Aurizon Holdings
Market Cap
AU$6.7b
Last Updated
2021/05/15 08:23 UTC
Data Sources
Company Financials +
Executive Summary
Aurizon Holdings Limited, through its subsidiaries, operates as a rail freight operator in Australia. More Details
Rewards
Risk Analysis
Dividend of 7.87% is not well covered by earnings or forecast to be in the next 3 years
Snowflake Analysis
Good value second-rate dividend payer.
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 is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: AZJ's weekly volatility (3%) has been stable over the past year.
Market Performance
7 Day Return
-1.9%
AZJ
-1.0%
AU Transportation
-1.1%
AU Market
1 Year Return
-19.7%
AZJ
31.6%
AU Transportation
35.1%
AU Market
Return vs Industry: AZJ underperformed the Australian Transportation industry which returned 31.8% over the past year.
Return vs Market: AZJ underperformed the Australian Market which returned 35.2% over the past year.
Shareholder returns
| AZJ | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.9% | -1.0% | -1.1% |
| 30 Day | -7.6% | -2.2% | -1.0% |
| 90 Day | -4.9% | 0.7% | 2.4% |
| 1 Year | -14.1%-19.7% | 34.3%31.6% | 39.5%35.1% |
| 3 Year | 0.6%-15.1% | 24.2%13.9% | 30.1%14.6% |
| 5 Year | 7.1%-18.5% | 70.0%49.3% | 62.2%30.9% |
Long-Term 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
Who Has Been Buying Aurizon Holdings Limited (ASX:AZJ) Shares?2 weeks ago | Simply Wall St
Should You Buy Aurizon Holdings Limited (ASX:AZJ) For Its 7.6% Dividend?1 month ago | Simply Wall St
Aurizon Holdings (ASX:AZJ) Has Some Way To Go To Become A Multi-BaggerValuation
Is Aurizon Holdings undervalued compared to its fair value and its price relative to the market?
29.1%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: AZJ (A$3.66) is trading below our estimate of fair value (A$5.16)
Significantly Below Fair Value: AZJ is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: AZJ is good value based on its PE Ratio (13.2x) compared to the Global Transportation industry average (17.8x).
PE vs Market: AZJ is good value based on its PE Ratio (13.2x) compared to the Australian market (20.2x).
Price to Earnings Growth Ratio
PEG Ratio: AZJ is poor value based on its PEG Ratio (7.4x)
Price to Book Ratio
PB vs Industry: AZJ is overvalued based on its PB Ratio (1.7x) compared to the XX Transportation industry average (1.3x).
Future Growth
How is Aurizon Holdings forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
1.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AZJ's forecast earnings growth (1.8% per year) is below the savings rate (1.9%).
Earnings vs Market: AZJ's earnings (1.8% per year) are forecast to grow slower than the Australian market (12.6% per year).
High Growth Earnings: AZJ's earnings are forecast to grow, but not significantly.
Revenue vs Market: AZJ's revenue (1.2% per year) is forecast to grow slower than the Australian market (4.8% per year).
High Growth Revenue: AZJ's revenue (1.2% 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 (14.2%).
Past Performance
How has Aurizon Holdings performed over the past 5 years?
31.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AZJ has high quality earnings.
Growing Profit Margin: AZJ's current net profit margins (17.4%) are lower than last year (19.7%).
Past Earnings Growth Analysis
Earnings Trend: AZJ's earnings have grown significantly by 31.9% per year over the past 5 years.
Accelerating Growth: AZJ's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: AZJ had negative earnings growth (-10.1%) over the past year, making it difficult to compare to the Transportation industry average (-1.1%).
Return on Equity
High ROE: AZJ's Return on Equity (12.9%) is considered low.
Financial Health
How is Aurizon Holdings's financial position?
Financial Position Analysis
Short Term Liabilities: AZJ's short term assets (A$586.0M) do not cover its short term liabilities (A$790.2M).
Long Term Liabilities: AZJ's short term assets (A$586.0M) do not cover its long term liabilities (A$4.7B).
Debt to Equity History and Analysis
Debt Level: AZJ's debt to equity ratio (90.1%) is considered high.
Reducing Debt: AZJ's debt to equity ratio has increased from 58.1% to 90.1% over the past 5 years.
Debt Coverage: AZJ's debt is well covered by operating cash flow (35.7%).
Interest Coverage: AZJ's interest payments on its debt are well covered by EBIT (5.9x coverage).
Balance Sheet
Dividend
What is Aurizon Holdings's current dividend yield, its reliability and sustainability?
7.87%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: AZJ's dividend (7.87%) is higher than the bottom 25% of dividend payers in the Australian market (2.08%).
High Dividend: AZJ's dividend (7.87%) is in the top 25% of dividend payers in the Australian market (5.21%)
Stability and Growth of Payments
Stable Dividend: AZJ's dividend payments have been volatile in the past 10 years.
Growing Dividend: AZJ's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (101.4%), AZJ's dividend payments are not well 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 (95.9% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.8yrs
Average management tenure
CEO
Tony Harding (53 yo)
4.42yrs
Tenure
AU$4,341,000
Compensation
Mr. Andrew T. Harding, also known as Tony, B.Eng. (Mining Engineering), MBA, has been the Chief Executive Officer, Managing Director and Director of Aurizon Holdings Limited and Aurizon Network Pty Ltd. si...
CEO Compensation Analysis
Compensation vs Market: Tony's total compensation ($USD3.37M) is above average for companies of similar size in the Australian market ($USD2.49M).
Compensation vs Earnings: Tony's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: AZJ's management team is considered experienced (3.8 years average tenure).
Board Members
Experienced Board: AZJ's board of directors are considered experienced (4.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: AZJ 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$6.737b
- Shares outstanding: 1.84b
- Website: https://www.aurizon.com.au
Number of Employees
Location
- Aurizon Holdings Limited
- 900 Ann Street
- Level 8
- Fortitude Valley
- Queensland
- 4006
- Australia
Listings
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...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/05/15 08:23 |
| End of Day Share Price | 2021/05/14 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/06/30 |
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.