Sunrise Energy Metals (ASX:SRL) - Share price, News & Analysis

SRL fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	0/6
Past Performance	0/6
Financial Health	6/6
Dividends	0/6

SRL Stock Overview

Sunrise Energy Metals Limited, together with its subsidiaries, engages in the metal recovery and exploration of other mineral tenements in Australia.

Risk Analysis

Earnings have declined by 39.9% per year over past 5 years

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

Sunrise Energy Metals Competitors

Sovereign Metals

ASX:SVM

AU$221.3m

Arafura Resources

ASX:ARU

AU$500.1m

Rumble Resources

ASX:RTR

AU$217.5m

Aston Minerals

ASX:ASO

AU$100.2m

Price History & Performance

Summary of all time highs, changes and price drops for Sunrise Energy Metals
Historical stock prices
Current Share Price	AU$2.71
52 Week High	AU$3.46
52 Week Low	AU$1.32
Beta	1.35
1 Month Change	16.81%
3 Month Change	-7.51%
1 Year Change	60.83%
3 Year Change	-28.68%
5 Year Change	-66.95%
Change since IPO	-60.15%

Shareholder Returns

	SRL	AU Metals and Mining	AU Market
7D	-4.6%	1.3%	0.7%
1Y	60.8%	-11.3%	-6.5%

Return vs Industry: SRL exceeded the Australian Metals and Mining industry which returned -11.3% over the past year.

Return vs Market: SRL exceeded the Australian Market which returned -6.5% over the past year.

Price Volatility

Is SRL's price volatile compared to industry and market?
SRL volatility
SRL Average Weekly Movement	9.6%
Metals and Mining Industry Average Movement	12.4%
Market Average Movement	10.6%
10% most volatile stocks in AU Market	17.9%
10% least volatile stocks in AU Market	4.6%

Stable Share Price: SRL is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: SRL's weekly volatility (10%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1990	n/a	Sam Riggall	https://www.sunriseem.com

Sunrise Energy Metals Limited, together with its subsidiaries, engages in the metal recovery and exploration of other mineral tenements in Australia. The company provides Clean-iX resin technology for the extraction and purification of various resources, including precious metals, such as gold and silver; platinum group metals consisting of platinum, palladium, rhodium, and iridium; base metals comprising copper, nickel, cobalt, and zinc; light, medium, and heavy rare earth metals; and specialty metals covering scandium, vanadium, niobium, tantalum, uranium, and titanium, as well as radioactive elements, and other extractable elements. It is involved in the development of the Sunrise project for electric vehicle battery materials in New South Wales.

Sunrise Energy Metals Fundamentals Summary

How do Sunrise Energy Metals's earnings and revenue compare to its market cap?
SRL fundamental statistics
Market Cap	AU$244.06m
Earnings (TTM)	-AU$18.66m
Revenue (TTM)	AU$1.17m

209.3x

P/S Ratio

-13.1x

P/E Ratio

Is SRL overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SRL income statement (TTM)
Revenue	AU$1.17m
Cost of Revenue	AU$4.56m
Gross Profit	-AU$3.39m
Other Expenses	AU$15.28m
Earnings	-AU$18.66m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	-0.21
Gross Margin	-290.32%
Net Profit Margin	-1,599.23%
Debt/Equity Ratio	0%

How did SRL perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

1/6

Valuation Score 1/6

Price-To-Book vs Peers
Price-To-Book vs Industry
Price-To-Book vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for SRL. This is calculated by dividing SRL's market cap by their current preferred multiple.
What is SRL's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	AU$244.06m

SRL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	184.3x
Enterprise Value/EBITDA	-11.5x
PEG Ratio	n/a

Price to Book Ratio vs Peers

How does SRL's PB Ratio compare to its peers?

SRL PB Ratio vs Peers

The above table shows the PB ratio for SRL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PB	Estimated Growth	Market Cap
Peer Average	19.3x
SVM Sovereign Metals	21.3x	58.8%	AU$221.3m
ARU Arafura Resources	3.3x	-45.0%	AU$500.1m
RTR Rumble Resources	3.9x	-7.8%	AU$217.5m
ASO Aston Minerals	48.6x	n/a	AU$100.2m
SRL Sunrise Energy Metals	8.4x	n/a	AU$244.1m

Price-To-Book vs Peers: SRL is good value based on its Price-To-Book Ratio (8.4x) compared to the peer average (19.3x).

Price to Earnings Ratio vs Industry

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

Price-To-Book vs Industry: SRL is expensive based on its Price-To-Book Ratio (8.4x) compared to the Australian Metals and Mining industry average (2x)

Price to Book Ratio vs Fair Ratio

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

SRL PB Ratio vs Fair Ratio.
Fair Ratio
Current PB Ratio	8.4x
Fair PB Ratio	n/a

Price-To-Book vs Fair Ratio: Insufficient data to calculate SRL's Price-To-Book Fair Ratio for valuation analysis.

Share Price vs Fair Value

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

Below Fair Value: Insufficient data to calculate SRL's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate SRL's fair value for valuation analysis.

Analyst Price Targets

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

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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Future Growth

How is Sunrise Energy Metals forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-82.7%

Forecasted annual revenue growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if SRL's forecast earnings growth is above the savings rate (1.8%).

Earnings vs Market: Insufficient data to determine if SRL's earnings are forecast to grow faster than the Australian market

High Growth Earnings: Insufficient data to determine if SRL's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SRL's revenue is expected to decline over the next 3 years (-82.7% per year).

High Growth Revenue: SRL's revenue is forecast to decline over the next 3 years (-82.7% per year).

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: SRL is forecast to be unprofitable in 3 years.

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Past Performance

How has Sunrise Energy Metals performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-39.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SRL is currently unprofitable.

Growing Profit Margin: SRL is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: SRL is unprofitable, and losses have increased over the past 5 years at a rate of 39.9% per year.

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

Earnings vs Industry: SRL is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (57.3%).

Return on Equity

High ROE: SRL has a negative Return on Equity (-64.08%), as it is currently unprofitable.

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Financial Health

How is Sunrise Energy Metals's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: SRL's short term assets (A$30.1M) exceed its short term liabilities (A$997.0K).

Long Term Liabilities: SRL's short term assets (A$30.1M) exceed its long term liabilities (A$610.0K).

Debt to Equity History and Analysis

Debt Level: SRL is debt free.

Reducing Debt: SRL has no debt compared to 5 years ago when its debt to equity ratio was 7.8%.

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

Forecast Cash Runway: SRL has sufficient cash runway for 1.3 years if free cash flow continues to reduce at historical rates of 6.6% each year.

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Dividend

What is Sunrise Energy Metals's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

Dividend Yield vs Market

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

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

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

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as SRL has not reported any payouts.

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Management

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

9.3yrs

Average management tenure

CEO

Sam Riggall (50 yo)

7.08yrs

Tenure

AU$903,243

Compensation

Mr. Sam Riggall, LLB (Hons), B.Comm., MBA, has been Managing Director and Chief Executive Officer of Sunrise Energy Metals Limited (formerly known as Clean TeQ Holdings Limited) since April 24, 2017 and Ju...

CEO Compensation Analysis

Compensation vs Market: Sam's total compensation ($USD635.64K) is about average for companies of similar size in the Australian market ($USD532.71K).

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

Leadership Team

Experienced Management: SRL's management team is seasoned and experienced (9.3 years average tenure).

Board Members

Experienced Board: SRL's board of directors are considered experienced (5.6 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 not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/08/16 00:00
End of Day Share Price	2022/08/16 00:00
Earnings	2021/12/31
Annual Earnings	2021/06/30