ASX:SMR

Stock Analysis Report

Executive Summary

Stanmore Coal Limited explores, produces, and sells metallurgical and thermal coal in Australia.


Snowflake Analysis

Undervalued with solid track record and pays a dividend.

Share Price & News

How has Stanmore Coal's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SMR's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.2%

SMR

-10.4%

AU Oil and Gas

-7.1%

AU Market


1 Year Return

-34.8%

SMR

-19.1%

AU Oil and Gas

6.7%

AU Market

Return vs Industry: SMR underperformed the Australian Oil and Gas industry which returned -19.1% over the past year.

Return vs Market: SMR underperformed the Australian Market which returned 6.7% over the past year.


Shareholder returns

SMRIndustryMarket
7 Day1.2%-10.4%-7.1%
30 Day-16.4%-14.6%-5.3%
90 Day-16.4%-16.2%-3.2%
1 Year-29.1%-34.8%-15.9%-19.1%11.3%6.7%
3 Year89.3%69.8%0.4%-10.4%28.2%11.2%
5 Year877.0%776.3%-7.3%-23.2%40.9%9.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Stanmore Coal undervalued compared to its fair value and its price relative to the market?

24.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SMR (A$0.82) is trading below our estimate of fair value (A$1.07)

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


Price To Earnings Ratio

PE vs Industry: SMR is good value based on its PE Ratio (2.1x) compared to the Oil and Gas industry average (9.1x).

PE vs Market: SMR is good value based on its PE Ratio (2.1x) compared to the Australian market (18x).


Price to Earnings Growth Ratio

PEG Ratio: SMR is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: SMR is overvalued based on its PB Ratio (1.3x) compared to the AU Oil and Gas industry average (1.1x).


Next Steps

Future Growth

How is Stanmore Coal forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

3.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SMR's forecast earnings growth (3.6% per year) is above the savings rate (1.1%).

Earnings vs Market: SMR's earnings (3.6% per year) are forecast to grow slower than the Australian market (9.7% per year).

High Growth Earnings: SMR's earnings are forecast to grow, but not significantly.

Revenue vs Market: SMR's revenue is expected to decline over the next 3 years (-1.7% per year).

High Growth Revenue: SMR's revenue is forecast to decline over the next 3 years (-1.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SMR's Return on Equity is forecast to be high in 3 years time (28.4%)


Next Steps

Past Performance

How has Stanmore Coal performed over the past 5 years?

76.0%

Historical annual earnings growth


Earnings and Revenue History

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

Growing Profit Margin: SMR's current net profit margins (21.4%) are higher than last year (7%).


Past Earnings Growth Analysis

Earnings Trend: SMR has become profitable over the past 5 years, growing earnings by 76% per year.

Accelerating Growth: SMR's earnings growth over the past year (406.2%) exceeds its 5-year average (76% per year).

Earnings vs Industry: SMR earnings growth over the past year (406.2%) exceeded the Oil and Gas industry -0.7%.


Return on Equity

High ROE: SMR's Return on Equity (59.8%) is considered outstanding.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Stanmore Coal's financial position?


Financial Position Analysis

Short Term Liabilities: SMR's short term assets (A$145.9M) exceed its short term liabilities (A$88.8M).

Long Term Liabilities: SMR's short term assets (A$145.9M) exceed its long term liabilities (A$70.3M).


Debt to Equity History and Analysis

Debt Level: SMR's debt to equity ratio (8.3%) is considered satisfactory.

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

Debt Coverage: SMR's debt is well covered by operating cash flow (970.9%).

Interest Coverage: SMR's interest payments on its debt are well covered by EBIT (40.6x coverage).


Balance Sheet

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

Debt Coverage by Assets: SMR's debt is covered by short term assets (assets are 10.8x debt).


Next Steps

Dividend

What is Stanmore Coal's current dividend yield, its reliability and sustainability?

19.63%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Stanmore Coal before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company19.6%marketbottom25%2.5%markettop25%5.8%industryaverage4.4%forecastin3Years8.8%

Current dividend yield vs market & industry

Notable Dividend: SMR's dividend (19.63%) is higher than the bottom 25% of dividend payers in the Australian market (2.46%).

High Dividend: SMR's dividend (19.63%) is in the top 25% of dividend payers in the Australian market (5.77%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, SMR has been paying a dividend for less than 10 years.

Growing Dividend: SMR's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (28.8%), SMR's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SMR's dividends in 3 years are forecast to be well covered by earnings (41.5% payout ratio).


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

Jon Romcke 0

0.3yrs

Tenure

AU$597,607

Compensation

Mr. Jon Romcke has been Interim Chief Executive Officer of Stanmore Coal Limited since October 2019. He was General Manager of Development at Stanmore Coal Limited since August 21, 2017 until October 10, 2 ...


CEO Compensation Analysis

Compensation vs Market: Jon's total compensation ($USD393.16K) is above average for companies of similar size in the Australian market ($USD252.03K).

Compensation vs Earnings: Jon's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Jonathan Romcke
Interim Chief Executive Officer0.3yrsAU$597.61k0.013% A$27.4k
Ian Poole
Company Secretary & CFO2.8yrsAU$620.31k0.037% A$77.1k
Bernie O'Neill
General Manager of Operations2.8yrsAU$603.45k0.12% A$244.5k
Brendan Schilling
Group Manager of Marketing & Logistics0.6yrsno datano data
Nigel Clifford
Senior Geologist0yrsno datano data

1.7yrs

Average Tenure

Experienced Management: SMR's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Stephen Bizzell
Non-Executive Director10.3yrsAU$112.50k2.87% A$6.0m
Neal O'Connor
Independent Non-Executive Director2.4yrsAU$114.17k0.049% A$102.0k
Stewart Butel
Non-Executive Chairman2yrsAU$147.50k0.12% A$257.8k
Jimmy Lim
Non Executive Director0.3yrsno datano data
Marcelo Matos
Non-Executive Director0.3yrsno datano data

2.0yrs

Average Tenure

56yo

Average Age

Experienced Board: SMR's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


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

Stanmore Coal Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Stanmore Coal Limited
  • Ticker: SMR
  • Exchange: ASX
  • Founded:
  • Industry: Coal and Consumable Fuels
  • Sector: Energy
  • Market Cap: AU$208.717m
  • Shares outstanding: 256.09m
  • Website: https://www.stanmorecoal.com.au

Location

  • Stanmore Coal Limited
  • 100 Edward Street
  • Level 8
  • Brisbane
  • Queensland
  • 4000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SMRASX (Australian Securities Exchange)YesOrdinary SharesAUAUDDec 2009
S0DDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2009
SMRCHIA (Chi-X Australia)YesOrdinary SharesAUAUDDec 2009

Biography

Stanmore Coal Limited explores, produces, and sells metallurgical and thermal coal in Australia. The company holds interest in the Isaac Plains, Isaac Downs, Belview, The Range, Lilyvale, Mackenzie, and Clifford projects in the Bowen and Surat basins of Queensland. It also exports its products. The company is headquartered in Brisbane, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 10:41
End of Day Share Price2020/02/28 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


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.