ASX:TLG

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Market Cap

AU$454.8m

Last Updated

2021/06/14 08:14 UTC

Data Sources

Company Financials

Executive Summary

Talga Group Ltd, a material company, explores for, develops, and commercializes graphene and graphite products. More Details


Snowflake Analysis

Flawless balance sheet with weak fundamentals.


Similar Companies

Share Price & News

How has Talga Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TLG is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 12% a week.

Volatility Over Time: TLG's weekly volatility (12%) has been stable over the past year.


Market Performance


7 Day Return

2.0%

TLG

1.1%

AU Metals and Mining

0.4%

AU Market


1 Year Return

294.7%

TLG

40.1%

AU Metals and Mining

30.4%

AU Market

Return vs Industry: TLG exceeded the Australian Metals and Mining industry which returned 40.1% over the past year.

Return vs Market: TLG exceeded the Australian Market which returned 30.4% over the past year.


Shareholder returns

TLGIndustryMarket
7 Day2.0%1.1%0.4%
30 Day4.9%1.8%4.5%
90 Day11.9%7.6%7.4%
1 Year294.7%294.7%47.4%40.1%34.7%30.4%
3 Year114.3%114.3%73.1%48.8%36.1%19.8%
5 Year279.7%279.7%177.3%127.0%72.9%40.0%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Talga Group undervalued compared to its fair value and its price relative to the market?

12.63x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: TLG is overvalued based on its PB Ratio (12.6x) compared to the AU Metals and Mining industry average (2.7x).


Future Growth

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

-3.2%

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 Talga Group 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 Talga Group performed over the past 5 years?

-19.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TLG is currently unprofitable.

Growing Profit Margin: TLG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TLG is unprofitable, and losses have increased over the past 5 years at a rate of 19.2% per year.

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

Earnings vs Industry: TLG is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (25.6%).


Return on Equity

High ROE: TLG has a negative Return on Equity (-43.06%), as it is currently unprofitable.


Financial Health

How is Talga Group's financial position?


Financial Position Analysis

Short Term Liabilities: TLG's short term assets (A$33.5M) exceed its short term liabilities (A$3.3M).

Long Term Liabilities: TLG's short term assets (A$33.5M) exceed its long term liabilities (A$52.2K).


Debt to Equity History and Analysis

Debt Level: TLG is debt free.

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

Forecast Cash Runway: TLG has sufficient cash runway for 2.2 years if free cash flow continues to reduce at historical rates of 20.8% each year.


Dividend

What is Talga Group current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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

6.4yrs

Average management tenure


CEO

Mark Thompson (48 yo)

11.92yrs

Tenure

AU$413,401

Compensation

Mr. Mark Edward Thompson, B.A. (Hons.), M.A., was a Partner at Apollo Management International, LLP. Mr. Thompson serves as Managing Director of Talga Resources Ltd since July 21, 2009 and serves as its Di...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD318.10K) is below average for companies of similar size in the Australian market ($USD683.14K).

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


Leadership Team

Experienced Management: TLG's management team is seasoned and experienced (6.4 years average tenure).


Board Members

Experienced Board: TLG's board of directors are considered experienced (5.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: TLG 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 24.4%.


Top Shareholders

Company Information

Talga Group Ltd's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Talga Group Ltd
  • Ticker: TLG
  • Exchange: ASX
  • Founded: 2009
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: AU$454.845m
  • Shares outstanding: 303.23m
  • Website: https://www.talgagroup.com

Location

  • Talga Group Ltd
  • 2 Richardson Street
  • Suite 3, First Floor
  • West Perth
  • Western Australia
  • 6005
  • Australia

Listings


Biography

Talga Group Ltd, a material company, explores for, develops, and commercializes graphene and graphite products. It holds interests in the Vittangi, Jalkunen, Raitajärvi, Kiskama, and other projects in Swed...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/14 08:14
End of Day Share Price2021/06/11 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.