ASX:AZJ

Stock Analysis Report

Executive Summary

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


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-7.4%

AZJ

7.2%

AU Transportation

4.9%

AU Market


1 Year Return

-5.2%

AZJ

-13.1%

AU Transportation

-14.2%

AU Market

Return vs Industry: AZJ exceeded the Australian Transportation industry which returned -13.4% over the past year.

Return vs Market: AZJ exceeded the Australian Market which returned -17.5% over the past year.


Shareholder returns

AZJIndustryMarket
7 Day-7.4%7.2%4.9%
30 Day-1.1%0.2%-8.9%
90 Day-21.1%-16.6%-22.7%
1 Year-0.7%-5.2%-11.5%-13.1%-10.3%-14.2%
3 Year-4.5%-17.8%18.0%11.5%2.6%-11.6%
5 Year19.1%-8.2%17.6%9.6%13.9%-11.8%

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 compared to its fair value and its price relative to the market?

8.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AZJ (A$4.35) is trading below our estimate of fair value (A$4.73)

Significantly Below Fair Value: AZJ is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: AZJ is poor value based on its PE Ratio (14.6x) compared to the Transportation industry average (12.2x).

PE vs Market: AZJ is poor value based on its PE Ratio (14.6x) compared to the Australian market (13.5x).


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 (1.9x) compared to the XX Transportation industry average (0.9x).


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% 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%.


Return on Equity

High ROE: AZJ's Return on Equity (12.9%) is considered low.


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


Next Steps

Dividend

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

6.00%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AZJ's dividend (6%) is higher than the bottom 25% of dividend payers in the Australian market (2.99%).

High Dividend: AZJ's dividend (6%) is low compared to the top 25% of dividend payers in the Australian market (7.83%).


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 9 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?

2.8yrs

Average management tenure


CEO

Tony Harding (52yo)

3.33s

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 ($USD2.70M) is about average for companies of similar size in the Australian market ($USD2.84M).

Compensation vs Earnings: Tony's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Andrew Harding
MD, CEO & Director3.33yrsAU$4.34m0.0021% A$179.1k
Ed McKeiver
Group Executive of Coal2.75yrsAU$1.43m0.0030% A$254.4k
George Lippiatt
CFO & Group Executive Strategy0.083yrno datano data
Michael Carter
Group Executive of Technical Services & Planning2.75yrsAU$1.53mno data
Christopher Vagg
Head of Investor Relations & Group Treasurerno datano datano data
Mark Hairsine
Manager of Media & Communicationsno datano datano data
Tina Thomas
Group Executive of Corporate2.75yrsno datano data
James Coe
Manager of Market Intelligence & Sustainabilityno datano datano data
Dominic Smith
Company Secretary9.58yrsno datano data

2.8yrs

Average Tenure

Experienced Management: AZJ's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Andrew Harding
MD, CEO & Director3.33yrsAU$4.34m0.0021% A$179.1k
Michael Fraser
Independent Non-Executive Director4.17yrsAU$218.000.0037% A$312.7k
Timothy Poole
Independent Chairman4.58yrsAU$492.000.0058% A$494.3k
Russell Caplan
Independent Non-Executive Director9.58yrsAU$216.000.0043% A$367.5k
Marcelo De Almeida Bastos
Independent Non-Executive Director2.42yrsAU$212.000.0014% A$115.7k
Sarah Ryan
Non-Executive Director0.33yrno data0.00047% A$40.3k
Lyell Strambi
Non-Executive Director0.33yrno data0.00028% A$24.0k
Samantha Lewis
Independent Non-Executive Director5.17yrsAU$221.000.0022% A$191.9k
Katherine Vidgen
Independent Non-Executive Director3.75yrsAU$203.000.0021% A$179.1k

3.8yrs

Average Tenure

54.5yo

Average Age

Experienced Board: AZJ's board of directors are considered experienced (3.8 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$8.567b
  • Shares outstanding: 1.92b
  • 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
QRLDB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 2010
AZJCHIA (Chi-X Australia)YesOrdinary SharesAUAUDNov 2010
AZNN.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDOct 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/09 10:52
End of Day Share Price2020/04/09 00:00
Earnings2019/12/31
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.