ASX:WHC

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Adequate balance sheet and fair value.


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 +/- 11% a week.

Volatility Over Time: WHC's weekly volatility (11%) has been stable over the past year.


Market Performance


7 Day Return

11.0%

WHC

3.4%

AU Oil and Gas

1.3%

AU Market


1 Year Return

-57.7%

WHC

-30.3%

AU Oil and Gas

-1.0%

AU Market

Return vs Industry: WHC underperformed the Australian Oil and Gas industry which returned -31.4% over the past year.

Return vs Market: WHC underperformed the Australian Market which returned -1.2% over the past year.


Shareholder returns

WHCIndustryMarket
7 Day11.0%3.4%1.3%
30 Day26.0%14.9%6.0%
90 Day5.2%7.7%6.8%
1 Year-57.4%-57.7%-27.5%-30.3%2.4%-1.0%
3 Year-56.5%-65.3%-17.7%-26.2%22.9%7.6%
5 Year90.7%44.8%-2.0%-16.0%55.7%24.6%

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?

40.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WHC (A$1.31) is trading below our estimate of fair value (A$2.19)

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


Price To Earnings Ratio

PE vs Industry: WHC is poor value based on its PE Ratio (43.2x) compared to the AU Oil and Gas industry average (12.9x).

PE vs Market: WHC is poor value based on its PE Ratio (43.2x) compared to the Australian market (22.4x).


Price to Earnings Growth Ratio

PEG Ratio: WHC is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: WHC is good value based on its PB Ratio (0.4x) compared to the AU Oil and Gas industry average (1.5x).


Next Steps

Future Growth

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

42.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WHC's forecast earnings growth (42.6% per year) is above the savings rate (2.3%).

Earnings vs Market: WHC's earnings (42.6% per year) are forecast to grow faster than the Australian market (17.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: WHC's revenue (3.6% per year) is forecast to grow slower than the Australian market (5.1% per year).

High Growth Revenue: WHC's revenue (3.6% 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 (3.3%).


Next Steps

Past Performance

How has Whitehaven Coal performed over the past 5 years?

35.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WHC has a large one-off gain of A$8.7M impacting its June 30 2020 financial results.

Growing Profit Margin: WHC's current net profit margins (1.7%) are lower than last year (21.1%).


Past Earnings Growth Analysis

Earnings Trend: WHC has become profitable over the past 5 years, growing earnings by 35.9% per year.

Accelerating Growth: WHC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: WHC had negative earnings growth (-94.3%) over the past year, making it difficult to compare to the Oil and Gas industry average (-44.9%).


Return on Equity

High ROE: WHC's Return on Equity (0.9%) is considered low.


Next Steps

Financial Health

How is Whitehaven Coal's financial position?


Financial Position Analysis

Short Term Liabilities: WHC's short term assets (A$433.0M) exceed its short term liabilities (A$312.4M).

Long Term Liabilities: WHC's short term assets (A$433.0M) do not cover its long term liabilities (A$1.7B).


Debt to Equity History and Analysis

Debt Level: WHC's debt to equity ratio (20.9%) is considered satisfactory.

Reducing Debt: WHC's debt to equity ratio has reduced from 32.9% to 20.9% over the past 5 years.

Debt Coverage: WHC's debt is well covered by operating cash flow (21.6%).

Interest Coverage: WHC's interest payments on its debt are not well covered by EBIT (2.6x coverage).


Balance Sheet


Next Steps

Dividend

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

1.95%

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?

3.5yrs

Average management tenure


CEO

Paul Flynn

7.67yrs

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 ($USD2.16M) is above average for companies of similar size in the Australian market ($USD950.22K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Paul Flynn
MD, CEO & Director7.67yrsAU$2.96m0.26%
A$ 3.4m
Kevin Ball
Chief Financial Officer7.08yrsAU$1.17m0.074%
A$ 969.4k
Ian Humphris
Executive General Manager – Operations0.58yrAU$632.79kno data
Timothy Burt
General Counsel & Company Secretary11.33yrsAU$1.02m0.060%
A$ 785.3k
Scott Knights
Executive General Manager of Marketing & Logistics6.25yrsAU$1.05mno data
Leigh Martin
Executive General Manager of People & Culture0.83yrAU$450.57kno data
Michael Maanen
Executive General Manager of Corporateno dataAU$605.55kno data
Mark Stevens
Executive General Manager of Project Delivery0.83yrAU$521.61kno data
Sarah McNally
General Manager of Investor Relationsno datano datano data
Sarah Withell
Executive General Manager of Health0.33yrno datano data
Paul Verner
Group Treasurerno datano datano data

3.5yrs

Average Tenure

Experienced Management: WHC's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Paul Flynn
MD, CEO & Director7.67yrsAU$2.96m0.26%
A$ 3.4m
John Conde
Independent Deputy Chairman of the Board8.5yrsAU$283.50k0.071%
A$ 928.3k
Fiona Robertson
Independent Non-Executive Director2.75yrsAU$219.00k0.0076%
A$ 98.8k
Julie Beeby
Independent Non-Executive Director5.33yrsAU$197.10k0.0085%
A$ 111.3k
Mark Anthony Vaile
Independent Chairman of the Board8.5yrsAU$396.00k0.15%
A$ 2.0m
G. Zage
Non-Executive Director7.25yrsAU$140.00k0.92%
A$ 12.1m
Lindsay Ward
Independent Non-Executive Director1.75yrsAU$197.10k0.0078%
A$ 101.5k

7.3yrs

Average Tenure

64yo

Average Age

Experienced Board: WHC's board of directors are considered experienced (7.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: WHC insiders have sold more shares than they have bought 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$1.308b
  • 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

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 four m...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/23 10:34
End of Day Share Price2020/11/23 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.