Gem Diamonds
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
Rewards
Risk Analysis
Earnings are forecast to decline by an average of 18.1% per year for the next 3 years
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
| GEMD | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.6% | 7.3% | 2.1% |
| 30 Day | -5.7% | 13.2% | 3.5% |
| 90 Day | 32.0% | 17.4% | 8.8% |
| 1 Year | 96.2%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
2 days ago | Simply Wall St
Interested In Gem Diamonds' (LON:GEMD) Upcoming US$0.025 Dividend? You Have Four Days Left1 week ago | Simply Wall St
Can You Imagine How Gem Diamonds' (LON:GEMD) Shareholders Feel About The 79% Share Price Increase?1 month ago | Simply Wall St
Does Gem Diamonds (LON:GEMD) Have A Healthy Balance Sheet?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
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/05/10 03:22 |
| End of Day Share Price | 2021/05/07 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
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.