Executive Summary
Sandfire Resources NL explores for, evaluates, and develops mineral tenements and projects in Australia and internationally.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -1.7% 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'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
| SFR | Industry | Market | |
|---|---|---|---|
| 7 Day | 14.2% | 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
1 week ago | Simply Wall St
A Look At The Intrinsic Value Of Sandfire Resources Limited (ASX:SFR)3 weeks ago | Simply Wall St
What Is Sandfire Resources's (ASX:SFR) P/E Ratio After Its Share Price Tanked?1 month ago | Simply Wall St
MD, CEO & Executive Director Karl Simich Just Bought Shares In Sandfire Resources Limited (ASX:SFR)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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD, CEO & Executive Director | 10.67yrs | AU$1.62m | 2.75% A$15.8m | |
| CFO & Company Secretary | 9.17yrs | AU$763.24k | no data | |
| Chief Operating Officer | 0.42yr | no data | no data | |
| Chief Exploration & Business Development Officer | 9.17yrs | no data | no data | |
| General Manager of Geology | 9.83yrs | no data | no data |
9.2yrs
Average Tenure
Experienced Management: SFR's management team is seasoned and experienced (9.2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD, CEO & Executive Director | 10.67yrs | AU$1.62m | 2.75% A$15.8m | |
| Independent Non-Executive Director | 9.67yrs | AU$130.00k | 0.0028% A$16.1k | |
| Independent Non-Executive Director | 3.25yrs | AU$110.00k | no data | |
| Independent Non-Executive Director | 6.83yrs | AU$130.00k | 0.0056% A$32.2k | |
| Independent Non-Executive Chairman | 9.83yrs | AU$220.00k | 0.012% A$69.8k | |
| Independent Non-Executive Director | 4.25yrs | AU$130.00k | no 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
| 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 |
| SFR | CHIA (Chi-X Australia) | Yes | Ordinary Shares | AU | AUD | Mar 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/31 10:34 |
| End of Day Share Price | 2020/03/31 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/06/30 |
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.