TerraCom Limited engages in the exploration, extraction, and production of coal in Australia and Mongolia.
+ 1 more risk
Unattractive dividend payer with imperfect balance sheet.
Share Price & News
How has TerraCom's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: TER's share price has been volatile over the past 3 months.
7 Day Return
AU Oil and Gas
1 Year Return
AU Oil and Gas
Return vs Industry: TER underperformed the Australian Oil and Gas industry which returned -8.8% over the past year.
Return vs Market: TER underperformed the Australian Market which returned 15.5% over the past year.
Price Volatility Vs. Market
How volatile is TerraCom's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall StWhat Kind Of Shareholders Own TerraCom Limited (ASX:TER)?
2 months ago | Simply Wall StIs TerraCom (ASX:TER) A Risky Investment?
3 months ago | Simply Wall StImagine Owning TerraCom (ASX:TER) And Wondering If The 30% Share Price Slide Is Justified
Is TerraCom 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: TER (A$0.28) is trading below our estimate of fair value (A$0.3)
Significantly Below Fair Value: TER is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: TER is unprofitable, so we can't compare its PE Ratio to the Oil and Gas industry average.
PE vs Market: TER 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 TER's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: TER is overvalued based on its PB Ratio (1.9x) compared to the AU Oil and Gas industry average (1.2x).
How is TerraCom forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
Forecasted Energy industry annual growth in earnings
In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as TerraCom has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.
This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.
- Take a look at our analysis of TER’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
- TerraCom competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Energy industry.
How has TerraCom performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TER is currently unprofitable.
Growing Profit Margin: TER is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: TER is unprofitable, but has reduced losses over the past 5 years at a rate of 50.1% per year.
Accelerating Growth: Unable to compare TER's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: TER is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (16.4%).
Return on Equity
High ROE: TER has a negative Return on Equity (-16.05%), as it is currently unprofitable.
Return on Assets
Return on Capital Employed
How is TerraCom's financial position?
Financial Position Analysis
Short Term Liabilities: TER's short term assets (A$93.0M) do not cover its short term liabilities (A$119.7M).
Long Term Liabilities: TER's short term assets (A$93.0M) do not cover its long term liabilities (A$302.2M).
Debt to Equity History and Analysis
Debt Level: TER's debt to equity ratio (313.2%) is considered high.
Reducing Debt: TER's debt to equity ratio has increased from 221% to 313.2% over the past 5 years.
Inventory Level: TER has a high level of physical assets or inventory.
Debt Coverage by Assets: TER's debt is not covered by short term assets (assets are 0.4x debt).
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: Whilst unprofitable TER has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
Forecast Cash Runway: TER is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 39% per year.
What is TerraCom's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: TER's dividend (7.27%) is higher than the bottom 25% of dividend payers in the Australian market (2.3%).
High Dividend: TER's dividend (7.27%) is in the top 25% of dividend payers in the Australian market (5.35%)
Stability and Growth of Payments
Stable Dividend: Too early to tell whether TER's dividend payments have been stable as they only just started paying a dividend.
Growing Dividend: Too early to tell if TER's dividend payments are increasing as they only just started paying a dividend.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Danny McCarthy 0
Mr. Danny McCarthy is Chief Executive Officer at TerraCom Limited since December 1, 2018. Mr. McCarthy was Chief Operating Officer of Mineral Resources Limited since April 24, 2016 until November 30, 2018. ...
CEO Compensation Analysis
Compensation vs Market: Danny's total compensation ($USD503.46K) is above average for companies of similar size in the Australian market ($USD253.04K).
Compensation vs Earnings: Insufficient data to compare Danny's compensation with company performance.
|Chief Executive Officer||1.2yrs||AU$761.38k||no data|
|Chief Financial Officer||2.9yrs||AU$560.36k||no data|
|Company Secretary||0.3yrs||no data||no data|
|Exploration Manager - Mongolia||0yrs||no data||no data|
Experienced Management: TER's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.
|Independent Non-Executive Chairman of the Board||2.4yrs||AU$272.21k||0.37% A$508.9k|
|Independent Non-Executive Director||2.9yrs||AU$126.91k||0.14% A$187.9k|
|Non-Executive Director||2.1yrs||AU$63.16k||0.32% A$437.9k|
|Independent Non-Executive Director||0.2yrs||no data||0.034% A$46.3k|
|Independent Non-Executive Director||7yrs||AU$138.90k||no data|
|Independent Non-Executive Deputy Chairman||3.7yrs||AU$126.91k||0.0020% A$2.8k|
|Non-Executive Director||1.8yrs||AU$63.16k||0.0048% A$6.6k|
Experienced Board: TER's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: TER insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 19.8%.
TerraCom Limited's company bio, employee growth, exchange listings and data sources
- Name: TerraCom Limited
- Ticker: TER
- Exchange: ASX
- Founded: 2009
- Industry: Coal and Consumable Fuels
- Sector: Energy
- Market Cap: AU$137.972m
- Shares outstanding: 501.72m
- Website: https://www.terracomresources.com
- TerraCom Limited
- Blair Athol Mine Access Road
- PO Box 131
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|TER||ASX (Australian Securities Exchange)||Yes||Ordinary Shares||AU||AUD||Jul 2010|
|2GF||DB (Deutsche Boerse AG)||Yes||Ordinary Shares||DE||EUR||Jul 2010|
|TER||CHIA (Chi-X Australia)||Yes||Ordinary Shares||AU||AUD||Jul 2010|
TerraCom Limited engages in the exploration, extraction, and production of coal in Australia and Mongolia. It explores for hard coking, thermal, and PCI coal. The company primarily focuses on the Northern Galilee project comprising the Hughenden and the Pentland projects covering an area of approximately 2,160 square kilometers, as well as the Clyde Park project that covers an area of approximately 133 square kilometers located in the Galilee Basin, Queensland; and the Springsure project covering an area of approximately 1,178 square kilometers situated in the Central-Western Bowen basin coal mining district, Queensland. The company was formerly known as Guildford Coal Limited and changed its name to TerraCom Limited in November 2015. TerraCom Limited was founded in 2009 and is based in Clermont, Australia.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/21 10:40|
|End of Day Share Price||2020/02/20 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.