OTCPK:GALX.F

Stock Analysis Report

Executive Summary

Galaxy Resources Limited engages in the production of lithium concentrate, and exploration of minerals in Australia, Canada, and Argentina.


Snowflake Analysis

Adequate balance sheet and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.3%

GALX.F

-3.7%

US Metals and Mining

-7.4%

US Market


1 Year Return

-54.7%

GALX.F

-5.7%

US Metals and Mining

10.5%

US Market

Return vs Industry: GALX.F underperformed the US Metals and Mining industry which returned -5.7% over the past year.

Return vs Market: GALX.F underperformed the US Market which returned 10.5% over the past year.


Shareholder returns

GALX.FIndustryMarket
7 Day-1.3%-3.7%-7.4%
30 Day-9.2%-4.5%-3.6%
90 Day4.4%-5.2%-0.6%
1 Year-54.7%-54.7%-3.3%-5.7%12.8%10.5%
3 Year82.9%82.9%-6.6%-11.6%37.4%28.6%
5 Year6940.0%6940.0%16.9%7.8%61.3%43.6%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Galaxy Resources 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: GALX.F ($0.7) is trading below our estimate of fair value ($4.14)

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


Price To Earnings Ratio

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

PE vs Market: GALX.F is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: GALX.F is good value based on its PB Ratio (1.2x) compared to the US Metals and Mining industry average (1.5x).


Next Steps

Future Growth

How is Galaxy Resources forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

116.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GALX.F is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: GALX.F is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: GALX.F is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: GALX.F's revenue (23.7% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: GALX.F's revenue (23.7% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GALX.F is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Galaxy Resources performed over the past 5 years?

-23.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GALX.F is currently unprofitable.

Growing Profit Margin: GALX.F is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GALX.F is unprofitable, and losses have increased over the past 5 years at a rate of -23.4% per year.

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

Earnings vs Industry: GALX.F is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-32.4%).


Return on Equity

High ROE: GALX.F has a negative Return on Equity (-117.82%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Galaxy Resources's financial position?


Financial Position Analysis

Short Term Liabilities: GALX.F's short term assets ($177.9M) exceed its short term liabilities ($52.4M).

Long Term Liabilities: GALX.F's short term assets ($177.9M) exceed its long term liabilities ($22.9M).


Debt to Equity History and Analysis

Debt Level: GALX.F is debt free.

Reducing Debt: GALX.F has no debt compared to 5 years ago when its debt to equity ratio was 199.3%.


Balance Sheet

Inventory Level: GALX.F has a high level of physical assets or inventory.

Debt Coverage by Assets: GALX.F's debt is covered by short term assets (assets are 5.008340555608E+16x debt).


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: Insufficient data to determine if GALX.F has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if GALX.F has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.9%industryaverage2.7%forecastin3Years0%

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if GALX.F'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 GALX.F's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Simon Hay 0

0.6yrs

Tenure

US$476,707

Compensation

Mr. Simon Hay, BSc (Hons), MAppSc, Grad Dip, MAICD, has been Head of Resource Development at Iluka Resources Limited since March 2016 and served as its General Manager of Zircon since February 2014 until M ...


CEO Compensation Analysis

Compensation vs Market: Simon's total compensation ($USD476.71K) is below average for companies of similar size in the US market ($USD1.11M).

Compensation vs Earnings: Insufficient data to compare Simon's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Simon Hay
Chief Executive Officer0.6yrsUS$476.71kno data
Anthony Tse
Executive Director9.3yrsUS$581.47k1.6% $4.5m
Alan Rule
Chief Financial Officer2.8yrsUS$298.95kno data
Brian Talbot
Acting Chief Operations Officer1.8yrsUS$271.24kno data
Nicholas Rowley
Director of Corporate Development3.8yrsUS$242.59k0.024% $68.7k
John Sanders
General Counsel & Company Secretary2.6yrsno datano data
Laura Lu
Financial Controller of Jiangsu Lithium Carbonate Plant10.3yrsno datano data
Michael Nelson
Project Director1.1yrsno datano data
Joe Lowry
Marketing & Sales Consultant7.1yrsno datano data

2.8yrs

Average Tenure

Experienced Management: GALX.F's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Anthony Tse
Executive Director9.3yrsUS$581.47k1.6% $4.5m
Martin Rowley
Independent Non-Executive Chairman6.3yrsUS$484.28k1.12% $3.1m
John Stephen Turner
Independent Non-Executive Director3.1yrsUS$122.68k0.028% $79.0k
Peter Bacchus
Independent Non-Executive Director3.1yrsUS$122.68k0.012% $34.5k
Alan Fitzpatrick
Independent Non-Executive Director1.1yrsUS$90.81kno data
Florencia Heredia
Independent Non-Executive Director2.1yrsUS$100.00kno data

3.1yrs

Average Tenure

57yo

Average Age

Experienced Board: GALX.F's board of directors are considered experienced (3.1 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Galaxy Resources Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Galaxy Resources Limited
  • Ticker: GALX.F
  • Exchange: OTCPK
  • Founded: 1996
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: AU$425.859m
  • Listing Market Cap: AU$281.188m
  • Shares outstanding: 409.48m
  • Website: https://www.gxy.com

Number of Employees


Location

  • Galaxy Resources Limited
  • 21 Kintail Road
  • Level 4
  • Perth
  • Western Australia
  • 6153
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GXYASX (Australian Securities Exchange)YesOrdinary SharesAUAUDFeb 2007
GALX.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDFeb 2007
LK9DB (Deutsche Boerse AG)YesOrdinary SharesDEEURFeb 2007
GXYCHIA (Chi-X Australia)YesOrdinary SharesAUAUDFeb 2007

Biography

Galaxy Resources Limited engages in the production of lithium concentrate, and exploration of minerals in Australia, Canada, and Argentina. The company holds interests in the Sal de Vida project in Argentina; the Mt Cattlin spodumene project in Western Australia; and the James Bay spodumene project in Quebec, Canada. Galaxy Resources Limited was incorporated in 1996 and is headquartered in Perth, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 01:50
End of Day Share Price2020/02/25 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.