Fact based stock research
Nickel Mines (ASX:NIC)

AU0000018236

How to read the ranks

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.

Nickel Mines stock research in summary

nickelmines.com.au

ANALYSIS: With an Obermatt Combined Rank of 63 (better than 63% compared with investment alternatives), Nickel Mines (Diversified Metals & Mining, Australia) shares have above-average financial characteristics compared with similar stocks. Shares of Nickel Mines are a good value (attractively priced) with a consolidated Value Rank of 82 (better than 82% of alternatives), are safely financed (Safety Rank of 56, which means low debt burdens), but show below-average growth (Growth Rank of 35). ...read more

RECOMMENDATION: A Combined Rank of 63, is a buy recommendation based on Nickel Mines's financial characteristics. As the company Nickel Mines's key financial metrics exhibit good value (Obermatt Value Rank of 82) but low growth (Obermatt Growth Rank of 35) while being safely financed (Obermatt Safety Rank of 56), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 82% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	82
Growth Rank	35
Safety Rank	56
Combined Rank	63

Country	Australia
Industry	Diversified Metals & Mining
Index	ASX 300, Iron
Size class	Medium

This stock has achievements: Top 10 Stock.

25-Apr-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

Multiple opinions. One number.

Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.

Why popular stocks have low ratings

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Nickel Mines

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	43	43	88	82
GROWTH
GROWTH	39	39	13	35
SAFETY
SAFETY	100	82	67	56
SENTIMENT
SENTIMENT	n/a	30	14	^new
360° VIEW
360° VIEW	n/a	47	38	^new

Most recent update of the stock research: 25-Apr-2024. Financial reporting date used for calculating ranks: 31-Dec-2023. Stock research history is based on the Obermatt Method. The higher the rank, the better Nickel Mines is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	43	43	88	82
GROWTH
GROWTH	39	39	13	35
SAFETY
SAFETY	100	82	67	56
COMBINED
COMBINED	87	56	64	63

Last update of combined financial performance: 25-Apr-2024. Stock analysis on combined financial performance: The higher the rank of Nickel Mines the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 82 (better than 82% compared with alternatives) for 2024, Nickel Mines shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Nickel Mines. Expected dividend yields are higher than for 88% of comparable companies (a Dividend Yield rank of 88), making the stock attractive. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 78, which means that the stock price is lower compared with invested capital than for 78% of comparable investments. But in respect to sales and profits, the picture is reversed. Price-to-Sales is 43 which means that the stock price compared with what market professionals expect for future profits is higher than for 57% of comparable companies, indicating a low value concerning Nickel Mines's sales levels. The Price-to-Profit ratio (also referred to as price-earnings (P/E) ratio) is also unfavorable for Nickel Mines with a rank of 45. This means that the stock price, compared with what market professionals expect for future profits, is higher than for 55% of comparable companies, indicating a low value concerning Nickel Mines's profit levels. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 82, is a buy recommendation based on Nickel Mines's stock price compared with the company's operational size and dividend yields. The company seems confident that it can generate a reasonable return on invested capital, because it pays an above-average dividend while profits are below what you would expect for a company with this stock price. If you agree with this practice and believe that profits will return to higher levels, as the current dividend policy suggests, Nickel Mines may be an attractive investment. If this is not the case, you may want to be careful with this stock as it is also expensive compared with its expected revenue levels. 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)	19	23	64	43
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	43	35	74	45
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	38	27	83	78
DIVIDEND YIELD
DIVIDEND YIELD	72	91	91	88
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	43	43	88	82

Last update of Value Rank: 25-Apr-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Nickel Mines; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 35 (better than 35% compared with alternatives), Nickel Mines shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Nickel Mines. Sales Growth has a rank of 64, which means that, currently, professionals expect the company to grow more than 64% of its competitors. Profit Growth with a rank of 65 is also above average. But Capital Growth has only a rank of 1, and Stock Returns with 37 are also below-average. Stock returns for Nickel Mines have recently been below 63% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 35, is a hold recommendation for growth and momentum investors. Are investors forecasting troubles based on the lack of operating investment activity at the company? This could be one explanation as to why stock returns are low. But stock returns can also be the result of correcting an error in the past, in this case, an overly optimistic outlook on the future, which is now more realistic. The Value Ranks may confirm such a picture. The more important growth indicators are revenues and profits, which are both above average for Nickel Mines. This is a positive sign from the company's operational side and may give investors courage, despite the poor recent stock price performance. 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 the Obermatt Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	42	91	27	64
PROFIT GROWTH
PROFIT GROWTH	n/a	36	49	65
CAPITAL GROWTH
CAPITAL GROWTH	n/a	1	32	1
STOCK RETURNS
STOCK RETURNS	68	57	11	37
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	39	39	13	35

Last update of Growth Rank: 25-Apr-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Nickel Mines.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 56 (better than 56% compared with alternatives), the company Nickel Mines has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Nickel Mines 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 two out of three are above average for Nickel Mines.Leverage is at 52, meaning the company has a below-average debt-to-equity ratio. It has less debt than 52% of its competitors.Refinancing is at a rank of 67, meaning that the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 67% of its competitors. Liquidity is at 35, meaning that the company generates less profit to service its debt than 65% of its competitors. This indicates that the company is on the riskier side regarding debt service. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 56 (better than 56% compared with alternatives), Nickel Mines has a financing structure that is safer than that of its competitors. Low leverage and low refinancing risk mean a safer financing situation. However, low liquidity means that current company cash flows are low in relation to the level of debt. This is a sign of caution in case it is expected for profits to remain low. Investors should compare Obermatt’s Value, Growth, and Sentiment Ranks before deciding. They may also want to investigate why cash flows are expected to be low, making debt service for Nickel Mines more challenging. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	46	84	50	52
REFINANCING
REFINANCING	86	41	57	67
LIQUIDITY
LIQUIDITY	48	75	52	35
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	100	82	67	56

Last update of Safety Rank: 25-Apr-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Nickel Mines and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	87	86	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	11	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	10	32	^new
MARKET PULSE
MARKET PULSE	n/a	32	23	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	30	14	^new

Last update of Sentiment Rank: 25-Apr-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Nickel Mines.
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