DB:8S1

Stock Analysis Report

Executive Summary

Sirius Minerals Plc, a fertilizer company, engages in the exploration and development of resource properties in the United Kingdom.


Snowflake Analysis

Fair value with questionable track record.

Share Price & News

How has Sirius Minerals's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 8S1's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.5%

8S1

-6.6%

DE Chemicals

-6.8%

DE Market


1 Year Return

-76.8%

8S1

-10.5%

DE Chemicals

6.5%

DE Market

Return vs Industry: 8S1 underperformed the German Chemicals industry which returned -10.5% over the past year.

Return vs Market: 8S1 underperformed the German Market which returned 6.5% over the past year.


Shareholder returns

8S1IndustryMarket
7 Day-0.5%-6.6%-6.8%
30 Day-4.6%-4.6%-3.7%
90 Day69.9%-11.6%-3.6%
1 Year-76.8%-76.8%-7.0%-10.5%9.8%6.5%
3 Year-69.3%-69.3%-21.6%-29.0%6.8%-2.6%
5 Year-45.2%-45.2%-10.1%-23.9%12.5%-2.9%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Sirius Minerals undervalued compared to its fair value and its price relative to the market?

3.28x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 8S1's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 8S1's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 8S1 is good value based on its PE Ratio (3.3x) compared to the Chemicals industry average (19.9x).

PE vs Market: 8S1 is good value based on its PE Ratio (3.3x) compared to the German market (20x).


Price to Earnings Growth Ratio

PEG Ratio: 8S1's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: 8S1 is good value based on its PB Ratio (0.3x) compared to the DE Chemicals industry average (1.6x).


Next Steps

Future Growth

How is Sirius Minerals forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-107.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 8S1's earnings are forecast to decline over the next 3 years (-107.8% per year).

Earnings vs Market: 8S1's earnings are forecast to decline over the next 3 years (-107.8% per year).

High Growth Earnings: 8S1's earnings are forecast to decline over the next 3 years.

Revenue vs Market: Insufficient data to determine if 8S1's revenue is forecast to grow faster than the German market.

High Growth Revenue: Insufficient data to determine if 8S1's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 8S1's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Sirius Minerals performed over the past 5 years?

-0.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8S1 has a high level of non-cash earnings.

Growing Profit Margin: 8S1 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 8S1 has become profitable over the past 5 years, growing earnings by -0.5% per year.

Accelerating Growth: 8S1 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 8S1 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Chemicals industry (-10.8%).


Return on Equity

High ROE: 8S1's Return on Equity (8.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Sirius Minerals's financial position?


Financial Position Analysis

Short Term Liabilities: 8S1's short term assets (£698.9M) exceed its short term liabilities (£563.2M).

Long Term Liabilities: 8S1's short term assets (£698.9M) exceed its long term liabilities (£237.0M).


Debt to Equity History and Analysis

Debt Level: 8S1's debt to equity ratio (81.5%) is considered high.

Reducing Debt: 8S1's debt to equity ratio has increased from 2.2% to 81.5% over the past 5 years.


Balance Sheet

Inventory Level: 8S1 has a high level of physical assets or inventory.

Debt Coverage by Assets: 8S1's debt is not covered by short term assets (assets are 1x 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: 8S1 is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: 8S1 is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is Sirius Minerals's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage4.5%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 8S1's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 8S1'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 8S1's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 8S1'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 8S1's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

5.2yrs

Average management tenure


CEO

Chris Fraser (45yo)

9.1yrs

Tenure

UK£971,000

Compensation

Mr. Christopher Neil Fraser, also known as Chris, has been the Chief Executive Officer and Managing Director of Sirius Minerals Plc since 2011. Mr. Fraser has approximately 20 years finance experience in t ...


CEO Compensation Analysis

Compensation vs Market: Chris's total compensation ($USD1.26M) is above average for companies of similar size in the German market ($USD806.59K).

Compensation vs Earnings: Chris's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Christopher Fraser
MD, CEO & Executive Director9.1yrsUK£971.00k1.77% £7.8m
Thomas Staley
Finance Director3yrsUK£654.00k0.017% £74.5k
Nicholas King
General Counsel & Company Secretary7.4yrsno data0.014% £61.1k
Jason Starzecki
Chief Marketing Officer0yrsno datano data
Jackie Flynn
Deputy Group Chief Financial Officer0yrsno datano data
Simon Carter
Chief Development Officer1.8yrsno data0.016% £69.6k
Peter Woods
Consultant4.6yrsUK£25.00kno data

5.2yrs

Average Tenure

45yo

Average Age

Experienced Management: 8S1's management team is seasoned and experienced (5.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Christopher Fraser
MD, CEO & Executive Director9.1yrsUK£971.00k1.77% £7.8m
Thomas Staley
Finance Director3yrsUK£654.00k0.017% £74.5k
Keith Edward Clarke
Independent Non-Executive Director6.2yrsUK£57.00k0.013% £56.4k
Elizabeth Harwerth
Senior Independent Director2.8yrsUK£61.00k0.0014% £6.4k
Russell Scrimshaw
Non-Executive Chairman8.3yrsUK£188.00k0.65% £2.9m
Louise Hardy
Independent Non-Executive Director3.8yrsUK£49.00kno data
John Patrick Hutton
Independent Non-Executive Director8.1yrsUK£53.00k0.00044% £1.9k
Jane Lodge
Independent Non-Executive Director4.6yrsUK£57.00k0.0086% £37.8k

5.4yrs

Average Tenure

64yo

Average Age

Experienced Board: 8S1's board of directors are considered experienced (5.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 8S1 insiders have only sold shares 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 10.6%.


Top Shareholders

Company Information

Sirius Minerals Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sirius Minerals Plc
  • Ticker: 8S1
  • Exchange: DB
  • Founded: 2003
  • Industry: Fertilizers and Agricultural Chemicals
  • Sector: Materials
  • Market Cap: UK£367.539m
  • Listing Market Cap: UK£439.526m
  • Shares outstanding: 7.00b
  • Website: https://www.siriusminerals.com

Number of Employees


Location

  • Sirius Minerals Plc
  • Resolution House
  • Lake View
  • Scarborough
  • North Yorkshire
  • YO11 3ZB
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SXXLSE (London Stock Exchange)YesOrdinary SharesGBGBPAug 2005
SRUX.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDAug 2005
8S1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURAug 2005
SXXLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPAug 2005
SRUX.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDApr 2009

Biography

Sirius Minerals Plc, a fertilizer company, engages in the exploration and development of resource properties in the United Kingdom. The company focuses on the development of the Woodsmith mine that explores for polyhalite deposit, a multi-nutrient fertilizer containing potassium, sulphur, magnesium, and calcium resources located in North Yorkshire. Sirius Minerals Plc was incorporated in 2003 and is headquartered in Scarborough, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 22:31
End of Day Share Price2020/02/26 00:00
Earnings2019/06/30
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.