ASX:SFR

Stock Analysis Report

Sandfire Resources

Executive Summary

Sandfire Resources NL explores for, evaluates, and develops mineral tenements and projects in Australia and internationally.


Snowflake Analysis

Flawless balance sheet and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

14.2%

SFR

1.2%

AU Metals and Mining

7.1%

AU Market


1 Year Return

-55.3%

SFR

-22.0%

AU Metals and Mining

-19.4%

AU Market

Return vs Industry: SFR underperformed the Australian Metals and Mining industry which returned -19.1% over the past year.

Return vs Market: SFR underperformed the Australian Market which returned -18.8% over the past year.


Shareholder returns

SFRIndustryMarket
7 Day14.2%1.2%7.1%
30 Day-22.5%-14.6%-21.3%
90 Day-44.8%-24.0%-24.8%
1 Year-53.7%-55.3%-17.6%-22.0%-15.8%-19.4%
3 Year-43.5%-49.2%26.8%9.3%-2.4%-15.8%
5 Year-16.9%-28.6%56.5%19.0%8.4%-16.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

6.03x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SFR (A$3.3) is trading above our estimate of fair value (A$2.52)

Significantly Below Fair Value: SFR is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SFR is good value based on its PE Ratio (6x) compared to the Metals and Mining industry average (7.4x).

PE vs Market: SFR is good value based on its PE Ratio (6x) compared to the Australian market (12.9x).


Price to Earnings Growth Ratio

PEG Ratio: SFR's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: SFR is good value based on its PB Ratio (0.7x) compared to the AU Metals and Mining industry average (1x).


Next Steps

Future Growth

How is Sandfire Resources forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

-1.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SFR's earnings are forecast to decline over the next 3 years (-1.7% per year).

Earnings vs Market: SFR's earnings are forecast to decline over the next 3 years (-1.7% per year).

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

Revenue vs Market: SFR's revenue is expected to decline over the next 3 years (-4.5% per year).

High Growth Revenue: SFR's revenue is forecast to decline over the next 3 years (-4.5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SFR's Return on Equity is forecast to be low in 3 years time (7.6%).


Next Steps

Past Performance

How has Sandfire Resources performed over the past 5 years?

13.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SFR has high quality earnings.

Growing Profit Margin: SFR's current net profit margins (14.4%) are lower than last year (19.9%).


Past Earnings Growth Analysis

Earnings Trend: SFR's earnings have grown by 13.9% per year over the past 5 years.

Accelerating Growth: SFR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SFR had negative earnings growth (-19.1%) over the past year, making it difficult to compare to the Metals and Mining industry average (-7%).


Return on Equity

High ROE: SFR's Return on Equity (12%) is considered low.


Next Steps

Financial Health

How is Sandfire Resources's financial position?


Financial Position Analysis

Short Term Liabilities: SFR's short term assets (A$288.5M) exceed its short term liabilities (A$74.0M).

Long Term Liabilities: SFR's short term assets (A$288.5M) exceed its long term liabilities (A$73.8M).


Debt to Equity History and Analysis

Debt Level: SFR is debt free.

Reducing Debt: SFR has no debt compared to 5 years ago when its debt to equity ratio was 41.2%.

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

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


Balance Sheet

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

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


Next Steps

Dividend

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

6.36%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SFR's dividend (6.36%) is higher than the bottom 25% of dividend payers in the Australian market (3.22%).

High Dividend: SFR's dividend (6.36%) is low compared to the top 25% of dividend payers in the Australian market (8.38%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (38.4%), SFR's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SFR's dividends in 3 years are forecast to be well covered by earnings (31.5% payout ratio).


Next Steps

Management

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

9.2yrs

Average management tenure


CEO

Karl Simich (55yo)

10.67s

Tenure

AU$1,623,076

Compensation

Mr. Karl Matthew Simich, B.Comm, FCA, ASIA, F. Fin has been the Chief Executive Officer and Managing Director of Sandfire Resources Limited (Formerly, Sandfire Resources NL) since July 1, 2009. Mr. Simich  ...


CEO Compensation Analysis

Compensation vs Market: Karl's total compensation ($USD999.74K) is about average for companies of similar size in the Australian market ($USD815.27K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Karl Simich
MD, CEO & Executive Director10.67yrsAU$1.62m2.75% A$15.8m
Matthew Fitzgerald
CFO & Company Secretary9.17yrsAU$763.24kno data
Jason Grace
Chief Operating Officer0.42yrno datano data
Bruce Hooper
Chief Exploration & Business Development Officer9.17yrsno datano data
Shannan Bamforth
General Manager of Geology9.83yrsno datano data

9.2yrs

Average Tenure

Experienced Management: SFR's management team is seasoned and experienced (9.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Karl Simich
MD, CEO & Executive Director10.67yrsAU$1.62m2.75% A$15.8m
Robert Scott
Independent Non-Executive Director9.67yrsAU$130.00k0.0028% A$16.1k
Roric Smith
Independent Non-Executive Director3.25yrsAU$110.00kno data
Paul Hallam
Independent Non-Executive Director6.83yrsAU$130.00k0.0056% A$32.2k
Derek La Ferla
Independent Non-Executive Chairman9.83yrsAU$220.00k0.012% A$69.8k
Maree Arnason
Independent Non-Executive Director4.25yrsAU$130.00kno data

8.3yrs

Average Tenure

58.5yo

Average Age

Experienced Board: SFR's board of directors are considered experienced (8.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: SFR insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.3%.


Top Shareholders

Company Information

Sandfire Resources Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sandfire Resources Limited
  • Ticker: SFR
  • Exchange: ASX
  • Founded: 2003
  • Industry: Copper
  • Sector: Materials
  • Market Cap: AU$573.253m
  • Shares outstanding: 178.03m
  • Website: https://www.sandfire.com.au

Number of Employees


Location

  • Sandfire Resources Limited
  • 10 Kings Park Road
  • Level 2
  • West Perth
  • Western Australia
  • 6005
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SFRASX (Australian Securities Exchange)YesOrdinary SharesAUAUDMar 2004
SFRR.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMar 2004
S2ZDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 2004
SFRCHIA (Chi-X Australia)YesOrdinary SharesAUAUDMar 2004
SFRCHIA (Chi-X Australia)YesOrdinary SharesAUAUDMar 2004

Biography

Sandfire Resources NL explores for, evaluates, and develops mineral tenements and projects in Australia and internationally. The company operates through DeGrussa Operations, and Exploration and Evaluation segments. It primarily explores for copper, gold, and silver, as well as volcanogenic massive sulphide deposits. The company’s flagship project is a 100% owned DeGrussa copper-gold mine located in the Bryah Basin mineral province of Western Australia. Sandfire Resources NL was incorporated in 2003 and is based in West Perth, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 10:34
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
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.