company background image
SVM

Sovereign MetalsASX:SVM Stock Report

Market Cap

AU$215.9m

7D

10.9%

1Y

32.5%

Updated

25 Oct, 2021

Data

Company Financials
SVM fundamental analysis
Snowflake Score
Valuation0/6
Future Growth0/6
Past Performance0/6
Financial Health6/6
Dividends0/6

SVM Overview

Sovereign Metals Limited, together with its subsidiaries, engages in the identification, exploration, development, and appraisal of mineral resource projects in Malawi.

Price History & Performance

Summary of all time highs, changes and price drops for Sovereign Metals
Historical stock prices
Current Share PriceAU$0.51
52 Week HighAU$0.35
52 Week LowAU$0.78
Beta1.1
1 Month Change4.08%
3 Month Change-8.93%
1 Year Change32.47%
3 Year Change571.05%
5 Year Change308.00%
Change since IPO20.00%

Recent News & Updates

Aug 26
We Think Sovereign Metals (ASX:SVM) Needs To Drive Business Growth Carefully

We Think Sovereign Metals (ASX:SVM) Needs To Drive Business Growth Carefully

There's no doubt that money can be made by owning shares of unprofitable businesses. For example, Sovereign Metals...

May 12
We're Keeping An Eye On Sovereign Metals' (ASX:SVM) Cash Burn Rate

We're Keeping An Eye On Sovereign Metals' (ASX:SVM) Cash Burn Rate

Just because a business does not make any money, does not mean that the stock will go down. By way of example...

Shareholder Returns

SVMAU Metals and MiningAU Market
7D10.9%-1.7%0.6%
1Y32.5%10.8%21.3%

Return vs Industry: SVM exceeded the Australian Metals and Mining industry which returned 10.8% over the past year.

Return vs Market: SVM exceeded the Australian Market which returned 21.3% over the past year.

Price Volatility

Is SVM's price volatile compared to industry and market?
SVM volatility
SVM Beta1.1
Industry Beta0.97
Market Beta1

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

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

About the Company

FoundedEmployeesCEOWebsite
2006n/aJulian Stephenshttps://www.sovereignmetals.com.au

Sovereign Metals Limited, together with its subsidiaries, engages in the identification, exploration, development, and appraisal of mineral resource projects in Malawi. Its flagship project is the Kasiya rutile deposit in Malawi. The company was incorporated in 2006 and is based in Perth, Australia.

Sovereign Metals Fundamentals Summary

How do Sovereign Metals's earnings and revenue compare to its market cap?
SVM fundamental statistics
Market CapAU$215.91m
Earnings (TTM)-AU$5.07m
Revenue (TTM)n/a

0x

P/S Ratio

-42.6x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SVM income statement (TTM)
RevenueAU$0
Cost of RevenueAU$0
Gross ProfitAU$0
ExpensesAU$5.07m
Earnings-AU$5.07m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.012
Gross Margin0.00%
Net Profit Margin0.00%
Debt/Equity Ratio0.0%

How did SVM perform over the long term?

See historical performance and comparison

Valuation

Is Sovereign Metals undervalued compared to its fair value and its price relative to the market?

14.32x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

PE vs Industry: SVM is unprofitable, so we can't compare its PE Ratio to the Australian Metals and Mining industry average.

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


Price to Book Ratio

PB vs Industry: SVM is overvalued based on its PB Ratio (14.3x) compared to the AU Metals and Mining industry average (2.6x).


Future Growth

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

-0.5%

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 Sovereign Metals 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 Sovereign Metals performed over the past 5 years?

-7.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SVM is currently unprofitable.

Growing Profit Margin: SVM is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SVM is unprofitable, and losses have increased over the past 5 years at a rate of 7.2% per year.

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

Earnings vs Industry: SVM is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (35.3%).


Return on Equity

High ROE: SVM has a negative Return on Equity (-33.61%), as it is currently unprofitable.


Financial Health

How is Sovereign Metals's financial position?


Financial Position Analysis

Short Term Liabilities: SVM's short term assets (A$8.2M) exceed its short term liabilities (A$756.7K).

Long Term Liabilities: SVM has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: SVM is debt free.

Reducing Debt: SVM has not had any debt for 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: SVM has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: SVM has sufficient cash runway for 1.9 years if free cash flow continues to reduce at historical rates of 13.7% each year.


Dividend

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


Dividend Yield vs Market

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

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

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

0.4yrs

Average management tenure


CEO

Julian Stephens

5.33yrs

Tenure

AU$630,065

Compensation

Dr. Julian Rodney Stephens, BSc (Hons), Ph D., MAIG, has been the Managing Director of Sovereign Metals Limited since June 27, 2016. Dr. Stephens served as Technical Director of Sovereign Metals Limited si...


CEO Compensation Analysis

Compensation vs Market: Julian's total compensation ($USD472.31K) is about average for companies of similar size in the Australian market ($USD552.88K).

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


Leadership Team

Experienced Management: SVM's management team is not considered experienced ( 0.4 years average tenure), which suggests a new team.


Board Members

Experienced Board: SVM's board of directors are seasoned and experienced ( 10.5 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 7.4%.


Top Shareholders

Company Information

Sovereign Metals Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Sovereign Metals Limited
  • Ticker: SVM
  • Exchange: ASX
  • Founded: 2006
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: AU$215.912m
  • Shares outstanding: 423.36m
  • Website: https://www.sovereignmetals.com.au

Number of Employees


Location

  • Sovereign Metals Limited
  • BGC Centre
  • Level 9
  • 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 Analysis2021/10/25 16:50
End of Day Share Price2021/10/25 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.