ASX:WHC

Stock Analysis Report

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Market Cap

AU$2.2b

Last Updated

2021/07/23 08:21 UTC

Data Sources

Company Financials +

Executive Summary

Whitehaven Coal Limited develops and operates coal mines in New South Wales and Queensland. More Details

Rewards

Earnings are forecast to grow 46.06% per year

Risk Analysis

No risks detected for WHC from our risk checks.


Snowflake Analysis

Reasonable growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: WHC is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: WHC's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

2.8%

WHC

-0.9%

AU Oil and Gas

0.3%

AU Market


1 Year Return

47.5%

WHC

20.8%

AU Oil and Gas

25.8%

AU Market

Return vs Industry: WHC exceeded the Australian Oil and Gas industry which returned 20.8% over the past year.

Return vs Market: WHC exceeded the Australian Market which returned 25.8% over the past year.


Shareholder returns

WHCIndustryMarket
7 Day2.8%-0.9%0.3%
30 Day15.3%-0.6%1.3%
90 Day68.2%3.1%4.2%
1 Year47.5%47.5%23.6%20.8%30.4%25.8%
3 Year-51.7%-60.3%-20.9%-28.7%32.8%16.6%
5 Year73.5%31.8%12.8%-2.8%64.3%32.3%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.7x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: WHC (A$2.22) is trading above our estimate of fair value (A$1.76)

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


Price To Earnings Ratio

PE vs Industry: WHC is unprofitable, so we can't compare its PE Ratio to the Australian Oil and Gas industry average.

PE vs Market: WHC 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 WHC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: WHC is good value based on its PB Ratio (0.7x) compared to the AU Oil and Gas industry average (2x).


Future Growth

How is Whitehaven Coal forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

46.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WHC is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: WHC is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: WHC's is expected to become profitable in the next 3 years.

Revenue vs Market: WHC's revenue (6.9% per year) is forecast to grow faster than the Australian market (5% per year).

High Growth Revenue: WHC's revenue (6.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WHC's Return on Equity is forecast to be low in 3 years time (4.4%).


Past Performance

How has Whitehaven Coal performed over the past 5 years?

7.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WHC is currently unprofitable.

Growing Profit Margin: WHC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: WHC is unprofitable, but has reduced losses over the past 5 years at a rate of 7.7% per year.

Accelerating Growth: Unable to compare WHC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: WHC is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-2.3%).


Return on Equity

High ROE: WHC has a negative Return on Equity (-2.91%), as it is currently unprofitable.


Financial Health

How is Whitehaven Coal's financial position?


Financial Position Analysis

Short Term Liabilities: WHC's short term assets (A$376.3M) exceed its short term liabilities (A$325.3M).

Long Term Liabilities: WHC's short term assets (A$376.3M) do not cover its long term liabilities (A$1.6B).


Debt to Equity History and Analysis

Debt Level: WHC's debt to equity ratio (23.1%) is considered satisfactory.

Reducing Debt: WHC's debt to equity ratio has reduced from 32.9% to 23.1% over the past 5 years.

Debt Coverage: WHC's debt is not well covered by operating cash flow (13.8%).

Interest Coverage: Insufficient data to determine if WHC's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

What is Whitehaven Coal current dividend yield, its reliability and sustainability?

2.69%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate WHC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate WHC's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if WHC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if WHC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: WHC is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of WHC's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

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

1.4yrs

Average management tenure


CEO

Paul Flynn

8.33yrs

Tenure

AU$2,958,049

Compensation

Mr. Paul J. Flynn, BComm, FCA, has been the Chief Executive Officer and Managing Director of Whitehaven Coal Limited since March 25, 2013. Mr. Flynn served as the Chief Executive Officer and Managing Direc...


CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD2.18M) is above average for companies of similar size in the Australian market ($USD1.20M).

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


Leadership Team

Experienced Management: WHC's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

Experienced Board: WHC's board of directors are considered experienced (7.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: WHC 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

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


Key Information

  • Name: Whitehaven Coal Limited
  • Ticker: WHC
  • Exchange: ASX
  • Founded: 1999
  • Industry: Coal and Consumable Fuels
  • Sector: Energy
  • Market Cap: AU$2.217b
  • Shares outstanding: 998.62m
  • Website: https://www.whitehavencoal.com.au

Number of Employees


Location

  • Whitehaven Coal Limited
  • 259 George Street
  • Level 28
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings


Biography

Whitehaven Coal Limited develops and operates coal mines in New South Wales and Queensland. The company operates in two segments, Open Cut Operations and Underground Operations. The company operates four m...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/23 08:21
End of Day Share Price2021/07/22 00:00
Earnings2020/12/31
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.