Stanmore Resources Limited

ASX:SMR Stock Report

Market Cap: AU$2.8b

Stanmore Resources Valuation

Is SMR undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of SMR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SMR (A$3.14) is trading below our estimate of fair value (A$9.88)

Significantly Below Fair Value: SMR is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SMR?

Key metric: As SMR is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for SMR. This is calculated by dividing SMR's market cap by their current earnings.
What is SMR's PE Ratio?
PE Ratio6.8x
EarningsUS$268.40m
Market CapUS$1.84b

Price to Earnings Ratio vs Peers

How does SMR's PE Ratio compare to its peers?

The above table shows the PE ratio for SMR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average26.9x
CIA Champion Iron
10.2x7.5%AU$2.8b
DRR Deterra Royalties
12.5x-6.9%AU$1.9b
VSL Vulcan Steel
27.7x22.9%AU$1.0b
MGX Mount Gibson Iron
57.4xn/aAU$369.3m
SMR Stanmore Resources
6.8x-17.0%AU$2.8b

Price-To-Earnings vs Peers: SMR is good value based on its Price-To-Earnings Ratio (6.8x) compared to the peer average (26.9x).

Price to Earnings Ratio vs Industry

How does SMR's PE Ratio compare vs other companies in the AU Metals and Mining Industry?

9 CompaniesPrice / EarningsEstimated GrowthMarket Cap
KCN Kingsgate Consolidated
1.7x-13.3%US$220.08m
GRR Grange Resources
2.6xn/aUS$180.35m
RHI Red Hill Minerals
1.8xn/aUS$177.38m
PTN Patronus Resources
2.3xn/aUS$64.85m
SMR 6.8xIndustry Avg. 11.9xNo. of Companies13PE01224364860+
9 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SMR is good value based on its Price-To-Earnings Ratio (6.8x) compared to the Australian Metals and Mining industry average (11.9x).

Price to Earnings Ratio vs Fair Ratio

What is SMR's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SMR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6.8x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: SMR is good value based on its Price-To-Earnings Ratio (6.8x) compared to the estimated Fair Price-To-Earnings Ratio (10.4x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst SMR forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$3.14
AU$3.83
+21.8%
11.0%AU$4.40AU$3.40n/a4
Nov ’25AU$3.22
AU$3.83
+18.8%
11.0%AU$4.40AU$3.40n/a4
Oct ’25AU$3.28
AU$3.95
+20.4%
17.2%AU$5.00AU$3.35n/a4
Sep ’25AU$3.01
AU$3.95
+31.2%
14.2%AU$4.80AU$3.35n/a4
Aug ’25AU$3.67
AU$4.11
+12.1%
8.1%AU$4.60AU$3.70n/a4
Jul ’25AU$3.72
AU$4.05
+8.9%
2.6%AU$4.20AU$3.95n/a4
Jun ’25AU$3.28
AU$3.92
+19.7%
2.1%AU$4.00AU$3.80n/a4
May ’25AU$3.18
AU$3.90
+22.6%
2.1%AU$4.00AU$3.80n/a3
Apr ’25AU$3.22
AU$4.18
+30.0%
2.0%AU$4.30AU$4.10n/a3
Mar ’25AU$3.28
AU$4.18
+27.6%
2.0%AU$4.30AU$4.10n/a3
Feb ’25AU$3.91
AU$4.30
+10.0%
1.9%AU$4.40AU$4.20n/a3
Jan ’25AU$4.01
AU$4.32
+7.7%
0.6%AU$4.35AU$4.30n/a3
Dec ’24AU$4.08
AU$4.33
+6.0%
0.6%AU$4.35AU$4.30n/a2
Nov ’24AU$3.79
AU$4.33
+14.1%
0.6%AU$4.35AU$4.30AU$3.222
Oct ’24AU$3.70
AU$4.15
+12.2%
6.0%AU$4.40AU$3.90AU$3.282
Sep ’24AU$2.96
AU$4.00
+35.1%
10.0%AU$4.40AU$3.60AU$3.012
Aug ’24AU$2.87
AU$4.37
+52.4%
8.5%AU$4.75AU$4.00AU$3.672
Jul ’24AU$2.58
AU$4.47
+73.4%
6.1%AU$4.75AU$4.20AU$3.722
Jun ’24AU$2.48
AU$4.47
+80.3%
6.1%AU$4.75AU$4.20AU$3.282
May ’24AU$3.06
AU$4.68
+52.8%
10.2%AU$5.15AU$4.20AU$3.182
Apr ’24AU$3.43
AU$4.78
+39.2%
7.9%AU$5.15AU$4.40AU$3.222

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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