Ionic Rare Earths Limited

CHIA:IXR Stock Report

Market Cap: AU$34.1m

Ionic Rare Earths Valuation

Is IXR undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of IXR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: IXR (A$0.01) is trading below our estimate of fair value (A$0.57)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for IXR?

Key metric: As IXR is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for IXR. This is calculated by dividing IXR's market cap by their current revenue.
What is IXR's PS Ratio?
PS Ratio15.4x
SalesAU$2.21m
Market CapAU$34.09m

Price to Sales Ratio vs Peers

How does IXR's PS Ratio compare to its peers?

The above table shows the PS ratio for IXR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average18.6x
NXM Nexus Minerals
21.8xn/aAU$29.2m
AXN Alliance Nickel
28.7xn/aAU$30.5m
FML Focus Minerals
0.7xn/aAU$51.6m
MLS Metals Australia
23xn/aAU$18.2m
IXR Ionic Rare Earths
15.4x77.7%AU$34.1m

Price-To-Sales vs Peers: IXR is good value based on its Price-To-Sales Ratio (15.4x) compared to the peer average (18x).

Price to Sales Ratio vs Industry

How does IXR's PS Ratio compare vs other companies in the AU Metals and Mining Industry?

124 CompaniesPrice / SalesEstimated GrowthMarket Cap
BHP BHP Group
2.4x-3.1%US$132.13b
FMG Fortescue
2.1x-5.6%US$37.39b
NCM Newcrest Mining
3x5.2%US$13.37b
NST Northern Star Resources
4.1x8.5%US$12.97b
IXR 15.4xIndustry Avg. 62.4xNo. of Companies124PS020406080100+
124 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: IXR is good value based on its Price-To-Sales Ratio (15.4x) compared to the Australian Metals and Mining industry average (61.1x).

Price to Sales Ratio vs Fair Ratio

What is IXR's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

IXR PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio15.4x
Fair PS Ratio86.2x

Price-To-Sales vs Fair Ratio: IXR is good value based on its Price-To-Sales Ratio (15.4x) compared to the estimated Fair Price-To-Sales Ratio (86.2x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst IXR forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$0.006
AU$0.10
+1,619.8%
6.5%AU$0.11AU$0.097n/a2
Nov ’25AU$0.0095
AU$0.10
+986.2%
6.5%AU$0.11AU$0.097n/a2
Oct ’25AU$0.009
AU$0.10
+1,046.5%
6.5%AU$0.11AU$0.097n/a2
Sep ’25AU$0.0065
AU$0.097
+1,393.7%
2.4%AU$0.099AU$0.095n/a2
Aug ’25AU$0.0095
AU$0.097
+922.0%
2.4%AU$0.099AU$0.095n/a2
Jun ’25AU$0.012
AU$0.081
+577.9%
27.8%AU$0.097AU$0.049n/a3
May ’25AU$0.013
AU$0.081
+524.5%
27.1%AU$0.099AU$0.05n/a3
Apr ’25AU$0.018
AU$0.081
+351.0%
27.1%AU$0.099AU$0.05n/a3
Mar ’25AU$0.018
AU$0.082
+369.4%
26.9%AU$0.10AU$0.051n/a3
Feb ’25AU$0.019
AU$0.073
+274.1%
29.2%AU$0.10AU$0.049n/a3
Jan ’25AU$0.027
AU$0.073
+170.2%
29.2%AU$0.10AU$0.049n/a3
Dec ’24AU$0.022
AU$0.075
+239.0%
33.3%AU$0.099AU$0.05n/a2
Nov ’24AU$0.02
AU$0.075
+272.9%
33.3%AU$0.099AU$0.05AU$0.00952
Oct ’24AU$0.024
AU$0.075
+210.7%
33.3%AU$0.099AU$0.05AU$0.0092

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.

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