ASX:NWH

Stock Analysis Report

Executive Summary

NRW Holdings Limited, through its subsidiaries, provides civil and mining contracting, urban development, and drilling and blasting services in Australia.

Snowflake

Fundamentals

Excellent balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has NRW Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

5.2%

NWH

1.0%

AU Construction

0.4%

AU Market


1 Year Return

24.9%

NWH

-23.4%

AU Construction

9.8%

AU Market

Return vs Industry: NWH exceeded the Australian Construction industry which returned -23.4% over the past year.

Return vs Market: NWH exceeded the Australian Market which returned 9.8% over the past year.


Shareholder returns

NWHIndustryMarket
7 Day5.2%1.0%0.4%
30 Day-1.2%0.4%-1.3%
90 Day6.6%-7.4%-0.5%
1 Year25.8%24.9%-20.3%-23.4%16.1%9.8%
3 Year337.9%330.4%24.3%12.8%36.1%17.9%
5 Year240.6%234.7%49.1%17.1%49.4%15.7%

Price Volatility Vs. Market

How volatile is NRW Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is NRW Holdings undervalued compared to its fair value and its price relative to the market?

20.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NWH (A$2.41) is trading below our estimate of fair value (A$3.03)

Significantly Below Fair Value: NWH is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: NWH is poor value based on its PE Ratio (27.9x) compared to the Construction industry average (13.8x).

PE vs Market: NWH is poor value based on its PE Ratio (27.9x) compared to the Australian market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: NWH is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: NWH is overvalued based on its PB Ratio (3.1x) compared to the AU Construction industry average (1.1x).


Next Steps

Future Growth

How is NRW Holdings forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

19.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NWH's forecast earnings growth (19.3% per year) is above the savings rate (2.3%).

Earnings vs Market: NWH's earnings (19.3% per year) are forecast to grow faster than the Australian market (10.3% per year).

High Growth Earnings: NWH's earnings are forecast to grow, but not significantly.

Revenue vs Market: NWH's revenue (8.3% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: NWH's revenue (8.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NWH's Return on Equity is forecast to be low in 3 years time (19.1%).


Next Steps

Past Performance

How has NRW Holdings performed over the past 5 years?

54.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: NWH's earnings have grown significantly by 54.9% per year over the past 5 years.

Accelerating Growth: NWH's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NWH had negative earnings growth (-23.5%) over the past year, making it difficult to compare to the Construction industry average (5.7%).


Return on Equity

High ROE: NWH's Return on Equity (11.1%) is considered low.


Return on Assets

ROA vs Industry: NWH's Return on Assets is below or equal to the Construction industry average last year.


Return on Capital Employed

ROCE Improving: NWH has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is NRW Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: NWH's short term assets (A$260.1M) exceeds its short term liabilities (A$234.9M)

Long Term Liabilities: NWH's short term assets (260.1M) exceeds its long term liabilities (62.3M)


Debt to Equity History and Analysis

Debt Level: NWH's debt to equity ratio (19.2%) is considered satisfactory

Reducing Debt: NWH's debt to equity ratio has increased from 0.2% to 19.2% over the past 5 years.

Debt Coverage: NWH's debt is well covered by operating cash flow (178.7%).

Interest Coverage: NWH's interest payments on its debt are well covered by EBIT (12.7x coverage).


Balance Sheet

Inventory Level: NWH has a high level of physical assets or inventory.

Debt Coverage by Assets: NWH's debt is covered by short term assets (assets are 4.655710x debt).


Next Steps

Dividend

What is NRW Holdings's current dividend yield, its reliability and sustainability?

1.66%

Current Dividend Yield


Upcoming Dividend Payment

Purchase NRW Holdings before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.7%marketbottom25%2.4%markettop25%5.6%industryaverage4.3%forecastin3Years2.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: NWH's dividend (1.66%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.44%).

High Dividend: NWH's dividend (1.66%) is low compared to the top 25% of dividend payers in the Australian market (5.59%).

Stable Dividend: NWH's dividend payments have been volatile in the past 10 years.

Growing Dividend: NWH's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (46.3%), NWH's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NWH's dividends in 3 years are forecast to be well covered by earnings (33.2% payout ratio).


Next Steps

Management

What is the CEO of NRW Holdings's salary, the management and board of directors tenure and is there insider trading?

5.8yrs

Average management tenure


CEO

Jules Pemberton 0

9.3yrs

Tenure

AU$2,279,730

Compensation

Mr. Julian Alexander Pemberton, also known as Jules, has been the Chief Executive Officer of NRW Holdings Limited since July 7, 2010 and serves as its Managing Director. Mr. Pemberton has been Executive Di ...


CEO Compensation Analysis

Compensation vs. Market: Jules's total compensation ($USD1.56M) is about average for companies of similar size in the Australian market ($USD992.67K).

Compensation vs Earnings: Jules's compensation has been consistent with company performance over the past year.


Management Age and Tenure

5.8yrs

Average Tenure

Experienced Management: NWH's management team is seasoned and experienced (5.8 years average tenure).


Board Age and Tenure

4.9yrs

Average Tenure

Experienced Board: NWH's board of directors are considered experienced (4.9 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellAU$2,902,06119 Aug 19
Dimensional Fund Advisors L.P.
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Shares1,259,452
Max PriceAU$2.56
BuyAU$1,963,02519 Aug 19
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Max PriceAU$2.64
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Max PriceAU$2.41
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Max PriceAU$2.11
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Max PriceAU$2.10
BuyAU$789,04013 Jun 19
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Max PriceAU$2.90
BuyAU$7,424,89226 May 19
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Max PriceAU$2.88
SellAU$11,177,59026 May 19
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SellAU$12,661,64304 Mar 19
Wellington Management Group LLP
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BuyAU$3,990,03304 Mar 19
Wellington Management Group LLP
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Max PriceAU$1.74
BuyAU$245,98703 Mar 19
Dimensional Fund Advisors L.P.
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Shares122,269
Max PriceAU$2.06
SellAU$368,05403 Mar 19
Dimensional Fund Advisors L.P.
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Vinva Investment Management
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BuyAU$6,221,95301 Mar 19
Vinva Investment Management
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BuyAU$625,98603 Feb 19
Dimensional Fund Advisors L.P.
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Shares346,902
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BuyAU$17,66303 Feb 19
M Fund, Inc. - M International Equity Fund
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Shares11,110
Max PriceAU$1.59
SellAU$60,97404 Dec 18
Dimensional Fund Advisors L.P.
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Shares32,811
Max PriceAU$1.92
BuyAU$49,15304 Dec 18
Dimensional Fund Advisors L.P.
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Shares28,000
Max PriceAU$1.79
BuyAU$302,60513 Nov 18
Dimensional Fund Advisors L.P.
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Shares164,447
Max PriceAU$1.92
SellAU$5,274,11909 Nov 18
Paradice Investment Management Pty Ltd.
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BuyAU$3,941,78209 Nov 18
Paradice Investment Management Pty Ltd.
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Shares1,917,175
Max PriceAU$2.06

Ownership Breakdown


Management Team

  • Andrew Walsh

    Chief Financial Officer

    • Tenure: 5.8yrs
    • Compensation: AU$1.25m
  • Ric Buratto

    Executive General Manager of NRW Civil & Mining

    • Tenure: 2yrs
    • Compensation: AU$695.37k
  • Mike Gloyne

    General Manager of Mining for Civil & Mining Businesses

    • Tenure: 5.1yrs
    • Compensation: AU$194.01k
  • Jules Pemberton

    CEO, MD & Executive Director

    • Tenure: 9.3yrs
    • Compensation: AU$2.28m
  • Kim Hyman

    Company Secretary

    • Tenure: 12.3yrs
    • Compensation: AU$406.63k
  • Ian Gibbs

    General Manager of RCR Mining Technologies & Heat Treatment

    • Tenure: 0.7yrs
    • Compensation: AU$422.11k
  • P. Miguel

    Manager of Project Plant & Equipment

    • Tenure: 21.3yrs
    • Compensation: AU$281.48k
  • Keith Bassett

    Group Manager of Human Resources

    • Tenure: 5.8yrs
    • Compensation: AU$282.17k
  • Dennis Donjerkovich

    General Manager of Civil - NRW Civil & Mining

    • Tenure: 3.8yrs
    • Compensation: AU$149.42k
  • Geoff Caton

    Executive General Manager of Golding

    • Tenure: 0yrs
    • Compensation: AU$936.65k

Board Members

  • Michael Arnett (57yo)

    Chairman of the Board

    • Tenure: 3.6yrs
    • Compensation: AU$159.25k
  • Peter Johnston (68yo)

    Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: AU$109.50k
  • Jeff Dowling

    Non-Executive Director

    • Tenure: 6.2yrs
    • Compensation: AU$136.88k
  • Jules Pemberton

    CEO, MD & Executive Director

    • Tenure: 9.3yrs
    • Compensation: AU$2.28m

Company Information

NRW Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: NRW Holdings Limited
  • Ticker: NWH
  • Exchange: ASX
  • Founded: 1994
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: AU$915.592m
  • Shares outstanding: 376.79m
  • Website: https://www.nrw.com.au

Number of Employees


Location

  • NRW Holdings Limited
  • 181 Great Eastern Highway
  • Belmont
  • Western Australia
  • 6104
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NWHASX (Australian Securities Exchange)YesOrdinary SharesAUAUDSep 2007
3NRDB (Deutsche Boerse AG)YesOrdinary SharesDEEURSep 2007
NWHCHIA (Chi-X Australia)YesOrdinary SharesAUAUDSep 2007
NWHCHIA (Chi-X Australia)YesOrdinary SharesAUAUDSep 2007

Biography

NRW Holdings Limited, through its subsidiaries, provides civil and mining contracting, urban development, and drilling and blasting services in Australia. It operates through four business segments: Civil, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 10:34
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.