AIM:GFM

Stock Analysis Report

Executive Summary

Griffin Mining Limited, a mining and investment company, engages in the mining, exploration, and development of mineral properties.

Rewards

Trading at 93.4% below its fair value

Revenue is forecast to grow 25.4% per year

Risk Analysis

Highly volatile share price over past 3 months

Profit margins (17%) are lower than last year (33.3%)



Snowflake Analysis

Excellent balance sheet and good value.

Share Price & News

How has Griffin Mining's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-11.0%

GFM

0.5%

GB Metals and Mining

0.1%

GB Market


1 Year Return

-24.2%

GFM

12.2%

GB Metals and Mining

9.8%

GB Market

Return vs Industry: GFM underperformed the UK Metals and Mining industry which returned 12.2% over the past year.

Return vs Market: GFM underperformed the UK Market which returned 9.8% over the past year.


Shareholder returns

GFMIndustryMarket
7 Day-11.0%0.5%0.1%
30 Day-16.9%-2.4%-0.2%
90 Day-23.8%0.3%2.0%
1 Year-24.2%-24.2%21.7%12.2%15.5%9.8%
3 Year27.2%27.2%39.3%15.8%20.1%4.8%
5 Year117.3%117.3%85.6%42.8%44.5%11.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Griffin Mining undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GFM (£0.69) is trading below our estimate of fair value (£10.47)

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


Price To Earnings Ratio

PE vs Industry: GFM is poor value based on its PE Ratio (11x) compared to the Metals and Mining industry average (8.6x).

PE vs Market: GFM is good value based on its PE Ratio (11x) compared to the UK market (17.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: GFM is good value based on its PB Ratio (0.7x) compared to the GB Metals and Mining industry average (1x).


Next Steps

Future Growth

How is Griffin Mining forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

25.4%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if GFM's forecast earnings growth is above the savings rate (0.5%).

Earnings vs Market: Insufficient data to determine if GFM's earnings are forecast to grow faster than the UK market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: GFM's revenue (25.4% per year) is forecast to grow faster than the UK market (3.6% per year).

High Growth Revenue: GFM's revenue (25.4% per year) 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 GFM's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Griffin Mining performed over the past 5 years?

48.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GFM has high quality earnings.

Growing Profit Margin: GFM's current net profit margins (17%) are lower than last year (33.3%).


Past Earnings Growth Analysis

Earnings Trend: GFM's earnings have grown significantly by 48.9% per year over the past 5 years.

Accelerating Growth: GFM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: GFM had negative earnings growth (-66.7%) over the past year, making it difficult to compare to the Metals and Mining industry average (7%).


Return on Equity

High ROE: GFM's Return on Equity (6.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Griffin Mining's financial position?


Financial Position Analysis

Short Term Liabilities: GFM's short term assets ($27.0M) do not cover its short term liabilities ($29.0M).

Long Term Liabilities: GFM's short term assets ($27.0M) exceed its long term liabilities ($5.0M).


Debt to Equity History and Analysis

Debt Level: GFM is debt free.

Reducing Debt: GFM has no debt compared to 5 years ago when its debt to equity ratio was 30.4%.

Debt Coverage: GFM has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: GFM has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: GFM's debt is covered by short term assets (assets are 2.4359970384446E+17x debt).


Next Steps

Dividend

What is Griffin Mining's current dividend yield, its reliability and sustainability?

4.33%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%2.0%markettop25%5.2%industryaverage7.2%forecastin3Years4.3%

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if GFM's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: GFM is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GFM's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

What is the CEO of Griffin Mining's salary, the management and board of directors tenure and is there insider trading?


CEO

Griffin Mining has no CEO, or we have no data on them.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Roger Goodwin (64yo)

    Finance Director

    • Tenure: 0yrs
    • Compensation: US$602.00k
  • Mark Hine (61yo)

    Chief Operating Officer

    • Tenure: 5.2yrs
  • Wendy Zhang (45yo)

    Chief Financial Officer of Hebei Hua Ao

    • Tenure: 0yrs

Board Members

  • Dal Brynelsen (72yo)

    Independent Director

    • Tenure: 0yrs
    • Compensation: US$203.00k
  • Mladen Ninkov (58yo)

    Chairman of the Board

    • Tenure: 0yrs
    • Compensation: US$138.00k
  • Roger Goodwin (64yo)

    Finance Director

    • Tenure: 0yrs
    • Compensation: US$602.00k
  • Rupert Ashton Crowe (70yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: US$89.00k
  • Adam Usdan (57yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$89.00k

Company Information

Griffin Mining Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Griffin Mining Limited
  • Ticker: GFM
  • Exchange: AIM
  • Founded: 1988
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: UK£118.824m
  • Shares outstanding: 172.21m
  • Website: https://www.griffinmining.com

Number of Employees


Location

  • Griffin Mining Limited
  • Royal Trust House
  • 8th Floor
  • London
  • Greater London
  • SW1Y 6LX
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GFMAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPSep 1993
GG7BST (Boerse-Stuttgart)YesOrdinary SharesDEEURSep 1993

Biography

Griffin Mining Limited, a mining and investment company, engages in the mining, exploration, and development of mineral properties. The company explores for zinc, gold, silver, lead, and base and precious  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/09 20:44
End of Day Share Price2019/12/09 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.