LSE:KMR

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Kenmare Resources plc, together with its subsidiaries, produces mineral sands products in China, Italy, the United States, and internationally.


Snowflake Analysis

Very undervalued with flawless balance sheet.

Share Price & News

How has Kenmare Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: KMR has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.3%

KMR

2.9%

GB Metals and Mining

2.0%

GB Market


1 Year Return

12.1%

KMR

-5.2%

GB Metals and Mining

-12.8%

GB Market

Return vs Industry: KMR exceeded the UK Metals and Mining industry which returned -5.1% over the past year.

Return vs Market: KMR exceeded the UK Market which returned -12.4% over the past year.


Shareholder returns

KMRIndustryMarket
7 Day3.3%2.9%2.0%
30 Day7.2%13.3%5.7%
90 Day-1.3%5.4%-8.2%
1 Year15.8%12.1%2.1%-5.2%-8.6%-12.8%
3 Year-20.9%-23.4%40.3%16.7%-6.2%-17.6%
5 Year-71.3%-72.3%70.9%31.4%12.7%-12.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Kenmare Resources undervalued compared to its fair value and its price relative to the market?

27.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KMR (£2.22) is trading below our estimate of fair value (£3.07)

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


Price To Earnings Ratio

PE vs Industry: KMR is good value based on its PE Ratio (6.7x) compared to the Metals and Mining industry average (7.7x).

PE vs Market: KMR is good value based on its PE Ratio (6.7x) compared to the UK market (14.7x).


Price to Earnings Growth Ratio

PEG Ratio: KMR is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: KMR is good value based on its PB Ratio (0.3x) compared to the GB Metals and Mining industry average (1.1x).


Next Steps

Future Growth

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

22.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KMR's forecast earnings growth (22.3% per year) is above the savings rate (1.2%).

Earnings vs Market: KMR's earnings (22.3% per year) are forecast to grow faster than the UK market (20.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: KMR's revenue (5% per year) is forecast to grow faster than the UK market (3.7% per year).

High Growth Revenue: KMR's revenue (5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KMR's Return on Equity is forecast to be low in 3 years time (9%).


Next Steps

Past Performance

How has Kenmare Resources performed over the past 5 years?

67.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KMR has high quality earnings.

Growing Profit Margin: KMR's current net profit margins (16.5%) are lower than last year (19.4%).


Past Earnings Growth Analysis

Earnings Trend: KMR has become profitable over the past 5 years, growing earnings by 67.7% per year.

Accelerating Growth: KMR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: KMR had negative earnings growth (-11.9%) over the past year, making it difficult to compare to the Metals and Mining industry average (9.8%).


Return on Equity

High ROE: KMR's Return on Equity (5%) is considered low.


Next Steps

Financial Health

How is Kenmare Resources's financial position?


Financial Position Analysis

Short Term Liabilities: KMR's short term assets ($174.2M) exceed its short term liabilities ($42.7M).

Long Term Liabilities: KMR's short term assets ($174.2M) exceed its long term liabilities ($92.2M).


Debt to Equity History and Analysis

Debt Level: KMR's debt to equity ratio (6.8%) is considered satisfactory.

Reducing Debt: KMR's debt to equity ratio has reduced from 59.8% to 6.8% over the past 5 years.

Debt Coverage: KMR's debt is well covered by operating cash flow (125.4%).

Interest Coverage: KMR's interest payments on its debt are well covered by EBIT (15.2x coverage).


Balance Sheet


Next Steps

Dividend

What is Kenmare Resources's current dividend yield, its reliability and sustainability?

4.03%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: KMR's dividend (4.03%) is higher than the bottom 25% of dividend payers in the UK market (2.04%).

High Dividend: KMR's dividend (4.03%) is low compared to the top 25% of dividend payers in the UK market (5.67%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether KMR's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if KMR's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (20%), KMR's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KMR's dividends in 3 years are forecast to be well covered by earnings (32.2% payout ratio).


Next Steps

Management

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

11.2yrs

Average management tenure


CEO

Michael Carvill (59yo)

34.33yrs

Tenure

US$1,444,000

Compensation

Mr. Michael Carvill has been the Managing Director of Kenmare Resources PLC since 1986 and serves as its Executive Director. After working as a contracts engineer in Algeria and as a Project Engineer at Ta ...


CEO Compensation Analysis

Compensation vs Market: Michael's total compensation ($USD1.44M) is above average for companies of similar size in the UK market ($USD929.76K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Michael Carvill
MD & Executive Director34.33yrsUS$1.44m0.23% $567.4k
Tony McCluskey
Financial Director & Executive Director21.33yrsUS$963.00k0.12% $299.6k
Deirdre Corcoran
Financial Controller & Company Secretary20.17yrsno data0.0058% $14.1k
Ben Baxter
Chief Operating Officer5.33yrsno datano data
Terence Fitzpatrick
Group General Manager of Technical11.17yrsUS$503.33kno data
Jeremy Oliver Dibb
Corporate Development & Investor Relations Managerno datano datano data
Rajan Subberwal
General Counsel6.83yrsno datano data
Cillian Murphy
Marketing Manager1.33yrsno datano data

11.2yrs

Average Tenure

56yo

Average Age

Experienced Management: KMR's management team is seasoned and experienced (11.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Carvill
MD & Executive Director34.33yrsUS$1.44m0.23% $567.4k
Tony McCluskey
Financial Director & Executive Director21.33yrsUS$963.00k0.12% $299.6k
Steven McTiernan
Independent Chairman of the Board5.83yrsUS$213.00k0.20% $479.7k
Alan Martin
Independent Non-Executive Director3.58yrsUS$85.00k0.077% $186.8k
Gabriel Smith
Independent Non-Executive Director7.17yrsUS$92.00k0.027% $66.8k
Peter Bacchus
Senior Independent Directorno dataUS$77.00kno data
Elaine Dorward-King
Independent Non-Executive Director0.42yrUS$12.00k0.0033% $8.0k
Timothy Keating
Non-Executive Director3.58yrsUS$66.00kno data
Clever Fonseca
Independent Non-Executive Director1.83yrsUS$66.00kno data

4.7yrs

Average Tenure

61yo

Average Age

Experienced Board: KMR's board of directors are considered experienced (4.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: KMR 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

Kenmare Resources plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Kenmare Resources plc
  • Ticker: KMR
  • Exchange: LSE
  • Founded: 1972
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: UK£243.802m
  • Shares outstanding: 109.82m
  • Website: https://www.kenmareresources.com

Number of Employees


Location

  • Kenmare Resources plc
  • Styne House
  • 4th Floor
  • Dublin
  • Co. Dublin
  • 2
  • Ireland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KMRP.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
KMRLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
KMRISE (Irish Stock Exchange)YesOrdinary SharesIEEURJan 1992
KMRLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992

Biography

Kenmare Resources plc, together with its subsidiaries, produces mineral sands products in China, Italy, the United States, and internationally. The company operates the Moma Titanium Minerals Mine located on the northern coast of Mozambique. Its products include ilmenite, zircon, and rutile, as well as concentrates including secondary zircon and mineral sands concentrates. As of December 31, 2019, it had a total proved and probable ore reserves of 1,584 million tons. The company was incorporated in 1972 and is headquartered in Dublin, Ireland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/31 21:19
End of Day Share Price2020/05/29 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.