Iluka Resources Limited (ILU) AI Stock Analysis

• Market Cap: $3.19B
• Dividend Yield: 0.8%
• Average Volume (3M): 4.25M
• Price to Earnings (P/E): 16.8
• Beta (1Y): 1.41
• Revenue Growth: -4.84%
• EPS Growth: -30.61%
• Country: AU
• Employees: 1,000
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): 0.21
• Shares Outstanding: 429,703,920
• 10 Day Avg. Volume: 4,271,887
• 30 Day Avg. Volume: 4,251,708
• PEG Ratio: -0.29
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 1.86
• P/FCF Ratio: -7.02
• Enterprise Value/Market Cap: 0.69
• Enterprise Value/Revenue: 1.85
• Enterprise Value/Gross Profit: 3.75
• Enterprise Value/Ebitda: 4.24
• 1Y Price Target: $6.40
• Price Target Upside: -14.41% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 71 Outperform
• Price Target: AU$6.50 ▼(-13.10% Downside)

Iluka Resources Limited's overall stock score reflects its strong financial stability and reasonable valuation. However, challenges in revenue growth, declining profitability, and liquidity concerns weigh on the score. Technical indicators suggest potential for recovery, but short-term weakness is evident.

Iluka Resources Limited Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

Iluka Resources Limited generates revenue primarily through the extraction, processing, and sale of mineral sands, particularly zircon and titanium dioxide feedstocks such as rutile and synthetic rutile. The company's key revenue streams include the sale of these mineral products to various industries across the globe, where they are used in ceramics, paints, plastics, and other high-tech applications. Additionally, Iluka has established significant partnerships and long-term contracts with major industrial clients, ensuring steady demand and revenue. The company also benefits from the fluctuating global market prices for mineral sands, which can significantly impact its earnings. Furthermore, Iluka occasionally engages in the sale of by-products and other minerals, contributing to its diversified income sources.

Iluka Resources Limited Financial Statement Overview

Summary

Iluka Resources Limited shows strong equity positions and efficient cost management with a gross profit margin of 64.45%. However, challenges are evident with a decrease in net profit margin to 19.76% and a 9.37% revenue decline. The absence of EBIT and negative free cash flow raise concerns about liquidity and operational efficiency.

Income Statement

Iluka Resources Limited demonstrates a commendable gross profit margin of 64.45% for 2024, indicating efficient cost management. However, the net profit margin has decreased to 19.76% from 26.55% in 2023, indicating declining profitability. The revenue has decreased by 9.37% year-over-year from 2023 to 2024, suggesting challenges in maintaining sales growth. EBIT is notably absent in 2024, which could indicate operational challenges. Despite this, EBITDA margin remains strong at 45.04%, which signals solid operational cash flow generation ability.

Balance Sheet

The company maintains a strong equity position, with an equity ratio of 63.08% in 2024, highlighting financial stability. The debt-to-equity ratio is low at 0.12, reflecting prudent leverage management. However, the return on equity (ROE) dropped to 9.80% in 2024 from 15.88% in 2023, indicating a reduced ability to generate returns on equity investments. Overall, the balance sheet suggests financial stability with room for improved profitability.

Cash Flow

Iluka Resources faced a challenging cash flow situation in 2024, with negative free cash flow of -310.6 million AUD. The absence of operating cash flow data makes it difficult to assess the company's operational efficiency. The free cash flow to net income ratio is negative, indicating insufficient cash generation to cover net income. This is a potential concern for liquidity and future investment capabilities.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.17B	1.29B	1.61B	1.32B	990.00M
Gross Profit	478.30M	643.80M	968.80M	920.20M	635.10M
EBITDA	503.50M	647.10M	867.00M	682.40M	370.80M
Net Income	231.30M	342.60M	584.50M	365.80M	2.41B
Balance Sheet
Total Assets	3.74B	3.33B	3.20B	2.80B	2.53B
Cash, Cash Equivalents and Short-Term Investments	136.00M	364.90M	521.70M	294.80M	87.10M
Total Debt	291.30M	163.70M	62.50M	35.90M	60.20M
Total Liabilities	1.38B	1.17B	1.30B	1.21B	1.23B
Stockholders Equity	2.36B	2.16B	1.89B	1.59B	1.29B
Cash Flow
Free Cash Flow	-310.60M	-191.80M	484.60M	316.10M	40.50M
Operating Cash Flow	123.30M	89.60M	637.20M	369.70M	111.70M
Investing Cash Flow	-402.90M	-240.80M	-172.50M	-51.70M	-66.10M
Financing Cash Flow	52.60M	-5.40M	-134.10M	-112.90M	-51.30M

Iluka Resources Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ILU, the sentiment is Positive. The current price of 7.48 is above the 20-day moving average (MA) of 6.42, above the 50-day MA of 6.21, and above the 200-day MA of 4.75, indicating a bullish trend. The MACD of 0.35 indicates Negative momentum. The RSI at 73.57 is Negative, neither overbought nor oversold. The STOCH value of 87.13 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:ILU.

Iluka Resources Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ILU	71 Outperform	$3.19B	16.77	7.84%	0.80%	-4.84%	-30.61%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
LOT	48 Neutral	AU$597.39M	―	-7.50%	―	―	51.47%
A4N	47 Neutral	AU$909.82M	―	-13.97%	―	620.73%	-21.19%
AGE	46 Neutral	AU$128.67M	―	-8.25%	―	―	-55.56%
IPX	38 Underperform	AU$2.76B	―	-50.19%	―	―	-20.85%

Iluka Resources Limited Corporate Events

Iluka Resources Suspends Production at Cataby and SR2 Amidst Demand Uncertainty

Iluka Resources Limited has announced the suspension of production activities at its Cataby mine and Synthetic Rutile Kiln 2 (SR2) in Western Australia, effective 1 December 2025, due to subdued demand for mineral sands and associated products like pigment. This strategic decision aims to manage inventory, reduce costs, and maintain financial stability, with plans to resume operations when market conditions improve. Meanwhile, production continues at the Jacinth Ambrosia mine, and commissioning is underway at the new Balranald mine, indicating Iluka’s readiness to adapt to changing market demands.

The most recent analyst rating on (AU:ILU) stock is a Buy with a A$6.40 price target. To see the full list of analyst forecasts on Iluka Resources Limited stock, see the AU:ILU Stock Forecast page.

Iluka Resources Updates Director’s Securities Interests

Iluka Resources Limited has announced a change in the interests of its Managing Director, Thomas O’Leary, in the company’s securities. The change involves the allocation of fully paid ordinary shares through the Iluka Resources Limited Employee Share Plan Trust as part of the 2024 Short-Term Incentive Award. This adjustment reflects the company’s ongoing commitment to aligning executive interests with shareholder value, as approved in the 2025 Annual General Meeting. The update is part of a broader executive incentive framework, including Performance Rights and Restricted Rights under various Executive Incentive Plans and Long-Term Incentive Plans, aimed at enhancing the company’s competitive positioning and rewarding leadership performance.

The most recent analyst rating on (AU:ILU) stock is a Buy with a A$6.40 price target. To see the full list of analyst forecasts on Iluka Resources Limited stock, see the AU:ILU Stock Forecast page.