ASX:TER

Stock Analysis Report

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Executive Summary

TerraCom Limited engages in the exploration, extraction, and production of coal in Australia and South Africa. More Details


Snowflake Analysis

Unattractive dividend payer with worrying balance sheet.


Similar Companies

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 is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: TER's weekly volatility (9%) has been stable over the past year.


Market Performance


7 Day Return

0%

TER

6.2%

AU Oil and Gas

1.7%

AU Market


1 Year Return

-57.4%

TER

-28.3%

AU Oil and Gas

-1.6%

AU Market

Return vs Industry: TER underperformed the Australian Oil and Gas industry which returned -28.3% over the past year.

Return vs Market: TER underperformed the Australian Market which returned -1.6% over the past year.


Shareholder returns

TERIndustryMarket
7 Day0%6.2%1.7%
30 Day-3.3%24.5%9.5%
90 Day11.5%16.6%9.2%
1 Year-57.4%-57.4%-25.4%-28.3%1.8%-1.6%
3 Year-29.3%-31.0%-13.1%-22.0%24.8%9.2%
5 Year85.6%81.3%4.2%-10.1%56.1%25.0%

Long-Term 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

Valuation

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


Share Price vs. Fair Value

Below Fair Value: TER (A$0.15) is trading above our estimate of fair value (A$0.04)

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


Price To Earnings Ratio

PE vs Industry: TER is unprofitable, so we can't compare its PE Ratio to the AU 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 has negative assets, so we can't compare its PB Ratio to the AU Oil and Gas industry average.


Next Steps

Future Growth

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

54.1%

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.


Next Steps

Past Performance

How has TerraCom performed over the past 5 years?

38.9%

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 38.9% 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 (-44.9%).


Return on Equity

High ROE: TER has a negative Return on Equity (-49.07%), as it is currently unprofitable.


Next Steps

Financial Health

How is TerraCom's financial position?


Financial Position Analysis

Short Term Liabilities: TER's short term assets (A$88.3M) do not cover its short term liabilities (A$331.2M).

Long Term Liabilities: TER's short term assets (A$88.3M) do not cover its long term liabilities (A$235.7M).


Debt to Equity History and Analysis

Debt Level: TER's debt to equity ratio (421.3%) is considered high.

Reducing Debt: TER's debt to equity ratio has reduced from 555% to 421.3% over the past 5 years.


Balance Sheet


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: TER has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: TER has less than a year of cash runway if free cash flow continues to grow at historical rates of 43% each year.


Next Steps

Dividend

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

13.79%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TER's dividend (13.79%) is higher than the bottom 25% of dividend payers in the Australian market (2.06%).

High Dividend: TER's dividend (13.79%) is in the top 25% of dividend payers in the Australian market (5.1%)


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: TER is paying a dividend but the company is unprofitable.


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.


Next Steps

Management

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

0.6yrs

Average management tenure


CEO

Danny McCarthy

1.92yrs

Tenure

AU$874,911

Compensation

Mr. Danny McCarthy is Chief Executive Officer at TerraCom Limited since December 1, 2018. Prior to joining TerraCom in December 2018, Mr. McCarthy was Chief Operating Officer of Mineral Resources Limited s...


CEO Compensation Analysis

Compensation vs Market: Danny's total compensation ($USD643.98K) is above average for companies of similar size in the Australian market ($USD280.83K).

Compensation vs Earnings: Danny's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Danny McCarthy
Chief Executive Officer1.92yrsAU$874.91kno data
Craig Ransley
Executive Deputy Chairman0.75yrAU$1.20m0.00056%
A$ 611.9
Nathan Boom
Chief Commercial Officer0.17yrAU$632.79kno data
Celeste Van Tonder
Chief Financial Officer0.17yrno datano data
Megan Etcell
Company Secretary & EGM of Corporate Affairs1yrno datano data
Reece Henry
Exploration Manager - Mongoliano datano datano data

0.6yrs

Average Tenure

Experienced Management: TER's management team is not considered experienced ( 0.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Craig Ransley
Executive Deputy Chairman0.75yrAU$1.20m0.00056%
A$ 611.9
Wallace King
Independent Non-Executive Chairman of the Board3.17yrsAU$306.12k0.28%
A$ 304.6k
Craig Warwick Lyons
Independent Non-Executive Director0.33yrno datano data
Matthew Hunter
Non-Executive Director2.83yrsAU$83.59k0.21%
A$ 230.9k
Glen Lewis
Non-Executive Director0.92yrAU$73.00k0.11%
A$ 122.9k
Shane Kyriakou
Non-Executive Director0.17yrno datano data

0.8yrs

Average Tenure

53.5yo

Average Age

Experienced Board: TER's board of directors are not considered experienced ( 0.8 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 been substantially diluted in the past year, with total shares outstanding growing by 50.2%.


Top Shareholders

Company Information

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


Key Information

  • Name: TerraCom Limited
  • Ticker: TER
  • Exchange: ASX
  • Founded: 2009
  • Industry: Coal and Consumable Fuels
  • Sector: Energy
  • Market Cap: AU$109.273m
  • Shares outstanding: 753.61m
  • Website: https://www.terracomresources.com

Location

  • TerraCom Limited
  • \
  • PO Box 131
  • Clermont
  • Queensland
  • 4721
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TERASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJul 2010
2GFDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2010
TERCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJul 2010

Biography

TerraCom Limited engages in the exploration, extraction, and production of coal in Australia and South Africa. It explores for hard and soft coking, thermal, and PCI coal. The company holds interests in th...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/27 07:04
End of Day Share Price2020/11/27 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.