ASX:NHC

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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


Snowflake Analysis

Fair value with moderate growth potential.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-6.1%

NHC

1.9%

AU Oil and Gas

0.3%

AU Market


1 Year Return

-47.5%

NHC

-37.1%

AU Oil and Gas

-5.4%

AU Market

Return vs Industry: NHC underperformed the Australian Oil and Gas industry which returned -37.8% over the past year.

Return vs Market: NHC underperformed the Australian Market which returned -5.7% over the past year.


Shareholder returns

NHCIndustryMarket
7 Day-6.1%1.9%0.3%
30 Day-8.0%1.6%6.3%
90 Day-18.8%-8.0%3.7%
1 Year-45.5%-47.5%-34.5%-37.1%-2.1%-5.4%
3 Year-31.1%-41.1%-22.8%-30.9%18.3%3.3%
5 Year-25.0%-40.7%-16.6%-29.5%43.1%14.0%

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$1.15) is trading below our estimate of fair value (A$3.21)

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 AU 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 (0.6x) compared to the AU Oil and Gas industry average (1.5x).


Next Steps

Future Growth

How is New Hope forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

63.0%

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 (2.3%).

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 (4.6% per year) is forecast to grow slower than the Australian market (4.7% per year).

High Growth Revenue: NHC's revenue (4.6% 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 (4.9%).


Next Steps

Past Performance

How has New Hope performed over the past 5 years?

29.1%

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, but has reduced losses over the past 5 years at a rate of 29.1% 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 (-44.9%).


Return on Equity

High ROE: NHC has a negative Return on Equity (-9.09%), as it is currently unprofitable.


Next Steps

Financial Health

How is New Hope's financial position?


Financial Position Analysis

Short Term Liabilities: NHC's short term assets (A$276.6M) exceed its short term liabilities (A$140.6M).

Long Term Liabilities: NHC's short term assets (A$276.6M) do not cover its long term liabilities (A$679.7M).


Debt to Equity History and Analysis

Debt Level: NHC's debt to equity ratio (20.6%) 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 (71.8%).

Interest Coverage: NHC is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

3.73%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate NHC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate NHC's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if NHC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if NHC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: NHC is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NHC's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Reinhold Schmidt (54 yo)

0.083

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 Officer4.83yrsAU$1.22m0.019%
A$ 178.9k
Ben Armitage
Chief Development Officer1.67yrsAU$745.26kno data
Reinhold Schmidt
Chief Executive Officer0.083yrno datano data
Robert Bishop
GM of Corporate Development & Acting CFO0.25yrno datano data
Janelle Moody
Executive GM of Legal & Company Secretary2.42yrsno datano data
Sam Fisher
Executive General Manager of Marketing & External Affairsno datano datano data
Kim Franks
Executive General Manager of People5.83yrsno datano data

2.0yrs

Average Tenure

Experienced Management: NHC's management team is considered experienced (2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Thomas Dobson Millner
Non-Executive Director4.83yrsAU$154.23k0.48%
A$ 4.6m
Robert Millner
Non-Executive Chairman21.92yrsAU$320.82k0.50%
A$ 4.8m
William Grant
Independent Non-Executive Director14.42yrsAU$472.95k0.0036%
A$ 34.2k
Todd Barlow
Non-Executive Director5.5yrsAU$154.23k0.0024%
A$ 22.7k
Ian Williams
Independent Non-Executive Director7.92yrsAU$221.68k0.0046%
A$ 43.5k
Jacqueline McGill
Independent Non-Executive Director0.33yrAU$15.70k0.0036%
A$ 34.2k

6.7yrs

Average Tenure

Experienced Board: NHC's board of directors are considered experienced (6.7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: NHC 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$948.887m
  • 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 Analysis2020/10/21 10:35
End of Day Share Price2020/10/21 00:00
Earnings2020/07/31
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.