DB:EB8

Stock Analysis Report

Strategic Energy Resources

Executive Summary

Strategic Energy Resources Limited explores for and develops minerals in Australia.


Snowflake Analysis

Flawless balance sheet and overvalued.

Share Price & News

How has Strategic Energy Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: EB8's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

EB8

-8.1%

DE Metals and Mining

-0.2%

DE Market


1 Year Return

-50.0%

EB8

-21.4%

DE Metals and Mining

13.7%

DE Market

Return vs Industry: EB8 underperformed the German Metals and Mining industry which returned -20.6% over the past year.

Return vs Market: EB8 underperformed the German Market which returned 14.4% over the past year.


Shareholder returns

EB8IndustryMarket
7 Day0%-8.1%-0.2%
30 Day0%-12.0%0.3%
90 Day0%-11.7%3.7%
1 Year-50.0%-50.0%-20.6%-21.4%17.2%13.7%
3 Year-91.4%-91.7%-49.6%-51.0%15.4%5.3%
5 Year-98.7%-98.7%-45.5%-48.3%21.3%4.7%

Price Volatility Vs. Market

How volatile is Strategic Energy Resources's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Strategic Energy Resources undervalued compared to its fair value and its price relative to the market?

1.93x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate EB8's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate EB8's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: EB8 is unprofitable, so we can't compare its PE Ratio to the Metals and Mining industry average.

PE vs Market: EB8 is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate EB8's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: EB8 is good value based on its PB Ratio (1.9x) compared to the DE Metals and Mining industry average (4.2x).


Next Steps

Future Growth

How is Strategic Energy Resources forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

10.8%

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 Strategic Energy Resources 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 Strategic Energy Resources performed over the past 5 years?

15.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EB8 is currently unprofitable.

Growing Profit Margin: EB8 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: EB8 is unprofitable, but has reduced losses over the past 5 years at a rate of 15% per year.

Accelerating Growth: Unable to compare EB8's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: EB8 is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-9.8%).


Return on Equity

High ROE: EB8 has a negative Return on Equity (-37.19%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Strategic Energy Resources's financial position?


Financial Position Analysis

Short Term Liabilities: EB8's short term assets (A$1.1M) exceed its short term liabilities (A$92.1K).

Long Term Liabilities: EB8 has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: EB8 is debt free.

Reducing Debt: EB8 has not had any debt for past 5 years.


Balance Sheet

Inventory Level: EB8 has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if EB8's debt is covered by short term assets.


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: EB8 has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: EB8 has sufficient cash runway for 1.4 years if free cash flow continues to grow at historical rates of 23.1% each year.


Next Steps

Dividend

What is Strategic Energy Resources's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate EB8's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate EB8'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 EB8's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if EB8'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 EB8'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?

2.3yrs

Average board tenure


CEO

Stuart Rechner (40yo)

2.3yrs

Tenure

AU$289,472

Compensation

Mr. Stuart Rechner, BSc, LLB, MAIG, GAICD, He has been Executive Chairman of GB Energy Limited since October 10, 2016. Mr. Rechner has been Executive Chairman and Executive Director at Strategic Energy Res ...


CEO Compensation Analysis

Compensation vs Market: Stuart's total compensation ($USD193.25K) is below average for companies of similar size in the German market ($USD412.57K).

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


Board Members

NamePositionTenureCompensationOwnership
Stuart Rechner
Executive Chairman2.3yrsAU$289.47k2.32% A$61.2k
David DeTata
Non-Executive Director2.3yrsAU$79.07k1.58% A$41.7k
Harvey Kaplan
Non-Executive Director2.3yrsAU$43.07kno data

2.3yrs

Average Tenure

Experienced Board: EB8's board of directors are not considered experienced ( 2.3 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: EB8 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 13.6%.


Top Shareholders

Company Information

Strategic Energy Resources Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Strategic Energy Resources Limited
  • Ticker: EB8
  • Exchange: DB
  • Founded:
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: AU$4.275m
  • Listing Market Cap: AU$2.644m
  • Shares outstanding: 950.00m
  • Website: https://www.strategicenergy.com.au

Number of Employees


Location

  • Strategic Energy Resources Limited
  • 100 Albert Road
  • Level 4
  • South Melbourne
  • Victoria
  • 3205
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SERASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
EB8DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
SERCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992

Biography

Strategic Energy Resources Limited explores for and develops minerals in Australia. The company explores copper, gold, and mineral sands. It holds interests in the Western Australia heavy mineral sands project located in Western Australia; Myall Creek copper project located in South Australia; and Saxby gold project located in Queensland. Strategic Energy Resources Limited is based in South Melbourne, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 21:14
End of Day Share Price2020/02/20 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.