ASX:SOL

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Washington H. Soul Pattinson

Executive Summary

Washington H. Soul Pattinson and Company Limited, together with its subsidiaries, engages in the equity investment, mining, and property investment businesses.


Snowflake Analysis

Reasonable growth potential with adequate balance sheet and pays a dividend.


Similar Companies

Share Price & News

How has Washington H. Soul Pattinson's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SOL has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.1%

SOL

1.5%

AU Oil and Gas

1.4%

AU Market


1 Year Return

5.3%

SOL

-26.5%

AU Oil and Gas

-4.5%

AU Market

Return vs Industry: SOL exceeded the Australian Oil and Gas industry which returned -26.5% over the past year.

Return vs Market: SOL exceeded the Australian Market which returned -4.5% over the past year.


Shareholder returns

SOLIndustryMarket
7 Day3.1%1.5%1.4%
30 Day1.1%1.3%1.7%
90 Day14.1%7.6%14.7%
1 Year8.4%5.3%-23.3%-26.5%-0.8%-4.5%
3 Year30.6%20.5%-11.2%-20.7%19.6%4.1%
5 Year79.3%55.1%-8.2%-24.8%45.4%14.4%

Price Volatility Vs. Market

How volatile is Washington H. Soul Pattinson's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Washington H. Soul Pattinson undervalued compared to its fair value and its price relative to the market?

41.55x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SOL (A$20.78) is trading above our estimate of fair value (A$6.28)

Significantly Below Fair Value: SOL is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SOL is poor value based on its PE Ratio (41.5x) compared to the AU Oil and Gas industry average (8.8x).

PE vs Market: SOL is poor value based on its PE Ratio (41.5x) compared to the Australian market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: SOL is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: SOL is overvalued based on its PB Ratio (1.4x) compared to the AU Oil and Gas industry average (1.1x).


Next Steps

Future Growth

How is Washington H. Soul Pattinson forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

21.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SOL's forecast earnings growth (21.6% per year) is above the savings rate (2.3%).

Earnings vs Market: SOL's earnings (21.6% per year) are forecast to grow faster than the Australian market (14.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SOL's revenue (9.6% per year) is forecast to grow faster than the Australian market (4.4% per year).

High Growth Revenue: SOL's revenue (9.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SOL's Return on Equity is forecast to be low in 3 years time (6.7%).


Next Steps

Past Performance

How has Washington H. Soul Pattinson performed over the past 5 years?

16.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SOL has a large one-off loss of A$104.2M impacting its January 31 2020 financial results.

Growing Profit Margin: SOL's current net profit margins (7.2%) are lower than last year (23.4%).


Past Earnings Growth Analysis

Earnings Trend: SOL's earnings have grown by 16.7% per year over the past 5 years.

Accelerating Growth: SOL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SOL had negative earnings growth (-64%) over the past year, making it difficult to compare to the Oil and Gas industry average (-15.6%).


Return on Equity

High ROE: SOL's Return on Equity (4.5%) is considered low.


Next Steps

Financial Health

How is Washington H. Soul Pattinson's financial position?


Financial Position Analysis

Short Term Liabilities: SOL's short term assets (A$560.0M) exceed its short term liabilities (A$469.7M).

Long Term Liabilities: SOL's short term assets (A$560.0M) do not cover its long term liabilities (A$1.2B).


Debt to Equity History and Analysis

Debt Level: SOL's debt to equity ratio (13.1%) is considered satisfactory.

Reducing Debt: SOL's debt to equity ratio has increased from 1.5% to 13.1% over the past 5 years.

Debt Coverage: SOL's debt is well covered by operating cash flow (45.4%).

Interest Coverage: SOL's interest payments on its debt are well covered by EBIT (7.1x coverage).


Balance Sheet


Next Steps

Dividend

What is Washington H. Soul Pattinson current dividend yield, its reliability and sustainability?

2.79%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SOL's dividend (2.79%) is higher than the bottom 25% of dividend payers in the Australian market (2.42%).

High Dividend: SOL's dividend (2.79%) is low compared to the top 25% of dividend payers in the Australian market (6.45%).


Stability and Growth of Payments

Stable Dividend: SOL's dividends per share have been stable in the past 10 years.

Growing Dividend: SOL's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (118%), SOL's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SOL's dividends in 3 years are forecast to be well covered by earnings (49.7% payout ratio).


Next Steps

Management

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

6.3yrs

Average management tenure


CEO

Todd Barlow (41 yo)

6.33yrs

Tenure

AU$3,338,921

Compensation

Mr. Todd James Barlow, B.Bus, LLB(Hons)(UTS), has been Chief Executive Officer, Managing Director and Executive Director at Washington H. Soul Pattinson and Company Limited (WHSP) since April 1, 2014, Octo ...


CEO Compensation Analysis

Compensation vs Market: Todd's total compensation ($USD2.39M) is about average for companies of similar size in the Australian market ($USD2.28M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Todd Barlow
MD, CEO & Executive Director6.33yrsAU$3.34m0.018%
A$ 873.5k
David Grbin
Chief Financial Officer2.33yrsAU$927.71kno data
Ian Bloodworth
Company Secretary13.08yrsAU$567.72k0.0010%
A$ 51.7k
Donald Taig
Managing Director of KH Foods Limitedno dataAU$357.00kno data
M. Simmons
Chief Executive Officer of Telecommunications - SP Telemedia Limitedno dataAU$605.00kno data
M. Smith
Executive Officer of New Hope Corporation Limitedno dataAU$476.00kno data

6.3yrs

Average Tenure

55yo

Average Age

Experienced Management: SOL's management team is seasoned and experienced (6.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Todd Barlow
MD, CEO & Executive Director6.33yrsAU$3.34m0.018%
A$ 873.5k
Michael Hawker
Lead Independent Director2.58yrsAU$202.34k0.015%
A$ 733.8k
Tiffany Fuller
Non-Executive Independent Director2.67yrsAU$192.34k0.00075%
A$ 37.3k
Thomas Dobson Millner
Non-Executive Director9.58yrsAU$174.84k0.18%
A$ 8.7m
Robert Millner
Independent Chairman of the Board22.58yrsAU$403.85k5.4%
A$ 268.8m
Warwick Negus
Non-Executive Independent Director5.75yrsAU$203.34k0.020%
A$ 976.5k
Robert Westphal
Non-Executive Independent Director14.58yrsAU$204.84k0.0099%
A$ 493.5k
Josephine Sukkar
Non Executive Director0.083yrno datano data

5.3yrs

Average Tenure

56yo

Average Age

Experienced Board: SOL's board of directors are considered experienced (5.3 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

Washington H. Soul Pattinson and Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Washington H. Soul Pattinson and Company Limited
  • Ticker: SOL
  • Exchange: ASX
  • Founded: 1872
  • Industry: Coal and Consumable Fuels
  • Sector: Energy
  • Market Cap: AU$4.975b
  • Shares outstanding: 239.40m
  • Website: https://www.whsp.com.au

Number of Employees


Location

  • Washington H. Soul Pattinson and Company Limited
  • 151 Clarence Street
  • Level 14
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SOLASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
WD3BST (Boerse-Stuttgart)YesOrdinary SharesDEEURJan 1992
SOLCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992
WHPC.FOTCPK (Pink Sheets LLC)SHSUSUSDFeb 2007

Biography

Washington H. Soul Pattinson and Company Limited, together with its subsidiaries, engages in the equity investment, mining, and property investment businesses. It is involved in the coal, oil, and gas acti ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/14 19:00
End of Day Share Price2020/08/14 00:00
Earnings2020/01/31
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.