Western Areas Limited mines for, processes, and sells nickel sulphide concentrates and other base metals in Australia. More Details
Flawless balance sheet with moderate growth potential.
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 +/- 6% a week.
Volatility Over Time: WSA's weekly volatility (6%) 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 31.2% over the past year.
Return vs Market: WSA underperformed the Australian Market which returned 27.5% 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
2 months ago | Simply Wall StIf You Had Bought Western Areas' (ASX:WSA) Shares Three Years Ago You Would Be Down 28%
3 months ago | Simply Wall StWho Has Been Selling Western Areas Limited (ASX:WSA) Shares?
4 months ago | Simply Wall StIs Western Areas Limited (ASX:WSA) Popular Amongst Institutions?
Is Western Areas undervalued compared to its fair value and its price relative to the market?
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: WSA (A$2.6) is trading above our estimate of fair value (A$2.54)
Significantly Below Fair Value: WSA is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: WSA is unprofitable, so we can't compare its PE Ratio to the Australian Metals and Mining industry average.
PE vs Market: WSA 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 WSA's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: WSA is good value based on its PB Ratio (1.4x) 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 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).
Earnings vs Market: WSA is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: WSA's is expected to become profitable in the next 3 years.
Revenue vs Market: WSA's revenue (3.7% per year) is forecast to grow slower than the Australian market (5.1% per year).
High Growth Revenue: WSA's revenue (3.7% 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 (2.4%).
How has Western Areas performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: WSA is currently unprofitable.
Growing Profit Margin: WSA is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: WSA is unprofitable, but has reduced losses over the past 5 years at a rate of 42.3% per year.
Accelerating Growth: Unable to compare WSA's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: WSA is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (20.2%).
Return on Equity
High ROE: WSA has a negative Return on Equity (-0.91%), as it is currently unprofitable.
How is Western Areas's financial position?
Financial Position Analysis
Short Term Liabilities: WSA's short term assets (A$145.0M) exceed its short term liabilities (A$73.9M).
Long Term Liabilities: WSA's short term assets (A$145.0M) exceed its long term liabilities (A$79.7M).
Debt to Equity History and Analysis
Debt Level: WSA is debt free.
Reducing Debt: WSA has no debt compared to 5 years ago when its debt to equity ratio was 0.1%.
Debt Coverage: WSA has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: WSA has no debt, therefore coverage of interest payments is not a concern.
What is Western Areas's current dividend yield, its reliability and sustainability?
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate WSA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate WSA's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if WSA's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if WSA's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: WSA is not paying a notable dividend for the Australian market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of WSA's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Dan Lougher (61 yo)
Mr. Daniel Richard Lougher, also known as Dan, B.Sc. (Mining Geology), Msc. Eng., MAusIMM, has been Non-Executive Director at Perseus Mining Limited. Mr. Lougher has been the Chief Executive Officer and Ma...
CEO Compensation Analysis
Compensation vs Market: Dan's total compensation ($USD1.48M) is above average for companies of similar size in the Australian market ($USD867.47K).
Compensation vs Earnings: Dan's compensation has been consistent with company performance over the past year.
Experienced Management: WSA's management team is seasoned and experienced (9.3 years average tenure).
Experienced Board: WSA's board of directors are considered experienced (7.4 years average tenure).
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
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 17.1%.
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$826.623m
- Shares outstanding: 321.64m
- Website: https://www.westernareas.com.au
- Western Areas Limited
- 2 Kings Park Road
- Level 2
- West Perth
- Western Australia
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||2021/08/04 08:05|
|End of Day Share Price||2021/08/04 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.