SFR

Sandfire ResourcesASX:SFR Stock Report

Market Cap

AU$1.1b

7D

-1.1%

1Y

41.1%

Updated

17 Sep, 2021

Data

Company Financials +
SFR fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance5/6
Financial Health6/6
Dividends4/6

SFR Overview

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

Sandfire Resources Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Sandfire Resources
Historical stock prices
Current Share PriceAU$6.25
52 Week HighAU$3.97
52 Week LowAU$7.83
Beta1.12
1 Month Change-3.85%
3 Month Change-6.72%
1 Year Change41.08%
3 Year Change-15.43%
5 Year Change13.02%
Change since IPO1,823.08%

Recent News & Updates

Sep 02
Sandfire Resources (ASX:SFR) Is Increasing Its Dividend To AU$0.26

Sandfire Resources (ASX:SFR) Is Increasing Its Dividend To AU$0.26

Sandfire Resources Limited's ( ASX:SFR ) dividend will be increasing to AU$0.26 on 22nd of September. Even though the...

Shareholder Returns

SFRAU Metals and MiningAU Market
7D-1.1%0.1%0.8%
1Y41.1%14.8%28.0%

Return vs Industry: SFR exceeded the Australian Metals and Mining industry which returned 16.1% over the past year.

Return vs Market: SFR exceeded the Australian Market which returned 27.3% over the past year.

Price Volatility

Is SFR's price volatile compared to industry and market?
SFR volatility
SFR Beta1.12
Industry Beta0.93
Market Beta1

Stable Share Price: SFR is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: SFR's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2003n/aKarl Simichhttps://www.sandfire.com.au

Sandfire Resources Limited explores for, evaluates, and develops mineral tenements and projects in Australia and internationally. It primarily explores for copper, gold, and silver, as well as volcanogenic massive sulphide deposits. The company owns a 100% interest in the DeGrussa copper-gold mine located in the Bryah Basin mineral province of Western Australia; and 87% interest in the Black Butte copper project situated in central Montana, the United States.

Valuation

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

6.49x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SFR (A$6.43) is trading above our estimate of fair value (A$2.59)

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 (6.7x) compared to the Australian Metals and Mining industry average (12.1x).

PE vs Market: SFR is good value based on its PE Ratio (6.7x) compared to the Australian market (18.7x).


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 (1.3x) compared to the AU Metals and Mining industry average (2.8x).


Future Growth

How is Sandfire Resources forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

-43.5%

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 (-43.5% per year).

Earnings vs Market: SFR's earnings are forecast to decline over the next 3 years (-43.5% 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 (-44% per year).

High Growth Revenue: SFR's revenue is forecast to decline over the next 3 years (-44% 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 (4.9%).


Past Performance

How has Sandfire Resources performed over the past 5 years?

11.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SFR has high quality earnings.

Growing Profit Margin: SFR's current net profit margins (21.2%) are higher than last year (11.3%).


Past Earnings Growth Analysis

Earnings Trend: SFR's earnings have grown by 11.3% per year over the past 5 years.

Accelerating Growth: SFR's earnings growth over the past year (131.8%) exceeds its 5-year average (11.3% per year).

Earnings vs Industry: SFR earnings growth over the past year (131.8%) exceeded the Metals and Mining industry 43.2%.


Return on Equity

High ROE: SFR's Return on Equity (18.7%) is considered low.


Financial Health

How is Sandfire Resources's financial position?


Financial Position Analysis

Short Term Liabilities: SFR's short term assets (A$655.9M) exceed its short term liabilities (A$187.1M).

Long Term Liabilities: SFR's short term assets (A$655.9M) exceed its long term liabilities (A$60.2M).


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 13.3%.

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


Dividend

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

5.44%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SFR's dividend (5.29%) is higher than the bottom 25% of dividend payers in the Australian market (2.33%).

High Dividend: SFR's dividend (5.29%) is in the top 25% of dividend payers in the Australian market (5.26%)


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 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (35.3%), 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 (27.3% payout ratio).


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Karl Simich (57 yo)

12.17yrs

Tenure

AU$2,324,700

Compensation

Mr. Karl Matthew Simich, B.Comm, B.Com, 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....


CEO Compensation Analysis

Compensation vs Market: Karl's total compensation ($USD1.70M) is above average for companies of similar size in the Australian market ($USD952.08K).

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


Leadership Team

Experienced Management: SFR's management team is considered experienced (2 years average tenure).


Board Members

Experienced Board: SFR's board of directors are considered experienced (4.8 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

Ownership Breakdown

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


Top Shareholders

Company Information

Sandfire Resources Limited's 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$1.146b
  • Shares outstanding: 178.25m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/17 08:03
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.