ASX:NHC

Stock Analysis Report

Executive Summary

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

Snowflake

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

-0.5%

NHC

1.9%

AU Oil and Gas

0.7%

AU Market


1 Year Return

-42.6%

NHC

2.8%

AU Oil and Gas

13.6%

AU Market

Return vs Industry: NHC underperformed the Australian Oil and Gas industry which returned 2.8% over the past year.

Return vs Market: NHC underperformed the Australian Market which returned 13.6% over the past year.


Shareholder returns

NHCIndustryMarket
7 Day-0.5%1.9%0.7%
30 Day-4.8%7.0%1.7%
90 Day0%6.4%2.4%
1 Year-38.6%-42.6%7.0%2.8%20.1%13.6%
3 Year52.3%28.2%24.9%11.8%41.1%22.3%
5 Year19.5%-6.4%0.05%-18.1%54.7%19.7%

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?

8.61x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NHC (A$2.18) is trading above our estimate of fair value (A$1.29)

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 (8.6x) compared to the Oil and Gas industry average (9.2x).

PE vs Market: NHC is good value based on its PE Ratio (8.6x) compared to the Australian market (18.6x).


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 (0.9x) compared to the AU Oil and Gas industry average (1.3x).


Next Steps

Future Growth

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

-0.4%

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 (-0.4% per year).

Earnings vs Market: NHC's earnings are forecast to decline over the next 3 years (-0.4% 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 (-10.9% per year).

High Growth Revenue: NHC's revenue is forecast to decline over the next 3 years (-10.9% 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 (7.4%).


Next Steps

Past Performance

How has New Hope performed over the past 5 years?

54.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NHC has a high level of non-cash earnings.

Growing Profit Margin: NHC's current net profit margins (16.1%) are lower than last year (17.4%).


Past Earnings Growth Analysis

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

Accelerating Growth: NHC's earnings growth over the past year (12.3%) is below its 5-year average (54.9% per year).

Earnings vs Industry: NHC earnings growth over the past year (12.3%) underperformed the Oil and Gas industry 68.1%.


Return on Equity

High ROE: NHC's Return on Equity (10.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is New Hope's financial position?


Financial Position Analysis

Short Term Liabilities: NHC's short term assets (A$263.2M) exceeds its short term liabilities (A$214.1M)

Long Term Liabilities: NHC's short term assets (263.2M) do not cover its long term liabilities (626.3M)


Debt to Equity History and Analysis

Debt Level: NHC's debt to equity ratio (18%) 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 (83.2%).

Interest Coverage: NHC's interest payments on its debt are well covered by EBIT (32.7x coverage).


Balance Sheet

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

Debt Coverage by Assets: NHC's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

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

8.26%

Current Dividend Yield


Dividend Yield vs Market

company8.3%marketbottom25%2.3%markettop25%5.6%industryaverage4.3%forecastin3Years4.2%

Current dividend yield vs market & industry

Notable Dividend: NHC's dividend (8.26%) is higher than the bottom 25% of dividend payers in the Australian market (2.34%).

High Dividend: NHC's dividend (8.26%) is in the top 25% of dividend payers in the Australian market (5.57%)


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: With its reasonable payout ratio (67.2%), NHC's dividend 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 (37.8% payout ratio).


Next Steps

Management

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

4.4yrs

Average management tenure


CEO

Shane Stephan 0

5.8yrs

Tenure

AU$2,188,161

Compensation

Mr. Shane Oscar Stephan, BBus (Dist), MBA (AGSM), MAusIMM, MAICD has been the Managing Director at New Hope Corporation Limited, a subsidiary of Washington H. Soul Pattinson and Company Limited since Novem ...


CEO Compensation Analysis

Compensation vs Market: Shane's total compensation ($USD1.50M) is about average for companies of similar size in the Australian market ($USD1.41M).

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


Management Age and Tenure

4.4yrs

Average Tenure

Experienced Management: NHC's management team is considered experienced (4.4 years average tenure).


Board Age and Tenure

7.0yrs

Average Tenure

62yo

Average Age

Experienced Board: NHC's board of directors are considered experienced (7 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$6,111,79507 Jun 19
Perpetual Limited
EntityCompany
Shares2,270,830
Max PriceAU$2.69
BuyAU$729,22424 Mar 19
Thomas Dobson Millner
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares200,000
Max PriceAU$3.65
BuyAU$48,30024 Mar 19
Shane Stephan
EntityIndividual
Role
Chief Executive Officer
MD & Director
Shares15,000
Max PriceAU$3.22
BuyAU$794,12422 Mar 19
Robert Millner
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares220,000
Max PriceAU$3.61
BuyAU$521,74206 Mar 19
Perpetual Limited
EntityCompany
Shares127,390
Max PriceAU$4.10
SellAU$44,586,33106 Mar 19
Perpetual Limited
EntityCompany
Shares10,503,806
Max PriceAU$4.24
SellAU$34,783,26218 Feb 19
Perpetual Limited
EntityCompany
Shares8,451,349
Max PriceAU$4.12
SellAU$34,293,67808 Feb 19
Perpetual Limited
EntityCompany
Shares8,498,642
Max PriceAU$4.04
SellAU$32,691,93330 Jan 19
Perpetual Limited
EntityCompany
Shares8,793,281
Max PriceAU$3.72
SellAU$32,532,31015 Jan 19
Perpetual Limited
EntityCompany
Shares9,101,853
Max PriceAU$3.57
BuyAU$43,267,58914 Dec 18
Perpetual Limited
EntityCompany
Shares12,591,625
Max PriceAU$3.44
SellAU$12,729,72014 Dec 18
Perpetual Limited
EntityCompany
Shares3,927,081
Max PriceAU$3.24

Ownership Breakdown

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


Management Team

  • Kim Franks

    Executive General Manager of People

    • Tenure: 4.9yrs
  • Matthew Busch

    Chief Financial Officer

    • Tenure: 5.8yrs
    • Compensation: AU$900.72k
  • Shane Stephan

    MD & Director

    • Tenure: 5.8yrs
    • Compensation: AU$2.19m
  • Sam Fisher

    Executive General Manager of Marketing & External Affairs

    • Tenure: 0yrs
  • Andrew Boyd

    Chief Operating Officer

    • Tenure: 3.9yrs
    • Compensation: AU$1.18m
  • Janelle Moody

    Executive GM of Legal & Company Secretary

    • Tenure: 1.5yrs
  • Ben Armitage

    Chief Development Officer

    • Tenure: 0.8yrs
    • Compensation: AU$493.86k

Board Members

  • Tom Dobson Millner

    Non-Executive Director

    • Tenure: 3.9yrs
    • Compensation: AU$153.73k
  • Rob Millner (68yo)

    Non-Executive Chairman

    • Tenure: 21yrs
    • Compensation: AU$325.29k
  • Bill Grant

    Independent Non-Executive Director

    • Tenure: 13.5yrs
    • Compensation: AU$170.81k
  • Sue Palmer (62yo)

    Independent Non-Executive Director

    • Tenure: 7yrs
    • Compensation: AU$197.36k
  • Todd Barlow (40yo)

    Non-Executive Director

    • Tenure: 4.6yrs
    • Compensation: AU$153.73k
  • Shane Stephan

    MD & Director

    • Tenure: 5.8yrs
    • Compensation: AU$2.19m
  • Ian Williams

    Independent Non-Executive Director

    • Tenure: 7yrs
    • Compensation: AU$153.73k

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$1.813b
  • Shares outstanding: 831.71m
  • Website: https://www.newhopegroup.com.au

Number of Employees


Location

  • New Hope Corporation Limited
  • 3/22 Magnolia Drive
  • Brookwater
  • Queensland
  • 4300
  • 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 Analysis2019/11/13 10:32
End of Day Share Price2019/11/13 00:00
Earnings2019/07/31
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.