ASX:NEW

Stock Analysis Report

Executive Summary

New Energy Solar Limited acquires, owns and manages large scale solar generation facilities.

Rewards


Snowflake Analysis

Share Price & News

How has New Energy Solar's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NEW has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-5.2%

NEW

-0.9%

AU Renewable Energy

0.5%

AU Market


1 Year Return

-8.6%

NEW

14.6%

AU Renewable Energy

19.1%

AU Market

Return vs Industry: NEW underperformed the Australian Renewable Energy industry which returned 14.6% over the past year.

Return vs Market: NEW underperformed the Australian Market which returned 19.1% over the past year.


Shareholder returns

NEWIndustryMarket
7 Day-5.2%-0.9%0.5%
30 Day2.4%-3.4%-0.2%
90 Day0.8%-2.0%0.4%
1 Year-3.1%-8.6%17.9%14.6%24.9%19.1%
3 Yearn/a-38.3%-40.6%37.0%18.2%
5 Yearn/a28.7%21.2%58.6%22.8%

Price Volatility Vs. Market

How volatile is New Energy Solar's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is New Energy Solar undervalued compared to its fair value and its price relative to the market?

25.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NEW (A$1.27) is trading below our estimate of fair value (A$1.7)

Significantly Below Fair Value: NEW is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NEW is poor value based on its PE Ratio (11.7x) compared to the Renewable Energy industry average (11x).

PE vs Market: NEW is good value based on its PE Ratio (11.7x) compared to the Australian market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate NEW's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: NEW is good value based on its PB Ratio (0.8x) compared to the AU Renewable Energy industry average (1x).

Future Growth

How is New Energy Solar forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

9.6%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if NEW's forecast earnings growth is above the savings rate (1.1%).

Earnings vs Market: Insufficient data to determine if NEW's earnings are forecast to grow faster than the Australian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NEW's revenue (9.6% per year) is forecast to grow faster than the Australian market (3.5% per year).

High Growth Revenue: NEW's revenue (9.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NEW's Return on Equity is forecast to be low in 3 years time (7.2%).

Past Performance

How has New Energy Solar performed over the past 5 years?

-25.5%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: NEW has high quality earnings.

Growing Profit Margin: NEW's current net profit margins (86.1%) are lower than last year (90.8%).


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if NEW's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: NEW's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NEW had negative earnings growth (-25.5%) over the past year, making it difficult to compare to the Renewable Energy industry average (33.9%).


Return on Equity

High ROE: NEW's Return on Equity (7%) is considered low.


Return on Assets


Return on Capital Employed

Financial Health

How is New Energy Solar's financial position?


Financial Position Analysis

Short Term Liabilities: NEW's short term assets (A$1.4M) do not cover its short term liabilities (A$14.5M).

Long Term Liabilities: NEW has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: NEW is debt free.

Reducing Debt: NEW has not had any debt for past 5 years.

Debt Coverage: NEW has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: NEW has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: NEW has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if NEW's debt is covered by short term assets.

Dividend

What is New Energy Solar's current dividend yield, its reliability and sustainability?

6.22%

Current Dividend Yield


Dividend Yield vs Market

company6.2%marketbottom25%2.4%markettop25%5.6%industryaverage3.5%forecastin3Years6.3%

Current dividend yield vs market & industry

Notable Dividend: NEW's dividend (6.22%) is higher than the bottom 25% of dividend payers in the Australian market (2.41%).

High Dividend: NEW's dividend (6.22%) is in the top 25% of dividend payers in the Australian market (5.6%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, NEW has been paying a dividend for less than 10 years.

Growing Dividend: NEW has only been paying a dividend for 2 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (72.7%), NEW's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NEW's dividends in 3 years are forecast to be covered by earnings (69.6% payout ratio).

Management

What is the CEO of New Energy Solar's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

John Martin 0

2.6yrs

Tenure

0

Mr. John Martin, BEcon.(USYD) serves as the Chief Executive Officer, Managing Director & Director of New Energy Solar Limited. 


Management Age and Tenure

1.8yrs

Average Tenure

Experienced Management: NEW's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

2.2yrs

Average Tenure

Experienced Board: NEW's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyAU$94,58610 Sep 19
John Michael Holland
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares75,000
Max PriceAU$1.27
BuyAU$245,54901 Aug 19
Alan Dixon
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares190,862
Max PriceAU$1.30
BuyAU$25,80025 Jun 19
Jeffrey Whalan
EntityIndividual
Role
Chairman of the Board
Independent Non-Executive Chairman
Shares20,000
Max PriceAU$1.29
BuyAU$30,30713 Jun 19
John Martin
EntityIndividual
Role
Chief Executive Officer
MD, CEO & Director
Shares24,187
Max PriceAU$1.28
BuyAU$25,80707 Jun 19
John Martin
EntityIndividual
Role
Chief Executive Officer
MD, CEO & Director
Shares20,000
Max PriceAU$1.30

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 27.9%.


Management Team

  • Alex MacLachlan

    Chairman & CEO of Walsh & Company Investments Limited

    • Tenure: 0yrs
  • Whitney Voute

    Head of Investor Relations of US Solar Fund

    • Tenure: 0.9yrs
  • Warwick Keneally

    Head of Finance and Director of Walsh & Company Investments Limited

    • Tenure: 2.6yrs
  • Adam Chandler

    Portfolio Manager

    • Tenure: 0yrs
  • John Martin

    MD, CEO & Director

    • Tenure: 2.6yrs
  • Liam Thomas

    Chief Investment Officer

    • Tenure: 3.8yrs
  • Hannah Chan

    Company Secretary

    • Tenure: 4.1yrs
  • Caroline Purtell

    Company Secretary

    • Tenure: 1.1yrs
  • Michael van der Vlies

    Chief Financial Officer

    • Tenure: 0yrs
  • Fleur Jouault

    Head of Investor Relations

    • Tenure: 0.4yrs

Board Members

  • Alan Dixon

    Non-Executive Director

    • Tenure: 2.2yrs
  • John Michael Holland

    Independent Non-Executive Director

    • Tenure: 2.2yrs
    • Compensation: AU$8.33k
  • Jeff Whalan

    Independent Non-Executive Chairman

    • Tenure: 2.2yrs
    • Compensation: AU$12.50k
  • Alex MacLachlan

    Chairman & CEO of Walsh & Company Investments Limited

    • Tenure: 0yrs
  • James Davies

    Independent Non-Executive Director

    • Tenure: 2.2yrs
    • Compensation: AU$8.33k
  • Maxine McKew

    Independent Non-Executive Director

    • Tenure: 2.2yrs
    • Compensation: AU$8.33k
  • Warwick Keneally

    Head of Finance and Director of Walsh & Company Investments Limited

    • Tenure: 2.6yrs
  • John Martin

    MD, CEO & Director

    • Tenure: 2.6yrs
  • Mike Adams

    Director of Walsh & Company Investments Limited

    • Tenure: 1.4yrs

Company Information

New Energy Solar Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: New Energy Solar Limited
  • Ticker: NEW
  • Exchange: ASX
  • Founded: 2015
  • Industry: Renewable Electricity
  • Sector: Utilities
  • Market Cap: AU$445.846m
  • Shares outstanding: 351.06m
  • Website: https://www.newenergysolar.com.au

Location

  • New Energy Solar Limited
  • 100 Pacific Highway
  • Level 15
  • North Sydney
  • New South Wales
  • 2060
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NEWCHIA (Chi-X Australia)YesStapled SecuritiesAUAUDDec 2017
NEWASX (Australian Securities Exchange)YesStapled SecuritiesAUAUDDec 2017

Biography

New Energy Solar Limited acquires, owns and manages large scale solar generation facilities. The firm may also invest in other renewable energy assets including wind, geothermal, hydro-electricity, hybrid  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/15 10:47
End of Day Share Price2019/12/13 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.