BST:YA1

Stock Analysis Report

Yancoal Australia

Executive Summary

Yancoal Australia Ltd Engages in the exploration, development, production, and marketing of metallurgical and thermal coal in Japan, Singapore, China, South Korea, Taiwan, Thailand, Australia, and internationally.


Snowflake Analysis

Undervalued with solid track record and pays a dividend.


Similar Companies

Share Price & News

How has Yancoal Australia's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: YA1 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

YA1

1.8%

DE Oil and Gas

-0.2%

DE Market


1 Year Return

n/a

YA1

79.8%

DE Oil and Gas

13.7%

DE Market

Return vs Industry: Insufficient data to determine how YA1 performed against the German Oil and Gas industry.

Return vs Market: Insufficient data to determine how YA1 performed against the German Market.


Shareholder returns

YA1IndustryMarket
7 Day0%1.8%-0.2%
30 Day0.6%6.2%0.3%
90 Day-2.8%28.3%3.7%
1 Yearn/a85.0%79.8%17.2%13.7%
3 Yearn/a15.8%6.2%15.4%5.3%
5 Yearn/a320.1%255.1%21.3%4.7%

Price Volatility Vs. Market

How volatile is Yancoal Australia's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Yancoal Australia undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: YA1 (€1.73) is trading below our estimate of fair value (€36.23)

Significantly Below Fair Value: YA1 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: YA1 is good value based on its PE Ratio (3.5x) compared to the Oil and Gas industry average (10.8x).

PE vs Market: YA1 is good value based on its PE Ratio (3.5x) compared to the German market (20.9x).


Price to Earnings Growth Ratio

PEG Ratio: YA1's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: YA1 is good value based on its PB Ratio (0.6x) compared to the DE Oil and Gas industry average (1.3x).


Next Steps

Future Growth

How is Yancoal Australia forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-21.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: YA1's earnings are forecast to decline over the next 3 years (-21.1% per year).

Earnings vs Market: YA1's earnings are forecast to decline over the next 3 years (-21.1% per year).

High Growth Earnings: YA1's earnings are forecast to decline over the next 3 years.

Revenue vs Market: YA1's revenue is expected to decline over the next 3 years (-2.9% per year).

High Growth Revenue: YA1's revenue is forecast to decline over the next 3 years (-2.9% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: YA1's Return on Equity is forecast to be low in 3 years time (8.2%).


Next Steps

Past Performance

How has Yancoal Australia performed over the past 5 years?

70.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: YA1 has high quality earnings.

Growing Profit Margin: YA1's current net profit margins (21.7%) are higher than last year (14.6%).


Past Earnings Growth Analysis

Earnings Trend: YA1 has become profitable over the past 5 years, growing earnings by 70.8% per year.

Accelerating Growth: YA1's earnings growth over the past year (74.7%) exceeds its 5-year average (70.8% per year).

Earnings vs Industry: YA1 earnings growth over the past year (74.7%) exceeded the Oil and Gas industry -5.2%.


Return on Equity

High ROE: YA1's Return on Equity (17.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Yancoal Australia's financial position?


Financial Position Analysis

Short Term Liabilities: YA1's short term assets (A$1.4B) exceed its short term liabilities (A$1.2B).

Long Term Liabilities: YA1's short term assets (A$1.4B) do not cover its long term liabilities (A$3.6B).


Debt to Equity History and Analysis

Debt Level: YA1's debt to equity ratio (56%) is considered high.

Reducing Debt: YA1's debt to equity ratio has reduced from 501.6% to 56% over the past 5 years.


Balance Sheet

Inventory Level: YA1 has a high level of physical assets or inventory.

Debt Coverage by Assets: YA1's debt is not covered by short term assets (assets are 0.4x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: YA1 is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: YA1 is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is Yancoal Australia's current dividend yield, its reliability and sustainability?

11.12%

Current Dividend Yield


Dividend Yield vs Market

company11.1%marketbottom25%1.3%markettop25%3.7%industryaverage6.3%forecastin3Years8.4%

Current dividend yield vs market & industry

Notable Dividend: YA1's dividend (11.12%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: YA1's dividend (11.12%) is in the top 25% of dividend payers in the German market (3.65%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, YA1 has been paying a dividend for less than 10 years.

Growing Dividend: YA1's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (32.2%), YA1's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: YA1's dividends in 3 years are forecast to be well covered by earnings (49.5% payout ratio).


Next Steps

Management

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

5.9yrs

Average management tenure


CEO

Reinhold Schmidt (53yo)

6.5yrs

Tenure

AU$3,908,442

Compensation

Mr. Reinhold H. Schmidt, MEng (Mineral Economics), has been the Chief Executive Officer of Yancoal Australia Ltd., since August 26, 2013. Mr. Schmidt has over 20 years' experience in the mining industry. H ...


CEO Compensation Analysis

Compensation vs Market: Reinhold's total compensation ($USD2.58M) is about average for companies of similar size in the German market ($USD2.27M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Reinhold Schmidt
Chief Executive Officer6.5yrsAU$3.91m0.024% A$549.1k
Fucun Wang
Co-Vice Chairman1.7yrsAU$939.15kno data
Paul Stringer
Chief Operating Officer1.8yrsAU$1.99m0.0043% A$98.7k
Lei Zhang
Chief Financial Officer5.9yrsno data0.0052% A$121.2k
James Rickards
General Manager of Investor Relations & Corporate Affairs0yrsno datano data
Ling Zhang
Company Secretary0yrsno datano data
Frank Fulham
Chief Development Officer8.1yrsno datano data
Xiangqian Wu
Executive Director2.8yrsno datano data

5.9yrs

Average Tenure

53yo

Average Age

Experienced Management: YA1's management team is seasoned and experienced (5.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Fucun Wang
Co-Vice Chairman1.7yrsAU$939.15kno data
Ling Zhang
Company Secretary0yrsno datano data
Xiangqian Wu
Executive Director2.8yrsno datano data
Cunliang Lai
Non-Executive Director15.3yrsno datano data
Baocai Zhang
Chairman1.7yrsAU$710.24k0.021% A$482.5k
Helen Gillies
Independent Non-Executive Director2.1yrsAU$217.35kno data
Qingchun Zhao
Non-Executive Director2.8yrsno datano data
Gregory Fletcher
Co-Vice Chairman1.9yrsAU$417.27k0.00016% A$3.7k
Geoffrey Raby
Independent Non-Executive Director7.7yrsAU$192.41k0.0017% A$40.2k
Fuqi Wang
Non-Executive Director4.8yrsno datano data

2.8yrs

Average Tenure

54.5yo

Average Age

Experienced Board: YA1's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


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 been diluted in the past year, with total shares outstanding growing by 21.2%.


Top Shareholders

Company Information

Yancoal Australia Ltd's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Yancoal Australia Ltd
  • Ticker: YA1
  • Exchange: BST
  • Founded: 2004
  • Industry: Coal and Consumable Fuels
  • Sector: Energy
  • Market Cap: AU$3.790b
  • Listing Market Cap: AU$2.322b
  • Shares outstanding: 1.32b
  • Website: https://www.yancoal.com.au

Number of Employees


Location

  • Yancoal Australia Ltd
  • 201 Sussex Street
  • Level 18
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
YALASX (Australian Securities Exchange)YesOrdinary SharesAUAUDMar 2003
YA1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 2003
YACA.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMar 2003
YALCHIA (Chi-X Australia)YesOrdinary SharesAUAUDMar 2003
YA1BST (Boerse-Stuttgart)YesOrdinary SharesDEEURMar 2003
3668SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMar 2003

Biography

Yancoal Australia Ltd Engages in the exploration, development, production, and marketing of metallurgical and thermal coal in Japan, Singapore, China, South Korea, Taiwan, Thailand, Australia, and internationally. It owns 81% interests in the Moolarben coal mine located in the Western Coalfields of New South Wales; 100% interests in the Stratford Duralie mines located within the New South Wales Gloucester Basin; 100% interests in the Yarrabee mine located to the northeast of Blackwater in Central Queensland’s Bowen Basin; 50% interests in the Middlemount mine located to the north-east of Emerald in Queensland's Bowen Basin; and 80% interests in the Mount Thorley mine and 84.5% interests in the Warkworth mine in the Hunter Valley region of New South Wales. It also manages five other projects in New South Wales, Queensland, and Western Australia. The company was founded in 2004 and is based in Sydney, Australia. Yancoal Australia Ltd is a subsidiary of Yanzhou Coal Mining Company Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 22:50
End of Day Share Price2020/02/20 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.