AS CEO 4.4 years
CEO Bio

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 the business, he successfully led the establishment of South32 Limited and its public listing in three countries in May 2015. Mr. Kerr served as the Chief Financial Officer of BHP Group Plc(formerly known as BHP Billiton Group), BHP Billiton plc and BHP Billiton Limited from November 2011 to October 1, 2014. Mr. Kerr joined BHP Billiton since 1994. He served as the President of Diamonds & Specialty Products at BHP Billiton plc and BHP Billiton Limited from October 09, 2007 to June 1, 2011 and served as these Group Executive from January 1, 2012 to May 9, 2013. He was accountable for the Ekati Diamond Mine in Canada, the Richards Bay Minerals Joint Venture in South Africa, diamond exploration in Angola, the Corridor Sands Project in Mozambique and the development of BHP’spotash portfolio in Canada. He has worked in a wide range of finance, treasury and operational roles across BHP and has held the positions of Chief Financial Officer of Stainless Steel Materials, Vice President Finance – BHP Billiton Diamonds and Finance Director for EKATI. In 2004, he left BHP Billiton for a two year period when he was General Manager Commercial for Iluka Resources Ltd. Mr. Kerr has a strong track record in global resource development and is passionate about health, safety and sustainability. He serves as an Executive Director of South32 Limited since January 21, 2015. Mr Kerr has a Business degree from Edith Cowan University and studied at Deakin University to become a Certified Practicing Accountant.

CEO Compensation
  • Graham's compensation has been consistent with company performance over the past year.
  • Graham's remuneration is about average for companies of similar size in Australia.
Management Team Tenure

Average tenure and age of the South32 management team in years:

1.6
Average Tenure
48
Average Age
  • The average tenure for the South32 management team is less than 2 years, this suggests a new team.
Management Team

Graham Kerr

TITLE
CEO, MD & Executive Director
COMPENSATION
$7M
AGE
47
TENURE
4.4 yrs

Brendan Harris

TITLE
Chief Financial Officer
COMPENSATION
$3M
AGE
46
TENURE
4.3 yrs

Mike Fraser

TITLE
Chief Operating Officer
COMPENSATION
$4M
AGE
53
TENURE
0.9 yrs

Paul Harvey

TITLE
Chief Operating Officer
COMPENSATION
$3M
AGE
55
TENURE
0.9 yrs

Vanessa Torres

TITLE
Chief Technology Officer
AGE
48
TENURE
0.6 yrs

Alex Volante

TITLE
Head of Investor Relations
TENURE
0.9 yrs

Nicole Duncan

TITLE
Chief People & Legal Officer and Company Secretary
AGE
46
TENURE
4.3 yrs

Peter Finnimore

TITLE
Chief Marketing Officer
AGE
53
TENURE
1.6 yrs

Melanie Williams

TITLE
Vice President of Legal - Corporate & Company Secretary
AGE
37

Rowena Smith

TITLE
Chief Sustainability Officer
AGE
51
TENURE
1.6 yrs
Board of Directors Tenure

Average tenure and age of the South32 board of directors in years:

3.8
Average Tenure
62.5
Average Age
  • The tenure for the South32 board of directors is about average.
Board of Directors

David Crawford

TITLE
Chairman of the Board
COMPENSATION
$665K
AGE
74
TENURE
4.1 yrs

Graham Kerr

TITLE
CEO, MD & Executive Director
COMPENSATION
$7M
AGE
47
TENURE
4.2 yrs

Frank Cooper

TITLE
Independent Non Executive Director
COMPENSATION
$314K
AGE
62
TENURE
3.8 yrs

Wayne Osborn

TITLE
Independent Non-Executive Director
COMPENSATION
$321K
AGE
67
TENURE
3.8 yrs

Keith Rumble

TITLE
Independent Non-Executive Director
COMPENSATION
$334K
AGE
64
TENURE
4.1 yrs

Futhi Temperance Mtoba

TITLE
Independent Non-Executive Director
COMPENSATION
$289K
AGE
63
TENURE
3.8 yrs

Xolani Mkhwanazi

TITLE
Non-Independent Non-Executive Director
COMPENSATION
$289K
AGE
63
TENURE
3.7 yrs

Karen Wood

TITLE
Independent Non-Executive Director
COMPENSATION
$207K
AGE
62
TENURE
1.3 yrs

Xiaoling Liu

TITLE
Independent Non-Executive Director
COMPENSATION
$190K
AGE
62
TENURE
1.3 yrs

Karen Wood

TITLE
AGE
61
TENURE
1.3 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by South32 insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
21. Feb 19 Buy Ntombifuthi Temperance Mtoba Individual 19. Feb 19 19. Feb 19 16,500 A$3.89 A$64,126
28. Aug 18 Sell BlackRock, Inc. Company 06. Oct 17 27. Aug 18 -92,340,450 A$4.37 A$-71,473
28. Aug 18 Buy BlackRock, Inc. Company 06. Oct 17 22. Aug 18 50,725,083 A$4.04 A$31,143
29. Aug 18 Sell Schroder Investment Management Limited Company 14. Feb 18 29. Aug 18 -31,871,656 A$3.69 A$-74,101,491
29. Aug 18 Buy Schroder Investment Management Limited Company 14. Feb 18 29. Aug 18 80,541,467 A$3.47 A$277,538,787
29. Aug 18 Sell Schroder Investment Management North America Inc. Company 14. Feb 18 29. Aug 18 -887,606 A$3.31 A$-2,938,744
29. Aug 18 Buy Schroder Investment Management North America Inc. Company 14. Feb 18 29. Aug 18 639,646 A$3.91 A$2,502,296
28. Aug 18 Buy Frank Cooper Individual 24. Aug 18 24. Aug 18 5,144 A$3.42 A$17,592
28. Aug 18 Buy Xiaoling Liu Individual 24. Aug 18 24. Aug 18 10,000 A$3.45 A$34,500
04. Jun 18 Sell The Vanguard Group, Inc. Company 01. Feb 18 29. May 18 -2,566,860 A$4.05 A$-10,407,806
04. Jun 18 Buy The Vanguard Group, Inc. Company 01. Feb 18 31. May 18 9,673,138 A$4.03 A$38,982,741
07. May 18 Buy Ntombifuthi Temperance Mtoba Individual 02. May 18 02. May 18 6,199 A$3.73 A$23,096
X
Management checks
We assess South32's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. South32 has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

S32 News

Simply Wall St News

How Should Investors React To South32 Limited's (ASX:S32) CEO Pay?

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. … How Does Graham Kerr's Compensation Compare With Similar Sized Companies. … Our data indicates that South32 Limited is worth AU$19b, and total annual CEO compensation is US$6.8m.

Simply Wall St -

Can You Imagine How Chuffed South32's (ASX:S32) Shareholders Feel About Its 133% Share Price Gain?

To wit, the South32 Limited (ASX:S32) share price has flown 133% in the last three years. … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … That kind of transition can be an inflection point that justifies a strong share price gain, just as we have seen here.

Simply Wall St -

South32 Limited (ASX:S32) Insiders Increased Their Holdings

So we'll take a look at whether insiders have been buying or selling shares in South32 Limited (ASX:S32). … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … In total, South32 insiders bought more than they sold over the last year

Simply Wall St -

There's An Opportunity With South32 Limited (ASX:S32)

South32 Limited is a financially healthy and robust stock with a proven track record of outperformance. … We all know South32, and having this large-cap to cushion your portfolio during a volatile period in the stock market isn't a bad idea. … Today I will give a high-level overview of the stock, and why I believe it's still attractive.

Simply Wall St -

Why We’re Not Impressed By South32 Limited’s (ASX:S32) 8.9% ROCE

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Understanding Return On Capital Employed (ROCE). … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

Simply Wall St -

Investors Are Undervaluing South32 Limited (ASX:S32) By 21.88%

Today I will be providing a simple run through of a valuation method used to estimate the attractiveness of South32 Limited (ASX:S32) as an investment opportunity. … by taking the expected future cash flows and discounting them to today's value. … discounted cash flows (DCF).

Simply Wall St -

Should South32 Limited (ASX:S32) Be Part Of Your Dividend Portfolio?

Dividends play an important role in compounding returns in the long run and end up forming a sizeable part of investment returns. … In the last few years South32 Limited (ASX:S32) has paid a dividend to shareholders. … Let's dig deeper into whether South32 should have a place in your portfolio.

Simply Wall St -

How Do Analysts See South32 Limited (ASX:S32) Performing In The Next 12 Months?

Based on South32 Limited's (ASX:S32) earnings update in June 2018,. … analyst consensus outlook appear cautiously subdued, … the higher past 5-year average growth rate of 52%

Simply Wall St -

Is South32 Limited's (ASX:S32) P/E Ratio Really That Good?

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … Price to Earnings Ratio = Share Price (in reporting currency) ÷ Earnings per Share (EPS) … P/E of 8.89 = $2.29 (Note: this is the share price in the reporting currency, namely, USD ) ÷ $0.26

Simply Wall St -

Why South32 Limited (ASX:S32) Is A Financially Healthy Company

South32 Limited (ASX:S32), a large-cap worth AU$16b, comes to mind for investors seeking a strong and reliable stock investment. … Most investors favour these big stocks due to their strong balance sheet and high market liquidity, meaning there are an abundance of stock in the public market available for trading. … These firms won’t be left high and dry if liquidity dries up, and they will be relatively unaffected by rises in interest rates.

Simply Wall St -

S32 Company Info

Description

South32 Limited operates as a diversified metals and mining company primarily in Australia, Southern Africa, and South America. The company has a portfolio of assets producing alumina, aluminum, bauxite, energy and metallurgical coal, manganese ore and alloy, laterite ferronickel, silver, lead, and zinc. It also exports its products. The company was formerly known as BHP Coal Holdings Pty Limited and changed its name to South32 Limited in March 2015. South32 Limited was incorporated in 2000 and is headquartered in Perth, Australia.

Details
Name: South32 Limited
S32
Exchange: ASX
Founded: 2000
A$19,238,234,630
5,009,956,935
Website: http://www.south32.net
Address: South32 Limited
108 St Georges Terrace,
Level 47,
Perth,
Western Australia, 6000,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX S32 Ordinary Shares Australian Securities Exchange AU AUD 18. May 2015
OTCPK SHTL.F Ordinary Shares Pink Sheets LLC US USD 18. May 2015
DB 32Z Ordinary Shares Deutsche Boerse AG DE EUR 18. May 2015
LSE S32 Ordinary Shares London Stock Exchange GB GBP 18. May 2015
JSE S32 Ordinary Shares The Johannesburg Securities Exchange ZA ZAR 18. May 2015
JSE S32 Ordinary Shares The Johannesburg Securities Exchange ZA AUD 18. May 2015
BATS-CHIXE S32L Ordinary Shares BATS 'Chi-X Europe' GB GBP 18. May 2015
OTCPK SOUH.Y SPONSORED ADR Pink Sheets LLC US USD 19. May 2015
Number of employees
Current staff
Staff numbers
13,482
South32 employees.
Industry
Diversified Metals and Mining
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/21 10:35
End of day share price update: 2019/03/21 00:00
Last estimates confirmation: 2019/03/18
Last earnings filing: 2019/02/13
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.