LSE:RBW

Stock Analysis Report

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Executive Summary

Rainbow Rare Earths Limited, a mining company, engages in the exploration, evaluation, development, and production of rare earth properties.


Snowflake Analysis

Flawless balance sheet with limited growth.

Share Price & News

How has Rainbow Rare Earths's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RBW's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-7.4%

RBW

2.9%

GB Metals and Mining

2.0%

GB Market


1 Year Return

-67.1%

RBW

-5.2%

GB Metals and Mining

-12.8%

GB Market

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

Return vs Market: RBW underperformed the UK Market which returned -12.4% over the past year.


Shareholder returns

RBWIndustryMarket
7 Day-7.4%2.9%2.0%
30 Day31.6%13.3%5.7%
90 Day-2.7%5.4%-8.2%
1 Year-67.1%-67.1%2.1%-5.2%-8.6%-12.8%
3 Year-79.8%-79.8%40.3%16.7%-6.2%-17.6%
5 Yearn/a70.9%31.4%12.7%-12.5%

Price Volatility Vs. Market

How volatile is Rainbow Rare Earths's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Rainbow Rare Earths undervalued compared to its fair value and its price relative to the market?

1.56x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate RBW's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate RBW's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: RBW is unprofitable, so we can't compare its PE Ratio to the Metals and Mining industry average.

PE vs Market: RBW is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate RBW's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RBW is overvalued based on its PB Ratio (1.6x) compared to the GB Metals and Mining industry average (1.1x).


Next Steps

Future Growth

How is Rainbow Rare Earths forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

92.8%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if RBW's forecast earnings growth is above the savings rate (1.2%).

Earnings vs Market: Insufficient data to determine if RBW's earnings are forecast to grow faster than the UK market

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

Revenue vs Market: RBW's revenue (92.8% per year) is forecast to grow faster than the UK market (3.7% per year).

High Growth Revenue: RBW's revenue (92.8% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if RBW's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Rainbow Rare Earths performed over the past 5 years?

-64.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RBW is currently unprofitable.

Growing Profit Margin: RBW is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RBW is unprofitable, and losses have increased over the past 5 years at a rate of -64.2% per year.

Accelerating Growth: Unable to compare RBW's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: RBW is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (9.8%).


Return on Equity

High ROE: RBW has a negative Return on Equity (-166.06%), as it is currently unprofitable.


Next Steps

Financial Health

How is Rainbow Rare Earths's financial position?


Financial Position Analysis

Short Term Liabilities: RBW's short term assets ($1.0M) exceed its short term liabilities ($694.0K).

Long Term Liabilities: RBW's short term assets ($1.0M) exceed its long term liabilities ($786.0K).


Debt to Equity History and Analysis

Debt Level: RBW's debt to equity ratio (12.3%) is considered satisfactory.

Reducing Debt: RBW's debt to equity ratio has reduced from 45.1% to 12.3% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: RBW has sufficient cash runway for 1 months based on last reported free cash flow, but has since raised additional capital.

Forecast Cash Runway: RBW is forecast to have sufficient cash runway for 2 months based on free cash flow estimates, but has since raised additional capital.


Next Steps

Dividend

What is Rainbow Rare Earths's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate RBW's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate RBW's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if RBW's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if RBW's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RBW's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

0.3yrs

Average management tenure


CEO

George Sidney Bennett (58yo)

0.75

Tenure

Mr. George Sidney John Bennett has been Chief Executive Officer and Executive Director of Rainbow Rare Earths Limited since August 27, 2019. He serves as an Independent Non-Executive Director of Arden Capi ...


Leadership Team

NamePositionTenureCompensationOwnership
Cesare Morelli
Chief Geologist0.33yrno datano data
George Sidney Bennett
CEO & Executive Director0.75yrno datano data
Peter Andrew Gardner
Chief Financial Officerno datano datano data
Dave Dodd
Technical Director0.33yrno datano data
Medard Kubanza
Chief Geophysicist of Benzu Resourcesno datano datano data

0.3yrs

Average Tenure

55yo

Average Age

Experienced Management: RBW's management team is not considered experienced ( 0.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
George Sidney Bennett
CEO & Executive Director0.75yrno datano data
Robert Archibald Sinclair
Non-Executive Director8.75yrsUS$36.00kno data
Adonis Pouroulis
Non-Executive Chairman9.33yrsUS$55.00k6.61% $628.2k
Atul Bali
Independent Non-Executive Director3.17yrsUS$36.00kno data
Shawn McCormick
Non-Executive Director4.25yrsUS$36.00kno data
Alexander Lowrie
Non-Executive Director3.5yrsUS$36.00k1.31% $124.1k

3.9yrs

Average Tenure

50.5yo

Average Age

Experienced Board: RBW's board of directors are considered experienced (3.8 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 been substantially diluted in the past year, with total shares outstanding growing by 82.9%.


Top Shareholders

Company Information

Rainbow Rare Earths Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Rainbow Rare Earths Limited
  • Ticker: RBW
  • Exchange: LSE
  • Founded: 2011
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: UK£9.508m
  • Shares outstanding: 380.31m
  • Website: https://www.rainbowrareearths.com

Number of Employees


Location

  • Rainbow Rare Earths Limited
  • 29 Lincoln’s Inn Fields
  • London
  • Greater London
  • WC2A 3EG
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RBWLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 2017
RBWLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 2017
RR1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 2017

Biography

Rainbow Rare Earths Limited, a mining company, engages in the exploration, evaluation, development, and production of rare earth properties. It primarily holds a 90% interest in the Gakara project covering an area of approximately 135 km2 located in Western Burundi. The company was founded in 2011 and is headquartered in London, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/01 00:56
End of Day Share Price2020/05/29 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


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.