ASX:YAL

Stock Analysis Report

Yancoal Australia

Executive Summary

Yancoal Australia Ltd Engages in the exploration, development, production, and marketing of metallurgical and thermal coal in Japan, Singapore, China, South Korea, Taiwan, Thailand, Australia, and internationally.


Snowflake Analysis

Undervalued with mediocre balance sheet.


Similar Companies

Share Price & News

How has Yancoal Australia's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: YAL's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.5%

YAL

15.0%

AU Oil and Gas

4.0%

AU Market


1 Year Return

-41.4%

YAL

-39.7%

AU Oil and Gas

-16.5%

AU Market

Return vs Industry: YAL underperformed the Australian Oil and Gas industry which returned -39.7% over the past year.

Return vs Market: YAL underperformed the Australian Market which returned -16.5% over the past year.


Shareholder returns

YALIndustryMarket
7 Day0.5%15.0%4.0%
30 Day-21.9%-23.0%-15.4%
90 Day-26.2%-41.7%-23.5%
1 Year-33.6%-41.4%-37.3%-39.7%-12.8%-16.5%
3 Year-76.8%-82.5%-30.8%-39.1%-0.9%-14.5%
5 Year-27.2%-45.2%-33.1%-44.9%11.2%-13.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Yancoal Australia 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: YAL (A$2.11) is trading below our estimate of fair value (A$8.79)

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


Price To Earnings Ratio

PE vs Industry: YAL is good value based on its PE Ratio (3.9x) compared to the Oil and Gas industry average (8.2x).

PE vs Market: YAL is good value based on its PE Ratio (3.9x) compared to the Australian market (13.4x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: YAL is good value based on its PB Ratio (0.5x) compared to the AU Oil and Gas industry average (0.8x).


Next Steps

Future Growth

How is Yancoal Australia forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

0.4%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if YAL's forecast earnings growth is above the savings rate (1.1%).

Earnings vs Market: Insufficient data to determine if YAL's earnings are forecast to grow faster than the Australian market

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

Revenue vs Market: YAL's revenue (0.4% per year) is forecast to grow slower than the Australian market (4.1% per year).

High Growth Revenue: YAL's revenue (0.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: YAL's Return on Equity is forecast to be low in 3 years time (9.4%).


Next Steps

Past Performance

How has Yancoal Australia performed over the past 5 years?

69.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: YAL has high quality earnings.

Growing Profit Margin: YAL's current net profit margins (16%) are lower than last year (17.5%).


Past Earnings Growth Analysis

Earnings Trend: YAL has become profitable over the past 5 years, growing earnings by 69.6% per year.

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

Earnings vs Industry: YAL had negative earnings growth (-15.6%) over the past year, making it difficult to compare to the Oil and Gas industry average (-16%).


Return on Equity

High ROE: YAL's Return on Equity (11.7%) is considered low.


Next Steps

Financial Health

How is Yancoal Australia's financial position?


Financial Position Analysis

Short Term Liabilities: YAL's short term assets (A$1.8B) do not cover its short term liabilities (A$2.1B).

Long Term Liabilities: YAL's short term assets (A$1.8B) do not cover its long term liabilities (A$2.8B).


Debt to Equity History and Analysis

Debt Level: YAL's debt to equity ratio (55.2%) is considered high.

Reducing Debt: YAL's debt to equity ratio has reduced from 150.7% to 55.2% over the past 5 years.

Debt Coverage: YAL's debt is well covered by operating cash flow (45.5%).

Interest Coverage: YAL's interest payments on its debt are well covered by EBIT (4.4x coverage).


Balance Sheet


Next Steps

Dividend

What is Yancoal Australia's current dividend yield, its reliability and sustainability?

14.96%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: YAL's dividend (14.96%) is higher than the bottom 25% of dividend payers in the Australian market (3.01%).

High Dividend: YAL's dividend (14.96%) is in the top 25% of dividend payers in the Australian market (7.94%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, YAL has been paying a dividend for less than 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (58%), YAL's dividend payments are 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?

3.8yrs

Average management tenure


CEO

David Moult (62yo)

0.083

Tenure

AU$245,000

Compensation

Mr. David James Moult, CEng, MBA, FAusIMM, FIMMM, has been Chief Executive Officer at Yancoal Australia Ltd. since March 9, 2020. Mr. Moult has been the Chairman of New South Wales Minerals Council since J ...


Leadership Team

NamePositionTenureCompensationOwnership
David Moult
Chief Executive Officer0.083yrAU$245.00kno data
Paul Stringer
Chief Operating Officer1.92yrsAU$1.95m0.0043% A$119.8k
Ning Zhang
Vice-Chair0.083yrno datano data
Brendan Fitzpatrick
General Manager of Investor Relationsno datano datano data
Ling Zhang
Company Secretary & Chief Legalno datano datano data
Frank Fulham
Chief Development Officer8.25yrsno datano data

3.8yrs

Average Tenure

56.5yo

Average Age

Experienced Management: YAL's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ning Zhang
Vice-Chair0.083yrno datano data
Ling Zhang
Company Secretary & Chief Legalno datano datano data
Cunliang Lai
Non-Executive Director15.42yrsno datano data
Baocai Zhang
Chairman1.83yrsno data0.021% A$585.8k
Helen Gillies
Independent Non-Executive Director2.25yrsAU$225.00kno data
Qingchun Zhao
Non-Executive Director3yrsno datano data
Gregory Fletcher
Vice Chairman2.08yrsAU$360.00k0.00016% A$4.5k
Geoffrey Raby
Independent Non-Executive Director7.83yrsAU$205.00k0.0017% A$48.8k
Fuqi Wang
Non-Executive Director5yrsno datano data
Xiangqian Wu
Non-Executive Director3yrsno datano data

3.0yrs

Average Tenure

53.5yo

Average Age

Experienced Board: YAL's board of directors are considered experienced (3 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.8%.


Top Shareholders

Company Information

Yancoal Australia Ltd's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Yancoal Australia Ltd
  • Ticker: YAL
  • Exchange: ASX
  • Founded: 2004
  • Industry: Coal and Consumable Fuels
  • Sector: Energy
  • Market Cap: AU$2.819b
  • Shares outstanding: 1.32b
  • Website: https://www.yancoal.com.au

Number of Employees


Location

  • Yancoal Australia Ltd
  • 201 Sussex Street
  • Level 18
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
YALASX (Australian Securities Exchange)YesOrdinary SharesAUAUDMar 2003
YA1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 2003
YACA.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMar 2003
YALCHIA (Chi-X Australia)YesOrdinary SharesAUAUDMar 2003
YA1BST (Boerse-Stuttgart)YesOrdinary SharesDEEURMar 2003
3668SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMar 2003

Biography

Yancoal Australia Ltd Engages in the exploration, development, production, and marketing of metallurgical and thermal coal in Japan, Singapore, China, South Korea, Taiwan, Thailand, Australia, and internationally. It owns 81% interests in the Moolarben coal mine located in the Western Coalfields of New South Wales; 100% interests in the Stratford Duralie mines located within the New South Wales Gloucester Basin; 100% interests in the Yarrabee mine located to the northeast of Blackwater in Central Queensland’s Bowen Basin; 50% interests in the Middlemount mine located to the north-east of Emerald in Queensland's Bowen Basin; and 80% interests in the Mount Thorley mine and 84.5% interests in the Warkworth mine in the Hunter Valley region of New South Wales. It also manages five other projects in New South Wales, Queensland, and Western Australia. The company was founded in 2004 and is based in Sydney, Australia. Yancoal Australia Ltd operates as a subsidiary of Yanzhou Coal Mining Company Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/08 10:41
End of Day Share Price2020/04/08 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.