ASX:NEW

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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


Snowflake Analysis

Flawless balance sheet and fair value.

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 is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: NEW's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-8.0%

NEW

-2.5%

AU Renewable Energy

-1.6%

AU Market


1 Year Return

-38.7%

NEW

-2.6%

AU Renewable Energy

9.7%

AU Market

Return vs Industry: NEW underperformed the Australian Renewable Energy industry which returned -2.6% over the past year.

Return vs Market: NEW underperformed the Australian Market which returned 9.7% over the past year.


Shareholder returns

NEWIndustryMarket
7 Day-8.0%-2.5%-1.6%
30 Day-17.7%-0.9%2.1%
90 Day-10.8%18.5%3.7%
1 Year-34.9%-38.7%0.8%-2.6%13.3%9.7%
3 Year-38.1%-47.9%-59.7%-61.5%29.0%13.4%
5 Yearn/a154.8%105.7%62.6%31.4%

Long-Term 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?

21.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NEW (A$0.75) is trading below our estimate of fair value (A$0.94)

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


Price To Earnings Ratio

PE vs Industry: NEW is unprofitable, so we can't compare its PE Ratio to the XX Renewable Energy industry average.

PE vs Market: NEW is unprofitable, so we can't compare its PE Ratio to the Australian market.


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 (0.6x) compared to the AU Renewable Energy industry average (2x).


Next Steps

Future Growth

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

69.7%

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 (2%).

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 (69.7% per year) is forecast to grow faster than the Australian market (5.5% per year).

High Growth Revenue: NEW's revenue (69.7% per year) is forecast to grow faster 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 (8.8%).


Next Steps

Past Performance

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

-53.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NEW is currently unprofitable.

Growing Profit Margin: NEW is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NEW is unprofitable, and losses have increased over the past 5 years at a rate of 53.2% per year.

Accelerating Growth: Unable to compare NEW's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: NEW is unprofitable, making it difficult to compare its past year earnings growth to the Renewable Energy industry (8.6%).


Return on Equity

High ROE: NEW has a negative Return on Equity (-17.78%), as it is currently unprofitable.


Next Steps

Financial Health

How is New Energy Solar's financial position?


Financial Position Analysis

Short Term Liabilities: NEW's short term assets (A$9.9M) exceed its short term liabilities (A$2.7M).

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


Next Steps

Dividend

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

8.05%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NEW's dividend (8.05%) is higher than the bottom 25% of dividend payers in the Australian market (2.11%).

High Dividend: NEW's dividend (8.05%) is in the top 25% of dividend payers in the Australian market (5.43%)


Stability and Growth of Payments

Stable Dividend: NEW has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: NEW has only been paying a dividend for 3 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: NEW is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: NEW's dividends in 3 years are forecast to be covered by earnings (58.3% payout ratio).


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

John Martin

3.83yrs

Tenure

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


Leadership Team

NamePositionTenureCompensationOwnership
John Martin
MD, CEO & Director3.83yrsno data0.18%
A$ 479.6k
Jaclyn Strelow
Chief Operating Officer1.17yrsno datano data
Liam Thomas
Chief Investment Officer5yrsno datano data
Fleur Jouault
Head of Investor Relations1.67yrsno datano data
Warwick Keneally
Head of Finance and Director of Walsh & Company Investments Limited3.83yrsno data0.012%
A$ 32.2k
Whitney Voute
Head of Investor Relations of US Solar Fund2.17yrsno datano data
Hannah Chan
Company Secretary5.33yrsno datano data
Caroline Purtell
Company Secretary2.33yrsno datano data
Tom Durham
Financial Controller3.17yrsno datano data
Adam Chandler
Portfolio Managerno datano datano data

2.8yrs

Average Tenure

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


Board Members

NamePositionTenureCompensationOwnership
John Martin
MD, CEO & Director3.83yrsno data0.18%
A$ 479.6k
Warwick Keneally
Head of Finance and Director of Walsh & Company Investments Limited3.83yrsno data0.012%
A$ 32.2k
John Michael Holland
Independent Non-Executive Director3.42yrsAU$60.00k0.070%
A$ 187.3k
Peter Shear
Independent Director of Walsh & Company Investments Limited1.25yrsno datano data
Stuart Robert Nisbett
Independent Chairman of Walsh & Company Investments Limited1.25yrsno datano data
Jeffrey Whalan
Independent Non-Executive Chairman3.42yrsAU$85.00k0.15%
A$ 408.9k
James Davies
Independent Non-Executive Director3.42yrsAU$79.00k0.012%
A$ 31.4k
Maxine McKew
Independent Non-Executive Director3.42yrsAU$50.00k0.019%
A$ 50.3k
Mike Adams
Director of Walsh & Company Investments Limited2.67yrsno datano data

3.4yrs

Average Tenure

Experienced Board: NEW's board of directors are considered experienced (3.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$268.229m
  • Shares outstanding: 355.27m
  • 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 Analysis2021/03/03 07:05
End of Day Share Price2021/03/03 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.