NGX Limited focuses on the exploration, development of graphite projects in Malawi. It holds 100% interest in the the Nanzeka Project, the Duwi Project, the Malingunde Project, and the Mabuwa project located in Malawi. The Company was incorporated in 2021 and is based in Perth, Australia. NGX Limited was formerly a subsidiary of Sovereign Metals Limited

Australia

NGX Ltd

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. 

Over the last six months, the stock performance has varied, with an increase following a drop. The stock's price trend wasn't definitive when matched against its global counterparts from the same sector and industry (as depicted above). Within the past six months, its performance has trailed this peer group's by 27ppts and its growth decelerated by 32ppts in the past month. There is a distinction between the stock's performance and that of its peers from the same country and industry. Over six months its performance trailed that of this peer group by 27ppts and its growth decelerated by 34ppts in the previous month. Given the stock's valuation versus its peers, its total price movement is slightly unfavourable.

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 2508.4 in the past several years. This ratio implies a excellent 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.

NGX.AX has very poor trading liquidity. It will take considerable time for the average private investor to sell a common position under normal market conditions. Liquidity may be unstable 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 tiny market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is very high. Among the negative credit factors, we point to weak positions in its industry, negligible return on capital, weak debt servicing capacity, and an unfavourable capital structure.

In highly turbulent market conditions, NGX.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, NGX.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 'cheaper' than its peers. 

NGX Ltd

A$ 0.11

3

NGX Ltd

A$ 0.11

3

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

A$ 0.11

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