Executive Summary
Sandfire Resources Limited explores for, evaluates, and develops mineral tenements and projects in Australia and internationally. More Details
Rewards
Risk Analysis
Earnings are forecast to decline by an average of 49.4% per year for the next 3 years
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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
5.5%
SFR
1.0%
AU Metals and Mining
0.3%
AU Market
1 Year Return
-25.9%
SFR
15.6%
AU Metals and Mining
-5.4%
AU Market
Return vs Industry: SFR underperformed the Australian Metals and Mining industry which returned 15.3% over the past year.
Return vs Market: SFR underperformed the Australian Market which returned -5.7% over the past year.
Shareholder returns
| SFR | Industry | Market | |
|---|---|---|---|
| 7 Day | 5.5% | 1.0% | 0.3% |
| 30 Day | 4.5% | 0.2% | 6.3% |
| 90 Day | -18.3% | 0.2% | 3.7% |
| 1 Year | -20.7%-25.9% | 21.0%15.6% | -2.1%-5.4% |
| 3 Year | -13.4%-22.9% | 60.1%38.3% | 18.3%3.3% |
| 5 Year | -17.2%-29.8% | 136.1%91.3% | 43.1%14.0% |
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
2 days ago | Simply Wall St
Are Sandfire Resources Limited's (ASX:SFR) Fundamentals Good Enough to Warrant Buying Given The Stock's Recent Weakness?2 weeks ago | Simply Wall St
Are Institutions Heavily Invested In Sandfire Resources Limited's (ASX:SFR) Shares?1 month ago | Simply Wall St
What Can We Learn About Sandfire Resources' (ASX:SFR) CEO Compensation?Valuation
Is Sandfire Resources undervalued compared to its fair value and its price relative to the market?
10.73x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: SFR (A$4.6) is trading above our estimate of fair value (A$1.56)
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 (10.7x) compared to the AU Metals and Mining industry average (11.6x).
PE vs Market: SFR is good value based on its PE Ratio (10.7x) compared to the Australian market (21.5x).
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 (1.1x) compared to the AU Metals and Mining industry average (2.6x).
Next Steps
Future Growth
How is Sandfire Resources forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
-49.4%
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 (-49.4% per year).
Earnings vs Market: SFR's earnings are forecast to decline over the next 3 years (-49.4% 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 (-36.2% per year).
High Growth Revenue: SFR's revenue is forecast to decline over the next 3 years (-36.2% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: SFR is forecast to be unprofitable in 3 years.
Next Steps
Past Performance
How has Sandfire Resources performed over the past 5 years?
11.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SFR has high quality earnings.
Growing Profit Margin: SFR's current net profit margins (11.3%) are lower than last year (18%).
Past Earnings Growth Analysis
Earnings Trend: SFR's earnings have grown by 11.6% 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 (-30.4%) over the past year, making it difficult to compare to the Metals and Mining industry average (22.2%).
Return on Equity
High ROE: SFR's Return on Equity (9.6%) 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$393.1M) exceed its short term liabilities (A$72.2M).
Long Term Liabilities: SFR's short term assets (A$393.1M) exceed its long term liabilities (A$71.6M).
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 33.8%.
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
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Dividend
What is Sandfire Resources's current dividend yield, its reliability and sustainability?
4.13%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: SFR's dividend (4.13%) is higher than the bottom 25% of dividend payers in the Australian market (2.14%).
High Dividend: SFR's dividend (4.13%) is low compared to the top 25% of dividend payers in the Australian market (5.48%).
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 (44.3%), SFR's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: SFR is forecast to pay a dividend in 3 years whilst incurring a loss, therefore the dividend is not forecast to be well covered.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.1yrs
Average management tenure
CEO
Karl Simich (56 yo)
11.25yrs
Tenure
AU$2,183,210
Compensation
Mr. Karl Matthew Simich, B.Comm, B.Com, FCA, ASIA, F. Fin, has been the Chief Executive Officer and Managing Director of Sandfire Resources Limited (Formerly, Sandfire Resources NL) since July 1, 2009. Mr. ...
CEO Compensation Analysis
Compensation vs Market: Karl's total compensation ($USD1.54M) is above average for companies of similar size in the Australian market ($USD711.63K).
Compensation vs Earnings: Karl's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD, CEO & Executive Director | 11.25yrs | AU$2.18m | 2.75% A$ 21.6m | |
| CFO & Company Secretary | 9.75yrs | AU$994.46k | no data | |
| Chief Operating Officer | 1.08yrs | AU$819.65k | no data | |
| General Counsel and Head of Legal & Procurement | 0.25yr | no data | no data | |
| Head of Exploration – APAC & AMER | no data | no data | no data | |
| Head of Health | 0.25yr | no data | no data | |
| Head of Exploration in Botswana | no data | no data | no data |
1.1yrs
Average Tenure
Experienced Management: SFR's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD, CEO & Executive Director | 11.25yrs | AU$2.18m | 2.75% A$ 21.6m | |
| Independent Non-Executive Director | 10.25yrs | AU$130.00k | 0.0028% A$ 22.0k | |
| Independent Non-Executive Director | 3.83yrs | AU$124.00k | no data | |
| Independent Non-Executive Director | 7.42yrs | AU$130.00k | 0.0056% A$ 44.0k | |
| Independent Non-Executive Chairman | 10.42yrs | AU$220.00k | 0.012% A$ 95.4k | |
| Independent Non-Executive Director | 0.25yr | no data | no data |
8.8yrs
Average Tenure
59.5yo
Average Age
Experienced Board: SFR's board of directors are considered experienced (8.8 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 been diluted in the past year, with total shares outstanding growing by 11.7%.
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$784.306m
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| SFR | ASX (Australian Securities Exchange) | Yes | Ordinary Shares | AU | AUD | Mar 2004 |
| SFRR.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Mar 2004 |
| S2Z | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Mar 2004 |
| SFR | CHIA (Chi-X Australia) | Yes | Ordinary Shares | AU | AUD | Mar 2004 |
Biography
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 ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/10/21 10:37 |
| End of Day Share Price | 2020/10/21 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2020/06/30 |
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.