New Hope Corporation Limited explores, develops, produces, and processes coal, and oil and gas properties.
Very undervalued established dividend payer.
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.
7 Day Return
AU Oil and Gas
1 Year Return
AU Oil and Gas
Return vs Industry: NHC underperformed the Australian Oil and Gas industry which returned -35.2% over the past year.
Return vs Market: NHC underperformed the Australian Market which returned -12% over the past year.
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
4 days ago | Simply Wall StA Look At The Fair Value Of New Hope Corporation Limited (ASX:NHC)
3 weeks ago | Simply Wall StDoes New Hope Corporation Limited (ASX:NHC) Have A Good P/E Ratio?
1 month ago | Simply Wall StWhy You Should Like New Hope Corporation Limited’s (ASX:NHC) ROCE
Is New Hope undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: NHC (A$1.37) is trading below our estimate of fair value (A$1.74)
Significantly Below Fair Value: NHC is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: NHC is good value based on its PE Ratio (7.1x) compared to the AU Oil and Gas industry average (9.9x).
PE vs Market: NHC is good value based on its PE Ratio (7.1x) compared to the Australian market (15.5x).
Price to Earnings Growth Ratio
PEG Ratio: NHC is good value based on its PEG Ratio (0.9x)
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 (1.1x).
How is New Hope forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NHC's forecast earnings growth (8.3% per year) is above the savings rate (2.3%).
Earnings vs Market: NHC's earnings (8.3% per year) are forecast to grow slower than the Australian market (14.4% per year).
High Growth Earnings: NHC's earnings are forecast to grow, but not significantly.
Revenue vs Market: NHC's revenue is expected to decline over the next 3 years (-16.7% per year).
High Growth Revenue: NHC's revenue is forecast to decline over the next 3 years (-16.7% 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 (7.1%).
How has New Hope performed over the past 5 years?
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 (-15.6%).
Return on Equity
High ROE: NHC's Return on Equity (8.2%) is considered low.
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$742.2M).
Debt to Equity History and Analysis
Debt Level: NHC's debt to equity ratio (18.4%) is considered satisfactory.
Reducing Debt: Insufficient data to determine if NHC's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: NHC's debt is well covered by operating cash flow (65.1%).
Interest Coverage: NHC's interest payments on its debt are well covered by EBIT (14.9x coverage).
What is New Hope current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: NHC's dividend (10.95%) is higher than the bottom 25% of dividend payers in the Australian market (2.53%).
High Dividend: NHC's dividend (10.95%) is in the top 25% of dividend payers in the Australian market (6.54%)
Stability and Growth of Payments
Stable Dividend: NHC's dividend payments have been volatile in the past 10 years.
Growing Dividend: NHC's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (77.6%), NHC's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: NHC's dividends in 3 years are forecast to be well covered by earnings (42.2% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mr. Shane Oscar Stephan, BBus (Dist), MBA (AGSM), MAusIMM, MAICD has been Chief Executive Officer and Managing Director at New Hope Corporation Limited, a subsidiary of Washington H. Soul Pattinson and Com ...
CEO Compensation Analysis
Compensation vs Market: Shane's total compensation ($USD1.52M) is above average for companies of similar size in the Australian market ($USD985.75K).
Compensation vs Earnings: Shane's compensation has been consistent with company performance over the past year.
|CEO, MD & Director||6.42yrs||AU$2.19m||0.081% A$926.5k|
|Chief Financial Officer||6.42yrs||AU$900.72k||0.093% A$1.1m|
|Chief Operating Officer||4.58yrs||AU$1.18m||0.0019% A$21.3k|
|Chief Development Officer||1.42yrs||AU$493.86k||no data|
|Executive GM of Legal & Company Secretary||2.17yrs||no data||no data|
|Executive General Manager of Marketing & External Affairs||no data||no data||no data|
|Executive General Manager of People||5.58yrs||no data||no data|
Experienced Management: NHC's management team is seasoned and experienced (5.1 years average tenure).
|CEO, MD & Director||6.42yrs||AU$2.19m||0.081% A$926.5k|
|Non-Executive Director||4.58yrs||AU$153.73k||0.48% A$5.5m|
|Non-Executive Chairman||21.67yrs||AU$325.29k||0.50% A$5.7m|
|Independent Non-Executive Director||14.17yrs||AU$170.81k||0.0036% A$41.3k|
|Non-Executive Director||5.25yrs||AU$153.73k||0.0024% A$27.3k|
|Independent Non-Executive Director||7.67yrs||AU$153.73k||0.0046% A$52.4k|
|Non-Executive Director||0.083yr||no data||no data|
Experienced Board: NHC's board of directors are considered experienced (5.7 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
New Hope Corporation Limited's company bio, employee growth, exchange listings and data sources
- Name: New Hope Corporation Limited
- Ticker: NHC
- Exchange: ASX
- Founded: 1952
- Industry: Coal and Consumable Fuels
- Sector: Energy
- Market Cap: AU$1.144b
- Shares outstanding: 831.71m
- Website: https://www.newhopegroup.com.au
Number of Employees
- New Hope Corporation Limited
- 175 Eagle Street
- Level 16
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|OD8||DB (Deutsche Boerse AG)||Yes||Ordinary Shares||DE||EUR||Sep 2003|
|NHC||ASX (Australian Securities Exchange)||Yes||Ordinary Shares||AU||AUD||Sep 2003|
|NHPE.F||OTCPK (Pink Sheets LLC)||Yes||Ordinary Shares||US||USD||Sep 2003|
|NHC||CHIA (Chi-X Australia)||Yes||Ordinary Shares||AU||AUD||Sep 2003|
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 Other. The company has interests in two open cut coal mines in South East Queensland that produce thermal coal, including the New Acland project, which is located in north-west of Oakey, Queensland; and the Jeebropilly coal mine located in the West Moreton region near Ipswich. It also holds interests in oil projects and exploration permits based in the Eromanga Basin of south west Queensland; and two onshore exploration permits in the Otway Basin of south western Victoria. In addition, the company engages in the port management, agriculture, marketing, and logistics activities. It has operations in Japan, Taiwan, China, Chile, Korea, Indonesia, Vietnam, India, Australia, and internationally. The company was founded in 1952 and is based in Brisbane, Australia. New Hope Corporation Limited is a subsidiary of Washington H. Soul Pattinson and Company Limited.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/07/13 10:33|
|End of Day Share Price||2020/07/13 00:00|
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.