The average target price of MEK.AX is 0.23 and suggests 59% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to increase one's position in this instrument in the next 12 months. The most optimistic analyst has a target price of 0.2. This translates into 59% upside potential in the best case. On the other hand, the most pessimistic analyst has a target price of 0.2. This suggests 59% upside potential. Even the most pessimistic analyst believes there will be stock growth. 

Meeka Metals Limited engages in the exploration of gold and rare earth properties in Australia. Its flagship project is the Murchison gold project covering an area of 343 square kilometers located in the prolific Murchison Gold Fields, Western Australia. The company was formerly known as Meeka Gold Limited and changed its name to Meeka Metals Limited in July 2022. Meeka Metals Limited is based in West Perth, Australia.

Australia

Meeka Metals Limited

Basic Materials

The company does not pay dividends at all, or it pays them sporadically. There have only been a few years with dividend payments in the past ten years. 

MEK.AX reported revenue of AUD 0mn in the last 12 months, up 559% from FY23. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. EPS fell 0% from FY23 to AUD 0.00. Market expects EPS to reach AUD -0.00 in FY25.

The stock's performance has been mixed in the past six months, with growth following a decline. There is no clear price trend compared to its global peers from the same sector and industry (as shown above). The stock has outperformed this peer group by 111ppts over past six months and grown 8ppts slower in the past month. This is largely true for peers from the same country and sector. With respect to the stock's valuation against its peers, its overall price performance is positive. Usually, this means that a fairly valued or slightly undervalued stock has become more 'expensive', indicating that the market, in general, may have gained short-term confidence in the stock.

Another important profitability metric, return on assets (RoA), amounted to -4.1% in the last 12 months, an increase from -4.1% in FY24. 

In the last 12 months, the return on capital employed (RoCE) declined to -4.5%, below the peers. 

Meeka Metals Limited reported a return on equity (RoE) of -4.7% in the last 12 months, up from -4.8% in FY24. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been -0.7 in the past several years. This ratio implies a fragile shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are minimal. In combination with stringent business standards, shareholder rights are very highly protected.

MEK.AX has very poor trading liquidity. The average private investor can sell his common position in the stock in a single trading day under normal market conditions. Liquidity is relatively stable and becomes extremely unfavourable on the days with the lowest activity. The trading volume mostly stays the same even under highly turbulent market conditions. Another factor to consider is the substantial number of days with zero trading volumes, i.e., without any ability to sell a position. The stock has a very small market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is high. Among the negative credit factors, we point to weak positions in its industry, bleak profitability, negligible return on capital, poor working capital management, weak debt servicing capacity, and inadequate interest coverage. We note resilient historical revenue growth, low margin volatility, and an favourable capital structure, among the positive credit factors. 

In highly turbulent market conditions, MEK.AX is exceptionally volatile. In other words, the stock will be among the worst-performers in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be critical. 

In normal market circumstances, MEK.AX is exceptionally volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will change quite unpredictably. The stock's losses on its worst days (less than 1-5% of the time) will range from critical to immense. 

Considering past and projected metrics, the stock is distinctly 'expensive' compared to its peers. 

Meeka Metals Limited

A$ 0.15

3

Meeka Metals Limited

A$ 0.15

3

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

A$ 0.15

About

About

About

About