| Is Royalco Resources Limited (ASX:RCO) An Industry Laggard Or Leader? | |
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The metals and mining industry is trading at a PE ratio of 14.02x, relatively similar to the rest of the Australian stock market PE of 17.26x. This illustrates a fairly valued sector relative to the rest of the market, indicating low mispricing opportunities. Furthermore, the industry returned a similar 9.66% on equities compared to the market’s 11.33%. Since Royalco Resources’s earnings doesn’t seem to reflect its true value, its PE ratio isn’t very useful. A loose alternative to gauge Royalco Resources’s value is to assume the stock should be relatively in-line with its industry. Next Steps:Royalco Resources has been a metals and mining industry laggard in the past year. If Royalco Resources has been on your watchlist for a while, now may be a good time to dig deeper into the stock. Although it delivered lower growth relative to its materials peers in the near term, the market may be pessimistic on the stock, leading to a potential undervaluation. However, before you make a decision on the stock, I suggest you look at Royalco Resources’s fundamentals in order to build a holistic investment thesis. To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
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RoyalCo Resources Limited
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CODE : RCO.AX |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
RoyalCo Resources is a gold and copper exploration company based in Australia. RoyalCo Resources is listed in Australia, in Germany and in United States of America. Its market capitalisation is AU$ 12.9 millions as of today (US$ 8.7 millions, € 8.0 millions). Its stock quote reached its highest recent level on March 01, 2013 at AU$ 0.43, and its lowest recent point on May 22, 2015 at AU$ 0.13. RoyalCo Resources has 52 710 000 shares outstanding. |