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WHC

Whitehaven Coal ASX:WHC Stock Report

Last Price

AU$6.00

Market Cap

AU$5.5b

7D

-3.4%

1Y

176.5%

Updated

07 Aug, 2022

Data

Company Financials +
WHC fundamental analysis
Snowflake Score
Valuation5/6
Future Growth3/6
Past Performance0/6
Financial Health5/6
Dividends3/6

WHC Stock Overview

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

Whitehaven Coal Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Whitehaven Coal
Historical stock prices
Current Share PriceAU$6.00
52 Week HighAU$6.55
52 Week LowAU$2.09
Beta0.51
1 Month Change19.28%
3 Month Change18.11%
1 Year Change176.50%
3 Year Change75.95%
5 Year Change88.09%
Change since IPO252.94%

Recent News & Updates

Jul 27
Analysts Just Made A Decent Upgrade To Their Whitehaven Coal Limited (ASX:WHC) Forecasts

Analysts Just Made A Decent Upgrade To Their Whitehaven Coal Limited (ASX:WHC) Forecasts

Whitehaven Coal Limited ( ASX:WHC ) shareholders will have a reason to smile today, with the analysts making...

Jun 14
Whitehaven Coal Limited (ASX:WHC) Shares Could Be 22% Below Their Intrinsic Value Estimate

Whitehaven Coal Limited (ASX:WHC) Shares Could Be 22% Below Their Intrinsic Value Estimate

Today we will run through one way of estimating the intrinsic value of Whitehaven Coal Limited ( ASX:WHC ) by taking...

Shareholder Returns

WHCAU Oil and GasAU Market
7D-3.4%-3.3%1.0%
1Y176.5%28.0%-7.9%

Return vs Industry: WHC exceeded the Australian Oil and Gas industry which returned 28% over the past year.

Return vs Market: WHC exceeded the Australian Market which returned -7.9% over the past year.

Price Volatility

Is WHC's price volatile compared to industry and market?
WHC volatility
WHC Average Weekly Movement7.4%
Oil and Gas Industry Average Movement11.8%
Market Average Movement10.6%
10% most volatile stocks in AU Market17.5%
10% least volatile stocks in AU Market4.7%

Stable Share Price: WHC is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: WHC's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1999n/aPaul Flynnhttps://www.whitehavencoal.com.au

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. It produces metallurgical and thermal coal.

Whitehaven Coal Fundamentals Summary

How do Whitehaven Coal's earnings and revenue compare to its market cap?
WHC fundamental statistics
Market CapAU$5.53b
Earnings (TTM)-AU$108.95m
Revenue (TTM)AU$2.31b

2.4x

P/S Ratio

-50.8x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
WHC income statement (TTM)
RevenueAU$2.31b
Cost of RevenueAU$1.12b
Gross ProfitAU$1.19b
Other ExpensesAU$1.29b
Earnings-AU$108.95m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Aug 25, 2022

Earnings per share (EPS)-0.12
Gross Margin51.37%
Net Profit Margin-4.72%
Debt/Equity Ratio11.7%

How did WHC perform over the long term?

See historical performance and comparison

Dividends

2.7%

Current Dividend Yield

-73%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is WHC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for WHC?

Other financial metrics that can be useful for relative valuation.

WHC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.6x
Enterprise Value/EBITDA5.3x
PEG Ration/a

Price to Sales Ratio vs Peers

How does WHC's PS Ratio compare to its peers?

WHC PS Ratio vs Peers
The above table shows the PS ratio for WHC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average2.9x
YAL Yancoal Australia
1.2x-4.2%AU$6.2b
NHC New Hope
2x-4.7%AU$3.4b
SOL Washington H. Soul Pattinson
4.2x-8.1%AU$9.3b
SMR Stanmore Resources
4.1x22.4%AU$1.6b
WHC Whitehaven Coal
2.4x-12.7%AU$5.5b

Price-To-Sales vs Peers: WHC is good value based on its Price-To-Sales Ratio (2.4x) compared to the peer average (2.9x).


Price to Earnings Ratio vs Industry

How does WHC's PE Ratio compare vs other companies in the AU Oil and Gas Industry?

Price-To-Sales vs Industry: WHC is good value based on its Price-To-Sales Ratio (2.4x) compared to the Australian Oil and Gas industry average (3.4x)


Price to Sales Ratio vs Fair Ratio

What is WHC's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

WHC PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio2.4x
Fair PS Ratio5.4x

Price-To-Sales vs Fair Ratio: WHC is good value based on its Price-To-Sales Ratio (2.4x) compared to the estimated Fair Price-To-Sales Ratio (5.4x).


Share Price vs Fair Value

What is the Fair Price of WHC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: WHC (A$6) is trading below our estimate of fair value (A$11.06)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

How is Whitehaven Coal forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-23.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WHC's earnings are forecast to decline over the next 3 years (-23% per year).

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 is expected to become profitable in the next 3 years.

Revenue vs Market: WHC's revenue is expected to decline over the next 3 years (-12.7% per year).

High Growth Revenue: WHC's revenue is forecast to decline over the next 3 years (-12.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WHC's Return on Equity is forecast to be high in 3 years time (22.1%)


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Past Performance

How has Whitehaven Coal performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-47.4%

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, and losses have increased over the past 5 years at a rate of 47.4% 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 (299.7%).


Return on Equity

High ROE: WHC has a negative Return on Equity (-3.57%), as it is currently unprofitable.


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Financial Health

How is Whitehaven Coal's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: WHC's short term assets (A$417.7M) exceed its short term liabilities (A$351.2M).

Long Term Liabilities: WHC's short term assets (A$417.7M) do not cover its long term liabilities (A$1.1B).


Debt to Equity History and Analysis

Debt Level: WHC's net debt to equity ratio (8.2%) is considered satisfactory.

Reducing Debt: WHC's debt to equity ratio has reduced from 22.7% to 11.7% over the past 5 years.

Debt Coverage: WHC's debt is well covered by operating cash flow (174.7%).

Interest Coverage: WHC's interest payments on its debt are well covered by EBIT (12.8x coverage).


Balance Sheet


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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


2.67%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: WHC's dividend (2.67%) is higher than the bottom 25% of dividend payers in the Australian market (2.62%).

High Dividend: WHC's dividend (2.67%) is low compared to the top 25% of dividend payers in the Australian market (6.24%).


Stability and Growth of Payments

Stable Dividend: WHC's dividend payments have been volatile in the past 10 years.

Growing Dividend: WHC's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: WHC is paying a dividend but the company is unprofitable.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (29%), WHC's dividend payments are well covered by cash flows.


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Management

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

2.5yrs

Average management tenure


CEO

Paul Flynn

9.42yrs

Tenure

AU$3,452,505

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD2.38M) is about average for companies of similar size in the Australian market ($USD1.92M).

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


Leadership Team

Experienced Management: WHC's management team is considered experienced (2.5 years average tenure).


Board Members

Experienced Board: WHC's board of directors are considered experienced (9 years average tenure).


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

Whitehaven Coal Limited's 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
  • Implied Market Cap: AU$5.534b
  • Shares outstanding: 922.25m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/07 00:00
End of Day Share Price2022/08/05 00:00
Earnings2021/12/31
Annual Earnings2021/06/30


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.