Risk factor
Good trading liquidity
Profitability factor
Greatly overvalued vs peers
About
Iluka Resources Limited engages in the exploration, project development, mining, processing, marketing, and rehabilitation of mineral sands. The company operates through Jacinth-Ambrosia/Mid West, Cataby/South West, Sierra Rutile, and United States/Murray Basin segments. It produces zircon; titanium dioxide products of rutile and synthetic rutile; and ilmenite, as well as activated carbon and iron concentrate products. The company also engages in the exploration of rare earths elements, such as monazite and xenotime. Its products are used in technology, construction, medical, lifestyle and industrial applications. It has operations in Australia, China, rest of Asia, Europe, the Americas, and internationally. The company was formerly known as Westralian Sands Limited and changed its name to Iluka Resources Limited in May 1999. Iluka Resources Limited was incorporated in 1954 and is headquartered in Perth, Australia.
Company Valuation
Based on key historical and expected multiples, the stock is greatly overvalued relative to its peers. Specifically, the stock is overvalued on EV/EBITDA.
Target Price
The average target price of ILU.AX is 7.9 and suggests 0% downside potential. Usually, this means a SELL recommendation among investment firms, or a recommendation to dec