ASX:SAR

Stock Analysis Report

Saracen Mineral Holdings

Executive Summary

Saracen Mineral Holdings Limited, a gold mining company, explores for and develops mineral properties in Australia.

Snowflake

Fundamentals

Flawless balance sheet with high growth potential.


Similar Companies

Share Price & News

How has Saracen Mineral Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-11.6%

SAR

-2.4%

AU Metals and Mining

0.4%

AU Market


1 Year Return

32.1%

SAR

15.5%

AU Metals and Mining

14.8%

AU Market

Return vs Industry: SAR exceeded the Australian Metals and Mining industry which returned 15.5% over the past year.

Return vs Market: SAR exceeded the Australian Market which returned 14.8% over the past year.


Shareholder returns

SARIndustryMarket
7 Day-11.6%-2.4%0.4%
30 Day-1.5%-0.8%0.4%
90 Day-15.9%-2.0%4.6%
1 Year32.1%32.1%24.0%15.5%21.4%14.8%
3 Year211.8%211.8%59.3%39.1%40.2%21.4%
5 Year1330.4%1330.4%80.0%37.1%54.5%19.5%

Price Volatility Vs. Market

How volatile is Saracen Mineral Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Saracen Mineral Holdings undervalued compared to its fair value and its price relative to the market?

33.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SAR (A$3.29) is trading below our estimate of fair value (A$4.92)

Significantly Below Fair Value: SAR is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: SAR is poor value based on its PE Ratio (29.2x) compared to the Metals and Mining industry average (13.1x).

PE vs Market: SAR is poor value based on its PE Ratio (29.2x) compared to the Australian market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: SAR is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: SAR is overvalued based on its PB Ratio (5.5x) compared to the AU Metals and Mining industry average (1.5x).


Next Steps

Future Growth

How is Saracen Mineral Holdings forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

24.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SAR's forecast earnings growth (24% per year) is above the savings rate (2.3%).

Earnings vs Market: SAR's earnings (24% per year) are forecast to grow faster than the Australian market (9.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SAR's revenue (13.4% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: SAR's revenue (13.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SAR's Return on Equity is forecast to be high in 3 years time (25.8%)


Next Steps

Past Performance

How has Saracen Mineral Holdings performed over the past 5 years?

48.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SAR has a high level of non-cash earnings.

Growing Profit Margin: SAR's current net profit margins (16.6%) are higher than last year (14.8%).


Past Earnings Growth Analysis

Earnings Trend: SAR's earnings have grown significantly by 48.1% per year over the past 5 years.

Accelerating Growth: SAR's earnings growth over the past year (22.4%) is below its 5-year average (48.1% per year).

Earnings vs Industry: SAR earnings growth over the past year (22.4%) exceeded the Metals and Mining industry 7.8%.


Return on Equity

High ROE: SAR's Return on Equity (18.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Saracen Mineral Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: SAR's short term assets (A$182.2M) exceeds its short term liabilities (A$74.9M)

Long Term Liabilities: SAR's short term assets (182.2M) exceeds its long term liabilities (112.5M)


Debt to Equity History and Analysis

Debt Level: SAR is debt free.

Reducing Debt: SAR has no debt compared to 5 years ago when its debt to equity ratio was 5.1%.

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

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


Balance Sheet

Inventory Level: SAR has a high level of physical assets or inventory.

Debt Coverage by Assets: SAR's debt is not covered by short term assets (assets are -1117.6x debt).


Next Steps

Dividend

What is Saracen Mineral Holdings's current dividend yield, its reliability and sustainability?

2.10%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%2.4%markettop25%5.6%industryaverage4.7%forecastin3Years2.1%

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate SAR'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 SAR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SAR'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 SAR's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Raleigh Finlayson (40yo)

6.6yrs

Tenure

AU$1,904,987

Compensation

Mr. Raleigh John Finlayson has been Managing Director of Saracen Mineral Holdings Limited since April 2, 2013 and serves as its Director. Mr. Finlayson is a Member of the Australasian Institute of Mining a ...


CEO Compensation Analysis

Compensation vs Market: Raleigh's total compensation ($USD1.30M) is about average for companies of similar size in the Australian market ($USD1.40M).

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


Management Age and Tenure

3.8yrs

Average Tenure

Experienced Management: SAR's management team is considered experienced (3.8 years average tenure).


Board Age and Tenure

4.2yrs

Average Tenure

57.5yo

Average Age

Experienced Board: SAR's board of directors are considered experienced (4.2 years average tenure).


Insider Trading

Insider Buying: SAR insiders have only sold shares in the past 3 months.


Recent Insider Transactions

BuyAU$6,01227 Oct 19
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First Sentier Investors (Australia) IM Ltd
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SellAU$3,710,00002 Sep 19
Raleigh Finlayson
EntityIndividual
Role
Chief Executive Officer
MD & Director
Shares1,000,000
Max PriceAU$3.71
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SellAU$50,10006 Feb 19
Martin Reed
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares15,000
Max PriceAU$3.34
BuyAU$4,99925 Jan 19
Samantha Tough
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Independent Non-Executive Director
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Ownership Breakdown

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


Management Team

  • Simon Jessop

    Chief Operating Officer

    • Tenure: 1.9yrs
    • Compensation: AU$1.54m
  • Morgan Ball (50yo)

    Chief Financial Officer

    • Tenure: 2.9yrs
    • Compensation: AU$1.29m
  • Raleigh Finlayson (40yo)

    MD & Director

    • Tenure: 6.6yrs
    • Compensation: AU$1.90m
  • Lynn Widenbar

    Consultant

    • Tenure: 0yrs
  • Troy Irvin

    Chief Corporate Development Officer

    • Tenure: 4.7yrs
    • Compensation: AU$870.86k
  • Jeremy Ryan

    Manager Legal & Company Secretary

    • Tenure: 7.7yrs
  • Marianne Dravnieks

    General Manager of People

    • Tenure: 1.7yrs
    • Compensation: AU$1.33m

Board Members

  • Tony Kiernan (68yo)

    Independent Non-Executive Chairman

    • Tenure: 1.2yrs
    • Compensation: AU$136.00k
  • Martin Reed (69yo)

    Non-Executive Director

    • Tenure: 7.3yrs
    • Compensation: AU$166.70k
  • Roric Smith (57yo)

    Independent Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: AU$120.00k
  • Samantha Tough (54yo)

    Independent Non-Executive Director

    • Tenure: 6.1yrs
    • Compensation: AU$120.00k
  • Raleigh Finlayson (40yo)

    MD & Director

    • Tenure: 6.6yrs
    • Compensation: AU$1.90m
  • John Richards (58yo)

    Independent Non-Executive Director

    • Tenure: 0.5yrs
    • Compensation: AU$20.00k

Company Information

Saracen Mineral Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Saracen Mineral Holdings Limited
  • Ticker: SAR
  • Exchange: ASX
  • Founded: 1987
  • Industry: Gold
  • Sector: Materials
  • Market Cap: AU$2.741b
  • Shares outstanding: 833.05m
  • Website: https://www.saracen.com.au

Number of Employees


Location

  • Saracen Mineral Holdings Limited
  • 40 The Esplanade
  • Level 11
  • Perth
  • Western Australia
  • 6000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SARASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
SIHDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
SCEX.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
SARCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992

Biography

Saracen Mineral Holdings Limited, a gold mining company, explores for and develops mineral properties in Australia. It explores for gold and nickel deposits. The company owns 100% interests in the Carosue  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/14 10:32
End of Day Share Price2019/11/14 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.