Fact based stock research
Pilbara Minerals (ASX:PLS)
AU000000PLS0
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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.
Pilbara Minerals stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 18 (worse than 82% compared with investment alternatives), Pilbara Minerals (Diversified Metals & Mining, Australia) shares have lower financial characteristics compared with similar stocks. Shares of Pilbara Minerals are low in value (priced high) with a consolidated Value Rank of 3 (worse than 97% of alternatives) and show below-average growth (Growth Rank of 19) but are safely financed (Safety Rank of 78), which means low debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 18, is a sell recommendation based on Pilbara Minerals's financial characteristics. As the company Pilbara Minerals's critical financial metrics exhibit below-average performance, such as low value (Obermatt Value Rank of 3) and low growth (Obermatt Growth Rank of 19), it is a somewhat questionable stock investment, where the risk of paying too much for the shares is significant, unless the company has an exceptionally bright future. In this case, good financing practices (Obermatt Safety Rank of 78) are a positive sign, because it may allow the company to weather challenging times until the hoped-for cash flows materialize. This may be true for high-tech or biotechnology companies with enough cash to sustain prolonged business development. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and unattractive today. In such cases, the Obermatt Method has limited value, as it is based on facts we can observe today. If the facts lie all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that account for a small fraction of a safe portfolio. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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360° ViewnewThis stock has achievements: Top 10 Stock.
19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Pilbara Minerals
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 1 |
|
15 |
|
4 |
|
3 |
|
| GROWTH | ||||||||
| GROWTH | 100 |
|
97 |
|
3 |
|
19 |
|
| SAFETY | ||||||||
| SAFETY | 2 |
|
4 |
|
88 |
|
78 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
39 |
|
19 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
21 |
|
8 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 18 (worse than 82% compared with investment alternatives), Pilbara Minerals (Diversified Metals & Mining, Australia) shares have lower financial characteristics compared with similar stocks. Shares of Pilbara Minerals are low in value (priced high) with a consolidated Value Rank of 3 (worse than 97% of alternatives) and show below-average growth (Growth Rank of 19) but are safely financed (Safety Rank of 78), which means low debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 18, is a sell recommendation based on Pilbara Minerals's financial characteristics. As the company Pilbara Minerals's critical financial metrics exhibit below-average performance, such as low value (Obermatt Value Rank of 3) and low growth (Obermatt Growth Rank of 19), it is a somewhat questionable stock investment, where the risk of paying too much for the shares is significant, unless the company has an exceptionally bright future. In this case, good financing practices (Obermatt Safety Rank of 78) are a positive sign, because it may allow the company to weather challenging times until the hoped-for cash flows materialize. This may be true for high-tech or biotechnology companies with enough cash to sustain prolonged business development. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and unattractive today. In such cases, the Obermatt Method has limited value, as it is based on facts we can observe today. If the facts lie all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that account for a small fraction of a safe portfolio. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 1 |
|
15 |
|
4 |
|
3 |
|
| GROWTH | ||||||||
| GROWTH | 100 |
|
97 |
|
3 |
|
19 |
|
| SAFETY | ||||||||
| SAFETY | 2 |
|
4 |
|
88 |
|
78 |
|
| COMBINED | ||||||||
| COMBINED | 17 |
|
20 |
|
12 |
|
18 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 3 (worse than 97% compared with alternatives), Pilbara Minerals shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with all four indicators below average for Pilbara Minerals. Price-to-Sales is 5 which means that the stock price compared with what market professionals expect for future profits is higher than 95% of comparable companies, indicating a low value concerning Pilbara Minerals's sales levels. Price-to-Book Capital (also referred to as market-to-book ratio) also has a low Price-to-Book Rank of 16, which means that both reliable company size indicators, sales, and invested capital cannot explain the high stock price of Pilbara Minerals. In addition, the two profit-related value indicators, Price-to-Profit (also referred to as price-earnings, P/E) with a low rank of 1 and Dividend Yield, which is lower than 78% of comparable companies, also make the stock more expensive compared with investment alternatives. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 3, is a sell recommendation based on Pilbara Minerals's stock price compared with the company's operational size and dividend yields. How can market participants pay such a high price for Pilbara Minerals? One reason may be that the company is simply too popular. If enough people want a particular stock, its price can exceed reasonable levels. This is often the case for companies offering new and exciting products and everybody wants a piece of the action. Should you pay a lot for a hot stock such as Pilbara Minerals? It's risky, and even if the stock price continues to grow because of popular demand, it may return to more typical lower levels later. And that return can be sudden and quick, making it impossible for retail investors to exit on time. Sometimes, high prices are deserved. This is the case when it is justified to believe that the company will dominate a market with high profit margins. It has happened in the past for many technology companies and indeed for commercially successful pharmaceutical discoveries. Sometimes they last, sometimes, they get eaten alive. Pilbara Minerals may be such a type of stock. That would mean, retail investors should be careful, only considering investing a small part of their wealth in this exciting category and always being ready to lose more than half, if not all of the investment. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 7 |
|
3 |
|
3 |
|
5 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 2 |
|
13 |
|
25 |
|
1 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 2 |
|
1 |
|
8 |
|
16 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 1 |
|
77 |
|
29 |
|
22 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 1 |
|
15 |
|
4 |
|
3 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 19 (better than 19% compared with alternatives), Pilbara Minerals shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below-average for Pilbara Minerals. While Sales Growth ranks at 98, professionals currently expect the company to grow more than 98% of its competitors, while all other growth ranks are below the market median. Profit Growth has a rank of 9, which means that, currently, professionals expect the company to grow its profits less than 91% of its competitors, and Capital Growth has a low rank of 10. Historic stock returns were also below average with a current Stock Returns rank of 5 which means that the stock returns have recently been below 95% of alternative investments. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 19, is a sell recommendation for growth and momentum investors. If revenues are expected to increase, but all other growth indicators are negative, the company may be investing in future growth through means not visible in the balance sheet and thus not reflected in capital growth. The fact that Stock Returns have been below market doesn't mean that much, as it may be due to overly optimistic investor behavior in the past, which has been corrected to a more reasonable level recently. If that were the case, a positive Value Rank would be a reason to invest because the company is still expected to grow, while stock prices are now at a more reasonable level. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance isn't stellar here. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 100 |
|
94 |
|
24 |
|
98 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 100 |
|
96 |
|
6 |
|
9 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
18 |
|
7 |
|
10 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 98 |
|
99 |
|
47 |
|
5 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 100 |
|
97 |
|
3 |
|
19 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 78 (better than 78% compared with alternatives) for 2024, the company Pilbara Minerals has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Pilbara Minerals is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, where all three are above average for Pilbara Minerals. Leverage is at 62, meaning the company has a below-average debt-to-equity ratio. It has less debt than 62% of its competitors. Refinancing is at a rank of 55, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 55% of its competitors. Finally, Liquidity is also good at a rank of 67, which means that the company generates more profit to service its debt than 67% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 78 (better than 78% compared with alternatives), Pilbara Minerals has a financing structure that is significantly safer than that of its competitors. These three positive financing indicators signal that the company is less likely to default on its debt obligations. However, it also means that its shareholder returns will be more modest if things go well. A low safety means fewer troubles in downtimes and less upside in good times. Investors may not have a debt issue with Pilbara Minerals but they should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 38 |
|
46 |
|
68 |
|
62 |
|
| REFINANCING | ||||||||
| REFINANCING | 24 |
|
3 |
|
53 |
|
55 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 76 |
|
14 |
|
90 |
|
67 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 2 |
|
4 |
|
88 |
|
78 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
21 |
|
12 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
50 |
|
10 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
74 |
|
45 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
35 |
|
88 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
39 |
|
19 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for Pilbara Minerals from December 19, 2024.
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