ASX:SRK

Stock Analysis Report

Executive Summary

Strike Resources Limited explores for mineral properties in Australia and Peru.

Risk Analysis

Makes less than USD$1m in revenue (A$159K)

Does not have a meaningful market cap (A$8M)

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months



Snowflake Analysis

Flawless balance sheet with weak fundamentals.

Share Price & News

How has Strike Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SRK's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.0%

SRK

-1.8%

AU Metals and Mining

-2.0%

AU Market


1 Year Return

0%

SRK

20.1%

AU Metals and Mining

16.7%

AU Market

Return vs Industry: SRK underperformed the Australian Metals and Mining industry which returned 20.1% over the past year.

Return vs Market: SRK underperformed the Australian Market which returned 16.7% over the past year.


Shareholder returns

SRKIndustryMarket
7 Day4.0%-1.8%-2.0%
30 Day36.8%-1.3%0.1%
90 Day0%-1.2%0.4%
1 Year0%0%28.9%20.1%22.5%16.7%
3 Year10.6%10.6%53.6%32.6%35.4%16.8%
5 Year30.0%30.0%105.1%56.6%60.6%24.4%

Price Volatility Vs. Market

How volatile is Strike Resources's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

2.49x

Price to Book (PB) 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 unprofitable, so we can't compare its PE Ratio to the Metals and Mining industry average.

PE vs Market: SRK 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 SRK's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SRK is overvalued based on its PB Ratio (2.5x) compared to the AU Metals and Mining industry average (1.4x).


Next Steps

Future Growth

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

1.5%

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.


Next Steps

Past Performance

How has Strike Resources performed over the past 5 years?

81.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SRK is currently unprofitable.

Growing Profit Margin: SRK is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SRK is unprofitable, but has reduced losses over the past 5 years at a rate of 81.4% per year.

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

Earnings vs Industry: SRK is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (7.8%).


Return on Equity

High ROE: SRK has a negative Return on Equity (-61.78%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Strike Resources's financial position?


Financial Position Analysis

Short Term Liabilities: SRK's short term assets (A$2.8M) exceed its short term liabilities (A$118.0K).

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.


Balance Sheet

Inventory Level: SRK has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if SRK's debt is covered by short term assets.


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: SRK has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: SRK has sufficient cash runway for 1.479161 years if free cash flow continues to reduce at historical rates of -1.7% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.4%markettop25%5.6%industryaverage4.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

What is the CEO of Strike Resources's salary, the management and board of directors tenure and is there insider trading?

10.3yrs

Average board tenure


CEO

William Johnson (57yo)

6.8yrs

Tenure

AU$227,760

Compensation

Mr. William Matthew Johnson, MA (Oxon), MBA, MAICD served as Chairman of the Board of Keybridge Capital Limited since July 10, 2019 until October 2019. Mr. Johnson has been the Managing Director at Strike  ...


CEO Compensation Analysis

Compensation vs Market: William's total compensation ($USD156.09K) is below average for companies of similar size in the Australian market ($USD255.57K).

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


Board Age and Tenure

10.3yrs

Average Tenure

57yo

Average Age

Experienced Board: SRK's board of directors are seasoned and experienced ( 10.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellAU$124,50022 Jul 19
Data Base Systems Limited
EntityCompany
Shares1,333,027
Max PriceAU$0.097
BuyAU$5,47120 May 19
William Johnson
EntityIndividual
Role
Chief Executive Officer
MD & Director
Shares100,000
Max PriceAU$0.055

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Victor Ho (49yo)

    Company Secretary & Executive Director

    • Tenure: 5.9yrs
    • Compensation: AU$104.03k
  • William Johnson (57yo)

    MD & Director

    • Tenure: 6.8yrs
    • Compensation: AU$227.76k

Board Members

  • Malcolm Richmond (74yo)

    Non-Executive Director

    • Tenure: 13.2yrs
    • Compensation: AU$49.28k
  • Farooq Khan (57yo)

    Chairman

    • Tenure: 4yrs
    • Compensation: AU$87.60k
  • Victor Ho (49yo)

    Company Secretary & Executive Director

    • Tenure: 5.9yrs
    • Compensation: AU$104.03k
  • William Johnson (57yo)

    MD & Director

    • Tenure: 6.8yrs
    • Compensation: AU$227.76k
  • Matthew Charles Hammond (44yo)

    Non-Executive Director

    • Tenure: 10.3yrs
    • Compensation: AU$45.00k

Company Information

Strike Resources Limited's company bio, 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$7.855m
  • Shares outstanding: 167.13m
  • Website: https://www.strikeresources.com.au

Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SRKASX (Australian Securities Exchange)YesOrdinary SharesAUAUDMar 2000
SRKCHIA (Chi-X Australia)YesOrdinary SharesAUAUDMar 2000
SRKR.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMar 2000

Biography

Strike Resources Limited explores for mineral properties in Australia and Peru. The company primarily explores for iron ore, graphite, gold, and lithium deposits. Its flagship project is the 100% owned Apu ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/07 10:32
End of Day Share Price2019/12/05 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.