Grange Resources Limited (GRR) AI Stock Analysis

• Market Cap: AU$324.05M
• Dividend Yield: N/A
• Average Volume (3M): 1.37M
• Price to Earnings (P/E): 7.2
• Beta (1Y): 1.52
• Revenue Growth: -13.54%
• EPS Growth: -56.86%
• Country: AU
• Employees: 581
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): 0.01
• Shares Outstanding: 1,157,338,700
• 10 Day Avg. Volume: 715,755
• 30 Day Avg. Volume: 1,373,734
• PEG Ratio: -0.07
• Price to Book (P/B): 0.24
• Price to Sales (P/S): 0.49
• P/FCF Ratio: 6.34
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: AU$0.31 ▲(23.20% Upside)

Grange Resources Limited demonstrates strong financial stability and positive technical momentum, which are the primary drivers of its stock score. The undervaluation based on the P/E ratio adds to its attractiveness. However, challenges in revenue growth and profitability margins are areas of concern.

Positive Factors

Financial Stability

The company's minimal leverage and high equity ratio of 81.55% indicate strong financial stability, providing resilience against market fluctuations.

Cash Generation

Strong cash generation relative to earnings ensures liquidity and supports operational and strategic initiatives, enhancing long-term business sustainability.

Operational Efficiency

Efficient management of operating expenses, as reflected in stable margins, supports profitability and competitive positioning in the industry.

Negative Factors

Revenue Decline

A decline in revenue growth indicates challenges in maintaining sales levels, which could impact long-term market presence and financial performance.

Profitability Pressure

Decreasing profit margins suggest increased cost pressures or pricing challenges, potentially affecting the company's ability to sustain profitability.

Earnings Decline

A decline in ROE reflects reduced profitability relative to equity, indicating challenges in generating returns for shareholders and potential investor concerns.

Grange Resources Limited Business Overview & Revenue Model

Company Description

Grange Resources Limited (GRR) is an Australian mining company primarily engaged in the exploration, development, and production of iron ore. The company operates in the mining sector and is known for its significant iron ore projects, including the Savage River mine in Tasmania. Grange Resources focuses on producing high-quality iron ore pellets and concentrates, catering to both domestic and international markets. The company is committed to sustainable mining practices and aims to enhance its operational efficiency while maintaining a strong commitment to environmental stewardship.

How the Company Makes Money

Grange Resources Limited generates revenue primarily through the sale of iron ore products, including iron ore pellets and concentrates. The company's key revenue stream comes from contracts with international steel manufacturers and traders, who require high-quality iron ore for steel production. Additionally, Grange Resources benefits from long-term supply agreements and strategic partnerships that help stabilize its revenue and provide a consistent customer base. The company's earnings are influenced by global iron ore prices, demand from the steel industry, and its operational efficiency. Any fluctuations in these factors can significantly impact the company's financial performance.

Grange Resources Limited Financial Statement Overview

Summary

Grange Resources Limited demonstrates financial resilience with a strong balance sheet and robust cash flow generation, despite challenges in sales growth and declining profitability margins. The low debt-to-equity ratio and high equity ratio indicate financial stability, while strong cash flow metrics reflect good liquidity management.

Income Statement

Grange Resources Limited showed a mixed performance in its income statement. The gross profit margin declined from 32.47% in 2023 to 13.51% in 2024, reflecting pressure on profitability. Net profit margin also decreased from 24.42% to 11.24%. Revenue growth rate was negative at -15.28% in 2024 compared to 2023, indicating challenges in maintaining sales levels. However, the company maintained reasonable EBIT and EBITDA margins of 11.72% and 22.90% respectively, showing efficiency in managing operating expenses.

Balance Sheet

Grange Resources Limited maintains a strong balance sheet with a very low debt-to-equity ratio of 0.001, reflecting minimal leverage and low financial risk. The equity ratio is 81.55%, indicating a high proportion of assets financed by equity, showcasing financial stability. Return on Equity (ROE) decreased to 5.52% in 2024, which is a decline from previous years, highlighting reduced profitability relative to equity.

Cash Flow

The cash flow statement shows a solid free cash flow to net income ratio of 2.62, indicating strong cash generation relative to earnings. However, the free cash flow growth rate was 1,620.09% in 2024, primarily due to a low base in 2023. Operating cash flow to net income ratio is 4.10, demonstrating robust cash flow from operations. Despite the challenges, cash flow metrics remain strong, indicative of good liquidity management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	493.19M	520.80M	614.74M	594.55M	781.66M	526.32M
Gross Profit	57.05M	61.32M	199.51M	239.40M	435.55M	232.81M
EBITDA	102.47M	243.74M	274.53M	308.67M	538.92M	269.93M
Net Income	45.78M	58.55M	150.10M	171.74M	322.26M	204.18M
Balance Sheet
Total Assets	1.32B	1.30B	1.24B	1.10B	1.12B	878.34M
Cash, Cash Equivalents and Short-Term Investments	239.37M	298.05M	282.61M	298.61M	464.69M	202.92M
Total Debt	543.00K	1.32M	2.21M	6.48M	17.45M	16.45M
Total Liabilities	248.51M	240.06M	212.82M	194.09M	249.02M	166.25M
Stockholders Equity	1.08B	1.06B	1.03B	904.13M	871.22M	713.26M
Cash Flow
Free Cash Flow	93.44M	40.13M	8.92M	-27.63M	418.09M	74.82M
Operating Cash Flow	170.26M	239.92M	267.11M	196.94M	498.16M	202.57M
Investing Cash Flow	-171.94M	-253.38M	-241.90M	-396.24M	-79.57M	-125.12M
Financing Cash Flow	-7.55M	-30.73M	-25.19M	-145.55M	-165.25M	-26.89M

Grange Resources Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:GRR, the sentiment is Positive. The current price of 0.25 is below the 20-day moving average (MA) of 0.27, below the 50-day MA of 0.26, and above the 200-day MA of 0.21, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 57.56 is Neutral, neither overbought nor oversold. The STOCH value of 54.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:GRR.

Grange Resources Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GRR	78 Outperform	AU$324.05M	7.20	4.28%	―	-13.54%	-56.86%
FEX	62 Neutral	AU$335.23M	62.16	3.14%	2.17%	21.95%	-84.84%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
DRE	46 Neutral	AU$152.35M	-5.63	-36.29%	―	―	-166.67%
CBE	39 Underperform	AU$49.52M	-19.41	-6.39%	―	―	37.04%

Grange Resources Limited Corporate Events

Grange Resources Reports Strong Q3 2025 Performance and Growth Initiatives

Grange Resources Limited reported a strong third quarter of 2025, highlighted by improved safety performance with no Lost Time Injuries and increased production at its Savage River Operations. The company achieved higher concentrate production and pellet sales, alongside reduced unit costs due to the completion of a waste stripping campaign. Additionally, Grange saw a significant increase in product pricing, contributing to a rise in cash reserves. The company is progressing with project financing for the North Pit Underground development, indicating a focus on future growth and operational expansion.