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

Fundamentals

Good value with proven track record and pays a dividend.


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


Market Performance


7 Day Return

-3.5%

YAL

1.4%

AU Oil and Gas

1.3%

AU Market


1 Year Return

-27.6%

YAL

-11.1%

AU Oil and Gas

9.9%

AU Market

Return vs Industry: YAL underperformed the Australian Oil and Gas industry which returned -11.1% over the past year.

Return vs Market: YAL underperformed the Australian Market which returned 9.9% over the past year.


Share holder returns

YALIndustryMarket
7 Day-3.5%1.4%1.3%
30 Day2.0%-0.7%-0.7%
90 Day-5.9%-3.5%-0.4%
1 Year-19.4%-27.6%-7.4%-11.1%16.3%9.9%
3 Year-73.3%-78.0%15.9%3.9%35.8%17.6%
5 Year-57.8%-65.3%-13.7%-29.4%51.9%17.8%

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 based on future cash flows and its price relative to the stock market?

14%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: YAL (A$3.04) is trading below our estimate of fair value (A$3.55)

Significantly Undervalued: YAL is trading below fair value, but not by a significant amount.


Price Based on Earnings

PE vs Industry: YAL is good value based on its PE Ratio (3.7x) compared to the Oil and Gas industry average (9.1x).

PE vs Market: YAL is good value based on its PE Ratio (3.7x) compared to the Australian market (17.9x).


Price Based on Expected Growth

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


Price Based on Value of Assets

PB vs Industry: YAL 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 Yancoal Australia expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

-21.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: YAL's earnings are forecast to decline over the next 3 years (-21.1% per year).

Earnings vs Market: YAL's earnings are forecast to decline over the next 3 years (-21.1% per year).

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

Revenue vs Market: YAL's revenue is expected to decline over the next 3 years (-1.6% per year).

High Growth Revenue: YAL's revenue is forecast to decline over the next 3 years (-1.6%).


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: YAL's Return on Equity is forecast to be low in 3 years time (9.1%).


Next Steps

Past Performance

How has Yancoal Australia performed over the past 5 years?

70.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: YAL has become profitable over the past 5 years, growing earnings by 70.8% per year.

Accelerating Growth: YAL's earnings growth over the past year (74.7%) exceeds its 5-year average (70.8% per year).

Earnings vs Industry: YAL earnings growth over the past year (74.7%) exceeded the Oil and Gas industry 68.1%.


Return on Equity

High ROE: YAL's Return on Equity (17.4%) is considered low.


Return on Assets

ROA vs Industry: YAL has a higher Return on Assets than the Oil and Gas industry average last year.


Return on Capital Employed

ROCE Improving: YAL's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Yancoal Australia's financial position?


Financial Position Analysis

Short Term Liabilities: YAL's short term assets (A$1.4B) exceeds its short term liabilities (A$1.2B)

Long Term Liabilities: YAL's short term assets (1.4B) do not cover its long term liabilities (3.6B)


Debt to Equity History and Analysis

Debt Level: YAL's debt to equity ratio (56%) is considered high

Reducing Debt: YAL's debt to equity ratio has reduced from 501.6% to 56% over the past 5 years.

Debt Coverage: YAL's debt is well covered by operating cash flow (53.5%).

Interest Coverage: YAL's interest payments on its debt are well covered by EBIT (5.3x coverage).


Balance Sheet

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

Debt Coverage by Assets: YAL's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

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

8.33%

Expected Dividend Yield


Dividend Yield vs Market

company10.5%marketbottom25%2.5%markettop25%5.6%industryaverage3.8%forecastin3Years8.3%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: YAL's dividend (10.5%) is higher than the bottom 25% of dividend payers in the Australian market (2.5%).

High Dividend: YAL's dividend (10.5%) is in the top 25% of dividend payers in the Australian market (5.6%)

Stable Dividend: Too early to tell whether YAL's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if YAL's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (32.2%), YAL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: YAL's dividends in 3 years are forecast to be well covered by earnings (49.5% payout ratio).


Next Steps

Management

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

5.6yrs

Average management tenure


CEO

Reinhold Schmidt (53yo)

6.2yrs

Tenure

AU$3,908,442

Compensation

Mr. Reinhold H. Schmidt, MEng (Mineral Economics), has been the Chief Executive Officer of Yancoal Australia Ltd., since August 26, 2013. Mr. Schmidt has over 20 years' experience in the mining industry. H ...


CEO Compensation Analysis

Compensation vs. Market: Reinhold's total compensation ($USD2.66M) is about average for companies of similar size in the Australian market ($USD2.27M).

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


Management Age and Tenure

5.6yrs

Average Tenure

53yo

Average Age

Experienced Management: YAL's management team is seasoned and experienced (5.6 years average tenure).


Board Age and Tenure

2.5yrs

Average Tenure

54.5yo

Average Age

Experienced Board: YAL's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


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

BuyAU$59,31407 Jan 19
Baocai Zhang
EntityIndividual
Role
Chairman of the Board
Chairman
Shares13,933
Max PriceAU$4.26
BuyAU$49807 Jan 19
Gregory Fletcher
EntityIndividual
Role
Vice Chairman
Co-Vice Chairman
Shares117
Max PriceAU$4.26

Ownership Breakdown


Management Team

  • Reinhold Schmidt (53yo)

    Chief Executive Officer

    • Tenure: 6.2yrs
    • Compensation: AU$3.91m
  • Paul Stringer (64yo)

    Chief Operating Officer

    • Tenure: 1.4yrs
    • Compensation: AU$1.99m
  • Laura Zhang (41yo)

    Company Secretary

    • Tenure: 0yrs
  • Frank Fulham

    Chief Development Officer

    • Tenure: 7.8yrs
  • Xiangqian Wu (53yo)

    Executive Director

    • Tenure: 2.5yrs
  • Lei Zhang (46yo)

    Chief Financial Officer

    • Tenure: 5.6yrs
  • James Rickards

    General Manager of Investor Relations & Corporate Affairs

    • Tenure: 0yrs
  • Fucun Wang (55yo)

    Co-Vice Chairman

    • Tenure: 1.3yrs
    • Compensation: AU$939.15k

Board Members

  • Cunliang Lai (59yo)

    Non-Executive Director

    • Tenure: 14.9yrs
  • Baocai Zhang (52yo)

    Chairman

    • Tenure: 1.3yrs
    • Compensation: AU$710.24k
  • Helen Gillies (54yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: AU$217.35k
  • Qingchun Zhao (51yo)

    Non-Executive Director

    • Tenure: 2.5yrs
  • Greg Fletcher (62yo)

    Co-Vice Chairman

    • Tenure: 1.6yrs
    • Compensation: AU$417.27k
  • Laura Zhang (41yo)

    Company Secretary

    • Tenure: 0yrs
  • Geoff Raby (65yo)

    Independent Non-Executive Director

    • Tenure: 7.3yrs
    • Compensation: AU$192.41k
  • Fuqi Wang (55yo)

    Non-Executive Director

    • Tenure: 4.5yrs
  • Xiangqian Wu (53yo)

    Executive Director

    • Tenure: 2.5yrs
  • Fucun Wang (55yo)

    Co-Vice Chairman

    • Tenure: 1.3yrs
    • Compensation: AU$939.15k

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$4.014b
  • 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
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 internat ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 10:35
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.

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