ASX:VXR

Stock Analysis Report

Venturex Resources

Executive Summary

Venturex Resources Limited, together with its subsidiaries, engages in the exploration and development of mineral resources in Australia.

Rewards

Trading at 82.2% below its fair value

Earnings are forecast to grow 50.53% per year

Risk Analysis

Makes less than USD$1m in revenue (A$-53K)

Has less than 1 year of cash runway

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year

+ 1 more risk


Snowflake Analysis

Reasonable growth potential and fair value.


Similar Companies

Western Areas

ASX:WSA

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

VXR

0.2%

AU Metals and Mining

0.4%

AU Market


1 Year Return

-37.1%

VXR

24.9%

AU Metals and Mining

19.5%

AU Market

Return vs Industry: VXR underperformed the Australian Metals and Mining industry which returned 22% over the past year.

Return vs Market: VXR underperformed the Australian Market which returned 19.4% over the past year.


Shareholder returns

VXRIndustryMarket
7 Day0%0.2%0.4%
30 Day-15.4%3.8%4.0%
90 Day-29.0%11.0%4.9%
1 Year-37.1%-37.1%31.1%24.9%24.9%19.5%
3 Year8.8%4.8%58.9%39.1%38.6%19.9%
5 Year110.5%83.4%112.3%63.2%60.0%24.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VXR (A$0.11) is trading below our estimate of fair value (A$0.62)

Significantly Below Fair Value: VXR is trading below fair value by more than 20%.


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: VXR is good value based on its PB Ratio (1.2x) compared to the AU Metals and Mining industry average (1.5x).


Next Steps

Future Growth

How is Venturex Resources forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

50.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VXR is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.1%).

Earnings vs Market: VXR is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: VXR's is expected to become profitable in the next 3 years.

Revenue vs Market: VXR is forecast to have no revenue next year.

High Growth Revenue: VXR is forecast to have no revenue next year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VXR's Return on Equity is forecast to be high in 3 years time (28.9%)


Next Steps

Past Performance

How has Venturex Resources performed over the past 5 years?

43.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VXR is currently unprofitable.

Growing Profit Margin: VXR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: VXR is unprofitable, but has reduced losses over the past 5 years at a rate of 43.8% per year.

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

Earnings vs Industry: VXR 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: VXR has a negative Return on Equity (-10.41%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Venturex Resources's financial position?


Financial Position Analysis

Short Term Liabilities: VXR's short term assets (A$5.4M) exceed its short term liabilities (A$1.6M).

Long Term Liabilities: VXR's short term assets (A$5.4M) do not cover its long term liabilities (A$13.4M).


Debt to Equity History and Analysis

Debt Level: VXR's debt to equity ratio (0.2%) is considered satisfactory.

Reducing Debt: VXR's debt to equity ratio has increased from 0.04% to 0.2% over the past 5 years.


Balance Sheet

Inventory Level: VXR has a high level of physical assets or inventory.

Debt Coverage by Assets: VXR's debt is covered by short term assets (assets are 98.3x debt).


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: VXR has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if VXR has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%5.5%industryaverage4.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if VXR'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 VXR'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 Venturex Resources's salary, the management and board of directors tenure and is there insider trading?

4.5yrs

Average board tenure


CEO

Anthony Reilly 0

0.2yrs

Tenure

AU$271,186

Compensation

Mr. Anthony Miles Reilly, BEc(UWA) has been an Executive Director at Venturex Resources Limited since July 1, 2017 and Acting Chief Executive Officer since November 29, 2019. Mr. Reilly serves as the Manag ...


CEO Compensation Analysis

Compensation vs Market: Anthony's total compensation ($USD187.15K) is about average for companies of similar size in the Australian market ($USD262.68K).

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


Board Age and Tenure

4.5yrs

Average Tenure

Experienced Board: VXR's board of directors are considered experienced (4.5 years average tenure).


Insider Trading

Insider Buying: VXR insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyAU$35,47709 Dec 19
Anthony Reilly
EntityIndividual
Role
Chief Executive Officer
Acting CEO & Executive Director
Shares330,555
Max PriceAU$0.11
SellAU$991,07706 Aug 19
Regent Pacific Group Ltd
EntityCompany
Shares4,670,000
Max PriceAU$0.23
BuyAU$37,77221 May 19
Anthony Kiernan
EntityIndividual
Role
Chairman of the Board
Independent Non-Executive Chairman
Shares188,859
Max PriceAU$0.20
BuyAU$12,02816 May 19
Anthony Kiernan
EntityIndividual
Role
Chairman of the Board
Independent Non-Executive Chairman
Shares61,141
Max PriceAU$0.20
BuyAU$9,75016 May 19
Ajanth Shiran Saverimutto
EntityIndividual
Shares50,000
Max PriceAU$0.20
BuyAU$12,56616 May 19
Anthony Reilly
EntityIndividual
Role
Chief Executive Officer
Acting CEO & Executive Director
Shares64,443
Max PriceAU$0.19

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 11.7%.


Management Team

  • Trevor Hart

    Company Secretary & CFO

    • Tenure: 6.8yrs
    • Compensation: AU$269.77k
  • Anthony Reilly

    Acting CEO & Executive Director

    • Tenure: 0.2yrs
    • Compensation: AU$271.19k

Board Members

  • Tony Kiernan (68yo)

    Independent Non-Executive Chairman

    • Tenure: 9.5yrs
    • Compensation: AU$90.00k
  • Anthony Reilly

    Acting CEO & Executive Director

    • Tenure: 0.2yrs
    • Compensation: AU$271.19k
  • Darren Stralow (39yo)

    Non-Executive Director

    • Tenure: 4.5yrs

Company Information

Venturex Resources Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Venturex Resources Limited
  • Ticker: VXR
  • Exchange: ASX
  • Founded: 2006
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: AU$31.078m
  • Shares outstanding: 282.53m
  • Website: https://www.venturexresources.com

Location

  • Venturex Resources Limited
  • 91 Havelock Street
  • Level 2
  • West Perth
  • Western Australia
  • 6005
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VXRASX (Australian Securities Exchange)YesOrdinary SharesAUAUDApr 2007
IHBDB (Deutsche Boerse AG)YesOrdinary SharesDEEURApr 2007
VXRCHIA (Chi-X Australia)YesOrdinary SharesAUAUDApr 2007
VTEX.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDApr 2007

Biography

Venturex Resources Limited, together with its subsidiaries, engages in the exploration and development of mineral resources in Australia. It primarily explores for copper, zinc, lead, silver, and gold deposits. The company’s flagship project is the Sulphur Springs project that includes Sulphur Springs and Kangaroo Caves deposits and tenements located to the south east of Port Hedland. The company was incorporated in 2006 and is based in West Perth, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/27 10:36
End of Day Share Price2020/01/24 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.