Aurizon Holdings
Market Cap
AU$10.7b
Last Updated
2020/02/24 10:47 UTC
Data Sources
Company Financials +
Executive Summary
Aurizon Holdings Limited, through its subsidiaries, operates as a rail freight operator in Australia.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -3.8% per year for the next 3 years
Snowflake Analysis
Solid track record with imperfect balance sheet.
Share Price & News
How has Aurizon Holdings's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: AZJ has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-4.7%
AZJ
-0.6%
AU Transportation
0.02%
AU Market
1 Year Return
14.4%
AZJ
4.8%
AU Transportation
14.6%
AU Market
Return vs Industry: AZJ exceeded the Australian Transportation industry which returned 4.7% over the past year.
Return vs Market: AZJ exceeded the Australian Market which returned 14.6% over the past year.
Shareholder returns
| AZJ | Industry | Market | |
|---|---|---|---|
| 7 Day | -4.7% | -0.6% | 0.02% |
| 30 Day | -4.4% | -1.0% | 0.2% |
| 90 Day | -10.3% | 1.7% | 5.4% |
| 1 Year | 16.9%14.4% | 6.8%4.8% | 19.7%14.6% |
| 3 Year | 14.3%1.0% | 35.7%28.5% | 38.7%20.2% |
| 5 Year | 41.1%11.5% | 37.5%18.8% | 50.6%17.1% |
Price Volatility Vs. Market
How volatile is Aurizon Holdings's share price compared to the market and industry in the last 5 years?
Simply Wall St News
4 days ago | Simply Wall St
Should Income Investors Look At Aurizon Holdings Limited (ASX:AZJ) Before Its Ex-Dividend?1 week ago | Simply Wall St
Aurizon Holdings Limited Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions2 weeks ago | Simply Wall St
Don't Sell Aurizon Holdings Limited (ASX:AZJ) Before You Read ThisValuation
Is Aurizon Holdings undervalued compared to its fair value and its price relative to the market?
17.61x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: AZJ (A$5.47) is trading above our estimate of fair value (A$4.38)
Significantly Below Fair Value: AZJ is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: AZJ is poor value based on its PE Ratio (18.4x) compared to the Transportation industry average (14.9x).
PE vs Market: AZJ is good value based on its PE Ratio (18.4x) compared to the Australian market (18.9x).
Price to Earnings Growth Ratio
PEG Ratio: AZJ's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: AZJ is overvalued based on its PB Ratio (2.3x) compared to the XX Transportation industry average (1.2x).
Next Steps
Future Growth
How is Aurizon Holdings forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
-3.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AZJ's earnings are forecast to decline over the next 3 years (-3.8% per year).
Earnings vs Market: AZJ's earnings are forecast to decline over the next 3 years (-3.8% per year).
High Growth Earnings: AZJ's earnings are forecast to decline over the next 3 years.
Revenue vs Market: AZJ's revenue (2% per year) is forecast to grow slower than the Australian market (4.2% per year).
High Growth Revenue: AZJ's revenue (2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: AZJ's Return on Equity is forecast to be low in 3 years time (14.5%).
Next Steps
Past Performance
How has Aurizon Holdings performed over the past 5 years?
9.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AZJ has high quality earnings.
Growing Profit Margin: AZJ's current net profit margins (19.7%) are higher than last year (16.9%).
Past Earnings Growth Analysis
Earnings Trend: AZJ's earnings have grown by 9.6% per year over the past 5 years.
Accelerating Growth: AZJ's earnings growth over the past year (16.5%) exceeds its 5-year average (9.6% per year).
Earnings vs Industry: AZJ earnings growth over the past year (16.5%) exceeded the Transportation industry 4.2%.
Return on Equity
High ROE: AZJ's Return on Equity (12.9%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Aurizon Holdings's financial position?
Financial Position Analysis
Short Term Liabilities: AZJ's short term assets (A$682.5M) do not cover its short term liabilities (A$1.4B).
Long Term Liabilities: AZJ's short term assets (A$682.5M) do not cover its long term liabilities (A$3.7B).
Debt to Equity History and Analysis
Debt Level: AZJ's debt to equity ratio (74.9%) is considered high.
Reducing Debt: AZJ's debt to equity ratio has increased from 48% to 74.9% over the past 5 years.
Debt Coverage: AZJ's debt is well covered by operating cash flow (37.6%).
Interest Coverage: AZJ's interest payments on its debt are well covered by EBIT (6.5x coverage).
Balance Sheet
Inventory Level: AZJ has a high level of physical assets or inventory.
Debt Coverage by Assets: AZJ's debt is not covered by short term assets (assets are 0.2x debt).
Next Steps
Dividend
What is Aurizon Holdings's current dividend yield, its reliability and sustainability?
4.99%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: AZJ's dividend (4.77%) is higher than the bottom 25% of dividend payers in the Australian market (2.29%).
High Dividend: AZJ's dividend (4.77%) is low compared to the top 25% of dividend payers in the Australian market (5.35%).
Stability and Growth of Payments
Stable Dividend: AZJ has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: AZJ's dividend payments have increased, but the company has only paid a dividend for 8 years.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (87.9%), AZJ's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: AZJ's dividends in 3 years are not forecast to be well covered by earnings (100% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.9yrs
Average management tenure
CEO
Tony Harding (52yo)
3.2yrs
Tenure
AU$4,337,000
Compensation
Mr. Andrew T. Harding, also known as Tony, B.Eng. (Mining Engineering), MBA, has been the Chief Executive Officer, Managing Director and Director of Aurizon Holdings Limited and Aurizon Network Pty Ltd. si ...
CEO Compensation Analysis
Compensation vs Market: Tony's total compensation ($USD2.88M) is about average for companies of similar size in the Australian market ($USD2.92M).
Compensation vs Earnings: Tony's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD, CEO & Director | 3.2yrs | AU$4.34m | 0.014% A$1.5m | |
| CFO & Group Executive of Strategy | 3.2yrs | AU$1.59m | 0.0035% A$375.3k | |
| Group Executive of Coal | 2.6yrs | AU$1.43m | 0.0029% A$311.4k | |
| Group Executive of Technical Services & Planning | 2.6yrs | AU$1.53m | no data | |
| Head of Investor Relations & Group Treasurer | 0yrs | no data | no data | |
| Manager of Media & Communications | 0yrs | no data | no data | |
| Head of Strategy & Corporate Development | 0yrs | no data | no data | |
| Group Executive of Corporate | 2.6yrs | no data | no data | |
| Manager of Market Intelligence & Sustainability | 0yrs | no data | no data | |
| Company Secretary | 9.4yrs | no data | no data |
2.9yrs
Average Tenure
Experienced Management: AZJ's management team is considered experienced (3.2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD, CEO & Director | 3.2yrs | AU$4.34m | 0.014% A$1.5m | |
| Independent Non-Executive Director | 4yrs | AU$218.00 | 0.0036% A$382.8k | |
| Independent Chairman | 4.4yrs | AU$492.00 | 0.0046% A$494.8k | |
| Independent Non-Executive Director | 9.4yrs | AU$216.00 | 0.0042% A$448.9k | |
| Independent Non-Executive Director | 2.3yrs | AU$212.00 | 0.0010% A$108.8k | |
| Non-Executive Director | 0.2yrs | no data | 0.00046% A$49.1k | |
| Non-Executive Director | 0.2yrs | no data | 0.00017% A$18.1k | |
| Independent Non-Executive Director | 5yrs | AU$221.00 | 0.0017% A$180.2k | |
| Independent Non-Executive Director | 3.6yrs | AU$203.00 | 0.0021% A$218.6k |
3.6yrs
Average Tenure
54.5yo
Average Age
Experienced Board: AZJ's board of directors are considered experienced (3.6 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.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Aurizon Holdings Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Aurizon Holdings Limited
- Ticker: AZJ
- Exchange: ASX
- Founded: 2010
- Industry: Railroads
- Sector: Transportation
- Market Cap: AU$10.663b
- Shares outstanding: 1.95b
- Website: https://www.aurizon.com.au
Number of Employees
Location
- Aurizon Holdings Limited
- 900 Ann Street
- Level 8
- Fortitude Valley
- Queensland
- 4006
- Australia
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| AZJ | ASX (Australian Securities Exchange) | Yes | Ordinary Shares | AU | AUD | Nov 2010 |
| QRNN.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Nov 2010 |
| QRL | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Nov 2010 |
| AZJ | CHIA (Chi-X Australia) | Yes | Ordinary Shares | AU | AUD | Nov 2010 |
| AZNN.Y | OTCPK (Pink Sheets LLC) | SPONSORED ADR | US | USD | Oct 2016 |
Biography
Aurizon Holdings Limited, through its subsidiaries, operates as a rail freight operator in Australia. It operates through Network, Coal, Bulk, and Other segments. The company transports various commodities, including mining, agricultural, industrial, and retail products; and retail goods and groceries across small and big towns, and cities, as well as coal and iron ore. It also operates and manages the Central Queensland Coal Network that consists of 2,670 kilometers of track network; and provides various specialist services, such as rail design, engineering, construction, management, and maintenance, as well as supply chain solutions. In addition, the company transports bulk freight for miners, primary producers, and the manufacturing industry. Further, it is involved in the general freight business. The company was formerly known as QR National Limited and changed its name to Aurizon Holdings Limited in December 2012. Aurizon Holdings Limited was incorporated in 2010 and is headquartered in Fortitude Valley, Australia.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/24 10:47 |
| End of Day Share Price | 2020/02/24 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/06/30 |
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.