OTCPK:RNDX.F

Stock Analysis Report

Executive Summary

Randgold & Exploration Company Limited, an investment holding company, operates in the gold mining industry in South Africa.

Rewards

Trading at 36.2% below its fair value

Became profitable this year

Risk Analysis

Earnings have declined by -78.47% per year over past 5 years

Shares are highly illiquid

Makes less than USD$1m in revenue (ZAR60K)

Does not have a meaningful market cap ($143M)

+ 1 more risk


Snowflake Analysis

Flawless balance sheet and fair value.


Similar Companies

Share Price & News

How has Randgold & Exploration's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

41.1%

RNDX.F

-1.8%

US Metals and Mining

0.9%

US Market


1 Year Return

n/a

RNDX.F

-0.1%

US Metals and Mining

20.0%

US Market

Return vs Industry: Insufficient data to determine how RNDX.F performed against the US Metals and Mining industry.

Return vs Market: Insufficient data to determine how RNDX.F performed against the US Market.


Shareholder returns

RNDX.FIndustryMarket
7 Day41.1%-1.8%0.9%
30 Day9.5%-7.1%1.4%
90 Dayn/a-1.2%8.8%
1 Yearn/a2.4%-0.1%22.5%20.0%
3 Year-26.8%-26.8%-6.7%-11.7%49.9%40.3%
5 Year-13.0%-13.0%19.3%10.0%73.2%54.1%

Price Volatility Vs. Market

How volatile is Randgold & Exploration's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Randgold & Exploration undervalued compared to its fair value and its price relative to the market?

36.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RNDX.F ($0.13) is trading below our estimate of fair value ($0.2)

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


Price To Earnings Ratio

PE vs Industry: RNDX.F is poor value based on its PE Ratio (91x) compared to the Metals and Mining industry average (11x).

PE vs Market: RNDX.F is poor value based on its PE Ratio (91x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: RNDX.F is good value based on its PB Ratio (1x) compared to the US Metals and Mining industry average (1.5x).


Next Steps

Future Growth

How is Randgold & Exploration forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

11.9%

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 Randgold & Exploration 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.


Next Steps

  • Examine whether Randgold & Exploration is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  • While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on the OTC Markets Website. If you are looking for more of a qualitative research into the company, you can access Randgold & Exploration's filings and announcements here.
  • Explore growth companies in the Materials industry.

Past Performance

How has Randgold & Exploration performed over the past 5 years?

-78.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RNDX.F has a large one-off gain of ZAR23.5M impacting its June 30 2019 financial results.

Growing Profit Margin: RNDX.F became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: RNDX.F's earnings have declined by -78.5% per year over the past 5 years.

Accelerating Growth: RNDX.F has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: RNDX.F has become profitable in the last year, making it difficult to compare its past year earnings growth to the Metals and Mining industry (14.9%).


Return on Equity

High ROE: RNDX.F's Return on Equity (1.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Randgold & Exploration's financial position?


Financial Position Analysis

Short Term Liabilities: RNDX.F's short term assets (ZAR158.9M) exceed its short term liabilities (ZAR2.5M).

Long Term Liabilities: RNDX.F's short term assets (ZAR158.9M) exceed its long term liabilities (ZAR10.2M).


Debt to Equity History and Analysis

Debt Level: RNDX.F is debt free.

Reducing Debt: RNDX.F has not had any debt for past 5 years.

Debt Coverage: RNDX.F has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: RNDX.F has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: RNDX.F has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if RNDX.F's debt is covered by short term assets.


Next Steps

Dividend

What is Randgold & Exploration's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage2.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate RNDX.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 RNDX.F's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: RNDX.F is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RNDX.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?

9.9yrs

Average board tenure


CEO

Marais Steyn (47yo)

13.2yrs

Tenure

R2,551,000

Compensation

Mr. Marais Steyn, BComm (Hons), CA(SA) has been the Chief Executive Officer of Randgold & Exploration Co. Ltd. since July 2008 and serves as its Executive Director and has been its Financial Director since ...


CEO Compensation Analysis

Compensation vs Market: Marais's total compensation ($USD170.19K) is below average for companies of similar size in the US market ($USD521.92K).

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


Board Members

NamePositionTenureCompensationOwnership
Marais Steyn
CEO, Financial Director & Director13.2yrsR2.55mno data
Hilton Gischen
Executive Director0.3yrsno datano data
Patrick Burton
Independent Non-Executive Director6.8yrsR312.00kno data
David Kovarsky
Independent Non-Executive Chairman12.2yrsR500.00kno data
Van Botha
Non-Executive Director9.8yrsR1.48mno data
John Scholes
Independent Non-Executive Director10yrsR312.00kno data

9.9yrs

Average Tenure

59yo

Average Age

Experienced Board: RNDX.F's board of directors are considered experienced (9.9 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Randgold & Exploration Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Randgold & Exploration Company Limited
  • Ticker: RNDX.F
  • Exchange: OTCPK
  • Founded: 1992
  • Industry: Gold
  • Sector: Materials
  • Market Cap: R143.170m
  • Listing Market Cap: R9.552m
  • Shares outstanding: 71.59m
  • Website: https://www.randgoldexp.co.za

Location

  • Randgold & Exploration Company Limited
  • Katherine & West Building
  • Third Floor
  • Sandton
  • Gauteng
  • 2196
  • South Africa

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RNDX.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDFeb 1993
RNGJSE (The Johannesburg Securities Exchange)YesOrdinary SharesZAZARFeb 1993

Biography

Randgold & Exploration Company Limited, an investment holding company, operates in the gold mining industry in South Africa. The company was incorporated in 1992 and is based in Sandton, South Africa. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 23:53
End of Day Share Price2020/02/14 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.