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Red Metal Ltd (RDM) Fair Value & Analysis

Basic Materials · AU · Market cap A$50.4M (≈ $36.2M) · ISIN AU000000RDM6

What is Red Metal Ltd really worth?

RM Red Metal Ltd RDM · AU
PriceA$0.1400
Fair ValueA$0.3570
Upside+155.0%
Quality47/100

Below-average quality, trading 61% below our fair value of A$0.3570.

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Strengths

Ranks above peers (8/10)
Wide moat 84/100

Risks

!Weak Growth (revenue 5y −15.0 %/yr)
!negative free cash flow
!Evidence only low, so the estimate is less certain
Evidence: Low Range A$0.1975 – A$0.4938

Fair value as of: Aug 31, 2026

From 3 valuation models · updated yesterday

Share price +3.7% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price is below even our cautious bear case (A$0.1975). The market is more pessimistic than our downside scenario.
  • The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
  • Solid quality (47/100) at a price below fair value, the discount is the argument here, not the business quality.
  • A fairly wide model range (A$0.1975 to A$0.4938) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

A$0.2150 A$0.0566 Fair Value A$0.3570 Jun 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 31, 2026.

How to read this chart

60‑month range A$0.0566 – A$0.2150 · fair‑value band A$0.1975 – A$0.4938 · the A$0.1400 price screens below the A$0.3570 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 2 fiscal years are left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Aug 31, 2026.

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Analysis

Red Metal Ltd (RDM) currently trades at A$0.1400, while our model-based Fair Value estimate is A$0.3570, implying the stock looks roughly 60.8% undervalued today. The Quality Score stands at 47/100 (below-average quality), in the Basic Materials sector. How firm this estimate is: it rests on 3 models at a data quality of 80/100, which puts the evidence level at low.

Trailing-twelve-month revenue stands at A$2.1M. It earns a return on equity of 71.0%. The balance sheet holds a net cash position of A$7.7M. The stock trades on a trailing P/E of 2.8. Fundamentals as of Aug 31, 2026

Our scenario range runs from A$0.1975 (bear case) to A$0.4938 (bull case); at A$0.1400, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 28% below its 52-week high and 52% above its 52-week low, currently below its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at −37% fair-value upside, at 155%, RDM screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 12 months have passed since. In that time the company retained roughly A$0.0500 per share, which is 12.8 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Gordon GGM A$0.2300 A$0.3900 A$0.5100 66
DDM Multi-Stage A$0.2300 A$0.3700 A$0.4200 65
NCAV (Graham) A$0.0100 A$0.0100 A$0.0200 50
All 3 models by family
Dividend Discount
Gordon GGM A$0.2300 A$0.3900 A$0.5100 66
DDM Multi-Stage A$0.2300 A$0.3700 A$0.4200 65
Asset-Based
NCAV (Graham) A$0.0100 A$0.0100 A$0.0200 50

Widest divergence: Dividend Discount (A$0.3700) versus Asset-Based (A$0.0100). Highest evidence: Gordon GGM (66).

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Key figures & financial health

P/E ratio 2.8
P/S ratio 24.5 TTM
EPS (TTM) A$0.0500 price ÷ EPS = P/E 2.8
Net margin 897% TTM
Return on equity 71.0% TTM
Return on assets (EBIT) −49.3% avg 5y
More key figures
Profitability
Operating margin 6,654% TTM
Growth
Revenue (TTM) A$2.1M TTM
Revenue growth (YoY) +815% 3y avg −12.1%
EPS growth (YoY) +29.3%
Balance sheet & cash flow
Free cash flow −A$10.1M FY2025
Net cash A$7.7M FY2025

Figures from reported company fundamentals · as of Aug 31, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 47/100

Of which business quality 41 · Market factors (momentum, volatility) 40

Profitability 8
Margins and returns on capital today
Quality Growth 28
Are margins and returns improving?
Cashflow 19
Earnings quality: real cash, not paper profit
Fin. Strength 100
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 50
Calm price path (market factor)
Momentum 35
Price trend over the last 3–12 months (market factor)
52W Momentum 38
Distance to the 52-week high (market factor)
Net Issuance 0
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Red Metal Limited, together with its subsidiaries, acquires and explores for mineral properties in Australia. It explores for copper, gold, lithium, silver, lead, zinc, cobalt, nickel, and rare earth deposits. The company was incorporated in 2003 and is based in Sydney, Australia.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Red Metal Ltd reported revenue of A$1.8M in FY2025 versus A$3.4M in FY2021, a compound −14.7%/yr. Reported net income was −A$7.5M in FY2025.

Growth Quality 16/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
A$1.8M
Latest YoY
−2.4%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−12.1%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−15.0%
Avg. revenue growth/yr (21Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+23.9%
Value creation/yr We only publish this rate when it is defensible. Reason: fiscal 2025 is a loss year, no rate is defined from a loss
not computed
Revenue −14.7%/yr
FY21 A$3.4M
FY22 A$2.6M
FY23 A$793K
FY24 A$1.8M
FY25 A$1.8M
Net income
FY21 −A$1.4M
FY22 −A$2.3M
FY23 −A$6.2M
FY24 −A$5.6M
FY25 −A$7.5M

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Cite: Fair Value Calculator (2026). "Red Metal Ltd Fair Value". https://www.fairvalue-calculator.com/stock/RDM

Peer Group

Other Industrial Metals & Mining · 482 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 47 · Above median
Fair Value upside +155% · Top 25%
Return on equity (TTM) 71% · Top 25%
Return on assets 44% · Top 25%
Revenue growth 815% · Top 25%
Dividend yield (TTM) 24.3% · Top 25%

Valuation Multiples vs Other Industrial Metals & Mining median · lower = cheaper

P/E (TTM) 2.8× · Cheaper than 75% of peers
P/B 5.63× · Pricier than 75% of peers
P/S (TTM) 17.65× · Pricier than 75% of peers
EV/EBITDA 1.6× · Cheaper than 75% of peers

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE100 · sector 0
FUTURE100 · sector 36
PAST100 · sector 0
HEALTH0 · sector 96
DIVIDEND100 · sector 37

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Other Industrial Metals & Mining stocks, each showing price versus our Fair Value estimate (as of Aug 31, 2026).

Stock Price Fair Value vs Fair Value
BHP Group BHP A$66.40 A$41.87 −37%
Vale S.A VALE $15.31 $8.95 −42%
Saudi Arabian Mining Company 1211 65.50 SAR 33.87 SAR −48%
CMOC Group 603993 ¥18.42 ¥16.15 −12%
Teck Resources Limited TECK $69.34 $32.02 −54%
China Tungsten And Hightech Materials Co 000657 ¥66.76 ¥9.55 −86%
Hindustan Zinc Limited HINDZINC ₹573.00 ₹508.34 −11%
China Northern Rare Earth (Group) High-Tech Co 600111 ¥41.02 ¥10.59 −74%
Western Mining Co 601168 ¥37.85 ¥25.99 −31%
Boliden AB BOL kr 527.80 kr 461.48 −13%

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Frequently asked questions

Is Red Metal Ltd (RDM) overvalued or undervalued?
As of Aug 31, 2026, our model estimates a fair value of A$0.3570 versus a price of A$0.1400, about +155% upside (undervalued).
What is the fair value of RDM?
Our model-based fair value for Red Metal Ltd is A$0.3570 (as of Aug 31, 2026), built from audited fundamentals. The current price: A$0.1400.
What is the quality score of RDM?
Red Metal Ltd has a Quality Score of 47/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Red Metal Ltd (RDM)?
Red Metal Ltd reported trailing-twelve-month revenue of about A$2.1M (latest available figure, as of Aug 31, 2026).
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