NasdaqCM:HNRG

Stock Analysis Report

Executive Summary

Hallador Energy Company, through its subsidiaries, engages in the mining, production, and sale of steam coal for the electric power generation industry in the United States.

Rewards

Trading at 85.5% below its fair value

Risk Analysis

Earnings have declined by -1.27% per year over past 5 years

Interest payments are not well covered by earnings

Dividend of 13.33% is not well covered by earnings

Highly volatile share price over past 3 months

+ 3 more risks


Snowflake Analysis

Good value with mediocre balance sheet.


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Alliance Resource Partners

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Share Price & News

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


Latest Share Price and Events

Stable Share Price: HNRG's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-18.9%

HNRG

0.9%

US Oil and Gas

0.9%

US Market


1 Year Return

-78.4%

HNRG

-18.7%

US Oil and Gas

20.0%

US Market

Return vs Industry: HNRG underperformed the US Oil and Gas industry which returned -18.7% over the past year.

Return vs Market: HNRG underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

HNRGIndustryMarket
7 Day-18.9%0.9%0.9%
30 Day-50.2%-9.4%1.4%
90 Day-53.7%-5.1%8.8%
1 Year-77.3%-78.4%-15.6%-18.7%22.5%20.0%
3 Year-85.7%-87.0%-13.3%-21.4%49.9%40.3%
5 Year-87.9%-89.5%-21.5%-33.1%73.2%54.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Hallador Energy 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: HNRG ($1.2) is trading below our estimate of fair value ($8.25)

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


Price To Earnings Ratio

PE vs Industry: HNRG is poor value based on its PE Ratio (14.7x) compared to the Oil and Gas industry average (9x).

PE vs Market: HNRG is good value based on its PE Ratio (14.7x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: HNRG is good value based on its PB Ratio (0.1x) compared to the US Oil and Gas industry average (0.8x).


Next Steps

Future Growth

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

-9.4%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if HNRG's forecast earnings growth is above the savings rate (1.7%).

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

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

Revenue vs Market: HNRG's revenue is expected to decline over the next 3 years (-9.4% per year).

High Growth Revenue: HNRG's revenue is forecast to decline over the next 3 years (-9.4% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if HNRG's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Hallador Energy performed over the past 5 years?

-1.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HNRG has a large one-off gain of $1.4M impacting its September 30 2019 financial results.

Growing Profit Margin: HNRG's current net profit margins (0.7%) are lower than last year (9.4%).


Past Earnings Growth Analysis

Earnings Trend: HNRG's earnings have declined by -1.3% per year over the past 5 years.

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

Earnings vs Industry: HNRG had negative earnings growth (-90.4%) over the past year, making it difficult to compare to the Oil and Gas industry average (-10.9%).


Return on Equity

High ROE: HNRG's Return on Equity (1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Hallador Energy's financial position?


Financial Position Analysis

Short Term Liabilities: HNRG's short term assets ($83.3M) exceed its short term liabilities ($68.4M).

Long Term Liabilities: HNRG's short term assets ($83.3M) do not cover its long term liabilities ($183.9M).


Debt to Equity History and Analysis

Debt Level: HNRG's debt to equity ratio (64.3%) is considered high.

Reducing Debt: HNRG's debt to equity ratio has reduced from 188.7% to 64.3% over the past 5 years.

Debt Coverage: HNRG's debt is well covered by operating cash flow (34.9%).

Interest Coverage: HNRG's interest payments on its debt are not well covered by EBIT (0.7x coverage).


Balance Sheet

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

Debt Coverage by Assets: HNRG's debt is not covered by short term assets (assets are 0.5x debt).


Next Steps

Dividend

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

13.33%

Current Dividend Yield


Dividend Yield vs Market

company13.3%marketbottom25%1.4%markettop25%3.7%industryaverage4.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: HNRG's dividend (13.33%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: HNRG's dividend (13.33%) is in the top 25% of dividend payers in the US market (3.69%)


Stability and Growth of Payments

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

Growing Dividend: HNRG's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (196.5%), HNRG's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Brent Bilsland (45yo)

6.1yrs

Tenure

US$545,830

Compensation

Mr. Brent K. Bilsland has been the Chief Executive Officer of Hallador Energy Company since January 24, 2014 and its President since September 2009. Mr. Bilsland was the President of Sunrise Coal, LLC, a s ...


CEO Compensation Analysis

Compensation vs Market: Brent's total compensation ($USD545.83K) is about average for companies of similar size in the US market ($USD521.92K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Brent Bilsland
President6.1yrsUS$545.83k4.07% $1.5m
Lawrence Martin
Executive VP & CFO3.8yrsUS$301.77k1.02% $368.9k
R. Davis
Senior VP & Chief Accounting Officer0.9yrsno data0.0037% $1.4k
Rebecca Palumbo
Director - Investor Relations0yrsno datano data
W. Bishop
Consultant3.8yrsUS$406.16kno data

3.8yrs

Average Tenure

50yo

Average Age

Experienced Management: HNRG's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Brent Bilsland
President6.1yrsUS$545.83k4.07% $1.5m
David Lubar
Independent Director1.5yrsno datano data
David Hardie
Independent Director30.6yrsUS$20.00k0.56% $203.4k
Bryan Lawrence
Independent Director24.3yrsno data1.65% $599.7k
Steven Hardie
Independent Director26.1yrsno data0.58% $208.9k
Charles Wesley
Director1.5yrsUS$50.00k0.047% $17.2k

13.1yrs

Average Tenure

64.5yo

Average Age

Experienced Board: HNRG's board of directors are seasoned and experienced ( 13.1 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Hallador Energy Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hallador Energy Company
  • Ticker: HNRG
  • Exchange: NasdaqCM
  • Founded: 1949
  • Industry: Coal and Consumable Fuels
  • Sector: Energy
  • Market Cap: US$36.299m
  • Shares outstanding: 30.25m
  • Website: https://www.halladorenergy.com

Number of Employees


Location

  • Hallador Energy Company
  • 1660 Lincoln Street
  • Suite 2700
  • Denver
  • Colorado
  • 80264
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HNRGNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDDec 1989
H7HDB (Deutsche Boerse AG)YesCommon StockDEEURDec 1989

Biography

Hallador Energy Company, through its subsidiaries, engages in the mining, production, and sale of steam coal for the electric power generation industry in the United States. The company holds interests in the Oaktown 1 mine underground mine located in Knox County, Indiana; the Oaktown 2 mine located in Knox County, Indiana and Lawrence County, Illinois; Carlisle underground coal mine located near the town of Carlisle, Indiana; and Ace in the Hole mine located near Clay City, Indiana. It is also involved in gas exploration activities in Indiana. The company was founded in 1949 and is headquartered in Denver, Colorado. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 23:40
End of Day Share Price2020/02/14 00:00
Earnings2019/09/30
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.