OTCPK:ILKA.F

Stock Analysis Report

Executive Summary

Iluka Resources Limited engages in the exploration, project development, mining, processing, marketing, and rehabilitation of mineral sands.

Snowflake

Fundamentals

Outstanding track record with adequate balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

5.0%

ILKA.F

1.9%

US Metals and Mining

1.3%

US Market


1 Year Return

-21.0%

ILKA.F

-10.7%

US Metals and Mining

5.9%

US Market

Return vs Industry: ILKA.F underperformed the US Metals and Mining industry which returned -10.7% over the past year.

Return vs Market: ILKA.F underperformed the US Market which returned 5.9% over the past year.


Shareholder returns

ILKA.FIndustryMarket
7 Day5.0%1.9%1.3%
30 Day5.0%-4.3%-1.9%
90 Dayn/a-5.3%-1.8%
1 Year-21.0%-21.0%-8.0%-10.7%8.3%5.9%
3 Year21.6%21.6%13.4%7.5%45.6%36.2%
5 Year-19.3%-19.3%-1.5%-8.9%66.1%47.9%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

4.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: ILKA.F ($5.41) is trading below our estimate of fair value ($5.66)

Significantly Undervalued: ILKA.F is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ILKA.F is good value based on its PE Ratio (11x) compared to the Metals and Mining industry average (13.3x).

PE vs Market: ILKA.F is good value based on its PE Ratio (11x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: ILKA.F's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: ILKA.F is overvalued based on its PB Ratio (3x) compared to the US Metals and Mining industry average (1.4x).


Next Steps

Future Growth

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

-7.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ILKA.F's earnings are forecast to decline over the next 3 years (-7.1% per year).

Earnings vs Market: ILKA.F's earnings are forecast to decline over the next 3 years (-7.1% per year).

High Growth Earnings: ILKA.F's earnings are forecast to decline over the next 3 years.

Revenue vs Market: ILKA.F's revenue (3% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: ILKA.F's revenue (3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: ILKA.F's Return on Equity is forecast to be low in 3 years time (15.7%).


Next Steps

Past Performance

How has Iluka Resources performed over the past 5 years?

33.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ILKA.F has become profitable over the past 5 years, growing earnings by 33.6% per year.

Accelerating Growth: ILKA.F's earnings growth over the past year (775%) exceeds its 5-year average (33.6% per year).

Earnings vs Industry: ILKA.F earnings growth over the past year (775%) exceeded the Metals and Mining industry 26.6%.


Return on Equity

High ROE: ILKA.F's Return on Equity (26.8%) is considered high.


Return on Assets

ROA vs Industry: ILKA.F has a higher Return on Assets than the Metals and Mining industry average last year.


Return on Capital Employed

ROCE Improving: ILKA.F has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Iluka Resources's financial position?


Financial Position Analysis

Short Term Liabilities: ILKA.F's short term assets (A$640.4M) exceeds its short term liabilities (A$280.8M)

Long Term Liabilities: ILKA.F's short term assets (640.4M) do not cover its long term liabilities (866.2M)


Debt to Equity History and Analysis

Debt Level: ILKA.F's debt to equity ratio (16.3%) is considered satisfactory

Reducing Debt: ILKA.F's debt to equity ratio has increased from 12.4% to 16.3% over the past 5 years.

Debt Coverage: ILKA.F's debt is well covered by operating cash flow (188.4%).

Interest Coverage: ILKA.F's interest payments on its debt are well covered by EBIT (68.8x coverage).


Balance Sheet

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

Debt Coverage by Assets: ILKA.F's debt is covered by short term assets (assets are 3.345870x debt).


Next Steps

Dividend

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

3.52%

Current Dividend Yield


Dividend Yield vs Market

company3.5%marketbottom25%1.5%markettop25%3.8%industryaverage2.6%forecastin3Years2.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: ILKA.F's dividend (3.52%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: ILKA.F's dividend (3.52%) is low compared to the top 25% of dividend payers in the US market (3.77%).

Stable Dividend: ILKA.F has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: ILKA.F's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (32.1%), ILKA.F's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ILKA.F's dividends in 3 years are forecast to be well covered by earnings (44.8% payout ratio).


Next Steps

Management

What is the CEO of Iluka Resources's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average management tenure


CEO

Tom Patrick O’Leary (56yo)

3.1yrs

Tenure

AU$2,802,403

Compensation

Mr. Tom J. P O'Leary, LLB, B.Juris, has been the Chief Executive Officer and Managing Director of Iluka Resources Limited since September 5, 2016. Mr. O'Leary served as Managing Director of Wesfarmers Chem ...


CEO Compensation Analysis

Compensation vs. Market: Tom's total compensation ($USD1.90M) is about average for companies of similar size in the US market ($USD4.07M).

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


Management Age and Tenure

2.8yrs

Average Tenure

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


Board Age and Tenure

5.7yrs

Average Tenure

57.5yo

Average Age

Experienced Board: ILKA.F's board of directors are considered experienced (5.7 years average tenure).


Insider Trading

Insider Buying: ILKA.F insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

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Ownership Breakdown


Management Team

  • Steve Wickham (60yo)

    Chief Operating Officer of Mineral Sands

    • Tenure: 5.3yrs
    • Compensation: AU$1.45m
  • Matthew Blackwell

    Head of Marketing & Procurement

    • Tenure: 0yrs
    • Compensation: AU$1.20m
  • Tom Patrick O’Leary (56yo)

    MD, CEO & Director

    • Tenure: 3.1yrs
    • Compensation: AU$2.80m
  • Simon Hay

    Head of Resource Development

    • Tenure: 3.6yrs
    • Compensation: AU$1.07m
  • Sue Wilson

    General Counsel & Company Secretary

    • Tenure: 2.8yrs
  • Adele Stratton

    Chief Financial Officer

    • Tenure: 1.2yrs
    • Compensation: AU$821.06k
  • Sarah Hodgson

    General Manager of People & Sustainability

    • Tenure: 2.4yrs
  • Julian Andrews

    Head of Strategy

    • Tenure: 2.8yrs
    • Compensation: AU$785.79k
  • Melissa Roberts

    General Manager of Investor Relations & Commercial Mineral Sands Operations

    • Tenure: 0.9yrs
  • Christian Barbier

    Head of Marketing

    • Tenure: 0yrs

Board Members

  • Jenny Seabrook (62yo)

    Independent Non-Executive Director

    • Tenure: 11.4yrs
    • Compensation: AU$195.96k
  • Greg Martin (59yo)

    Non-Executive Chairman

    • Tenure: 5.8yrs
    • Compensation: AU$340.12k
  • Marcelo De Almeida Bastos (56yo)

    Independent Non-Executive Director

    • Tenure: 5.7yrs
    • Compensation: AU$160.05k
  • Rob Cole (56yo)

    Independent Non-Executive Director

    • Tenure: 1.6yrs
    • Compensation: AU$144.69k
  • Hutch Ranck (71yo)

    Independent Non-Executive Director

    • Tenure: 6.8yrs
    • Compensation: AU$192.54k
  • Tom Patrick O’Leary (56yo)

    MD, CEO & Director

    • Tenure: 3.1yrs
    • Compensation: AU$2.80m
  • Susie Corlett

    Independent Non-Executive Director

    • Tenure: 0.3yrs

Company Information

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


Key Information

  • Name: Iluka Resources Limited
  • Ticker: ILKA.F
  • Exchange: OTCPK
  • Founded: 1954
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: AU$3.485b
  • Listing Market Cap: AU$2.357b
  • Shares outstanding: 422.44m
  • Website: https://www.iluka.com

Number of Employees


Location

  • Iluka Resources Limited
  • 240 St Georges Terrace
  • Level 17
  • Perth
  • Western Australia
  • 6000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ILKA.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
ILUASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
ILZDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
ILUCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992
ILKA.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDDec 2008

Biography

Iluka Resources Limited engages in the exploration, project development, mining, processing, marketing, and rehabilitation of mineral sands. The company operates through Australia, Sierra Rutile, United St ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 23:45
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.