TSX:IRON

Stock Analysis Report

Executive Summary

Alderon Iron Ore Corp. engages in the acquisition, exploration, and development of mineral properties.


Snowflake Analysis

Imperfect balance sheet and overvalued.

Share Price & News

How has Alderon Iron Ore's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: IRON has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.9%

IRON

3.5%

CA Metals and Mining

-1.5%

CA Market


1 Year Return

-52.7%

IRON

6.8%

CA Metals and Mining

2.5%

CA Market

Return vs Industry: IRON underperformed the Canadian Metals and Mining industry which returned 5.4% over the past year.

Return vs Market: IRON underperformed the Canadian Market which returned 4.5% over the past year.


Shareholder returns

IRONIndustryMarket
7 Day2.9%3.5%-1.5%
30 Day-5.4%5.0%-0.7%
90 Day9.4%14.3%1.8%
1 Year-52.7%-52.7%7.5%6.8%5.7%2.5%
3 Year-68.2%-68.2%2.8%1.0%16.8%6.2%
5 Year-39.7%-39.7%29.1%25.4%32.0%12.8%

Price Volatility Vs. Market

How volatile is Alderon Iron Ore's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Alderon Iron Ore undervalued compared to its fair value and its price relative to the market?

0.3x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

PE vs Market: IRON is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate IRON's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: IRON is good value based on its PB Ratio (0.3x) compared to the CA Metals and Mining industry average (1.6x).


Next Steps

Future Growth

How is Alderon Iron Ore forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

13.0%

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 Alderon Iron Ore 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.


Next Steps

Past Performance

How has Alderon Iron Ore performed over the past 5 years?

-19.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IRON is currently unprofitable.

Growing Profit Margin: IRON is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: IRON is unprofitable, and losses have increased over the past 5 years at a rate of -19.7% per year.

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

Earnings vs Industry: IRON is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (11.9%).


Return on Equity

High ROE: IRON has a negative Return on Equity (-7.58%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Alderon Iron Ore's financial position?


Financial Position Analysis

Short Term Liabilities: IRON's short term assets (CA$3.2M) do not cover its short term liabilities (CA$27.7M).

Long Term Liabilities: IRON's short term assets (CA$3.2M) exceed its long term liabilities (CA$52.9K).


Debt to Equity History and Analysis

Debt Level: IRON's debt to equity ratio (19.9%) is considered satisfactory.

Reducing Debt: IRON's debt to equity ratio has increased from 7.2% to 19.9% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: IRON's debt is not covered by short term assets (assets are 0.2x 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: IRON has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: IRON has less than a year of cash runway if free cash flow continues to grow at historical rates of 50.6% each year.


Next Steps

Dividend

What is Alderon Iron Ore's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.6%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if IRON'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 IRON's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.7yrs

Average management tenure


CEO

Tayfun Eldem 0

2yrs

Tenure

CA$935,520

Compensation

Mr. Tayfun Eldem, P.Eng., has been President, Chief Executive Officer and Director of Alderon Iron Ore Corp since February 5, 2018. Mr. Eldem served as the Chief Executive officer and President at Alderon  ...


CEO Compensation Analysis

Compensation vs Market: Tayfun's total compensation ($USD707.99K) is above average for companies of similar size in the Canadian market ($USD154.65K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Mark Morabito
Co-Founder & Non-Executive Chairman8.4yrsCA$214.84k1.35% CA$363.7k
Tayfun Eldem
President2yrsCA$935.52k0.59% CA$158.3k
Kate-Lynn Genzel
Chief Financial Officer4.3yrsCA$73.39kno data
Olen Aasen
General Counsel & Corporate Secretary7.4yrsno datano data
Jennifer Paterson
Director of Corporate Development0yrsno datano data
Edward Lyons
Chief Geologist0yrsno datano data
Gary Norris
Executive Vice President of Government & Community Affairs8.6yrsCA$592.28kno data
John Harper
Consultant0yrsno datano data
Sheila Paine
Assistant Corporate Secretary9yrsno data0.047% CA$12.7k
Daniel Williams
Consultant & Special Advisor6yrsCA$20.00kno data

6.7yrs

Average Tenure

43.5yo

Average Age

Experienced Management: IRON's management team is seasoned and experienced (6.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mark Morabito
Co-Founder & Non-Executive Chairman8.4yrsCA$214.84k1.35% CA$363.7k
Tayfun Eldem
President2yrsCA$935.52k0.59% CA$158.3k
William Loader
Independent Director5.8yrsCA$83.72k0.014% CA$3.8k
Rolland Morier
Director1.7yrsCA$93.22kno data
David Porter
Independent Director9.2yrsCA$82.97kno data
Zhou Wei
Director1.7yrsCA$15.26kno data
Andrew Furey
Independent Director2.8yrsCA$78.47k0.014% CA$3.8k

2.8yrs

Average Tenure

Experienced Board: IRON's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Ownership

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

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.2%.


Top Shareholders

Company Information

Alderon Iron Ore Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Alderon Iron Ore Corp.
  • Ticker: IRON
  • Exchange: TSX
  • Founded: 1978
  • Industry: Steel
  • Sector: Materials
  • Market Cap: CA$26.928m
  • Shares outstanding: 141.73m
  • Website: https://www.alderonironore.com

Number of Employees


Location

  • Alderon Iron Ore Corp.
  • 1140 West Pender Street
  • Suite 1240
  • Vancouver
  • British Columbia
  • V6E 4G1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IRONTSX (The Toronto Stock Exchange)YesCommon SharesCACADOct 1989
TUV3DB (Deutsche Boerse AG)YesCommon SharesDEEUROct 1989
AXXD.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDOct 1989

Biography

Alderon Iron Ore Corp. engages in the acquisition, exploration, and development of mineral properties. Its principal asset is the Kami iron ore project that comprises 283 claim units covering an area of 7,075 hectares located in Western Labrador, Canada. The company was formerly known as Alderon Resource Corp. and changed its name to Alderon Iron Ore Corp. in September 2011. Alderon Iron Ore Corp. was incorporated in 1978 and is headquartered in Vancouver, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 01:14
End of Day Share Price2020/02/24 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.