ASX:UNV

Stock Analysis Report

Executive Summary

Universal Coal Plc, a coal mining company, engages in acquisition, exploration, development, and commercialization of coal projects in the Republic of South Africa.


Snowflake Analysis

Undervalued with excellent balance sheet.

Share Price & News

How has Universal Coal's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-8.7%

UNV

-10.4%

AU Oil and Gas

-7.1%

AU Market


1 Year Return

-39.1%

UNV

-19.1%

AU Oil and Gas

6.7%

AU Market

Return vs Industry: UNV underperformed the Australian Oil and Gas industry which returned -19.1% over the past year.

Return vs Market: UNV underperformed the Australian Market which returned 6.7% over the past year.


Shareholder returns

UNVIndustryMarket
7 Day-8.7%-10.4%-7.1%
30 Day-14.3%-14.6%-5.3%
90 Day-16.0%-16.2%-3.2%
1 Year-33.4%-39.1%-15.9%-19.1%11.3%6.7%
3 Year101.8%61.5%0.4%-10.4%28.2%11.2%
5 Year109.9%68.0%-7.3%-23.2%40.9%9.2%

Price Volatility Vs. Market

How volatile is Universal Coal's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: UNV (A$0.21) is trading below our estimate of fair value (A$1.43)

Significantly Below Fair Value: UNV is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: UNV is good value based on its PE Ratio (2.9x) compared to the Oil and Gas industry average (9.1x).

PE vs Market: UNV is good value based on its PE Ratio (2.9x) compared to the Australian market (18x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate UNV's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: UNV is good value based on its PB Ratio (0.9x) compared to the AU Oil and Gas industry average (1.1x).


Next Steps

Future Growth

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

14.8%

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 Universal Coal 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 Universal Coal performed over the past 5 years?

62.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UNV has a large one-off gain of A$20.6M impacting its June 30 2019 financial results.

Growing Profit Margin: UNV's current net profit margins (8.7%) are higher than last year (7.6%).


Past Earnings Growth Analysis

Earnings Trend: UNV has become profitable over the past 5 years, growing earnings by 62.8% per year.

Accelerating Growth: UNV's earnings growth over the past year (58.2%) is below its 5-year average (62.8% per year).

Earnings vs Industry: UNV earnings growth over the past year (58.2%) exceeded the Oil and Gas industry -0.7%.


Return on Equity

High ROE: UNV's Return on Equity (36%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Universal Coal's financial position?


Financial Position Analysis

Short Term Liabilities: UNV's short term assets (A$101.6M) exceed its short term liabilities (A$70.8M).

Long Term Liabilities: UNV's short term assets (A$101.6M) do not cover its long term liabilities (A$114.5M).


Debt to Equity History and Analysis

Debt Level: UNV's debt to equity ratio (11%) is considered satisfactory.

Reducing Debt: UNV's debt to equity ratio has reduced from 57.2% to 11% over the past 5 years.

Debt Coverage: UNV's debt is well covered by operating cash flow (304.9%).

Interest Coverage: UNV earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: UNV has a high level of physical assets or inventory.

Debt Coverage by Assets: UNV's debt is covered by short term assets (assets are 4.7x debt).


Next Steps

Dividend

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

14.29%

Current Dividend Yield


Dividend Yield vs Market

company14.3%marketbottom25%2.5%markettop25%5.8%industryaverage4.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: UNV's dividend (14.29%) is higher than the bottom 25% of dividend payers in the Australian market (2.46%).

High Dividend: UNV's dividend (14.29%) is in the top 25% of dividend payers in the Australian market (5.77%)


Stability and Growth of Payments

Stable Dividend: UNV has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: UNV's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (41.3%), UNV's dividend payments are well 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.


Next Steps

Management

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

5.8yrs

Average management tenure


CEO

Tony Weber 0

8.6yrs

Tenure

AU$866,912

Compensation

Mr. Anton Weber, also known as Tony, B.Eng (Min), DepMinEcon serves as the Chief Executive Officer of Universal Coal plc. and serves as its Managing Director. Mr. Weber serves as Technical advisor of NKWE  ...


CEO Compensation Analysis

Compensation vs Market: Tony's total compensation ($USD570.34K) is above average for companies of similar size in the Australian market ($USD252.03K).

Compensation vs Earnings: Tony's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Anton Weber
CEO, MD & Non-Independent Executive Director8.6yrsAU$866.91k1.83% A$2.0m
Shammy Luvhengo
Director of Business Development & Non-Independent Executive Director9.4yrsAU$591.65k0.42% A$462.0k
Celeste Van Tonder
Chief Financial Officer2.6yrsno datano data
Kevin Donaldson
Chief Development Engineer0yrsno datano data
Simon Mokitimi
Chief Geologist0yrsno datano data
Benjamin Harber
Company Secretary5.8yrsno datano data

5.8yrs

Average Tenure

Experienced Management: UNV's management team is seasoned and experienced (5.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Anton Weber
CEO, MD & Non-Independent Executive Director8.6yrsAU$866.91k1.83% A$2.0m
Shammy Luvhengo
Director of Business Development & Non-Independent Executive Director9.4yrsAU$591.65k0.42% A$462.0k
Wallace King
Non-Executive Director0.2yrsno datano data
Hendrik Bonsma
Non-Executive Independent Director10.2yrsAU$294.49k1.15% A$1.3m
Craig Ransley
Non-Executive Director0.2yrsno datano data
Mark Eames
Interim Independent Non-Executive Chairman0.08yrsno datano data
Paul Sanger
Independent Non-Executive Director0.2yrsno datano data

0.2yrs

Average Tenure

50yo

Average Age

Experienced Board: UNV's board of directors are not considered experienced ( 0.2 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Universal Coal Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Universal Coal Plc
  • Ticker: UNV
  • Exchange: ASX
  • Founded: 2002
  • Industry: Coal and Consumable Fuels
  • Sector: Energy
  • Market Cap: AU$109.719m
  • Shares outstanding: 522.47m
  • Website: https://www.universalcoal.com

Number of Employees


Location

  • Universal Coal Plc
  • 60 Gracechurch Street
  • 6th Floor
  • London
  • Greater London
  • EC3V 0HR
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
UNVASX (Australian Securities Exchange)YesNPV (CDI)AUAUDDec 2010
S5C1DB (Deutsche Boerse AG)YesNPV (CDI)DEEURDec 2010
S5C1BST (Boerse-Stuttgart)YesNPV (CDI)DEEURDec 2010
UNVCHIA (Chi-X Australia)YesNPV (CDI)AUAUDDec 2010

Biography

Universal Coal Plc, a coal mining company, engages in acquisition, exploration, development, and commercialization of coal projects in the Republic of South Africa. The company holds interests in thermal coal projects, including 70.5% interest in the Kangala project located in the Witbank coalfield in Mpumalanga province; 49% interest in the New Clydesdale Colliery coal project situated in the Kriel district, North Block Complex project located in the west of Belfast in Mpumalanga province, and Ubuntu Colliery coal project located in the Delmas district; and 49% interest in Eloff project and 50% interest in the Arnot South project located in the Witbank coalfield. It also holds 50% interest in the Berenice/Cygnus coking coal projects situated in the Soutpansberg coalfield southwest of Musina. Universal Coal Plc was incorporated in 2002 and is based in London, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 10:35
End of Day Share Price2020/02/28 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.