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. 

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). It has underperformed this peer group by 23ppts over six months and grown 19ppts 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 slightly negative.

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 2572.0 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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