Latest news with #IlukaResources'
Yahoo
14-05-2025
- Business
- Yahoo
Exploring 3 Undervalued Small Caps In Asian Markets With Insider Buying
In recent weeks, Asian markets have experienced a positive shift, buoyed by optimism surrounding trade negotiations between the U.S. and China and supportive monetary policies in key regions like China. As small-cap indexes continue to gain traction, investors are increasingly focusing on stocks with strong fundamentals and significant insider buying activity, which can indicate confidence from those closest to the company's operations. Name PE PS Discount to Fair Value Value Rating Security Bank 4.7x 1.1x 36.34% ★★★★★★ Atturra 29.4x 1.2x 35.91% ★★★★★☆ Hansen Technologies 290.0x 2.8x 23.31% ★★★★★☆ Viva Energy Group NA 0.1x 47.83% ★★★★★☆ Puregold Price Club 9.3x 0.4x 26.77% ★★★★☆☆ Dicker Data 19.8x 0.7x -39.95% ★★★★☆☆ Sing Investments & Finance 7.0x 3.5x 43.93% ★★★★☆☆ PWR Holdings 36.4x 5.0x 22.80% ★★★☆☆☆ Integral Diagnostics 168.3x 1.9x 40.68% ★★★☆☆☆ Charter Hall Long WALE REIT NA 11.7x 21.20% ★★★☆☆☆ Click here to see the full list of 60 stocks from our Undervalued Asian Small Caps With Insider Buying screener. Let's review some notable picks from our screened stocks. Simply Wall St Value Rating: ★★★☆☆☆ Overview: Iluka Resources is a leading mineral sands company engaged in the exploration, project development, operations, and marketing of zircon and titanium dioxide products with a market cap of A$5.82 billion. Operations: Iluka Resources generates revenue primarily from its Mineral Sands segment, with a recent gross profit margin of 56.64%. Operating expenses are significant, including general and administrative costs of A$83.9 million and sales & marketing expenses of A$74.3 million, impacting the net income margin which stands at 19.76%. PE: 7.6x Iluka Resources, a notable player in the mineral sands industry, is currently trading as part of the S&P/ASX Small Ordinaries Index. Despite a drop in annual sales to A$1.17 billion and net income to A$231 million for 2024, insider confidence remains strong with recent share purchases. The appointment of James Mactier as Chair brings extensive experience from Macquarie's Metals and Energy Capital division, potentially steering future growth amidst low-risk funding concerns tied to external borrowing. Click to explore a detailed breakdown of our findings in Iluka Resources' valuation report. Examine Iluka Resources' past performance report to understand how it has performed in the past. Simply Wall St Value Rating: ★★★★☆☆ Overview: MFF Capital Investments is a company focused on equity investments with a market capitalization of A$1.89 billion. Operations: The company generates revenue primarily through equity investments, with a reported revenue of A$1.01 billion as of the latest period. It consistently achieves a gross profit margin of 100%, indicating no cost of goods sold is recorded against its revenue streams. Operating expenses are relatively low compared to total revenue, contributing to a net income margin that has varied over time but was last noted at 67.44%. PE: 3.5x MFF Capital Investments, a small player in Asia's market, has caught attention due to insider confidence. Christopher MacKay recently purchased 1,299,779 shares for A$5.03 million between January and March 2025, indicating belief in the company's potential despite its reliance on external borrowing. This financial structure might pose higher risks compared to customer deposits but also suggests strategic positioning for growth opportunities within the region's dynamic investment landscape. Click here and access our complete valuation analysis report to understand the dynamics of MFF Capital Investments. Assess MFF Capital Investments' past performance with our detailed historical performance reports. Simply Wall St Value Rating: ★★★☆☆☆ Overview: HRnetGroup is a company specializing in flexible staffing and professional recruitment services with a market capitalization of approximately SGD 1.15 billion. Operations: Flexible Staffing is the primary revenue stream, generating SGD 507.96 million, while Professional Recruitment contributes SGD 54.94 million. The company's gross profit margin has shown a declining trend from 39.64% in December 2014 to 21.55% in December 2024, indicating changes in cost structures or pricing strategies over time. PE: 15.0x HRnetGroup, a small cap in Asia, has shown insider confidence with recent share purchases. Despite a dip in net income to S$44.52 million for 2024 from S$63.56 million the previous year, earnings are projected to grow annually by 12.53%. The company declared a final dividend of S$0.0213 per share for 2024, reflecting its commitment to shareholder returns amidst leadership changes and ongoing strategic shifts within its board and management team. Navigate through the intricacies of HRnetGroup with our comprehensive valuation report here. Evaluate HRnetGroup's historical performance by accessing our past performance report. Delve into our full catalog of 60 Undervalued Asian Small Caps With Insider Buying here. Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up. Discover a world of investment opportunities with Simply Wall St's free app and access unparalleled stock analysis across all markets. Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include ASX:ILU ASX:MFF and SGX:CHZ. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
Yahoo
07-05-2025
- Business
- Yahoo
Shareholders in Iluka Resources (ASX:ILU) are in the red if they invested three years ago
Iluka Resources Limited (ASX:ILU) shareholders should be happy to see the share price up 20% in the last month. Meanwhile over the last three years the stock has dropped hard. Regrettably, the share price slid 59% in that period. So the improvement may be a real relief to some. While many would remain nervous, there could be further gains if the business can put its best foot forward. So let's have a look and see if the longer term performance of the company has been in line with the underlying business' progress. We've discovered 1 warning sign about Iluka Resources. View them for free. While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. During the three years that the share price fell, Iluka Resources' earnings per share (EPS) dropped by 14% each year. This reduction in EPS is slower than the 26% annual reduction in the share price. So it seems the market was too confident about the business, in the past. This increased caution is also evident in the rather low P/E ratio, which is sitting at 7.63. The image below shows how EPS has tracked over time (if you click on the image you can see greater detail). ASX:ILU Earnings Per Share Growth May 7th 2025 We like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here.. What About Dividends? When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. As it happens, Iluka Resources' TSR for the last 3 years was -54%, which exceeds the share price return mentioned earlier. The dividends paid by the company have thusly boosted the total shareholder return. A Different Perspective Investors in Iluka Resources had a tough year, with a total loss of 48% (including dividends), against a market gain of about 7.0%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. On the bright side, long term shareholders have made money, with a gain of 5% per year over half a decade. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. It's always interesting to track share price performance over the longer term. But to understand Iluka Resources better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Iluka Resources you should know about.
Yahoo
27-03-2025
- Business
- Yahoo
With 72% institutional ownership, Iluka Resources Limited (ASX:ILU) is a favorite amongst the big guns
Given the large stake in the stock by institutions, Iluka Resources' stock price might be vulnerable to their trading decisions A total of 8 investors have a majority stake in the company with 51% ownership Analyst forecasts along with ownership data serve to give a strong idea about prospects for a business A look at the shareholders of Iluka Resources Limited (ASX:ILU) can tell us which group is most powerful. We can see that institutions own the lion's share in the company with 72% ownership. Put another way, the group faces the maximum upside potential (or downside risk). Given the vast amount of money and research capacities at their disposal, institutional ownership tends to carry a lot of weight, especially with individual investors. As a result, a sizeable amount of institutional money invested in a firm is generally viewed as a positive attribute. Let's take a closer look to see what the different types of shareholders can tell us about Iluka Resources. Check out our latest analysis for Iluka Resources Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index. Iluka Resources already has institutions on the share registry. Indeed, they own a respectable stake in the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Iluka Resources' historic earnings and revenue below, but keep in mind there's always more to the story. Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. Hedge funds don't have many shares in Iluka Resources. Our data shows that Yarra Capital Management is the largest shareholder with 7.8% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 7.8% and 7.2%, of the shares outstanding, respectively. On further inspection, we found that more than half the company's shares are owned by the top 8 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones. While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. Quite a few analysts cover the stock, so you could look into forecast growth quite easily. While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it. Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group. Our data suggests that insiders own under 1% of Iluka Resources Limited in their own names. It's a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case insiders own AU$8.8m worth of shares. Arguably, recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling. With a 27% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Iluka Resources. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders. It's always worth thinking about the different groups who own shares in a company. But to understand Iluka Resources better, we need to consider many other factors. Take risks for example - Iluka Resources has 1 warning sign we think you should be aware of. If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
28-02-2025
- Business
- Yahoo
Iluka Resources' (ASX:ILU) Shareholders Have More To Worry About Than Only Soft Earnings
The market wasn't impressed with the soft earnings from Iluka Resources Limited (ASX:ILU) recently. We did some analysis, and found that there are some reasons to be cautious about the headline numbers. Check out our latest analysis for Iluka Resources As finance nerds would already know, the accrual ratio from cashflow is a key measure for assessing how well a company's free cash flow (FCF) matches its profit. The accrual ratio subtracts the FCF from the profit for a given period, and divides the result by the average operating assets of the company over that time. You could think of the accrual ratio from cashflow as the 'non-FCF profit ratio'. That means a negative accrual ratio is a good thing, because it shows that the company is bringing in more free cash flow than its profit would suggest. While having an accrual ratio above zero is of little concern, we do think it's worth noting when a company has a relatively high accrual ratio. That's because some academic studies have suggested that high accruals ratios tend to lead to lower profit or less profit growth. For the year to December 2024, Iluka Resources had an accrual ratio of 0.25. Therefore, we know that it's free cashflow was significantly lower than its statutory profit, which is hardly a good thing. Over the last year it actually had negative free cash flow of AU$311m, in contrast to the aforementioned profit of AU$231.3m. We also note that Iluka Resources' free cash flow was actually negative last year as well, so we could understand if shareholders were bothered by its outflow of AU$311m. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. Iluka Resources didn't convert much of its profit to free cash flow in the last year, which some investors may consider rather suboptimal. Therefore, it seems possible to us that Iluka Resources' true underlying earnings power is actually less than its statutory profit. Sadly, its EPS was down over the last twelve months. At the end of the day, it's essential to consider more than just the factors above, if you want to understand the company properly. If you'd like to know more about Iluka Resources as a business, it's important to be aware of any risks it's facing. Every company has risks, and we've spotted 1 warning sign for Iluka Resources you should know about. Today we've zoomed in on a single data point to better understand the nature of Iluka Resources' profit. But there is always more to discover if you are capable of focussing your mind on minutiae. Some people consider a high return on equity to be a good sign of a quality business. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks with significant insider holdings to be useful. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
22-02-2025
- Business
- Yahoo
Iluka Resources (ASX:ILU) Has Affirmed Its Dividend Of A$0.04
Iluka Resources Limited's (ASX:ILU) investors are due to receive a payment of A$0.04 per share on 28th of March. The dividend yield is 1.8% based on this payment, which is a little bit low compared to the other companies in the industry. View our latest analysis for Iluka Resources Even a low dividend yield can be attractive if it is sustained for years on end. Prior to this announcement, Iluka Resources' earnings easily covered the dividend, but free cash flows were negative. In general, we consider cash flow to be more important than earnings, so we would be cautious about relying on the sustainability of this dividend. Over the next year, EPS is forecast to fall by 4.3%. If the dividend continues along recent trends, we estimate the payout ratio could be 16%, which we consider to be quite comfortable, with most of the company's earnings left over to grow the business in the future. While the company has been paying a dividend for a long time, it has cut the dividend at least once in the last 10 years. The most recent annual payment of A$0.08 is about the same as the annual payment 10 years ago. The dividend has seen some fluctuations in the past, so even though the dividend was raised this year, we should remember that it has been cut in the past. Given that the dividend has been cut in the past, we need to check if earnings are growing and if that might lead to stronger dividends in the future. Iluka Resources has seen EPS rising for the last five years, at 36% per annum. Earnings per share is growing at a solid clip, and the payout ratio is low which we think is an ideal combination in a dividend stock as the company can quite easily raise the dividend in the future. Overall, we don't think this company makes a great dividend stock, even though the dividend wasn't cut this year. While the low payout ratio is a redeeming feature, this is offset by the minimal cash to cover the payments. Overall, we don't think this company has the makings of a good income stock. It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. However, there are other things to consider for investors when analysing stock performance. For example, we've picked out 2 warning signs for Iluka Resources that investors should know about before committing capital to this stock. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
