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SO4

Salt Lake PotashASX:SO4 Stock Report

Market Cap

AU$253.1m

7D

0%

1Y

-48.3%

Updated

16 Oct, 2021

Data

Company Financials +
SO4 fundamental analysis
Snowflake Score
Valuation1/6
Future Growth5/6
Past Performance0/6
Financial Health1/6
Dividends0/6

SO4 Overview

Salt Lake Potash Limited engages in the exploration and development of resource projects in Australia.

Price History & Performance

Summary of all time highs, changes and price drops for Salt Lake Potash
Historical stock prices
Current Share PriceAU$0.31
52 Week HighAU$0.30
52 Week LowAU$0.62
Beta0.45
1 Month Change0%
3 Month Change-6.06%
1 Year Change-48.33%
3 Year Change-42.59%
5 Year Change-29.55%
Change since IPO-99.04%

Recent News & Updates

Shareholder Returns

SO4AU ChemicalsAU Market
7D0%0.08%0.9%
1Y-48.3%11.3%20.2%

Return vs Industry: SO4 underperformed the Australian Chemicals industry which returned 11.3% over the past year.

Return vs Market: SO4 underperformed the Australian Market which returned 20.2% over the past year.

Price Volatility

Is SO4's price volatile compared to industry and market?
SO4 volatility
SO4 Beta0.45
Industry Beta0.80
Market Beta1

Stable Share Price: Insufficient data to determine SO4's volatility over the past 3 months.

Volatility Over Time: Insufficient data to determine SO4's volatility change over the past year.

About the Company

FoundedEmployeesCEOWebsite
2005n/aIsak Buitendaghttps://www.so4.com.au

Salt Lake Potash Limited engages in the exploration and development of resource projects in Australia. The company explores for sulphate of potash deposits. It primarily owns nine salt lakes located in the Goldfields region of Western Australia.

Salt Lake Potash Fundamentals Summary

How do Salt Lake Potash's earnings and revenue compare to its market cap?
SO4 fundamental statistics
Market CapAU$253.11m
Earnings (TTM)-AU$5.31m
Revenue (TTM)n/a

0x

P/S Ratio

-47.5x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SO4 income statement (TTM)
RevenueAU$0
Cost of RevenueAU$5.12m
Gross Profit-AU$5.12m
ExpensesAU$190.00k
Earnings-AU$5.31m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.0065
Gross Margin0.00%
Net Profit Margin0.00%
Debt/Equity Ratio70.3%

How did SO4 perform over the long term?

See historical performance and comparison

Valuation

Is Salt Lake Potash undervalued compared to its fair value and its price relative to the market?

1x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate SO4's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate SO4's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: SO4 is unprofitable, so we can't compare its PE Ratio to the Australian Chemicals industry average.

PE vs Market: SO4 is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SO4's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SO4 is good value based on its PB Ratio (1x) compared to the AU Chemicals industry average (4x).


Future Growth

How is Salt Lake Potash forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

98.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SO4 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: SO4 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: SO4's is expected to become profitable in the next 3 years.

Revenue vs Market: SO4's revenue (111.1% per year) is forecast to grow faster than the Australian market (5.4% per year).

High Growth Revenue: SO4's revenue (111.1% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SO4's Return on Equity is forecast to be low in 3 years time (8.6%).


Past Performance

How has Salt Lake Potash performed over the past 5 years?

-11.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SO4 is currently unprofitable.

Growing Profit Margin: SO4 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SO4 is unprofitable, and losses have increased over the past 5 years at a rate of 11.7% per year.

Accelerating Growth: Unable to compare SO4's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SO4 is unprofitable, making it difficult to compare its past year earnings growth to the Chemicals industry (-61.8%).


Return on Equity

High ROE: SO4 has a negative Return on Equity (-2.11%), as it is currently unprofitable.


Financial Health

How is Salt Lake Potash's financial position?


Financial Position Analysis

Short Term Liabilities: SO4's short term assets (A$89.1M) exceed its short term liabilities (A$38.7M).

Long Term Liabilities: SO4's short term assets (A$89.1M) do not cover its long term liabilities (A$234.7M).


Debt to Equity History and Analysis

Debt Level: SO4's debt to equity ratio (70.3%) is considered high.

Reducing Debt: Insufficient data to determine if SO4's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: SO4 has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: SO4 has less than a year of cash runway if free cash flow continues to reduce at historical rates of 62.9% each year


Dividend

What is Salt Lake Potash current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate SO4's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate SO4's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SO4's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SO4's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SO4's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

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

0.3yrs

Average management tenure


CEO

Isak Buitendag

0.083

Tenure

Mr. Isak Buitendag is Chief Executive Officer of Salt Lake Potash Limited since September 13, 2021. Mr. Buitendag was General Manager of Transformation at Kazzinc (69.7% owned by Glencore). Prior to Kazzin...


Leadership Team

Experienced Management: SO4's management team is not considered experienced ( 0.3 years average tenure), which suggests a new team.


Board Members

Experienced Board: SO4's board of directors are not considered experienced ( 1.2 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: SO4 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 substantially diluted in the past year, with total shares outstanding growing by 130.3%.


Top Shareholders

Company Information

Salt Lake Potash Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Salt Lake Potash Limited
  • Ticker: SO4
  • Exchange: ASX
  • Founded: 2005
  • Industry: Fertilizers and Agricultural Chemicals
  • Sector: Materials
  • Market Cap: AU$253.107m
  • Shares outstanding: 816.48m
  • Website: https://www.so4.com.au

Location

  • Salt Lake Potash Limited
  • 239 Adelaide Terrace
  • Ground Floor
  • Perth
  • Western Australia
  • 6000
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/16 07:04
End of Day Share Price2021/07/28 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.