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RBW

Rainbow Rare EarthsLSE:RBW Stock Report

Market Cap

UK£73.1m

7D

-3.4%

1Y

53.0%

Updated

30 Nov, 2021

Data

Company Financials
RBW fundamental analysis
Snowflake Score
Valuation0/6
Future Growth0/6
Past Performance0/6
Financial Health3/6
Dividends0/6

RBW Stock Overview

Rainbow Rare Earths Limited engages in the mining and exploration of rare earth minerals.

Price History & Performance

Summary of all time highs, changes and price drops for Rainbow Rare Earths
Historical stock prices
Current Share PriceUK£0.14
52 Week HighUK£0.21
52 Week LowUK£0.084
Beta1.78
1 Month Change-8.94%
3 Month Change30.23%
1 Year Change53.01%
3 Year Change194.74%
5 Year Changen/a
Change since IPO20.43%

Recent News & Updates

Nov 17
We Think Rainbow Rare Earths (LON:RBW) Has A Fair Chunk Of Debt

We Think Rainbow Rare Earths (LON:RBW) Has A Fair Chunk Of Debt

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' When we think about how risky a company...

Apr 06
Is Rainbow Rare Earths (LON:RBW) Using Too Much Debt?

Is Rainbow Rare Earths (LON:RBW) Using Too Much Debt?

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' It's only natural to consider a company's...

Shareholder Returns

RBWGB Metals and MiningGB Market
7D-3.4%-3.0%-2.6%
1Y53.0%9.0%10.9%

Return vs Industry: RBW exceeded the UK Metals and Mining industry which returned 12.9% over the past year.

Return vs Market: RBW exceeded the UK Market which returned 13.8% over the past year.

Price Volatility

Is RBW's price volatile compared to industry and market?
RBW volatility
RBW Average Weekly Movement8.1%
Metals and Mining Industry Average Movement7.1%
Market Average Movement4.9%
10% most volatile stocks in GB Market9.8%
10% least volatile stocks in GB Market2.5%

Stable Share Price: RBW is more volatile than 75% of UK stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: RBW's weekly volatility (8%) has been stable over the past year, but is still higher than 75% of UK stocks.

About the Company

FoundedEmployeesCEOWebsite
2011261George Sidney Bennetthttps://www.rainbowrareearths.com

Rainbow Rare Earths Limited engages in the mining and exploration of rare earth minerals. It explores for neodymium and praseodymium deposits. The company primarily holds a 90% interest in the Gakara project covering an area of approximately 135 square kilometers located in Western Burundi.

Rainbow Rare Earths Fundamentals Summary

How do Rainbow Rare Earths's earnings and revenue compare to its market cap?
RBW fundamental statistics
Market CapUS$96.73m
Earnings (TTM)-US$2.69m
Revenue (TTM)US$639.00k

151.9x

P/S Ratio

-36.0x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RBW income statement (TTM)
RevenueUS$639.00k
Cost of RevenueUS$639.00k
Gross ProfitUS$0
ExpensesUS$2.69m
Earnings-US$2.69m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.0052
Gross Margin0%
Net Profit Margin-420.97%
Debt/Equity Ratio18.9%

How did RBW perform over the long term?

See historical performance and comparison

Valuation

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

8.84x

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 UK 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 (8.8x) compared to the GB Metals and Mining industry average (1.7x).


Future Growth

How is Rainbow Rare Earths forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

-14.8%

Forecasted Materials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Rainbow Rare Earths has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

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

-19.5%

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 19.5% 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 (150.4%).


Return on Equity

High ROE: RBW has a negative Return on Equity (-27.4%), as it is currently unprofitable.


Financial Health

How is Rainbow Rare Earths's financial position?


Financial Position Analysis

Short Term Liabilities: RBW's short term assets ($1.9M) do not cover its short term liabilities ($2.3M).

Long Term Liabilities: RBW's short term assets ($1.9M) exceed its long term liabilities ($792.0K).


Debt to Equity History and Analysis

Debt Level: RBW's net debt to equity ratio (13.2%) is considered satisfactory.

Reducing Debt: RBW's debt to equity ratio has reduced from 112.5% to 18.9% 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 less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: RBW has less than a year of cash runway if free cash flow continues to reduce at historical rates of 14.6% each year


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?

1.8yrs

Average management tenure


CEO

George Sidney Bennett (60 yo)

2.25yrs

Tenure

US$269,000

Compensation

Mr. George Sidney John Bennett has been Chief Executive Officer and Executive Director of Rainbow Rare Earths Limited since August 27, 2019. He has many years of experience in mining, finance and managemen...


CEO Compensation Analysis

Compensation vs Market: George Sidney's total compensation ($USD269.00K) is about average for companies of similar size in the UK market ($USD324.53K).

Compensation vs Earnings: George Sidney's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: RBW's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: RBW's board of directors are considered experienced (5 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 diluted in the past year, with total shares outstanding growing by 23.7%.


Top Shareholders

Company Information

Rainbow Rare Earths Limited's 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£73.054m
  • Shares outstanding: 521.81m
  • Website: https://www.rainbowrareearths.com

Number of Employees


Location

  • Rainbow Rare Earths Limited
  • Trafalgar Court
  • Admiral Park
  • Saint Peter Port
  • GY1 3EL
  • Guernsey

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/30 21:50
End of Day Share Price2021/11/30 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.