ASX:SO4

Stock Analysis Report

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Market Cap

AU$252.2m

Last Updated

2021/08/02 08:02 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Fair value with moderate growth potential.

Share Price & News

How has Salt Lake Potash's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SO4 is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: SO4's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-1.6%

SO4

-0.3%

AU Chemicals

0.7%

AU Market


1 Year Return

-45.6%

SO4

-0.6%

AU Chemicals

27.2%

AU Market

Return vs Industry: SO4 underperformed the Australian Chemicals industry which returned -1.1% over the past year.

Return vs Market: SO4 underperformed the Australian Market which returned 27.3% over the past year.


Shareholder returns

SO4IndustryMarket
7 Day-1.6%-0.3%0.7%
30 Day-11.4%0.8%2.4%
90 Day-29.5%-5.4%5.2%
1 Year-44.8%-45.6%0.4%-0.6%31.9%27.2%
3 Year-35.1%-36.1%-23.2%-26.2%35.7%19.1%
5 Year-34.5%-35.4%-7.9%-15.8%66.2%33.8%

Long-Term Price Volatility Vs. Market

How volatile is Salt Lake Potash's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SO4 (A$0.31) is trading below our estimate of fair value (A$5.17)

Significantly Below Fair Value: SO4 is trading below fair value by more than 20%.


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 (3.2x).


Future Growth

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

124.7%

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: Insufficient data to determine if SO4's revenue is forecast to grow faster than the Australian market.

High Growth Revenue: Insufficient data to determine if SO4's revenue 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%).


Past Performance

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

-25.5%

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 25.5% 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 (-45.6%).


Return on Equity

High ROE: SO4 has a negative Return on Equity (-1.8%), 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$137.4M) exceed its short term liabilities (A$29.9M).

Long Term Liabilities: SO4's short term assets (A$137.4M) do not cover its long term liabilities (A$153.9M).


Debt to Equity History and Analysis

Debt Level: SO4's debt to equity ratio (52.5%) 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: Insufficient data to determine if SO4 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


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?

2.0yrs

Average management tenure


CEO

Tony Swiericzuk

2.75yrs

Tenure

AU$2,234,280

Compensation

Mr. Tony James Swiericzuk, BEng (Hons), MBA, GAICD, has been Chief Executive Officer and Managing Director at Salt Lake Potash Ltd. Since November 05, 2018. He served as Director of Business Development at...


CEO Compensation Analysis

Compensation vs Market: Tony's total compensation ($USD1.64M) is above average for companies of similar size in the Australian market ($USD457.27K).

Compensation vs Earnings: Tony's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: SO4's management team is considered experienced (2 years average tenure).


Board Members

Experienced Board: SO4's board of directors are not considered experienced ( 1 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: 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 substantially diluted in the past year, with total shares outstanding growing by 130.3%.


Top Shareholders

Company Information

Salt Lake Potash Limited's company bio, 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$252.238m
  • Shares outstanding: 813.67m
  • Website: https://www.so4.com.au

Location

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

Listings


Biography

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 11 salt lakes covering an area...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/02 08:02
End of Day Share Price2021/07/28 00:00
Earnings2020/12/31
Annual Earnings2020/06/30


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.