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AZJ

Aurizon HoldingsASX:AZJ Stock Report

Market Cap

AU$6.3b

7D

0.9%

1Y

-20.0%

Updated

28 Nov, 2021

Data

Company Financials +
AZJ fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance3/6
Financial Health3/6
Dividends4/6

AZJ Stock Overview

Aurizon Holdings Limited, through its subsidiaries, operates as a rail freight operator in Australia.

Price History & Performance

Summary of all time highs, changes and price drops for Aurizon Holdings
Historical stock prices
Current Share PriceAU$3.44
52 Week HighAU$4.37
52 Week LowAU$3.35
Beta0.47
1 Month Change2.08%
3 Month Change-9.95%
1 Year Change-20.00%
3 Year Change-18.29%
5 Year Change-30.65%
Change since IPO29.81%

Recent News & Updates

Nov 23
Here's What To Make Of Aurizon Holdings' (ASX:AZJ) Decelerating Rates Of Return

Here's What To Make Of Aurizon Holdings' (ASX:AZJ) Decelerating Rates Of Return

Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Amongst other things...

Nov 03
Are Investors Undervaluing Aurizon Holdings Limited (ASX:AZJ) By 46%?

Are Investors Undervaluing Aurizon Holdings Limited (ASX:AZJ) By 46%?

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Aurizon Holdings...

Oct 05
Why We Think Aurizon Holdings Limited's (ASX:AZJ) CEO Compensation Is Not Excessive At All

Why We Think Aurizon Holdings Limited's (ASX:AZJ) CEO Compensation Is Not Excessive At All

Performance at Aurizon Holdings Limited ( ASX:AZJ ) has been reasonably good and CEO Tony Harding has done a decent job...

Shareholder Returns

AZJAU TransportationAU Market
7D0.9%-1.4%-1.6%
1Y-20.0%-17.4%11.8%

Return vs Industry: AZJ underperformed the Australian Transportation industry which returned -17.4% over the past year.

Return vs Market: AZJ underperformed the Australian Market which returned 11.8% over the past year.

Price Volatility

Is AZJ's price volatile compared to industry and market?
AZJ volatility
AZJ Average Weekly Movement3.0%
Transportation Industry Average Movement4.4%
Market Average Movement8.3%
10% most volatile stocks in AU Market15.8%
10% least volatile stocks in AU Market3.7%

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.

About the Company

FoundedEmployeesCEOWebsite
20104,825Tony Hardinghttps://www.aurizon.com.au

Aurizon Holdings Limited, through its subsidiaries, operates as a rail freight operator in Australia. The company operates through Network, Coal, Bulk, and Other segments. It 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.

Aurizon Holdings Fundamentals Summary

How do Aurizon Holdings's earnings and revenue compare to its market cap?
AZJ fundamental statistics
Market CapAU$6.33b
Earnings (TTM)AU$606.70m
Revenue (TTM)AU$3.03b

10.4x

P/E Ratio

2.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AZJ income statement (TTM)
RevenueAU$3.03b
Cost of RevenueAU$1.51b
Gross ProfitAU$1.52b
ExpensesAU$909.80m
EarningsAU$606.70m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Feb 14, 2022

Earnings per share (EPS)0.33
Gross Margin50.09%
Net Profit Margin20.04%
Debt/Equity Ratio89.0%

How did AZJ perform over the long term?

See historical performance and comparison

Dividends

8.4%

Current Dividend Yield

89%

Payout Ratio

Valuation

Is Aurizon Holdings undervalued compared to its fair value and its price relative to the market?

44.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AZJ (A$3.44) is trading below our estimate of fair value (A$6.22)

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 (10.4x) compared to the Global Transportation industry average (15.8x).

PE vs Market: AZJ is good value based on its PE Ratio (10.4x) compared to the Australian market (18.7x).


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 good value based on its PB Ratio (1.5x) compared to the AU Transportation industry average (2.3x).


Future Growth

How is Aurizon Holdings forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

-0.4%

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 (-0.4% per year).

Earnings vs Market: AZJ's earnings are forecast to decline over the next 3 years (-0.4% per year).

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

Revenue vs Market: AZJ's revenue (3.3% per year) is forecast to grow slower than the Australian market (5.2% per year).

High Growth Revenue: AZJ's revenue (3.3% 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 (12%).


Past Performance

How has Aurizon Holdings performed over the past 5 years?

28.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AZJ has high quality earnings.

Growing Profit Margin: AZJ's current net profit margins (20%) are higher than last year (19.8%).


Past Earnings Growth Analysis

Earnings Trend: AZJ's earnings have grown significantly by 28.5% per year over the past 5 years.

Accelerating Growth: AZJ's earnings growth over the past year (0.3%) is below its 5-year average (28.5% per year).

Earnings vs Industry: AZJ earnings growth over the past year (0.3%) underperformed the Transportation industry 31.8%.


Return on Equity

High ROE: AZJ's Return on Equity (14.2%) is considered low.


Financial Health

How is Aurizon Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: AZJ's short term assets (A$811.9M) exceed its short term liabilities (A$717.2M).

Long Term Liabilities: AZJ's short term assets (A$811.9M) do not cover its long term liabilities (A$4.8B).


Debt to Equity History and Analysis

Debt Level: AZJ's net debt to equity ratio (85.5%) is considered high.

Reducing Debt: AZJ's debt to equity ratio has increased from 62% to 89% over the past 5 years.

Debt Coverage: AZJ's debt is well covered by operating cash flow (33%).

Interest Coverage: AZJ's interest payments on its debt are well covered by EBIT (6.1x coverage).


Balance Sheet


Dividend

What is Aurizon Holdings's current dividend yield, its reliability and sustainability?

8.37%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AZJ's dividend (8.37%) is higher than the bottom 25% of dividend payers in the Australian market (2.33%).

High Dividend: AZJ's dividend (8.37%) is in the top 25% of dividend payers in the Australian market (5.55%)


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: At its current payout ratio (88.7%), 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 (96.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.0yrs

Average management tenure


CEO

Tony Harding (54 yo)

4.92yrs

Tenure

AU$4,939,000

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 ($USD3.52M) is above average for companies of similar size in the Australian market ($USD1.70M).

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 years average tenure).


Board Members

Experienced Board: AZJ's board of directors are considered experienced (5.3 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 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$6.331b
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/28 07:02
End of Day Share Price2021/11/26 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.