ASX:NHC

Stock Analysis Report

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Executive Summary

New Hope Corporation Limited explores, develops, produces, and processes coal, and oil and gas properties. More Details


Snowflake Analysis

Established dividend payer with adequate balance sheet.


Similar Companies

Share Price & News

How has New Hope's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NHC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

8.9%

NHC

1.5%

AU Oil and Gas

0.5%

AU Market


1 Year Return

-48.1%

NHC

-39.6%

AU Oil and Gas

-11.6%

AU Market

Return vs Industry: NHC underperformed the Australian Oil and Gas industry which returned -39.6% over the past year.

Return vs Market: NHC underperformed the Australian Market which returned -12.3% over the past year.


Shareholder returns

NHCIndustryMarket
7 Day8.9%1.5%0.5%
30 Day-2.8%-7.3%-3.2%
90 Day-13.8%-12.0%1.1%
1 Year-43.9%-48.1%-37.4%-39.6%-8.3%-11.6%
3 Year-20.9%-34.4%-21.6%-30.0%17.1%2.1%
5 Year-5.0%-27.2%-14.7%-29.0%44.8%14.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is New Hope undervalued compared to its fair value and its price relative to the market?

6.31x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NHC (A$1.22) is trading above our estimate of fair value (A$0.74)

Significantly Below Fair Value: NHC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NHC is good value based on its PE Ratio (6.3x) compared to the AU Oil and Gas industry average (22.9x).

PE vs Market: NHC is good value based on its PE Ratio (6.3x) compared to the Australian market (20.1x).


Price to Earnings Growth Ratio

PEG Ratio: NHC's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: NHC is good value based on its PB Ratio (0.5x) compared to the AU Oil and Gas industry average (1.4x).


Next Steps

Future Growth

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

-5.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NHC's earnings are forecast to decline over the next 3 years (-5% per year).

Earnings vs Market: NHC's earnings are forecast to decline over the next 3 years (-5% per year).

High Growth Earnings: NHC's earnings are forecast to decline over the next 3 years.

Revenue vs Market: NHC's revenue is expected to decline over the next 3 years (-18.8% per year).

High Growth Revenue: NHC's revenue is forecast to decline over the next 3 years (-18.8% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NHC's Return on Equity is forecast to be low in 3 years time (4.7%).


Next Steps

Past Performance

How has New Hope performed over the past 5 years?

54.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NHC has high quality earnings.

Growing Profit Margin: NHC's current net profit margins (12.3%) are lower than last year (15.8%).


Past Earnings Growth Analysis

Earnings Trend: NHC's earnings have grown significantly by 54% per year over the past 5 years.

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

Earnings vs Industry: NHC had negative earnings growth (-14.3%) over the past year, making it difficult to compare to the Oil and Gas industry average (-61.9%).


Return on Equity

High ROE: NHC's Return on Equity (8.2%) is considered low.


Next Steps

Financial Health

How is New Hope's financial position?


Financial Position Analysis

Short Term Liabilities: NHC's short term assets (A$282.4M) exceed its short term liabilities (A$169.5M).

Long Term Liabilities: NHC's short term assets (A$282.4M) do not cover its long term liabilities (A$742.2M).


Debt to Equity History and Analysis

Debt Level: NHC's debt to equity ratio (18.4%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if NHC's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: NHC's debt is well covered by operating cash flow (65.1%).

Interest Coverage: NHC's interest payments on its debt are well covered by EBIT (14.9x coverage).


Balance Sheet


Next Steps

Dividend

What is New Hope current dividend yield, its reliability and sustainability?

12.30%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NHC's dividend (12.3%) is higher than the bottom 25% of dividend payers in the Australian market (2.38%).

High Dividend: NHC's dividend (12.3%) is in the top 25% of dividend payers in the Australian market (5.69%)


Stability and Growth of Payments

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

Growing Dividend: NHC's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (77.6%), NHC's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NHC's dividends in 3 years are forecast to be well covered by earnings (45.3% payout ratio).


Next Steps

  • Explore strong dividend paying companies in the Energy industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure


CEO

Reinhold Schmidt (54 yo)

no data

Tenure

Mr. Reinhold Hans Schmidt, MEng (Mineral Economics), has been Chief Executive Officer of New Hope Corporation Limited since September 1, 2020. He was the Chief Executive Officer of Yancoal Australia Ltd., ...


Leadership Team

NamePositionTenureCompensationOwnership
Andrew Boyd
Chief Operating Officer4.75yrsAU$1.18m0.0019%
A$ 18.8k
Ben Armitage
Chief Development Officer1.58yrsAU$493.86kno data
Reinhold Schmidt
Chief Executive Officerno datano datano data
Rob Bishop
General Manager Corporate Development & Acting CFO0.17yrno datano data
Janelle Moody
Executive GM of Legal & Company Secretary2.33yrsno datano data
Sam Fisher
Executive General Manager of Marketing & External Affairsno datano datano data
Kim Franks
Executive General Manager of People5.75yrsno datano data

2.3yrs

Average Tenure

Experienced Management: NHC's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Thomas Dobson Millner
Non-Executive Director4.75yrsAU$153.73k0.48%
A$ 4.9m
Robert Millner
Non-Executive Chairman21.83yrsAU$325.29k0.50%
A$ 5.1m
William Grant
Independent Non-Executive Director14.33yrsAU$170.81k0.0036%
A$ 36.6k
Todd Barlow
Non-Executive Director5.42yrsAU$153.73k0.0024%
A$ 24.3k
Ian Williams
Independent Non-Executive Director7.83yrsAU$153.73k0.0046%
A$ 46.5k
Jacqueline McGill
Non-Executive Director0.25yrno datano data

6.6yrs

Average Tenure

Experienced Board: NHC's board of directors are considered experienced (6.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

New Hope Corporation Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: New Hope Corporation Limited
  • Ticker: NHC
  • Exchange: ASX
  • Founded: 1952
  • Industry: Coal and Consumable Fuels
  • Sector: Energy
  • Market Cap: AU$1.015b
  • Shares outstanding: 832.36m
  • Website: https://www.newhopegroup.com.au

Number of Employees


Location

  • New Hope Corporation Limited
  • 175 Eagle Street
  • Level 16
  • Brisbane
  • Queensland
  • 4000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OD8DB (Deutsche Boerse AG)YesOrdinary SharesDEEURSep 2003
NHCASX (Australian Securities Exchange)YesOrdinary SharesAUAUDSep 2003
NHPE.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDSep 2003
NHCCHIA (Chi-X Australia)YesOrdinary SharesAUAUDSep 2003

Biography

New Hope Corporation Limited explores, develops, produces, and processes coal, and oil and gas properties. It operates through three segments: Coal mining in Queensland, Coal mining in New South Wales, and ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/19 19:02
End of Day Share Price2020/09/18 00:00
Earnings2020/01/31
Annual Earnings2019/07/31


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.