ASX:WHC

Stock Analysis Report

Executive Summary

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

Rewards

PE ratio (4.9x) is below the Australian market (18.4x)

Earnings have grown 61% per year over the past 5 years

Risk Analysis

Earnings are forecast to decline by an average of -26.2% per year for the next 3 years

Unstable dividend track record

Highly volatile share price over past 3 months



Snowflake Analysis

Excellent balance sheet established dividend payer.


Similar Companies

BHP Group

ASX:BHP

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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-16.2%

WHC

-0.2%

AU Oil and Gas

-1.8%

AU Market


1 Year Return

-37.3%

WHC

11.3%

AU Oil and Gas

20.0%

AU Market

Return vs Industry: WHC underperformed the Australian Oil and Gas industry which returned 11.3% over the past year.

Return vs Market: WHC underperformed the Australian Market which returned 20% over the past year.


Shareholder returns

WHCIndustryMarket
7 Day-16.2%-0.2%-1.8%
30 Day-22.8%1.8%-0.3%
90 Day-21.4%5.0%1.1%
1 Year-28.4%-37.3%16.0%11.3%25.9%20.0%
3 Year16.6%-10.8%16.6%4.4%36.0%17.4%
5 Year202.8%131.6%20.4%-1.5%62.5%25.9%

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?

4.94x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WHC (A$2.64) is trading above our estimate of fair value (A$2.05)

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


Price To Earnings Ratio

PE vs Industry: WHC is good value based on its PE Ratio (4.9x) compared to the Oil and Gas industry average (10.2x).

PE vs Market: WHC is good value based on its PE Ratio (4.9x) compared to the Australian market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: WHC's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


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 (1.3x).


Next Steps

Future Growth

How is Whitehaven Coal forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

-26.2%

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 (-26.2% per year).

Earnings vs Market: WHC's earnings are forecast to decline over the next 3 years (-26.2% per year).

High Growth Earnings: WHC's earnings are forecast to decline over the next 3 years.

Revenue vs Market: WHC's revenue is expected to decline over the next 3 years (-0.5% per year).

High Growth Revenue: WHC's revenue is forecast to decline over the next 3 years (-0.5% 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 (7.1%).


Next Steps

Past Performance

How has Whitehaven Coal performed over the past 5 years?

61.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WHC has high quality earnings.

Growing Profit Margin: WHC's current net profit margins (21.2%) are lower than last year (23.2%).


Past Earnings Growth Analysis

Earnings Trend: WHC has become profitable over the past 5 years, growing earnings by 61% per year.

Accelerating Growth: WHC's earnings growth over the past year (0.6%) is below its 5-year average (61% per year).

Earnings vs Industry: WHC earnings growth over the past year (0.6%) underperformed the Oil and Gas industry 68.1%.


Return on Equity

High ROE: WHC's Return on Equity (15%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Whitehaven Coal's financial position?


Financial Position Analysis

Short Term Liabilities: WHC's short term assets (A$424.3M) exceed its short term liabilities (A$339.1M).

Long Term Liabilities: WHC's short term assets (A$424.3M) do not cover its long term liabilities (A$983.8M).


Debt to Equity History and Analysis

Debt Level: WHC's debt to equity ratio (4.9%) is considered satisfactory.

Reducing Debt: WHC's debt to equity ratio has reduced from 21.1% to 4.9% over the past 5 years.

Debt Coverage: WHC's debt is well covered by operating cash flow (527.1%).

Interest Coverage: WHC's interest payments on its debt are well covered by EBIT (31.4x coverage).


Balance Sheet

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

Debt Coverage by Assets: WHC's debt is covered by short term assets (assets are 2.4x debt).


Next Steps

Dividend

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

18.94%

Current Dividend Yield


Dividend Yield vs Market

company18.9%marketbottom25%2.4%markettop25%5.6%industryaverage4.2%forecastin3Years5.0%

Current dividend yield vs market & industry

Notable Dividend: WHC's dividend (18.94%) is higher than the bottom 25% of dividend payers in the Australian market (2.44%).

High Dividend: WHC's dividend (18.94%) is in the top 25% of dividend payers in the Australian market (5.57%)


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.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (52.4%), WHC's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WHC's dividends in 3 years are forecast to be covered by earnings (52.1% payout ratio).


Next Steps

Management

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

6.8yrs

Average management tenure


CEO

Paul Flynn 0

6.8yrs

Tenure

AU$2,871,782

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 ($USD1.96M) is above average for companies of similar size in the Australian market ($USD1.36M).

Compensation vs Earnings: Paul's compensation has been consistent with company performance over the past year.


Management Age and Tenure

6.8yrs

Average Tenure

Experienced Management: WHC's management team is seasoned and experienced (6.8 years average tenure).


Board Age and Tenure

6.3yrs

Average Tenure

63yo

Average Age

Experienced Board: WHC's board of directors are considered experienced (6.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellAU$24,947,16018 Nov 19
UBS Asset Management
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Role
Member of the Board of Directors
Independent Non-Executive Director
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Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Jamie Frankcombe

    Chief Operating Officer

    • Tenure: 6.8yrs
    • Compensation: AU$1.72m
  • Ian McAleese (66yo)

    General Manager of Investor Relations

    • Tenure: 0yrs
  • Scott Knights

    Executive General Manager of Marketing & Logistics

    • Tenure: 5.3yrs
    • Compensation: AU$1.01m
  • Tim Burt

    General Counsel & Company Secretary

    • Tenure: 10.4yrs
    • Compensation: AU$984.88k
  • Paul Flynn

    MD, CEO & Director

    • Tenure: 6.8yrs
    • Compensation: AU$2.87m
  • Brian Cole

    Executive General Manager of Project Delivery

    • Tenure: 0yrs
    • Compensation: AU$1.12m
  • Kevin Ball

    CFO & Executive General Manager of Human Resources

    • Tenure: 6yrs
    • Compensation: AU$1.12m
  • Paul Verner

    Group Treasurer

    • Tenure: 0yrs
  • Michael Maanen

    Executive General Manager of Corporate & External Affairs

    • Tenure: 0yrs
    • Compensation: AU$559.50k

Board Members

  • John Conde (71yo)

    Deputy Chairman of the Board

    • Tenure: 7.6yrs
    • Compensation: AU$283.03k
  • Fiona Robertson (63yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: AU$218.62k
  • Julie Beeby

    Independent Non-Executive Director

    • Tenure: 4.4yrs
    • Compensation: AU$197.10k
  • Mark Anthony Vaile (63yo)

    Independent Chairman of the Board

    • Tenure: 7.6yrs
    • Compensation: AU$395.53k
  • Ray Zage

    Non-Executive Director

    • Tenure: 6.3yrs
  • Lindsay Ward (55yo)

    Independent Non-Executive Director

    • Tenure: 0.8yrs
    • Compensation: AU$74.73k
  • Paul Flynn

    MD, CEO & Director

    • Tenure: 6.8yrs
    • Compensation: AU$2.87m

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$2.609b
  • Shares outstanding: 992.03m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WHCASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJun 2007
WC2DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2007
WHIT.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 2007
WHCCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJun 2007

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 five m ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/09 10:32
End of Day Share Price2019/12/09 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.