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GEMD

Gem DiamondsLSE:GEMD Stock Report

Last Price

UK£0.49

Market Cap

UK£69.6m

7D

0.9%

1Y

8.2%

Updated

18 Jan, 2022

Data

Company Financials +
GEMD fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance5/6
Financial Health5/6
Dividends3/6

GEMD Stock Overview

Gem Diamonds Limited operates diamond mines.

Gem Diamonds Competitors

Anglo American

LSE:AAL

UK£41.1b

ALROSA

MISX:ALRS

₽792.9b

Mountain Province Diamonds

TSX:MPVD

CA$155.9m

Lucapa Diamond

ASX:LOM

AU$109.5m

Price History & Performance

Summary of all time highs, changes and price drops for Gem Diamonds
Historical stock prices
Current Share PriceUK£0.49
52 Week HighUK£0.79
52 Week LowUK£0.42
Beta1.25
1 Month Change10.00%
3 Month Change-22.66%
1 Year Change8.20%
3 Year Change-50.87%
5 Year Change-58.66%
Change since IPO-95.12%

Recent News & Updates

Dec 08
Is Gem Diamonds (LON:GEMD) Using Too Much Debt?

Is Gem Diamonds (LON:GEMD) Using Too Much Debt?

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' So it seems the smart money knows that...

Oct 01
Returns At Gem Diamonds (LON:GEMD) Appear To Be Weighed Down

Returns At Gem Diamonds (LON:GEMD) Appear To Be Weighed Down

If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. One common...

Shareholder Returns

GEMDGB Metals and MiningGB Market
7D0.9%-0.6%-1.0%
1Y8.2%0.7%8.3%

Return vs Industry: GEMD exceeded the UK Metals and Mining industry which returned 0.7% over the past year.

Return vs Market: GEMD underperformed the UK Market which returned 9.4% over the past year.

Price Volatility

Is GEMD's price volatile compared to industry and market?
GEMD volatility
GEMD Average Weekly Movement5.7%
Metals and Mining Industry Average Movement7.6%
Market Average Movement5.0%
10% most volatile stocks in GB Market10.6%
10% least volatile stocks in GB Market2.5%

Stable Share Price: GEMD is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: GEMD's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2005381Clifford Elphickhttps://www.gemdiamonds.com

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 polished diamonds.

Gem Diamonds Fundamentals Summary

How do Gem Diamonds's earnings and revenue compare to its market cap?
GEMD fundamental statistics
Market CapUS$94.46m
Earnings (TTM)US$27.33m
Revenue (TTM)US$224.63m

3.5x

P/E Ratio

0.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GEMD income statement (TTM)
RevenueUS$224.63m
Cost of RevenueUS$144.87m
Gross ProfitUS$79.76m
ExpensesUS$52.43m
EarningsUS$27.33m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.19
Gross Margin35.51%
Net Profit Margin12.17%
Debt/Equity Ratio5.5%

How did GEMD perform over the long term?

See historical performance and comparison

Dividends

3.7%

Current Dividend Yield

13%

Payout Ratio

Valuation

Is Gem Diamonds 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: GEMD (£0.5) is trading below our estimate of fair value (£2.9)

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 (3.5x) compared to the UK Metals and Mining industry average (8.1x).

PE vs Market: GEMD is good value based on its PE Ratio (3.5x) compared to the UK market (19.3x).


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 (0.5x) compared to the GB Metals and Mining industry average (1.9x).


Future Growth

How is Gem Diamonds forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-12.9%

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 (-12.9% per year).

Earnings vs Market: GEMD's earnings are forecast to decline over the next 3 years (-12.9% per year).

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

Revenue vs Market: GEMD's revenue (4.2% per year) is forecast to grow slower than the UK market (4.9% per year).

High Growth Revenue: GEMD's revenue (4.2% 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 (8.3%).


Past Performance

How has Gem Diamonds performed over the past 5 years?

59.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GEMD has high quality earnings.

Growing Profit Margin: GEMD's current net profit margins (12.2%) are higher than last year (0.4%).


Past Earnings Growth Analysis

Earnings Trend: GEMD has become profitable over the past 5 years, growing earnings by 59.5% per year.

Accelerating Growth: GEMD's earnings growth over the past year (3979.6%) exceeds its 5-year average (59.5% per year).

Earnings vs Industry: GEMD earnings growth over the past year (3979.6%) exceeded the Metals and Mining industry 150.4%.


Return on Equity

High ROE: GEMD's Return on Equity (16.5%) is considered low.


Financial Health

How is Gem Diamonds's financial position?


Financial Position Analysis

Short Term Liabilities: GEMD's short term assets ($75.0M) exceed its short term liabilities ($43.1M).

Long Term Liabilities: GEMD's short term assets ($75.0M) do not cover its long term liabilities ($112.0M).


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 9% to 5.5% over the past 5 years.

Debt Coverage: GEMD's debt is well covered by operating cash flow (709.5%).

Interest Coverage: GEMD's interest payments on its debt are well covered by EBIT (24.4x coverage).


Balance Sheet


Dividend

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

3.72%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GEMD's dividend (3.72%) is higher than the bottom 25% of dividend payers in the UK market (1.39%).

High Dividend: GEMD's dividend (3.72%) is low compared to the top 25% of dividend payers in the UK market (4.05%).


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.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (12.8%), GEMD's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GEMD's dividends in 3 years are forecast to be well covered by earnings (28.1% payout ratio).


Next Steps

Management

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

5.3yrs

Average management tenure


CEO

Clifford Elphick (60 yo)

16.5yrs

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 ($USD1.30M) is above average for companies of similar size in the UK market ($USD329.45K).

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 seasoned and experienced (5.3 years average tenure).


Board Members

Experienced Board: GEMD's board of directors are considered experienced (4.6 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.


Ownership Breakdown

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


Top Shareholders

Company Information

Gem Diamonds Limited's 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
  • Implied Market Cap: UK£69.555m
  • Shares outstanding: 140.52m
  • Website: https://www.gemdiamonds.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/18 21:20
End of Day Share Price2022/01/18 00:00
Earnings2021/06/30
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.