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Gullewa Limited
Basic Materials · Gold
Updated just now
$0.08
MARKET CAP
$17.66M
P/E RATIO
9.5
DIV. YIELD
—
FRANKING
100%
Gullewa Limited engages in the exploration, evaluation, and mining of mineral properties in Australia. The company operates in three segments: Exploration and Evaluation; Property Holding; and Investments.
View full descriptionThe Warsi Rating combines two proven approaches: value investing principles and dividend strategy. A stock must score 70+ on both to be rated Solid or higher.
10-year ROE trends, dividend history, price ceiling calculations, and every red flag explained.
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Strong liquidity. 21.27 ratio means ample cash to cover short-term obligations.
Current Snapshot
Current Ratio
21.27x
Warning Floor
1.00x
Target
1.50x
Why It Matters
Liquidity supports operational stability. Companies with weak liquidity can face pressure even when long-term fundamentals are sound.
Formula
Current Assets / Current LiabilitiesMethod
Compare the current ratio to the warning floor and target level used in the framework.
Worked Example
This company's current ratio is 21.27x — it has $21.27 in short-term assets for every $1 of short-term liabilities. The target is 1.5x, with a warning floor at 1.0x.
How to Interpret
Ratios above the target suggest healthier short-term resilience; ratios below 1.0x can indicate immediate funding risk.
Strong liquidity means the company can keep paying dividends even during temporary revenue drops. There's ample cash cushion to weather storms.
Sources
Real cash left after running the business
Positive cash generation. Company produces real cash after capital expenditures - can fund dividends, buybacks, or growth.
Current Snapshot
Current FCF
$2M
Pass Rule
> $0
Status
Positive
Why It Matters
Free cash flow is the cash available after core operating and capital needs. It is central to dividend capacity.
Formula
Operating Cash Flow - Capital ExpendituresMethod
Review whether free cash flow is consistently positive and whether it is sufficient relative to dividends and debt needs.
Worked Example
This company generated $2M in free cash flow — cash left after operating costs and capital expenditure. Positive FCF means dividends are funded by real cash generation.
How to Interpret
Persistently negative free cash flow can force reliance on borrowing or equity issuance to maintain payouts.
Positive cash flow means dividends are funded by actual money, not accounting profits. As Buffett says, "Cash is fact, profit is opinion." Your income is backed by real cash generation.
Sources
Profit generated per $1 of shareholder investment
4.4% average is below the 15% threshold. This suggests the business may lack a durable competitive advantage.
Current Snapshot
10Y Avg
4.4%
Threshold
15.0%
Worst Year
-51.8%
Why It Matters
ROE shows how effectively management turns shareholder capital into profit. High and stable ROE can signal pricing power, cost discipline, or both.
Formula
Net Income / Shareholders' Equity x 100Method
Use the 10-year average ROE and review the weakest year to check whether returns stayed resilient across cycles.
Worked Example
This company's 10-year average ROE is 4.4%, meaning each $1 of shareholder equity generates $0.04 in annual profit. The threshold is 15%, and the worst single year was -51.8%.
How to Interpret
Higher and steadier ROE generally supports stronger long-term compounding. Large drawdowns in weak years can point to fragility.
Lower ROE means your investment compounds more slowly. At 4.4%, this business needs more capital to generate the same returns as competitors. Consider whether other strengths (yield, stability) compensate for weaker profitability.
Sources
Price versus estimated intrinsic value and required return thresholds.
What percentage of the stock price comes back as earnings each year
Strong value. 10.5% earnings yield exceeds the threshold, and multiple valuation checks confirm it's attractively priced.
Current Snapshot
Current Yield
10.5%
Required Yield
7.5%
Spread
+3.0pp
Why It Matters
Earnings yield reframes valuation as return on price paid. It helps compare equity earnings power against lower-risk alternatives.
Formula
(Earnings per Share / Stock Price) x 100Method
Calculate current earnings yield, then compare it to the required yield for the stock's industry setting.
Worked Example
With EPS of $0.01 and a share price of $0.08, earnings yield is 10.5%. The required yield for this industry is 7.5% (based on 4.5% government bond rate plus a risk premium).
How to Interpret
A yield above the required level suggests better valuation support; below it indicates thinner compensation for equity risk.
Multiple ways of measuring value agree: you're getting a fair deal. The stock offers solid returns compared to what you'd earn from safe bonds.
Sources
How current price compares with estimated intrinsic value
How much earnings are consumed by capital expenditure
Moderate capital intensity. 41% of earnings goes to CapEx — within the 75% threshold for this sector.
Current Snapshot
10Y CapEx Intensity
41%
Threshold
75%
Buffer
+34%
Why It Matters
CapEx intensity estimates how much of earnings must be reinvested just to sustain operations.
Formula
Cumulative CapEx (10yr) / Cumulative Net Income (10yr) x 100Method
Aggregate 10-year CapEx and net income, then compare the ratio with the sector threshold in the framework.
Worked Example
Over 10 years, 41% of this company's cumulative earnings were consumed by capital expenditure. The materials & mining threshold is 75%, leaving a buffer of +34%.
How to Interpret
Lower ratios usually indicate better cash conversion. Higher ratios can reduce room for dividends and buybacks.
Capital needs are manageable for this sector. The business retains enough earnings to fund both maintenance and shareholder returns.
Sources
Consistency of profits over time
Insufficient dividend history. Barsi methodology requires 6 years of data to calculate average yield.
Current Snapshot
6Y Avg Yield
N/A
6% Requirement
6.0%
Gross Yield
N/A
Why It Matters
Yield translates dividend income into a percentage of the price paid, which is central to income-first screening.
Formula
Annual Dividends per Share / Stock Price x 100Method
Use the 6-year average annual dividend for consistency and compare the result with the 6% framework requirement.
Worked Example
If annual dividends are $0.60 and the share price is $10, dividend yield is 6.0%.
How to Interpret
Higher sustainable yield improves upfront income, but unusually high yields may reflect elevated risk or weak coverage.
Without 6 years of dividend history, we can't assess whether the yield is sustainable or a one-time spike. More data is needed to evaluate income potential.
Sources
Track record of consistent dividend payments
| Ex-Date | Pay Date | Gross | Franking | Net | Credit |
|---|---|---|---|---|---|
| 20 May 2026Final | 3 July 2026 | $0.01 | 100% | $0.01 | $0.00 |
| Ex-Date | Pay Date | Gross | Franking | Net | Credit |
|---|---|---|---|---|---|
| 22 Apr 2025Interim | 20 May 2025 | $0.01 | 0% | $0.01 | $0.00 |
Only 2 years of dividend history available. Barsi methodology requires 6+ years to evaluate consistency.
Current Snapshot
History
2yr
Predictability
N/A
Payout Health
N/A
Why It Matters
Payment consistency is a direct test of dividend reliability. Large cuts or skips often appear before confidence recovers.
Formula
Consecutive Years = count of years with dividend payments and no disqualifying skip/cut eventsMethod
Require at least 6 years of history, then check for skipped years and large cuts, allowing approved systemic-event exceptions.
Worked Example
This company has 2 years of dividend history (2025–2026). No suspensions detected — 2 consecutive years of payments. Predictability: N/A. Payout health: N/A. The minimum requirement is 6 years.
How to Interpret
Longer uninterrupted records generally signal stronger income reliability than high yield alone.
Without 6 years of history, we can't verify this company maintained dividends through economic cycles. Longer track records provide confidence your income will continue.
Sources
Industry category of the business
Basic Materials is not a BESST sector. Non-BESST stocks receive a lower base score but can still qualify with exceptional dividend metrics.
Current Snapshot
Industry
Gold
BESST Match
No
Score Impact
No bonus
Why It Matters
Sector classification helps contextualise risk and demand durability, which can materially affect dividend stability.
Formula
BESST Match = Sector in {Banks, Energy, Sanitation, Insurance, Telecom}Method
Match company sector or industry against BESST categories. A match adds scoring support but does not replace core dividend checks.
Worked Example
This company operates in Gold (Basic Materials sector). It does not match a BESST sector, so it receives the standard base score. Non-BESST stocks can still qualify with strong dividend metrics.
How to Interpret
BESST alignment is a positive context signal. Non-BESST stocks can still qualify with strong yield and dividend consistency.
Non-essential businesses face demand drops during recessions — discretionary spending is first to be cut. This increases cyclical risk for dividends, but companies with decades of consistent payments can still demonstrate durability.
Sources
No overlapping years between dividend and earnings history.
Stock is trading 47% BELOW the fair-value threshold (includes 30% margin of safety).
Current Snapshot
Current Margin
63.6%
Industry Threshold
30%
Status
47% Undervalued
Why It Matters
Margin of safety provides a valuation buffer against modelling uncertainty and adverse business outcomes.
Formula
(Estimated Intrinsic Value per Share - Current Price) / Estimated Intrinsic Value per Share x 100Method
Estimate intrinsic value using a two-stage DCF (10-year projection plus terminal value), then compare with current price.
Worked Example
For this stock now: intrinsic value is $0.22 per share, current price is $0.08, and margin of safety is 63.6%.
How to Interpret
Positive margin indicates price below modelled value; negative margin indicates price above modelled value. Compare against the industry's required buffer.
Price is below your required threshold, so you retain a margin-of-safety buffer against normal valuation error and market volatility.
Sources
Cyclical business - earnings naturally fluctuate with commodity prices. Focus on dividend consistency instead.
Current Snapshot
Positive Years
8/4
Allowed Losses
0 (limited)
EPS CAGR
0.6%
Why It Matters
Consistency in EPS helps distinguish resilient earnings power from one-off performance spikes.
Formula
Positive EPS Years / Available EPS YearsMethod
For 8+ years of data, apply industry-specific loss tolerance. For limited data, every available year must be positive.
Worked Example
This company reported positive earnings in 8 of the last 4 years, with 2 loss years. With only 4 years of data, every year must be positive. EPS growth rate (CAGR) is 0.6%.
How to Interpret
Fewer loss years and stronger EPS continuity generally improve confidence in future dividend and valuation assumptions.
Cyclical businesses have volatile earnings tied to commodity prices. For these companies, dividend track record is more telling than earnings consistency.
Sources