ASX:AHQ

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Allegiance Coal Limited engages in the acquisition, exploration, and development of coal tenements. More Details


Snowflake Analysis

Exceptional growth potential with mediocre balance sheet.

Share Price & News

How has Allegiance Coal's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-6.3%

AHQ

-3.7%

AU Metals and Mining

-2.5%

AU Market


1 Year Return

-52.0%

AHQ

8.4%

AU Metals and Mining

-8.9%

AU Market

Return vs Industry: AHQ underperformed the Australian Metals and Mining industry which returned 8.4% over the past year.

Return vs Market: AHQ underperformed the Australian Market which returned -8.9% over the past year.


Shareholder returns

AHQIndustryMarket
7 Day-6.3%-3.7%-2.5%
30 Day-13.0%-2.4%1.6%
90 Day-14.3%-4.2%2.4%
1 Year-52.0%-52.0%14.2%8.4%-5.6%-8.9%
3 Year66.7%66.7%54.5%32.9%15.5%0.8%
5 Year200.0%200.0%136.8%90.4%42.4%12.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Allegiance Coal undervalued compared to its fair value and its price relative to the market?

2.42x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate AHQ's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate AHQ's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: AHQ is unprofitable, so we can't compare its PE Ratio to the AU Metals and Mining industry average.

PE vs Market: AHQ is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: AHQ is good value based on its PB Ratio (2.4x) compared to the AU Metals and Mining industry average (2.5x).


Next Steps

Future Growth

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

109.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AHQ is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.3%).

Earnings vs Market: AHQ is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: AHQ's is expected to become profitable in the next 3 years.

Revenue vs Market: AHQ's revenue (107.3% per year) is forecast to grow faster than the Australian market (4.6% per year).

High Growth Revenue: AHQ's revenue (107.3% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AHQ's Return on Equity is forecast to be high in 3 years time (36%)


Next Steps

Past Performance

How has Allegiance Coal performed over the past 5 years?

-38.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AHQ is currently unprofitable.

Growing Profit Margin: AHQ is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AHQ is unprofitable, and losses have increased over the past 5 years at a rate of 38.5% per year.

Accelerating Growth: Unable to compare AHQ's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: AHQ is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (22.2%).


Return on Equity

High ROE: AHQ has a negative Return on Equity (-56.1%), as it is currently unprofitable.


Next Steps

Financial Health

How is Allegiance Coal's financial position?


Financial Position Analysis

Short Term Liabilities: AHQ's short term assets (A$614.3K) do not cover its short term liabilities (A$5.3M).

Long Term Liabilities: AHQ has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: AHQ's debt to equity ratio (27.6%) is considered satisfactory.

Reducing Debt: AHQ's debt to equity ratio has reduced from 70.4% to 27.6% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: AHQ has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: AHQ has less than a year of cash runway if free cash flow continues to reduce at historical rates of 47.1% each year


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate AHQ's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate AHQ'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 AHQ's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AHQ's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AHQ'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?

1.4yrs

Average board tenure


CEO

Mark Gray

3.42yrs

Tenure

AU$501,168

Compensation

Mr. Mark Gray, LLB has been the Managing Director of Allegiance Coal Limited since May 2017 and its Chairman since May 2019. Mr. Gray Founded Telkwa Coal Limited and serves as its Managing Director. Mr. Gr ...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD358.05K) is about average for companies of similar size in the Australian market ($USD277.88K).

Compensation vs Earnings: Mark's compensation has increased whilst the company is unprofitable.


Board Members

NamePositionTenureCompensationOwnership
Mark Gray
Chairman & MD3.42yrsAU$501.17k4.19%
A$ 1.7m
Jonathan Reynolds
Finance Director4.17yrsAU$239.46k0.32%
A$ 134.4k
Dan Farmer
COO & Director0.75yrAU$287.41k0.41%
A$ 169.4k
Larry Cook
Independent Non-Executive Director1.25yrsAU$778.73k0.018%
A$ 7.7k
Malcolm Carson
Independent Non-Executive Director4.17yrsAU$64.98kno data

1.4yrs

Average Tenure

Experienced Board: AHQ's board of directors are not considered experienced ( 1.4 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: AHQ insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 22%.


Top Shareholders

Company Information

Allegiance Coal Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Allegiance Coal Limited
  • Ticker: AHQ
  • Exchange: ASX
  • Founded: 2011
  • Industry: Steel
  • Sector: Materials
  • Market Cap: AU$41.605m
  • Shares outstanding: 693.41m
  • Website: https://www.allegiancecoal.com.au

Location

  • Allegiance Coal Limited
  • 109 Pitt Street
  • Suite 107
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AHQASX (Australian Securities Exchange)YesOrdinary SharesAUAUDMay 2012
AHQCHIA (Chi-X Australia)YesOrdinary SharesAUAUDMay 2012

Biography

Allegiance Coal Limited engages in the acquisition, exploration, and development of coal tenements. It holds interests in the New Elk metallurgical coal project located in Las Animas County, in southeast C ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/28 10:41
End of Day Share Price2020/10/28 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.