ASX:NHC

Stock Analysis Report

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Market Cap

AU$1.6b

Last Updated

2021/07/23 15:42 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Reasonable growth potential and fair value.


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 is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: NHC's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-0.3%

NHC

-0.9%

AU Oil and Gas

0.3%

AU Market


1 Year Return

34.6%

NHC

20.8%

AU Oil and Gas

25.8%

AU Market

Return vs Industry: NHC exceeded the Australian Oil and Gas industry which returned 20.8% over the past year.

Return vs Market: NHC exceeded the Australian Market which returned 25.8% over the past year.


Shareholder returns

NHCIndustryMarket
7 Day-0.3%-0.9%0.3%
30 Day2.4%-0.6%1.3%
90 Day59.7%3.1%4.2%
1 Year38.6%34.6%23.6%20.8%30.4%25.8%
3 Year-32.1%-42.0%-20.9%-28.7%32.8%16.6%
5 Year51.2%17.8%12.8%-2.8%64.3%32.3%

Long-Term 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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NHC (A$1.89) is trading below our estimate of fair value (A$5.17)

Significantly Below Fair Value: NHC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NHC is unprofitable, so we can't compare its PE Ratio to the Australian Oil and Gas industry average.

PE vs Market: NHC is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate NHC's PEG Ratio to determine if it is good value.


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 (2x).


Future Growth

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

22.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NHC is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: NHC is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: NHC's is expected to become profitable in the next 3 years.

Revenue vs Market: NHC's revenue (5.6% per year) is forecast to grow faster than the Australian market (5% per year).

High Growth Revenue: NHC's revenue (5.6% per year) is forecast to grow slower than 20% 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 (5.9%).


Past Performance

How has New Hope performed over the past 5 years?

-14.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NHC is currently unprofitable.

Growing Profit Margin: NHC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NHC is unprofitable, and losses have increased over the past 5 years at a rate of 14.1% per year.

Accelerating Growth: Unable to compare NHC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: NHC is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-2.3%).


Return on Equity

High ROE: NHC has a negative Return on Equity (-16.94%), as it is currently unprofitable.


Financial Health

How is New Hope's financial position?


Financial Position Analysis

Short Term Liabilities: NHC's short term assets (A$354.1M) exceed its short term liabilities (A$173.9M).

Long Term Liabilities: NHC's short term assets (A$354.1M) do not cover its long term liabilities (A$742.1M).


Debt to Equity History and Analysis

Debt Level: NHC's debt to equity ratio (22.7%) is considered satisfactory.

Reducing Debt: NHC's debt to equity ratio has increased from 0.02% to 22.7% over the past 5 years.

Debt Coverage: NHC's debt is well covered by operating cash flow (51.8%).

Interest Coverage: NHC's interest payments on its debt are not well covered by EBIT (1.8x coverage).


Balance Sheet


Dividend

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

4.24%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NHC's dividend (4.24%) is higher than the bottom 25% of dividend payers in the Australian market (2%).

High Dividend: NHC's dividend (4.24%) is low compared to the top 25% of dividend payers in the Australian market (5.02%).


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 fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: NHC is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: NHC's dividends in 3 years are forecast to be covered by earnings (51.4% payout ratio).


Next Steps

Management

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

6.3yrs

Average board tenure


CEO

Reinhold Schmidt (55 yo)

0.83

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., ...


Board Members

Experienced Board: NHC's board of directors are considered experienced (6.3 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$1.569b
  • 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


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 Analysis2021/07/23 15:42
End of Day Share Price2021/07/23 00:00
Earnings2021/01/31
Annual Earnings2020/07/31


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.