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Market Cap

UK£94.9m

Last Updated

2021/05/10 03:22 UTC

Data Sources

Company Financials +

Executive Summary

Gem Diamonds Limited operates diamond mines. More Details


Snowflake Analysis

Undervalued with solid track record.


Similar Companies

Share Price & News

How has Gem Diamonds's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GEMD is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: GEMD's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

-2.6%

GEMD

7.3%

GB Metals and Mining

2.1%

GB Market


1 Year Return

96.2%

GEMD

80.0%

GB Metals and Mining

26.3%

GB Market

Return vs Industry: GEMD exceeded the UK Metals and Mining industry which returned 80% over the past year.

Return vs Market: GEMD exceeded the UK Market which returned 26.3% over the past year.


Shareholder returns

GEMDIndustryMarket
7 Day-2.6%7.3%2.1%
30 Day-5.7%13.2%3.5%
90 Day32.0%17.4%8.8%
1 Year96.2%96.2%89.1%80.0%31.9%26.3%
3 Year-36.8%-36.8%63.9%40.9%12.9%-0.1%
5 Year-49.9%-49.9%275.9%188.3%51.5%22.8%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Gem Diamonds undervalued compared to its fair value and its price relative to the market?

43.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GEMD (£0.68) is trading below our estimate of fair value (£1.19)

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


Price To Earnings Ratio

PE vs Industry: GEMD is good value based on its PE Ratio (7.8x) compared to the GB Metals and Mining industry average (12.6x).

PE vs Market: GEMD is good value based on its PE Ratio (7.8x) compared to the UK market (26.4x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: GEMD is good value based on its PB Ratio (0.8x) compared to the GB Metals and Mining industry average (2.1x).


Future Growth

How is Gem Diamonds forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

-18.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GEMD's earnings are forecast to decline over the next 3 years (-18.1% per year).

Earnings vs Market: GEMD's earnings are forecast to decline over the next 3 years (-18.1% per year).

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

Revenue vs Market: GEMD's revenue (2.7% per year) is forecast to grow slower than the UK market (5.3% per year).

High Growth Revenue: GEMD's revenue (2.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Past Performance

How has Gem Diamonds performed over the past 5 years?

32.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GEMD has high quality earnings.

Growing Profit Margin: GEMD's current net profit margins (8.9%) are higher than last year (3.9%).


Past Earnings Growth Analysis

Earnings Trend: GEMD has become profitable over the past 5 years, growing earnings by 32.5% per year.

Accelerating Growth: GEMD's earnings growth over the past year (140.3%) exceeds its 5-year average (32.5% per year).

Earnings vs Industry: GEMD earnings growth over the past year (140.3%) exceeded the Metals and Mining industry 18.4%.


Return on Equity

High ROE: GEMD's Return on Equity (11.1%) is considered low.


Financial Health

How is Gem Diamonds's financial position?


Financial Position Analysis

Short Term Liabilities: GEMD's short term assets ($85.9M) exceed its short term liabilities ($61.2M).

Long Term Liabilities: GEMD's short term assets ($85.9M) do not cover its long term liabilities ($105.5M).


Debt to Equity History and Analysis

Debt Level: GEMD's debt to equity ratio (6.5%) is considered satisfactory.

Reducing Debt: GEMD's debt to equity ratio has reduced from 8.9% to 6.5% over the past 5 years.

Debt Coverage: GEMD's debt is well covered by operating cash flow (598.2%).

Interest Coverage: GEMD's interest payments on its debt are well covered by EBIT (13.1x coverage).


Balance Sheet


Dividend

What is Gem Diamonds's current dividend yield, its reliability and sustainability?

2.64%

Current Dividend Yield


Upcoming Dividend Payment

TodayMay 10 2021Ex Dividend DateMay 13 2021Dividend Pay DateJun 15 202133 days from Ex DividendBuy in the next 2 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: GEMD's dividend (2.64%) is higher than the bottom 25% of dividend payers in the UK market (1.35%).

High Dividend: GEMD's dividend (2.64%) is low compared to the top 25% of dividend payers in the UK market (4.03%).


Stability and Growth of Payments

Stable Dividend: GEMD has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: GEMD has only been paying a dividend for 6 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (20.6%), GEMD's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GEMD's dividends in 3 years are forecast to be well covered by earnings (29.7% payout ratio).


Next Steps

Management

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

2.6yrs

Average management tenure


CEO

Clifford Elphick (59 yo)

no data

Tenure

US$1,303,670

Compensation

Mr. Clifford Thomas Elphick, BCom, BCompt Hons, founded Gem Diamond Mining Company in July 2005 and serves as its Chief Executive Officer. Mr. Elphick serves as the Chief Executive of Gem Diamonds Ltd., wh...


CEO Compensation Analysis

Compensation vs Market: Clifford's total compensation ($USD1.30M) is above average for companies of similar size in the UK market ($USD337.80K).

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


Leadership Team

Experienced Management: GEMD's management team is considered experienced (2.6 years average tenure).


Board Members

Experienced Board: GEMD's board of directors are considered experienced (3.7 years average tenure).


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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Gem Diamonds Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Gem Diamonds Limited
  • Ticker: GEMD
  • Exchange: LSE
  • Founded: 2005
  • Industry: Precious Metals and Minerals
  • Sector: Materials
  • Market Cap: UK£94.912m
  • Shares outstanding: 140.40m
  • Website: https://www.gemdiamonds.com

Number of Employees


Location

  • Gem Diamonds Limited
  • 2 Eaton Gate
  • London
  • Greater London
  • SW1W 9BJ
  • United Kingdom

Listings


Biography

Gem Diamonds Limited operates diamond mines. The company’s flagship project is the Letšeng mine located in the located in the Maluti Mountains of Lesotho. It also manufactures, sells, and markets rough and...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/10 03:22
End of Day Share Price2021/05/07 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.