OZ Minerals Limited : Neutral price, above average fundamentals

OZ Minerals Limited relative valuation is now NEUTRAL. It was previously rated UNDERVALUED, and has a fundamental analysis score of 63. It previously closed at AUD 3.85 and has a CapitalCube Implied price of AUD 3.93.

Our analysis is based on comparing OZ Minerals Limited with the following peers – Newcrest Mining Limited, Citigold Corporation Limited, Panaust Limited, Rio Tinto Limited, BHP Billiton Limited and Tiger Resources Limited (NCM-AU, CTO-AU, PNA-AU, RIO-AU, BHP-AU and TGS-AU).

Relative Valuation

OZ Minerals Limited is currently neutrally valued, as its previous close of AUD 3.85 lies within the CapitalCube estimate range of AUD 3.51 to AUD 4.35. Over the last 52 week period, OZ Minerals Limited has fluctuated between AUD 2.93 and AUD 4.88.

Relative Valuation

Company Overview

  • Relative outperformance over the last year and the last month suggest a leading position.
  • OZ Minerals Limited’s current Price/Book of 0.52 is about median in its peer group.
  • The market expects OZL-AU to grow faster than its peers and for the company to improve its current ROE.
  • OZL-AU‘s relative asset efficiency and net profit margins are both around the median level.
  • The company’s year-on-year change in revenues and earnings are better than the median among its peer group.
  • OZL-AU‘s return on assets currently and over the past five years is around the peer median and suggest that it does not have any particular operational advantages versus peers.
  • The company’s margins are around the peer medians and do not suggest any benefit from a pricing or an operating cost advantage versus peers.
  • While OZL-AU‘s revenues have increased slower than peer median, the market currently gives the company a higher than peer median PE ratio and may be factoring in some sort of a strategic play.

Investment Outlook

OZ Minerals Limited has a fundamental score of 63 and has a relative valuation of NEUTRAL.

OZ Minerals Limited’s price is very close to its implied price, thus not allowing for a specific classification into the Value – Price Matrix.

Fundamentals Vs Relative Valuation

Drivers of Valuation

The market expects improvement in OZL-AU‘s current performance

The market expects more growth from OZL-AU than the median of its chosen peers (PE of 28.09 compared to peer median of 6.38) and to improve its current ROE of 1.82%.

The company’s current Price/Book of 0.52 is about median in its peer group.

Valuation Drivers

OZL-AU did not have a traded price at the prior year-end.

ROE % (On Common Equity)
Price To Earnings

Peer Analysis

A complete list of valuation metrics is available on the company page.

Company Profile

OZ Minerals Ltd. engages in the mining of copper, gold, and silver; and exploration and development of mining projects. It owns and operates a copper-gold mine in South Australia and explores for further copper and gold deposits. The company was founded on March 3, 2008 and is headquartered in Melbourne, Australia.

Disclaimer

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