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

Solid track record with adequate balance sheet and pays a dividend.

Risks

  • Yancoal Australia is covered by less than 3 analysts.

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

2.4%

ASX:YAL

1.1%

AU Oil and Gas

0.5%

AU Market


1 Year Return

-29.0%

ASX:YAL

-11.4%

AU Oil and Gas

6.3%

AU Market

YAL underperformed the Oil and Gas industry which returned -11.5% over the past year.

YAL underperformed the Market in Australia which returned 6.3% over the past year.


Share holder returns

YALIndustryMarket
7 Day2.4%1.1%0.5%
30 Day-7.7%6.6%4.4%
90 Day-6.3%-0.1%2.1%
1 Year-21.0%-29.0%-7.8%-11.4%12.4%6.3%
3 Year-56.9%-64.5%32.3%19.0%41.3%22.3%
5 Year-61.7%-68.5%-19.7%-34.1%47.8%14.7%

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?

16%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Yancoal Australia's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Yancoal Australia's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Yancoal Australia is good value based on earnings compared to the AU Oil and Gas industry average.

Yancoal Australia is good value based on earnings compared to the Australia market.


Price Based on Expected Growth

Yancoal Australia earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

Yancoal Australia is good value based on assets compared to the AU Oil and Gas industry average.


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

Yancoal Australia's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

Yancoal Australia's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Yancoal Australia's revenues are expected to decrease over the next 1-3 years, this is below the Australia market average.

Yancoal Australia's earnings are expected to decrease over the next 1-3 years, this is below the Australia market average.

Yancoal Australia's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

Yancoal Australia is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

Yancoal Australia has delivered over 20% year on year earnings growth in the past 5 years.

Yancoal Australia's 1-year earnings growth exceeds its 5-year average (74.7% vs 70.8%)

Yancoal Australia's earnings growth has exceeded the AU Oil and Gas industry average in the past year (74.7% vs 63.2%).


Return on Equity

Yancoal Australia has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Yancoal Australia used its assets more efficiently than the AU Oil and Gas industry average last year based on Return on Assets.


Return on Capital Employed

Yancoal Australia has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).


Next Steps

Financial Health

How is Yancoal Australia's financial position?


Financial Position Analysis

Yancoal Australia is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Yancoal Australia's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Yancoal Australia's level of debt (56%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (501.6% vs 56% today).

Debt is well covered by operating cash flow (53.5%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 5.3x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

8.50%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Yancoal Australia's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.44%).

Yancoal Australia's dividend is above the markets top 25% of dividend payers in Australia (5.5%).

It is too early to tell whether Yancoal Australia has stable dividend payments.

Yancoal Australia only just started paying a dividend, it is too early to tell if payments are increasing.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.1x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2x coverage).


Next Steps

Management

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

5.5yrs

Average management tenure


CEO

Reinhold Schmidt (53yo)

6.1yrs

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

Reinhold's remuneration is about average for companies of similar size in Australia.

Reinhold's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

5.5yrs

Average Tenure

53yo

Average Age

The average tenure for the Yancoal Australia management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

2.4yrs

Average Tenure

54.5yo

Average Age

The average tenure for the Yancoal Australia board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


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: 6.1yrs
    • Compensation: AU$3.91m
  • Paul Stringer (64yo)

    Chief Operating Officer

    • Tenure: 1.3yrs
    • Compensation: AU$1.99m
  • Laura Zhang (41yo)

    Company Secretary

    • Tenure: 0yrs
  • Frank Fulham

    Chief Development Officer

    • Tenure: 7.7yrs
  • Xiangqian Wu (53yo)

    Executive Director

    • Tenure: 2.4yrs
  • Lei Zhang (46yo)

    Chief Financial Officer

    • Tenure: 5.5yrs
  • 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: 14.8yrs
  • Baocai Zhang (52yo)

    Chairman

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

    Independent Non-Executive Director

    • Tenure: 1.7yrs
    • Compensation: AU$217.35k
  • Qingchun Zhao (51yo)

    Non-Executive Director

    • Tenure: 2.4yrs
  • Greg Fletcher (62yo)

    Co-Vice Chairman

    • Tenure: 1.5yrs
    • 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: 4.4yrs
  • Xiangqian Wu (53yo)

    Executive Director

    • Tenure: 2.4yrs
  • 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$3.935b
  • 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
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 Analysis2019/09/14 10:34
End of Day Share Price2019/09/13 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.