GEMD Stock Overview
Gem Diamonds Limited operates diamond mines.
Gem Diamonds Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||UK£0.43|
|52 Week High||UK£0.76|
|52 Week Low||UK£0.42|
|1 Month Change||-26.62%|
|3 Month Change||-32.81%|
|1 Year Change||-41.89%|
|3 Year Change||-44.16%|
|5 Year Change||-53.76%|
|Change since IPO||-95.76%|
Recent News & Updates
Gem Diamonds (LON:GEMD) May Have Issues Allocating Its Capital
Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key...
|GEMD||GB Metals and Mining||GB Market|
Return vs Industry: GEMD underperformed the UK Metals and Mining industry which returned -10.1% over the past year.
Return vs Market: GEMD underperformed the UK Market which returned -8.6% over the past year.
|GEMD Average Weekly Movement||7.4%|
|Metals and Mining Industry Average Movement||7.6%|
|Market Average Movement||5.5%|
|10% most volatile stocks in GB Market||10.8%|
|10% least volatile stocks in GB Market||2.8%|
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.
About the Company
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 is also involved in the production, manufacture, wholesale, retail, and marketing rough and polished diamonds.
Gem Diamonds Fundamentals Summary
|GEMD fundamental statistics|
Is GEMD overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|GEMD income statement (TTM)|
|Cost of Revenue||US$143.51m|
Last Reported Earnings
Dec 31, 2021
Next Earnings Date
|Earnings per share (EPS)||0.13|
|Net Profit Margin||9.18%|
How did GEMD perform over the long term?See historical performance and comparison
5.1%Current Dividend Yield
Is GEMD undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 4/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for GEMD?
Other financial metrics that can be useful for relative valuation.
|What is GEMD's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does GEMD's PE Ratio compare to its peers?
|GEMD PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
PDL Petra Diamonds
JAN Jangada Mines
SLP Sylvania Platinum
JLP Jubilee Metals Group
GEMD Gem Diamonds
Price-To-Earnings vs Peers: GEMD is good value based on its Price-To-Earnings Ratio (4x) compared to the peer average (16.8x).
Price to Earnings Ratio vs Industry
How does GEMD's PE Ratio compare vs other companies in the GB Metals and Mining Industry?
Price-To-Earnings vs Industry: GEMD is good value based on its Price-To-Earnings Ratio (4x) compared to the UK Metals and Mining industry average (5.5x)
Price to Earnings Ratio vs Fair Ratio
What is GEMD's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PE Ratio||4x|
|Fair PE Ratio||11x|
Price-To-Earnings vs Fair Ratio: GEMD is good value based on its Price-To-Earnings Ratio (4x) compared to the estimated Fair Price-To-Earnings Ratio (10.9x).
Share Price vs Fair Value
What is the Fair Price of GEMD when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: GEMD (£0.43) is trading above our estimate of fair value (£0.28)
Significantly Below Fair Value: GEMD is trading above our estimate of fair value.
Price to Earnings Growth Ratio
PEG Ratio: GEMD is good value based on its PEG Ratio (0.3x)
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How is Gem Diamonds forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
Future Growth Score3/6
Future Growth Score 3/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: GEMD's forecast earnings growth (12.7% per year) is above the savings rate (0.9%).
Earnings vs Market: GEMD's earnings (12.7% per year) are forecast to grow faster than the UK market (11% per year).
High Growth Earnings: GEMD's earnings are forecast to grow, but not significantly.
Revenue vs Market: GEMD's revenue (7.1% per year) is forecast to grow faster than the UK market (4.1% per year).
High Growth Revenue: GEMD's revenue (7.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: GEMD's Return on Equity is forecast to be low in 3 years time (7.4%).
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How has Gem Diamonds performed over the past 5 years?
Past Performance Score3/6
Past Performance Score 3/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: GEMD has high quality earnings.
Growing Profit Margin: GEMD's current net profit margins (9.2%) are higher than last year (8.9%).
Past Earnings Growth Analysis
Earnings Trend: GEMD has become profitable over the past 5 years, growing earnings by 67% per year.
Accelerating Growth: GEMD's earnings growth over the past year (9.6%) is below its 5-year average (67% per year).
Earnings vs Industry: GEMD earnings growth over the past year (9.6%) underperformed the Metals and Mining industry 41.5%.
Return on Equity
High ROE: GEMD's Return on Equity (12.6%) is considered low.
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How is Gem Diamonds's financial position?
Financial Health Score5/6
Financial Health Score 5/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: GEMD's short term assets ($69.5M) exceed its short term liabilities ($30.0M).
Long Term Liabilities: GEMD's short term assets ($69.5M) do not cover its long term liabilities ($108.0M).
Debt to Equity History and Analysis
Debt Level: GEMD has more cash than its total debt.
Reducing Debt: GEMD's debt to equity ratio has reduced from 13.6% to 4.5% over the past 5 years.
Debt Coverage: GEMD's debt is well covered by operating cash flow (645.7%).
Interest Coverage: GEMD's interest payments on its debt are well covered by EBIT (18.7x coverage).
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What is Gem Diamonds's current dividend yield, its reliability and sustainability?
Dividend Score 3/6
Future Dividend Coverage
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: GEMD's dividend (5.1%) is higher than the bottom 25% of dividend payers in the UK market (1.88%).
High Dividend: GEMD's dividend (5.1%) is low compared to the top 25% of dividend payers in the UK market (5.18%).
Stability and Growth of Payments
Stable Dividend: GEMD has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: GEMD has only been paying a dividend for 7 years, and since then payments have fallen.
Earnings Payout to Shareholders
Earnings Coverage: With its low payout ratio (20.5%), GEMD's dividend payments are well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its high cash payout ratio (144.7%), GEMD's dividend payments are not well covered by cash flows.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Clifford Elphick (60 yo)
Mr. Clifford Thomas Elphick, BCom, BCompt Hons, founded Gem Diamond Mining Company in July 2005 and serves as its Chief Executive Officer. Mr. Elphick serves as the Chief Executive of Gem Diamonds Ltd., wh...
CEO Compensation Analysis
Compensation vs Market: Clifford's total compensation ($USD1.36M) is above average for companies of similar size in the UK market ($USD335.53K).
Compensation vs Earnings: Clifford's compensation has been consistent with company performance over the past year.
Experienced Management: GEMD's management team is seasoned and experienced (5.7 years average tenure).
Experienced Board: GEMD's board of directors are considered experienced (5 years average tenure).
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.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Gem Diamonds Limited's employee growth, exchange listings and data sources
- Name: Gem Diamonds Limited
- Ticker: GEMD
- Exchange: LSE
- Founded: 2005
- Industry: Precious Metals and Minerals
- Sector: Materials
- Implied Market Cap: UK£64.045m
- Shares outstanding: 139.23m
- Website: https://www.gemdiamonds.com
Number of Employees
- Gem Diamonds Limited
- 2 Eaton Gate
- Greater London
- SW1W 9BJ
- United Kingdom
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/06/27 00:00|
|End of Day Share Price||2022/06/27 00:00|
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.