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SRK

Strike ResourcesASX:SRK Stock Report

Market Cap

AU$33.8m

7D

-3.8%

1Y

13.6%

Updated

22 Oct, 2021

Data

Company Financials
SRK fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance3/6
Financial Health6/6
Dividends0/6

SRK Overview

Strike Resources Limited operates as a mineral exploration company in Australia, Argentina, and Peru.

Price History & Performance

Summary of all time highs, changes and price drops for Strike Resources
Historical stock prices
Current Share PriceAU$0.13
52 Week HighAU$0.087
52 Week LowAU$0.32
Beta2.53
1 Month Change0%
3 Month Change-57.63%
1 Year Change13.64%
3 Year Change127.27%
5 Year Change184.09%
Change since IPO-85.12%

Recent News & Updates

Oct 03
Strike Resources' (ASX:SRK) Earnings Are Built On Soft Foundations

Strike Resources' (ASX:SRK) Earnings Are Built On Soft Foundations

Shareholders didn't seem to be thrilled with Strike Resources Limited's ( ASX:SRK ) recent earnings report, despite...

Sep 07
We're Not Very Worried About Strike Resources' (ASX:SRK) Cash Burn Rate

We're Not Very Worried About Strike Resources' (ASX:SRK) Cash Burn Rate

Just because a business does not make any money, does not mean that the stock will go down. For example, although...

Shareholder Returns

SRKAU Metals and MiningAU Market
7D-3.8%-0.3%0.7%
1Y13.6%12.5%21.4%

Return vs Industry: SRK exceeded the Australian Metals and Mining industry which returned 12.5% over the past year.

Return vs Market: SRK underperformed the Australian Market which returned 21.4% over the past year.

Price Volatility

Is SRK's price volatile compared to industry and market?
SRK volatility
SRK Beta2.53
Industry Beta0.97
Market Beta1

Stable Share Price: SRK is more volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 14% a week.

Volatility Over Time: SRK's weekly volatility (14%) has been stable over the past year, but is still higher than 75% of Australian stocks.

About the Company

FoundedEmployeesCEOWebsite
1999n/aWilliam Johnsonhttps://strikeresources.com.au

Strike Resources Limited operates as a mineral exploration company in Australia, Argentina, and Peru. The company primarily explores for iron ore, graphite, gold, and lithium deposits. Its flagship project is the Apurimac magnetite iron ore project covering an area of approximately 7,500 hectares located in the Southern Highlands of Peru.

Strike Resources Fundamentals Summary

How do Strike Resources's earnings and revenue compare to its market cap?
SRK fundamental statistics
Market CapAU$33.75m
Earnings (TTM)AU$3.86m
Revenue (TTM)AU$50.67k

8.7x

P/E Ratio

694.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SRK income statement (TTM)
RevenueAU$50.67k
Cost of RevenueAU$0
Gross ProfitAU$50.67k
Expenses-AU$3.81m
EarningsAU$3.86m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.014
Gross Margin100.00%
Net Profit Margin7,618.42%
Debt/Equity Ratio0.0%

How did SRK perform over the long term?

See historical performance and comparison

Valuation

Is Strike Resources undervalued compared to its fair value and its price relative to the market?

8.75x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

PE vs Industry: SRK is good value based on its PE Ratio (8.7x) compared to the Australian Metals and Mining industry average (14.3x).

PE vs Market: SRK is good value based on its PE Ratio (8.7x) compared to the Australian market (19.8x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SRK is good value based on its PB Ratio (2x) compared to the AU Metals and Mining industry average (2.6x).


Future Growth

How is Strike Resources forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

-0.07%

Forecasted Materials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Strike Resources has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has Strike Resources performed over the past 5 years?

15.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SRK has a high level of non-cash earnings.

Growing Profit Margin: SRK became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: SRK has become profitable over the past 5 years, growing earnings by 15.8% per year.

Accelerating Growth: SRK has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: SRK has become profitable in the last year, making it difficult to compare its past year earnings growth to the Metals and Mining industry (35.3%).


Return on Equity

High ROE: SRK's Return on Equity (23.4%) is considered high.


Financial Health

How is Strike Resources's financial position?


Financial Position Analysis

Short Term Liabilities: SRK's short term assets (A$8.3M) exceed its short term liabilities (A$2.2M).

Long Term Liabilities: SRK has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: SRK is debt free.

Reducing Debt: SRK has not had any debt for past 5 years.

Debt Coverage: SRK has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: SRK has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Strike Resources's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate SRK'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 SRK's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SRK'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 SRK'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?

12.1yrs

Average board tenure


CEO

William Johnson (59 yo)

8.58yrs

Tenure

AU$227,760

Compensation

Mr. William Matthew Johnson, MA (Oxon), MBA, MAICD, has been the Managing Director at Strike Resources Limited since March 25, 2013 and has been its Director since July 14, 2006. Mr. Johnson has been Execu...


CEO Compensation Analysis

Compensation vs Market: William's total compensation ($USD170.57K) is below average for companies of similar size in the Australian market ($USD303.33K).

Compensation vs Earnings: William's compensation has been consistent with company performance over the past year.


Board Members

Experienced Board: SRK's board of directors are seasoned and experienced ( 12.1 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 30.4%.


Top Shareholders

Company Information

Strike Resources Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Strike Resources Limited
  • Ticker: SRK
  • Exchange: ASX
  • Founded: 1999
  • Industry: Steel
  • Sector: Materials
  • Market Cap: AU$33.750m
  • Shares outstanding: 270.00m
  • Website: https://strikeresources.com.au

Location

  • Strike Resources Limited
  • 31 Ventnor Avenue
  • Level 2
  • West Perth
  • Western Australia
  • 6005
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/22 15:37
End of Day Share Price2021/10/22 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.