Loading...

TerraCom

ASX:TER
Snowflake Description

Slightly overvalued with imperfect balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
TER
ASX
A$248M
Market Cap
  1. Home
  2. AU
  3. Energy
Company description

TerraCom Limited engages in the exploration, extraction, and production of coal in Australia and Mongolia. The last earnings update was 50 days ago. More info.


Add to Portfolio Compare Print
TER Share Price and Events
7 Day Returns
-6.2%
ASX:TER
1.4%
AU Oil and Gas
0.7%
AU Market
1 Year Returns
205%
ASX:TER
3.8%
AU Oil and Gas
4.7%
AU Market
TER Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
TerraCom (TER) -6.2% -8.3% -6.2% 205% 916.7% -18.7%
AU Oil and Gas 1.4% -1.6% 5.5% 3.8% 28.7% -32.5%
AU Market 0.7% 1.1% 6.5% 4.7% 17.5% 4.9%
1 Year Return vs Industry and Market
  • TER outperformed the Oil and Gas industry which returned 3.8% over the past year.
  • TER outperformed the Market in Australia which returned 4.7% over the past year.
Price Volatility
TER
Industry
5yr Volatility vs Market

TER Value

 Is TerraCom undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of TerraCom to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for TerraCom.

ASX:TER Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 10.3%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:TER
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
Oil and Gas Unlevered Beta Simply Wall St/ S&P Global 0.95
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.953 (1 + (1- 30%) (81.51%))
1.333
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.33
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (1.333 * 5.96%)
10.26%

Discounted Cash Flow Calculation for ASX:TER using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for TerraCom is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

ASX:TER DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (AUD, Millions) Source Present Value
Discounted (@ 10.26%)
2019 17.21 Est @ 80.58% 15.61
2020 27.04 Est @ 57.1% 22.25
2021 38.04 Est @ 40.66% 28.38
2022 49.13 Est @ 29.16% 33.24
2023 59.50 Est @ 21.1% 36.51
2024 68.70 Est @ 15.47% 38.24
2025 76.62 Est @ 11.52% 38.68
2026 83.32 Est @ 8.76% 38.15
2027 89.01 Est @ 6.82% 36.96
2028 93.88 Est @ 5.47% 35.36
Present value of next 10 years cash flows A$323.39
ASX:TER DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= A$93.88 × (1 + 2.31%) ÷ (10.26% – 2.31%)
A$1,208.87
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= A$1,208.87 ÷ (1 + 10.26%)10
A$455.30
ASX:TER Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= A$323.39 + A$455.30
A$778.69
Equity Value per Share
(AUD)
= Total value / Shares Outstanding
= A$778.69 / 406.22
A$1.92
ASX:TER Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$1.92
Current discount Discount to share price of A$0.61
= -1 x (A$0.61 - A$1.92) / A$1.92
68.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price TerraCom is available for.
Intrinsic value
>50%
Share price is A$0.61 vs Future cash flow value of A$1.92
Current Discount Checks
For TerraCom to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • TerraCom's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • TerraCom's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for TerraCom's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are TerraCom's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:TER PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in AUD A$0.00
ASX:TER Share Price ** ASX (2019-04-18) in AUD A$0.61
Australia Oil and Gas Industry PE Ratio Median Figure of 23 Publicly-Listed Oil and Gas Companies 7.92x
Australia Market PE Ratio Median Figure of 545 Publicly-Listed Companies 16.18x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of TerraCom.

ASX:TER PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:TER Share Price ÷ EPS (both in AUD)

= 0.61 ÷ 0.00

-241.01x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • TerraCom is loss making, we can't compare its value to the AU Oil and Gas industry average.
  • TerraCom is loss making, we can't compare the value of its earnings to the Australia market.
Price based on expected Growth
Does TerraCom's expected growth come at a high price?
Raw Data
ASX:TER PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -241.01x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
Not available
Australia Oil and Gas Industry PEG Ratio Median Figure of 17 Publicly-Listed Oil and Gas Companies 0.24x
Australia Market PEG Ratio Median Figure of 361 Publicly-Listed Companies 1.38x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for TerraCom, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on TerraCom's assets?
Raw Data
ASX:TER PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in AUD A$0.11
ASX:TER Share Price * ASX (2019-04-18) in AUD A$0.61
Australia Oil and Gas Industry PB Ratio Median Figure of 144 Publicly-Listed Oil and Gas Companies 1.31x
Australia Market PB Ratio Median Figure of 1,676 Publicly-Listed Companies 1.68x
ASX:TER PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:TER Share Price ÷ Book Value per Share (both in AUD)

= 0.61 ÷ 0.11

5.77x

* Primary Listing of TerraCom.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • TerraCom is overvalued based on assets compared to the AU Oil and Gas industry average.
X
Value checks
We assess TerraCom's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Oil and Gas industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Oil and Gas industry average (and greater than 0)? (1 check)
  5. TerraCom has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

TER Future Performance

 How is TerraCom expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

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 Simply Wall St do have past financial data. You can see them here.

Show me the analysis anyway

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
4.2%
Expected Oil and Gas industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Is TerraCom expected to grow at an attractive rate?
  • Unable to compare TerraCom's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare TerraCom's earnings growth to the Australia market average as no estimate data is available.
  • Unable to compare TerraCom's revenue growth to the Australia market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
ASX:TER Future Growth Rates Data Sources
Data Point Source Value (per year)
Australia Oil and Gas Industry Earnings Growth Rate Market Cap Weighted Average 4.2%
Australia Oil and Gas Industry Revenue Growth Rate Market Cap Weighted Average 2.7%
Australia Market Earnings Growth Rate Market Cap Weighted Average 6.6%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:TER Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:TER Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2018-12-31 274 64 -1
2018-09-30 211 49 -10
2018-06-30 147 34 -18
2018-03-31 107 19 9
2017-12-31 68 3 37
2017-09-30 45 -3 30
2017-06-30 22 -10 22
2017-03-31 13 -16 8
2016-12-31 3 -23 -7
2016-09-30 7 -19 -29
2016-06-30 10 -15 -51
2016-03-31 8 -7 -70

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if TerraCom is high growth as no earnings estimate data is available.
  • Unable to determine if TerraCom is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:TER Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from TerraCom Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:TER Past Financials Data
Date (Data in AUD Millions) EPS *
2018-12-31 0.00
2018-09-30 -0.03
2018-06-30 -0.06
2018-03-31 0.03
2017-12-31 0.13
2017-09-30 0.11
2017-06-30 0.09
2017-03-31 0.03
2016-12-31 -0.03
2016-09-30 -0.15
2016-06-30 -0.31
2016-03-31 -0.52

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if TerraCom will efficiently use shareholders’ funds in the future without estimates of Return on Equity.

Next steps:

  1. TerraCom's future outlook can be gauged by looking at industry trends and market size, and determining how well-positioned the company is compared to its competitors. Take a look at other high-growth Energy companies here
  2. TerraCom's competitive advantages and company strategy can generally be found in its financial reports archived here.
  3. Use fundamentals to screen for another stock to analyse from our database of over 75,000 companies worldwide
X
Future performance checks
We assess TerraCom's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
TerraCom has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

TER Past Performance

  How has TerraCom performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare TerraCom's growth in the last year to its industry (Oil and Gas).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • TerraCom does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare TerraCom's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare TerraCom's 1-year growth to the AU Oil and Gas industry average as it is not currently profitable.
Earnings and Revenue History
TerraCom's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from TerraCom Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:TER Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 273.89 -0.93 12.76
2018-09-30 210.51 -9.67 10.93
2018-06-30 147.14 -18.40 9.10
2018-03-31 107.42 9.43 8.78
2017-12-31 67.70 37.26 8.46
2017-09-30 45.10 29.86 11.34
2017-06-30 22.49 22.47 14.21
2017-03-31 12.80 7.86 14.38
2016-12-31 3.11 -6.75 14.55
2016-09-30 6.50 -29.08 13.23
2016-06-30 9.90 -51.41 11.90
2016-03-31 8.35 -70.35 10.86
2015-12-31 6.80 -89.29 9.83
2015-09-30 3.40 -66.19 8.33
2015-06-30 -43.09 6.84
2015-03-31 -60.89 7.43
2014-12-31 -78.69 8.02
2014-09-30 -70.76 9.01
2014-06-30 -62.82 9.99
2014-03-31 -34.98 9.82
2013-12-31 -7.13 9.65
2013-09-30 -3.72 9.30
2013-06-30 -0.32 8.95
2013-03-31 -0.27 -4.88 8.92
2012-12-31 -0.54 -9.45 8.90
2012-09-30 -0.27 -15.70 15.10
2012-06-30 -21.95 21.30

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if TerraCom has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • TerraCom used its assets less efficiently than the AU Oil and Gas industry average last year based on Return on Assets.
  • It is difficult to establish if TerraCom improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess TerraCom's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Oil and Gas industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
TerraCom has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

TER Health

 How is TerraCom's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up TerraCom's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • TerraCom's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • TerraCom's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of TerraCom's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from TerraCom Company Filings, last reported 3 months ago.

ASX:TER Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 45.20 201.99 12.52
2018-09-30 45.20 201.99 12.52
2018-06-30 27.37 218.71 11.87
2018-03-31 27.37 218.71 11.87
2017-12-31 4.49 193.28 1.07
2017-09-30 4.49 193.28 1.07
2017-06-30 30.10 186.38 8.59
2017-03-31 30.10 186.38 8.59
2016-12-31 -36.08 184.66 1.22
2016-09-30 -36.08 184.66 1.22
2016-06-30 -17.65 161.21 1.28
2016-03-31 -17.65 161.21 1.28
2015-12-31 -44.95 164.36 0.37
2015-09-30 -44.95 164.36 0.37
2015-06-30 26.50 137.86 2.55
2015-03-31 26.50 137.86 2.55
2014-12-31 37.73 122.21 2.22
2014-09-30 37.73 122.21 2.22
2014-06-30 47.34 104.19 9.25
2014-03-31 47.34 104.19 9.25
2013-12-31 109.42 81.53 12.93
2013-09-30 109.42 81.53 12.93
2013-06-30 118.25 54.61 25.79
2013-03-31 118.25 54.61 25.79
2012-12-31 114.31 19.57 9.25
2012-09-30 114.31 19.57 9.25
2012-06-30 134.40 0.02 14.60
  • TerraCom's level of debt (446.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (75.2% vs 446.9% today).
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.

  • Whilst loss making TerraCom has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
  • Whilst loss making TerraCom has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by % per year.
X
Financial health checks
We assess TerraCom's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. TerraCom has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

TER Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from TerraCom dividends.
If you bought A$2,000 of TerraCom shares you are expected to receive A$0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate TerraCom's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate TerraCom's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:TER Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
Australia Oil and Gas Industry Average Dividend Yield Market Cap Weighted Average of 13 Stocks 4.6%
Australia Market Average Dividend Yield Market Cap Weighted Average of 417 Stocks 4.3%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.6%
Australia Bottom 25% Dividend Yield 25th Percentile 2.5%
Australia Top 25% Dividend Yield 75th Percentile 5.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as TerraCom has not reported any payouts.
  • Unable to verify if TerraCom's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of TerraCom's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as TerraCom has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess TerraCom's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.6%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can TerraCom afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. TerraCom has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

TER Management

 What is the CEO of TerraCom's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Danny McCarthy
TENURE AS CEO 0.3 years
CEO Bio

Mr. Danny McCarthy is Chief Executive Officer at TerraCom Limited since December 2018. Mr. McCarthy was Chief Operating Officer of Mineral Resources Limited since April 24, 2016 until December 2018. Mr. McCarthy is an experienced mining professional with 20 years of relevant experience in senior executive, general, operational and project management roles. He worked as Group General Manager Mining Operations at QCoal Pty Ltd and as General Manager Mining with Thiess. He is highly experienced in mine operations, cost control, customer focus and delivery with a demonstrated background in strategy development and execution, mine management, maintenance management, handling and processing.

CEO Compensation
  • Insufficient data for Danny to compare compensation growth.
  • Insufficient data for Danny to establish whether their remuneration is reasonable compared to companies of similar size in Australia.
Management Team Tenure

Average tenure of the TerraCom management team in years:

1.8
Average Tenure
  • The average tenure for the TerraCom management team is less than 2 years, this suggests a new team.
Management Team

Nathan Boom

TITLE
CFO & Company Secretary
COMPENSATION
A$446K
TENURE
2.1 yrs

Danny McCarthy

TITLE
Chief Executive Officer
TENURE
0.3 yrs

Sam Bowles

TITLE
Mongolian Business Unit Head
AGE
37
TENURE
1.8 yrs

Simone Wetzlar

TITLE
Head of Australian Business Unit

Reece Henry

TITLE
Exploration Manager - Mongolia
Board of Directors Tenure

Average tenure of the TerraCom board of directors in years:

2.1
Average Tenure
  • The average tenure for the TerraCom board of directors is less than 3 years, this suggests a new board.
Board of Directors

Wal King

TITLE
Non-Executive Chairman of the Board
COMPENSATION
A$331K
AGE
74
TENURE
1.6 yrs

Craig Wallace

TITLE
Non-Executive Deputy Chairman
COMPENSATION
A$120K
TENURE
2.8 yrs

Philip Forrest

TITLE
Independent Non-Executive Director
COMPENSATION
A$58K
TENURE
4 yrs

Tsogt Togoo

TITLE
Independent Non­-Executive Director
COMPENSATION
A$130K
TENURE
6.2 yrs

Jim Soorley

TITLE
Independent Non-Executive Director
COMPENSATION
A$120K
AGE
66
TENURE
2.1 yrs

Matthew Hunter

TITLE
Non-Executive Director
COMPENSATION
A$27K
TENURE
1.3 yrs

Paul Anderson

TITLE
Non-Executive Director
COMPENSATION
A$8K
TENURE
0.9 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
18. Apr 19 Buy Springsure Investments Limited Company 31. Aug 18 27. Mar 19 24,070,629 A$0.65 A$15,214,708
21. Mar 19 Buy Makira Sp1 Limited Company 19. Mar 19 19. Mar 19 29,100 A$0.66 A$19,206
21. Mar 19 Buy Ol Master (Singapore Fund1) Pte Limited Company 08. Mar 19 15. Mar 19 749,437 A$0.65 A$485,006
05. Mar 19 Buy Ol Master (Singapore Fund1) Pte Limited Company 07. Feb 19 04. Mar 19 4,201,900 A$0.60 A$2,503,271
07. Feb 19 Buy Ol Master (Singapore Fund1) Pte Limited Company 26. Nov 18 06. Feb 19 6,851,141 A$0.59 A$4,011,495
03. Dec 18 Buy James Soorley Individual 29. Nov 18 29. Nov 18 91,117 A$0.54 A$49,367
27. Nov 18 Buy Ol Master (Singapore Fund1) Pte Limited Company 17. Oct 18 23. Nov 18 4,111,173 A$0.54 A$2,199,715
19. Nov 18 Buy Singleton No.5 Investment Trust Company 15. Nov 18 15. Nov 18 61,192 A$0.52 A$31,943
19. Nov 18 Buy Philip Forrest Individual 15. Nov 18 15. Nov 18 30,000 A$0.51 A$15,300
12. Nov 18 Buy Matthew Hunter Individual 09. Nov 18 12. Nov 18 175,000 A$0.54 A$95,091
27. Sep 18 Buy TIGA Trading Pty Ltd, Asset Management Arm Company 03. Jul 18 09. Jul 18 332,700 A$0.40 A$128,881
14. Sep 18 Buy Matthew Hunter Individual 12. Sep 18 12. Sep 18 75,000 A$0.60 A$45,000
10. Sep 18 Buy Ol Master (Singapore Fund1) Pte Limited Company 24. Jul 18 05. Sep 18 966,682 A$0.56 A$481,329
10. Sep 18 Buy OCP Asia (Hong Kong) Limited Company 20. Apr 18 07. Jun 18 1,129,135 A$0.24 A$254,940
27. Aug 18 Buy Rasia Company 09. Aug 18 09. Aug 18 6,650,000 A$0.48 A$3,191,992
09. Aug 18 Buy Matthew Hunter Individual 22. May 18 07. Aug 18 500,000 A$0.07 A$33,576
09. Aug 18 Buy Singleton No.5 Investment Trust Company 09. Aug 18 09. Aug 18 100,000 A$0.48 A$47,945
07. Aug 18 Buy Craig Wallace Individual 06. Aug 18 06. Aug 18 10,200 A$0.48 A$4,881
07. Aug 18 Buy Wallace King Individual 03. Aug 18 03. Aug 18 102,000 A$0.49 A$49,875
07. Aug 18 Buy James Soorley Individual 03. Aug 18 03. Aug 18 100,000 A$0.47 A$47,000
06. Aug 18 Buy Philip Forrest Individual 03. Aug 18 03. Aug 18 50,000 A$0.49 A$24,250
24. Jul 18 Buy James Soorley Individual 20. Jul 18 20. Jul 18 100,000 A$0.42 A$42,000
27. Jun 18 Buy Rasia Company 07. May 18 07. May 18 16,106,947 A$0.24 A$3,865,646
05. Jun 18 Buy James Soorley Individual 31. May 18 31. May 18 100,000 A$0.37 A$37,000
X
Management checks
We assess TerraCom's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. TerraCom has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

TER News

Simply Wall St News

Announcing: TerraCom (ASX:TER) Stock Soared An Exciting 983% In The Last Three Years

For example, the TerraCom Limited (ASX:TER) share price is up a whopping 983% in the last three years, a handsome return for long term holders. … TerraCom isn't a profitable company, so it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). … It's always tempting to take profits after a share price gain like that, but high-growth companies like TerraCom can sometimes sustain strong growth for many years.

Simply Wall St -

Does The TerraCom Limited (ASX:TER) Share Price Fall With The Market?

Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … While we should keep in mind that Warren Buffett has cautioned that 'Volatility is far from synonymous with risk', beta is still a useful factor to consider. … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market.

Simply Wall St -

Did TerraCom Limited (ASX:TER) Insiders Buy Up More Shares?

So shareholders might well want to know whether insiders have been buying or selling shares in TerraCom Limited (ASX:TER). … TerraCom Insider Transactions Over The Last Year. … Over the last year, we can see that the biggest insider purchase was by Non-Executive Director Matthew Hunter for AU$95k worth of shares, at about AU$0.54 per share

Simply Wall St -

Does The TerraCom Limited (ASX:TER) Share Price Fall With The Market?

Volatility is considered to be a measure of risk in modern finance theory. … Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … Any stock with a beta of greater than one is considered more volatile than the market, while those with a beta below one are either less volatile or poorly correlated with the market.

Simply Wall St -

Who Are TerraCom Limited's (ASX:TER) Major Shareholders?

Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. … We also tend to see lower insider ownership in companies that were previously publicly owned. … Taking a look at the our data on the ownership groups (below), it's seems that.

Simply Wall St -

Is TerraCom Limited's (ASX:TER) PE Ratio A Signal To Buy For Investors?

I am writing today to help inform people who are new to the stock market. … and want to begin learning the link between TerraCom Limited (ASX:TER)’s fundamentals and stock market performance. … While this makes TER appear like a great stock to buy, you might change your mind after I explain the assumptions behind the P/E ratio

Simply Wall St -

Is TerraCom Limited's (ASX:TER) Balance Sheet Strong Enough To Weather A Storm?

With this rise in debt, the current cash and short-term investment levels stands at AU$8.59M , ready to deploy into the business. … Moving onto cash from operations, its operating cash flow is not yet significant enough to calculate a meaningful cash-to-debt ratio, indicating that operational efficiency is something we’d need to take a look at. … Next Steps: TER’s high debt levels is not met with high cash flow coverage.

Simply Wall St -

TerraCom Limited (ASX:TER): What Does It Mean For Your Portfolio?

TER’s beta indicates it is a stock that investors may find valuable if they want to reduce the overall market risk exposure of their stock portfolio. … This is an interesting conclusion, since both TER’s size and industry indicates the stock should have a higher beta than it currently has. … Therefore, this is a type of risk which is associated with higher beta.

Simply Wall St -

What Does TerraCom Limited's (ASX:TER) Ownership Structure Look Like?

With this size of ownership, retail investors can collectively play a role in major company policies that affect shareholders returns, including executive remuneration and the appointment of directors. … Private Company Ownership Potential investors in TER should also look at another important group of investors: private companies, with a stake of 17.36%, who are primarily invested because of strategic and capital gain interests. … As a result, potential investors should further explore the company's business relations with these companies and find out if they can affect shareholder returns in the long-term.Next Steps: With significant institutional ownership, including active hedge, existing investors should seek a margin of safety when investing in TER.

Simply Wall St -

Does TerraCom Limited's (ASX:TER) PE Ratio Signal A Selling Opportunity?

It compares a stock’s price per share to the stock’s earnings per share. … Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for TER Price per share = A$0.2 Earnings per share = A$0.02 ∴ Price-Earnings Ratio = A$0.2 ÷ A$0.02 = 9.7x The P/E ratio isn’t a metric you view in isolation and only becomes useful when you compare it against other similar companies. … TER’s P/E of 9.7x is higher than its industry peers (9.6x), which implies that each dollar of TER’s earnings is being overvalued by investors.

Simply Wall St -

TER Company Info

Description

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, the Clyde Park coal, and the Pentland projects that are located in the Galilee Basin, Queensland; and the Springsure project, which consists of 11 sub-blocks with a total surface area of approximately 41.42 square kilometers that is located 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.

Details
Name: TerraCom Limited
TER
Exchange: ASX
Founded: 2009
A$247,793,772
406,219,299
Website: http://www.terracomresources.com
Address: TerraCom Limited
Blair Athol Mine Access Road,
PO Box 131,
Clermont,
Queensland, 4721,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX TER Ordinary Shares Australian Securities Exchange AU AUD 22. Jul 2010
DB 2GF Ordinary Shares Deutsche Boerse AG DE EUR 22. Jul 2010
Number of employees
Current staff
Staff numbers
0
TerraCom employees.
Industry
Coal and Consumable Fuels
Energy
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/19 10:33
End of day share price update: 2019/04/18 00:00
Last earnings filing: 2019/02/28
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.