Western Areas Limited mines for, processes, and sells nickel sulphide concentrates and other base metals in Australia. More Details
Flawless balance sheet with solid track record.
Share Price & News
How has Western Areas's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: WSA is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: WSA's weekly volatility (7%) has been stable over the past year.
7 Day Return
AU Metals and Mining
1 Year Return
AU Metals and Mining
Return vs Industry: WSA underperformed the Australian Metals and Mining industry which returned 14.1% over the past year.
Return vs Market: WSA underperformed the Australian Market which returned -1.6% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Western Areas's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 days ago | Simply Wall StCould The Western Areas Limited (ASX:WSA) Ownership Structure Tell Us Something Useful?
2 weeks ago | Simply Wall StShould We Be Excited About The Trends Of Returns At Western Areas (ASX:WSA)?
1 month ago | Simply Wall StWestern Areas'(ASX:WSA) Share Price Is Down 28% Over The Past Year.
Is Western Areas undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: WSA (A$2.29) is trading below our estimate of fair value (A$3.16)
Significantly Below Fair Value: WSA is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: WSA is poor value based on its PE Ratio (19.6x) compared to the AU Metals and Mining industry average (11.3x).
PE vs Market: WSA is good value based on its PE Ratio (19.6x) compared to the Australian market (22.6x).
Price to Earnings Growth Ratio
PEG Ratio: WSA is poor value based on its PEG Ratio (2.2x)
Price to Book Ratio
PB vs Industry: WSA is good value based on its PB Ratio (1.2x) compared to the AU Metals and Mining industry average (2.5x).
How is Western Areas forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: WSA's forecast earnings growth (9% per year) is above the savings rate (2.3%).
Earnings vs Market: WSA's earnings (9% per year) are forecast to grow slower than the Australian market (17.8% per year).
High Growth Earnings: WSA's earnings are forecast to grow, but not significantly.
Revenue vs Market: WSA's revenue (0.6% per year) is forecast to grow slower than the Australian market (5% per year).
High Growth Revenue: WSA's revenue (0.6% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: WSA's Return on Equity is forecast to be low in 3 years time (6.3%).
How has Western Areas performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: WSA has high quality earnings.
Growing Profit Margin: WSA's current net profit margins (10.3%) are higher than last year (5.3%).
Past Earnings Growth Analysis
Earnings Trend: WSA's earnings have grown significantly by 34.1% per year over the past 5 years.
Accelerating Growth: WSA's earnings growth over the past year (122.4%) exceeds its 5-year average (34.1% per year).
Earnings vs Industry: WSA earnings growth over the past year (122.4%) exceeded the Metals and Mining industry 38%.
Return on Equity
High ROE: WSA's Return on Equity (6.1%) is considered low.
How is Western Areas's financial position?
Financial Position Analysis
Short Term Liabilities: WSA's short term assets (A$194.2M) exceed its short term liabilities (A$64.7M).
Long Term Liabilities: WSA's short term assets (A$194.2M) exceed its long term liabilities (A$64.4M).
Debt to Equity History and Analysis
Debt Level: WSA is debt free.
Reducing Debt: WSA has no debt compared to 5 years ago when its debt to equity ratio was 30.9%.
Debt Coverage: WSA has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: WSA has no debt, therefore coverage of interest payments is not a concern.
What is Western Areas's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: WSA's dividend (0.87%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.06%).
High Dividend: WSA's dividend (0.87%) is low compared to the top 25% of dividend payers in the Australian market (5.1%).
Stability and Growth of Payments
Stable Dividend: WSA is not paying a notable dividend for the Australian market, therefore no need to check if payments are stable.
Growing Dividend: WSA is not paying a notable dividend for the Australian market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: WSA is not paying a notable dividend for the Australian market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of WSA's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Dan Lougher (60 yo)
Mr. Daniel Richard Lougher, also known as Dan, B.Sc. (Mining Geology), Msc. Eng., MAusIMM, has been Non-Executive Director at Perseus Mining Limited. Mr. Lougher has been the Chief Executive Officer and Ma...
CEO Compensation Analysis
Compensation vs Market: Dan's total compensation ($USD1.48M) is above average for companies of similar size in the Australian market ($USD697.17K).
Compensation vs Earnings: Dan's compensation has been consistent with company performance over the past year.
|MD, CEO & Director||8.75yrs||AU$2.01m||0.19% |
|CFO & Company Secretary||10.33yrs||AU$1.04m||0.088% |
|General Manager of Operations||8.25yrs||AU$845.67k||0.081% |
|General Manager of Corporate Development||no data||no data||no data|
|GM of Forrestania Nickel Operations & Executive Director||8.17yrs||no data||no data|
Experienced Management: WSA's management team is seasoned and experienced (8.5 years average tenure).
|MD, CEO & Director||8.75yrs||AU$2.01m||0.19% |
|Independent Non-Executive Chairman||7yrs||AU$192.37k||0.015% |
|Independent Non-Executive Director||0.083yr||no data||no data|
|Independent Non-Executive Director||6.25yrs||AU$166.72k||0.015% |
|Independent Non-Executive Director||11.08yrs||AU$166.72k||0.0036% |
|Independent Non-Executive Director||3.83yrs||AU$166.72k||0.0053% |
Experienced Board: WSA's board of directors are considered experienced (6.6 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: WSA insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Western Areas Limited's company bio, employee growth, exchange listings and data sources
- Name: Western Areas Limited
- Ticker: WSA
- Exchange: ASX
- Founded: 1999
- Industry: Diversified Metals and Mining
- Sector: Materials
- Market Cap: AU$621.651m
- Shares outstanding: 275.07m
- Website: https://www.westernareas.com.au
- Western Areas Limited
- 2 Kings Park Road
- Level 2
- West Perth
- Western Australia
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|WSA||ASX (Australian Securities Exchange)||Yes||Ordinary Shares||AU||AUD||Jul 2000|
|FX9||DB (Deutsche Boerse AG)||Yes||Ordinary Shares||DE||EUR||Jul 2000|
|WNAR.F||OTCPK (Pink Sheets LLC)||Yes||Ordinary Shares||US||USD||Jul 2000|
|WSA||CHIA (Chi-X Australia)||Yes||Ordinary Shares||AU||AUD||Jul 2000|
Western Areas Limited mines for, processes, and sells nickel sulphide concentrates and other base metals in Australia. It holds a 100% interest in the Forrestania project located in Western Australia. West...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/11/27 07:01|
|End of Day Share Price||2020/11/27 00:00|
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.