GEMD Stock Overview
Gem Diamonds Limited operates diamond mines.
Gem Diamonds Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||UK£0.49|
|52 Week High||UK£0.79|
|52 Week Low||UK£0.42|
|1 Month Change||10.00%|
|3 Month Change||-22.66%|
|1 Year Change||8.20%|
|3 Year Change||-50.87%|
|5 Year Change||-58.66%|
|Change since IPO||-95.12%|
Recent News & Updates
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...
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...
|GEMD||GB Metals and Mining||GB Market|
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.
|GEMD Average Weekly Movement||5.7%|
|Metals and Mining Industry Average Movement||7.6%|
|Market Average Movement||5.0%|
|10% most volatile stocks in GB Market||10.6%|
|10% least volatile stocks in GB Market||2.5%|
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
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
|GEMD fundamental statistics|
Is GEMD overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|GEMD income statement (TTM)|
|Cost of Revenue||US$144.87m|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
|Earnings per share (EPS)||0.19|
|Net Profit Margin||12.17%|
How did GEMD perform over the long term?See historical performance and comparison
3.7%Current Dividend Yield
Is Gem Diamonds undervalued compared to its fair value and its price relative to the market?
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).
How is Gem Diamonds forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
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%).
How has Gem Diamonds performed over the past 5 years?
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.
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 ($112.0M).
Debt to Equity History and Analysis
Debt Level: GEMD has more cash than its total debt.
Reducing Debt: GEMD's debt to equity ratio has reduced from 9% to 5.5% over the past 5 years.
Debt Coverage: GEMD's debt is well covered by operating cash flow (709.5%).
Interest Coverage: GEMD's interest payments on its debt are well covered by EBIT (24.4x coverage).
What is Gem Diamonds's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: GEMD's dividend (3.72%) is higher than the bottom 25% of dividend payers in the UK market (1.39%).
High Dividend: GEMD's dividend (3.72%) is low compared to the top 25% of dividend payers in the UK market (4.05%).
Stability and Growth of Payments
Stable Dividend: GEMD has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: GEMD has only been paying a dividend for 7 years, and since then payments have fallen.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (12.8%), GEMD's dividend payments are thoroughly covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: GEMD's dividends in 3 years are forecast to be well covered by earnings (28.1% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Clifford Elphick (60 yo)
Mr. Clifford Thomas Elphick, BCom, BCompt Hons, founded Gem Diamond Mining Company in July 2005 and serves as its Chief Executive Officer. Mr. Elphick serves as the Chief Executive of Gem Diamonds Ltd., wh...
CEO Compensation Analysis
Compensation vs Market: Clifford's total compensation ($USD1.30M) 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.
Experienced Management: GEMD's management team is seasoned and experienced (5.3 years average tenure).
Experienced Board: GEMD's board of directors are considered experienced (4.6 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£69.555m
- Shares outstanding: 140.52m
- 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||2022/01/18 21:20|
|End of Day Share Price||2022/01/18 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.