ASX:AZJ

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Acceptable 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


Market Performance


7 Day Return

3.5%

ASX:AZJ

4.0%

AU Transportation

0.7%

AU Market


1 Year Return

41.0%

ASX:AZJ

31.3%

AU Transportation

6.2%

AU Market

AZJ outperformed the Transportation industry which returned 31.3% over the past year.

AZJ outperformed the Market in Australia which returned 6.2% over the past year.


Share holder returns

AZJIndustryMarket
7 Day3.5%4.0%0.7%
30 Day0.2%3.5%3.8%
90 Day9.5%10.2%0.4%
1 Year47.6%41.0%37.5%31.3%12.4%6.2%
3 Year53.3%32.0%57.7%48.1%40.9%21.9%
5 Year68.0%30.0%67.6%49.9%49.8%16.3%

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

Valuation

Is Aurizon Holdings undervalued based on future cash flows and its price relative to the stock market?

25.14x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Aurizon Holdings's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Aurizon Holdings's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Aurizon Holdings is overvalued based on earnings compared to the Oceania Transportation industry average.

Aurizon Holdings is overvalued based on earnings compared to the Australia market.


Price Based on Expected Growth

Aurizon Holdings is poor value based on expected growth next year.


Price Based on Value of Assets

Aurizon Holdings is overvalued based on assets compared to the Oceania Transportation industry average.


Next Steps

Future Growth

How is Aurizon Holdings expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

4.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Aurizon Holdings's revenue is expected to grow by 1.8% yearly, however this is not considered high growth (20% yearly).

Aurizon Holdings's earnings are expected to grow by 4.7% yearly, however this is not considered high growth (20% yearly).

Aurizon Holdings's revenue growth is positive but not above the Australia market average.

Aurizon Holdings's earnings growth is positive but not above the Australia market average.

Aurizon Holdings's earnings growth is expected to exceed the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

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


Next Steps

Past Performance

How has Aurizon Holdings performed over the past 5 years?

3.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Aurizon Holdings's year on year earnings growth rate has been positive over the past 5 years.

Aurizon Holdings's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Aurizon Holdings's 1-year earnings growth is negative, it can't be compared to the Global Transportation industry average.


Return on Equity

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


Return on Assets

Aurizon Holdings used its assets more efficiently than the Oceania Transportation industry average last year based on Return on Assets.


Return on Capital Employed

Aurizon Holdings has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Aurizon Holdings's financial position?


Financial Position Analysis

Aurizon Holdings's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Aurizon Holdings's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Aurizon Holdings's level of debt (73.1%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (45% vs 73.1% today).

Debt is well covered by operating cash flow (37.8%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 5.8x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

4.87%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Aurizon Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.47%).

Aurizon Holdings's dividend is below the markets top 25% of dividend payers in Australia (5.58%).

Aurizon Holdings has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Dividend payments have increased, but Aurizon Holdings only paid a dividend in the past 8 years.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (1x coverage).


Future Payout to Shareholders

Dividends after 3 years are not well covered by earnings (1x coverage).


Next Steps

Management

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

2.2yrs

Average management tenure


CEO

Tony Harding (52yo)

2.8yrs

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

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

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


Management Age and Tenure

2.2yrs

Average Tenure

The tenure for the Aurizon Holdings management team is about average.


Board Age and Tenure

3.6yrs

Average Tenure

56yo

Average Age

The tenure for the Aurizon Holdings board of directors is about average.


Insider Trading

More shares have been bought than sold by Aurizon Holdings individual insiders in the past 3 months, but not in substantial volumes.


Recent Insider Transactions

BuyAU$50,00015 Aug 19
Marcelo De Almeida Bastos
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares8,547
Max PriceAU$5.85
SellAU$4,489,16727 Jun 19
UniSuper Limited
EntityCompany
Shares1,058,703
Max PriceAU$4.30
SellAU$388,967,71327 Jun 19
UniSuper Limited
EntityCompany
Shares72,810,906
Max PriceAU$5.35
BuyAU$139,59027 Jun 19
UniSuper Limited
EntityCompany
Shares26,000
Max PriceAU$5.37
BuyAU$4,489,16727 Jun 19
UniSuper Limited
EntityCompany
Shares1,058,703
Max PriceAU$4.30
SellAU$180,984,12718 Jun 19
UniSuper Limited
EntityCompany
Shares36,494,976
Max PriceAU$4.97
BuyAU$3,782,66718 Jun 19
UniSuper Limited
EntityCompany
Shares784,901
Max PriceAU$4.93
SellAU$131,007,41713 May 19
Perpetual Limited
EntityCompany
Shares28,516,581
Max PriceAU$4.59
BuyAU$65,429,01913 May 19
Perpetual Limited
EntityCompany
Shares14,611,006
Max PriceAU$4.48
BuyAU$48,60008 May 19
Andrew Harding
EntityIndividual
Role
Chief Executive Officer
MD, CEO & Director
Shares10,000
Max PriceAU$4.86
BuyAU$145,65006 May 19
Michael Fraser
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares30,000
Max PriceAU$4.86
SellAU$297,35328 Jan 19
BlackRock, Inc.
EntityCompany
Shares31,274,353
Max PriceAU$5.93
BuyAU$028 Jan 19
BlackRock, Inc.
EntityCompany
Shares47,360,732
Max PriceAU$5.66
SellAU$1,506,70627 Dec 18
JPMorgan Chase & Co, Brokerage and Securities Investments
EntityCompany
Shares363,345
Max PriceAU$4.19
BuyAU$3,257,44227 Dec 18
JPMorgan Chase & Co, Brokerage and Securities Investments
EntityCompany
Shares790,833
Max PriceAU$4.17
BuyAU$4,06527 Dec 18
J.P. Morgan Asset Management, Inc.
EntityCompany
Shares989
Max PriceAU$4.11
SellAU$157,11327 Dec 18
J.P. Morgan Asset Management, Inc.
EntityCompany
Shares38,227
Max PriceAU$4.11
BuyAU$476,516,93024 Dec 18
Perpetual Limited
EntityCompany
Shares116,459,668
Max PriceAU$4.09
SellAU$41,702,10224 Dec 18
Perpetual Limited
EntityCompany
Shares9,647,974
Max PriceAU$4.32
SellAU$628,87507 Dec 18
MLC Investments Limited
EntityCompany
Shares149,313
Max PriceAU$4.21
SellAU$7,88307 Dec 18
Antares Capital Partners Pty. Ltd.
EntityCompany
Shares1,876
Max PriceAU$4.20
BuyAU$6,469,95107 Dec 18
MLC Investments Limited
EntityCompany
Shares1,522,422
Max PriceAU$4.25
BuyAU$11,72607 Dec 18
Antares Capital Partners Pty. Ltd.
EntityCompany
Shares2,727
Max PriceAU$4.30
BuyAU$2,61229 Nov 18
Antares Capital Partners Pty. Ltd.
EntityCompany
Shares627
Max PriceAU$4.17
BuyAU$15,11027 Nov 18
Antares Capital Partners Pty. Ltd.
EntityCompany
Shares3,623
Max PriceAU$4.17
SellAU$361,89127 Nov 18
MLC Investment Management Limited
EntityCompany
Shares87,418
Max PriceAU$4.14
SellAU$4,01527 Nov 18
Antares Capital Partners Pty. Ltd.
EntityCompany
Shares977
Max PriceAU$4.11
BuyAU$3,79423 Nov 18
Antares Capital Partners Pty. Ltd.
EntityCompany
Shares894
Max PriceAU$4.24
BuyAU$396,59823 Nov 18
MLC Investments Limited
EntityCompany
Shares94,353
Max PriceAU$4.20
SellAU$3,011,92108 Nov 18
MLC Investments Limited
EntityCompany
Shares719,964
Max PriceAU$4.18
BuyAU$28,79908 Nov 18
Antares Capital Partners Pty. Ltd.
EntityCompany
Shares6,921
Max PriceAU$4.16
SellAU$226,48908 Nov 18
Antares Capital Partners Pty. Ltd.
EntityCompany
Shares54,949
Max PriceAU$4.12
BuyAU$633,16601 Nov 18
MLC Investments Limited
EntityCompany
Shares151,490
Max PriceAU$4.23
BuyAU$4,22801 Nov 18
Antares Capital Partners Pty. Ltd.
EntityCompany
Shares1,016
Max PriceAU$4.20
BuyAU$175,44001 Nov 18
MLC Investment Management Limited
EntityCompany
Shares43,000
Max PriceAU$4.08
SellAU$16,05123 Oct 18
Antares Capital Partners Pty. Ltd.
EntityCompany
Shares3,989
Max PriceAU$4.02
SellAU$688,05423 Oct 18
MLC Investment Management Limited
EntityCompany
Shares171,586
Max PriceAU$4.01
BuyAU$159,32023 Oct 18
MLC Investment Management Limited
EntityCompany
Shares40,226
Max PriceAU$3.96
BuyAU$780,69123 Oct 18
MLC Investments Limited
EntityCompany
Shares193,763
Max PriceAU$4.03
BuyAU$5,78323 Oct 18
Antares Capital Partners Pty. Ltd.
EntityCompany
Shares1,442
Max PriceAU$4.01
SellAU$162,53623 Oct 18
MLC Investments Limited
EntityCompany
Shares40,300
Max PriceAU$4.03
BuyAU$1,557,27717 Oct 18
MLC Investments Limited
EntityCompany
Shares383,074
Max PriceAU$4.07
BuyAU$368,34717 Oct 18
Antares Capital Partners Pty. Ltd.
EntityCompany
Shares91,618
Max PriceAU$4.02
BuyAU$102,51117 Oct 18
MLC Investment Management Limited
EntityCompany
Shares25,189
Max PriceAU$4.07
BuyAU$1,027,46108 Oct 18
MLC Investments Limited
EntityCompany
Shares248,427
Max PriceAU$4.14
BuyAU$39,76008 Oct 18
Antares Capital Partners Pty. Ltd.
EntityCompany
Shares9,694
Max PriceAU$4.10
BuyAU$1,786,88004 Oct 18
MLC Investment Management Limited
EntityCompany
Shares421,363
Max PriceAU$4.24
BuyAU$58,276,58504 Oct 18
MLC Investments Limited
EntityCompany
Shares13,327,014
Max PriceAU$4.37
BuyAU$14,673,63304 Oct 18
Antares Capital Partners Pty. Ltd.
EntityCompany
Shares3,636,495
Max PriceAU$4.04
SellAU$2,845,23301 Oct 18
UniSuper Limited
EntityCompany
Shares656,956
Max PriceAU$4.33
BuyAU$325,639,54501 Oct 18
UniSuper Limited
EntityCompany
Shares79,607,867
Max PriceAU$4.27

Ownership Breakdown


Management Team

  • Dominic Smith (55yo)

    Company Secretary

    • Tenure: 9yrs
  • Chris Vagg

    Head of Investor Relations & Group Treasurer

    • Tenure: 0yrs
  • Tony Harding (52yo)

    MD, CEO & Director

    • Tenure: 2.8yrs
    • Compensation: AU$4.34m
  • Tina Thomas

    Group Executive of Corporate

    • Tenure: 2.2yrs
  • Mike Carter

    Group Executive of Technical Services & Planning

    • Tenure: 2.2yrs
    • Compensation: AU$1.53m
  • Michael Riches

    Group Executive of Network

    • Tenure: 2.2yrs
    • Compensation: AU$1.45m
  • Clay McDonald

    Group Executive of Bulk

    • Tenure: 2.2yrs
    • Compensation: AU$1.36m
  • Pam Bains

    CFO & Group Executive of Strategy

    • Tenure: 2.8yrs
    • Compensation: AU$1.59m
  • Ed McKeiver

    Group Executive of Coal

    • Tenure: 2.2yrs
    • Compensation: AU$1.43m
  • Mark Hairsine

    Manager of Media & Communications

    • Tenure: 0yrs

Board Members

  • Michael Fraser (62yo)

    Independent Non-Executive Director

    • Tenure: 3.6yrs
    • Compensation: AU$218.00
  • Tim Poole (50yo)

    Chairman

    • Tenure: 4yrs
    • Compensation: AU$492.00
  • Russell Caplan (72yo)

    Independent Non-Executive Director

    • Tenure: 9yrs
    • Compensation: AU$216.00
  • Marcelo De Almeida Bastos (56yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: AU$212.00
  • Tony Harding (52yo)

    MD, CEO & Director

    • Tenure: 2.8yrs
    • Compensation: AU$4.34m
  • Sam Lewis

    Independent Non-Executive Director

    • Tenure: 4.6yrs
    • Compensation: AU$221.00
  • Kate Vidgen

    Independent Non-Executive Director

    • Tenure: 3.2yrs
    • Compensation: AU$203.00

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$11.931b
  • Shares outstanding: 1.99b
  • Website: https://www.aurizon.com.au

Number of Employees


Location

  • Aurizon Holdings Limited
  • 900 Ann Street
  • Level 8
  • Fortitude Valley
  • Queensland
  • 4006
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AZJASX (Australian Securities Exchange)YesOrdinary SharesAUAUDNov 2010
QRNN.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 2010
AZJCHIA (Chi-X Australia)YesOrdinary SharesAUAUDNov 2010

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/19 10:36
End of Day Share Price2019/09/19 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.