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SOL

Washington H. Soul PattinsonASX:SOL Stock Report

Market Cap

AU$11.1b

7D

-4.4%

1Y

6.9%

Updated

01 Dec, 2021

Data

Company Financials +
SOL fundamental analysis
Snowflake Score
Valuation0/6
Future Growth0/6
Past Performance2/6
Financial Health4/6
Dividends4/6

SOL Stock Overview

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

Washington H. Soul Pattinson Competitors

Yancoal Australia

ASX:YAL

AU$3.4b

Whitehaven Coal

ASX:WHC

AU$2.4b

New Hope

ASX:NHC

AU$1.7b

Vale

BOVESPA:VALE3

R$340.0b

Price History & Performance

Summary of all time highs, changes and price drops for Washington H. Soul Pattinson
Historical stock prices
Current Share PriceAU$30.76
52 Week HighAU$40.80
52 Week LowAU$26.61
Beta0.44
1 Month Change-5.27%
3 Month Change-14.53%
1 Year Change6.88%
3 Year Change17.58%
5 Year Change111.55%
Change since IPO1,403.83%

Recent News & Updates

Oct 13
Washington H. Soul Pattinson's (ASX:SOL) Dividend Will Be Increased To AU$0.36

Washington H. Soul Pattinson's (ASX:SOL) Dividend Will Be Increased To AU$0.36

Washington H. Soul Pattinson and Company Limited's ( ASX:SOL ) dividend will be increasing to AU$0.36 on 14th of...

Sep 25
Washington H. Soul Pattinson's (ASX:SOL) Upcoming Dividend Will Be Larger Than Last Year's

Washington H. Soul Pattinson's (ASX:SOL) Upcoming Dividend Will Be Larger Than Last Year's

The board of Washington H. Soul Pattinson and Company Limited ( ASX:SOL ) has announced that it will be increasing its...

Shareholder Returns

SOLAU Oil and GasAU Market
7D-4.4%-5.0%-1.9%
1Y6.9%8.9%11.7%

Return vs Industry: SOL underperformed the Australian Oil and Gas industry which returned 8.9% over the past year.

Return vs Market: SOL underperformed the Australian Market which returned 11.7% over the past year.

Price Volatility

Is SOL's price volatile compared to industry and market?
SOL volatility
SOL Average Weekly Movement4.5%
Oil and Gas Industry Average Movement12.9%
Market Average Movement8.3%
10% most volatile stocks in AU Market15.9%
10% least volatile stocks in AU Market3.6%

Stable Share Price: SOL is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: SOL's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
187228Todd Barlowhttps://www.whsp.com.au

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 activities, which include exploration, development, production, processing, associated transport infrastructure, and ancillary activities. The company also engages in the zinc, copper, and gold mining activities comprising exploration, mining, and processing of ore into zinc and copper concentrate, copper sulphide, and gold.

Washington H. Soul Pattinson Fundamentals Summary

How do Washington H. Soul Pattinson's earnings and revenue compare to its market cap?
SOL fundamental statistics
Market CapAU$11.10b
Earnings (TTM)AU$273.20m
Revenue (TTM)AU$1.62b

40.6x

P/E Ratio

6.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SOL income statement (TTM)
RevenueAU$1.62b
Cost of RevenueAU$884.83m
Gross ProfitAU$737.37m
ExpensesAU$464.17m
EarningsAU$273.20m

Last Reported Earnings

Jul 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.76
Gross Margin45.45%
Net Profit Margin16.84%
Debt/Equity Ratio20.2%

How did SOL perform over the long term?

See historical performance and comparison

Dividends

2.0%

Current Dividend Yield

54%

Payout Ratio

Valuation

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

40.63x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SOL (A$30.76) is trading above our estimate of fair value (A$22.3)

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 (40.6x) compared to the Global Oil and Gas industry average (11x).

PE vs Market: SOL is poor value based on its PE Ratio (40.6x) compared to the Australian market (12.6x).


Price to Earnings Growth Ratio

PEG Ratio: SOL's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: SOL is overvalued based on its PB Ratio (2.7x) compared to the AU Oil and Gas industry average (1.8x).


Future Growth

How is Washington H. Soul Pattinson forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-3.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SOL's earnings are forecast to decline over the next 3 years (-3.6% per year).

Earnings vs Market: SOL's earnings are forecast to decline over the next 3 years (-3.6% per year).

High Growth Earnings: SOL's earnings are forecast to decline over the next 3 years.

Revenue vs Market: SOL's revenue (0.8% per year) is forecast to grow slower than the Australian market (5.2% per year).

High Growth Revenue: SOL's revenue (0.8% 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 (7%).


Past Performance

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

26.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SOL has high quality earnings.

Growing Profit Margin: SOL's current net profit margins (16.8%) are lower than last year (69.5%).


Past Earnings Growth Analysis

Earnings Trend: SOL's earnings have grown significantly by 26.3% 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 (-71.3%) over the past year, making it difficult to compare to the Oil and Gas industry average (-50.5%).


Return on Equity

High ROE: SOL's Return on Equity (6.2%) is considered low.


Financial Health

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


Financial Position Analysis

Short Term Liabilities: SOL's short term assets (A$1.3B) exceed its short term liabilities (A$547.1M).

Long Term Liabilities: SOL's short term assets (A$1.3B) do not cover its long term liabilities (A$1.8B).


Debt to Equity History and Analysis

Debt Level: SOL's net debt to equity ratio (0.7%) is considered satisfactory.

Reducing Debt: SOL's debt to equity ratio has increased from 1.9% to 20.2% over the past 5 years.

Debt Coverage: SOL's debt is well covered by operating cash flow (49.4%).

Interest Coverage: SOL's interest payments on its debt are well covered by EBIT (12.2x coverage).


Balance Sheet


Dividend

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

2.02%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SOL's dividend (2.02%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.3%).

High Dividend: SOL's dividend (2.02%) is low compared to the top 25% of dividend payers in the Australian market (5.59%).


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 reasonable payout ratio (54.3%), SOL's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SOL's dividends in 3 years are forecast to be covered by earnings (50.4% payout ratio).


Next Steps

Management

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

3.7yrs

Average management tenure


CEO

Todd Barlow (42 yo)

7.67yrs

Tenure

AU$2,994,399

Compensation

Mr. Todd James Barlow, B.Bus, LLB(Hons)(UTS), has been a Director of Milton Corporation Limited since October 2021. He has been Chief Executive Officer, Managing Director and Executive Director at Washingt...


CEO Compensation Analysis

Compensation vs Market: Todd's total compensation ($USD2.12M) is about average for companies of similar size in the Australian market ($USD2.25M).

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


Leadership Team

Experienced Management: SOL's management team is considered experienced (3.7 years average tenure).


Board Members

Experienced Board: SOL's board of directors are considered experienced (6.2 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 been substantially diluted in the past year, with total shares outstanding growing by 50.7%.


Top Shareholders

Company Information

Washington H. Soul Pattinson and Company Limited's 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$11.100b
  • Shares outstanding: 360.87m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/01 15:34
End of Day Share Price2021/12/01 00:00
Earnings2021/07/31
Annual Earnings2021/07/31


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.