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Market Cap

AU$6.7b

Last Updated

2021/05/16 17:08 UTC

Data Sources

Company Financials +

Executive Summary

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


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

-1.4%

AZJ

-1.0%

AU Transportation

-1.4%

AU Market


1 Year Return

-17.8%

AZJ

31.6%

AU Transportation

34.8%

AU Market

Return vs Industry: AZJ underperformed the Australian Transportation industry which returned 31.6% over the past year.

Return vs Market: AZJ underperformed the Australian Market which returned 35.1% over the past year.


Shareholder returns

AZJIndustryMarket
7 Day-1.4%-1.0%-1.4%
30 Day-7.6%-2.4%-1.1%
90 Day-10.1%0.5%1.5%
1 Year-12.0%-17.8%34.3%31.6%39.2%34.8%
3 Year-0.2%-15.8%24.2%13.9%30.1%14.6%
5 Year8.2%-17.6%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

No news available

Valuation

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

28.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AZJ (A$3.65) is trading below our estimate of fair value (A$5.11)

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 (18.1x).

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 (12.8% 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 (4.9% 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 (-1.3%).


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 (5.2%)


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 ($USD3.37M) is above average for companies of similar size in the Australian market ($USD2.34M).

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: CHIA
  • 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/16 17:08
End of Day Share Price2021/05/14 00:00
Earnings2020/12/31
Annual Earnings2020/06/30


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.