OTCPK:EXXA.Y

Stock Analysis Report

Executive Summary

Exxaro Resources Limited engages in coal, iron ore investment, pigment manufacturing, renewable energy, and residual base metal businesses in South Africa, Europe, the United States, and Australia.

Rewards

Trading at 14.2% below its fair value

Revenue is forecast to grow 8.92% per year

Earnings grew by 199.1% over the past year

Risk Analysis

Earnings are forecast to decline by an average of -3.6% per year for the next 3 years

High level of non-cash earnings

Unstable dividend track record



Snowflake Analysis

Excellent balance sheet established dividend payer.


Similar Companies

Share Price & News

How has Exxaro Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0.1%

EXXA.Y

0.8%

US Oil and Gas

0.8%

US Market


1 Year Return

-2.0%

EXXA.Y

-6.3%

US Oil and Gas

22.0%

US Market

Return vs Industry: EXXA.Y exceeded the US Oil and Gas industry which returned -6.3% over the past year.

Return vs Market: EXXA.Y underperformed the US Market which returned 22% over the past year.


Shareholder returns

EXXA.YIndustryMarket
7 Day0.1%0.8%0.8%
30 Day8.2%-0.6%1.7%
90 Dayn/a-5.4%5.2%
1 Year12.4%-2.0%-2.8%-6.3%24.7%22.0%
3 Year94.7%43.9%-12.9%-20.9%46.9%37.3%
5 Year42.7%1.2%-16.5%-28.7%65.5%47.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Exxaro Resources undervalued compared to its fair value and its price relative to the market?

14.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EXXA.Y ($9.23) is trading below our estimate of fair value ($10.76)

Significantly Below Fair Value: EXXA.Y is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: EXXA.Y is good value based on its PE Ratio (4.2x) compared to the Oil and Gas industry average (10x).

PE vs Market: EXXA.Y is good value based on its PE Ratio (4.2x) compared to the US market (18.6x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

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


Next Steps

Future Growth

How is Exxaro Resources forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

-3.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EXXA.Y's earnings are forecast to decline over the next 3 years (-3.6% per year).

Earnings vs Market: EXXA.Y's earnings are forecast to decline over the next 3 years (-3.6% per year).

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

Revenue vs Market: EXXA.Y's revenue (8.9% per year) is forecast to grow faster than the US market (7.4% per year).

High Growth Revenue: EXXA.Y's revenue (8.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EXXA.Y's Return on Equity is forecast to be low in 3 years time (14.1%).


Next Steps

Past Performance

How has Exxaro Resources performed over the past 5 years?

45.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EXXA.Y has a high level of non-cash earnings.

Growing Profit Margin: EXXA.Y's current net profit margins (32.6%) are higher than last year (11.3%).


Past Earnings Growth Analysis

Earnings Trend: EXXA.Y's earnings have grown significantly by 45.5% per year over the past 5 years.

Accelerating Growth: EXXA.Y's earnings growth over the past year (199.1%) exceeds its 5-year average (45.5% per year).

Earnings vs Industry: EXXA.Y earnings growth over the past year (199.1%) exceeded the Oil and Gas industry -16.9%.


Return on Equity

High ROE: EXXA.Y's Return on Equity (18.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Exxaro Resources's financial position?


Financial Position Analysis

Short Term Liabilities: EXXA.Y's short term assets (ZAR10.8B) exceed its short term liabilities (ZAR5.7B).

Long Term Liabilities: EXXA.Y's short term assets (ZAR10.8B) do not cover its long term liabilities (ZAR16.8B).


Debt to Equity History and Analysis

Debt Level: EXXA.Y's debt to equity ratio (10%) is considered satisfactory.

Reducing Debt: EXXA.Y's debt to equity ratio has reduced from 12.5% to 10% over the past 5 years.

Debt Coverage: EXXA.Y's debt is well covered by operating cash flow (102.6%).

Interest Coverage: EXXA.Y earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: EXXA.Y's debt is covered by short term assets (assets are 2.4x debt).


Next Steps

Dividend

What is Exxaro Resources's current dividend yield, its reliability and sustainability?

12.60%

Current Dividend Yield


Dividend Yield vs Market

company12.6%marketbottom25%1.4%markettop25%3.7%industryaverage4.1%forecastin3Years11.8%

Current dividend yield vs market & industry

Notable Dividend: EXXA.Y's dividend (12.6%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: EXXA.Y's dividend (12.6%) is in the top 25% of dividend payers in the US market (3.71%)


Stability and Growth of Payments

Stable Dividend: EXXA.Y's dividend payments have been volatile in the past 10 years.

Growing Dividend: EXXA.Y's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (43.3%), EXXA.Y's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EXXA.Y's dividends in 3 years are forecast to be well covered by earnings (49.6% payout ratio).


Next Steps

Management

What is the CEO of Exxaro Resources's salary, the management and board of directors tenure and is there insider trading?

4.6yrs

Average management tenure


CEO

Mxolisi Mbuyisa Mgojo (58yo)

3.7yrs

Tenure

SAR28,711,987

Compensation

Mr. Mxolisi Donald Mbuyisa Mgojo serves as Non Executive Director at Talent 10 Capital Partners (Pty) Ltd. He is a Founder and Non Executive Director of Talent10 Holdings. He was Director of Tronox Holding ...


CEO Compensation Analysis

Compensation vs Market: Mxolisi's total compensation ($USD1.97M) is below average for companies of similar size in the US market ($USD3.87M).

Compensation vs Earnings: Mxolisi's compensation has increased by more than 20% in the past year.


Management Age and Tenure

4.6yrs

Average Tenure

49yo

Average Age

Experienced Management: EXXA.Y's management team is considered experienced (4.6 years average tenure).


Board Age and Tenure

3.4yrs

Average Tenure

58.5yo

Average Age

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


Insider Trading

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.


Management Team

  • Mxolisi Mbuyisa Mgojo (58yo)

    CEO & Director

    • Tenure: 3.7yrs
    • Compensation: SAR28.71m
  • Riaan Koppeschaar (48yo)

    Finance Director & Director

    • Tenure: 3.4yrs
    • Compensation: SAR13.76m
  • Nombasa Tsengwa (53yo)

    Executive Head of Coal Operations

    • Tenure: 4.6yrs
    • Compensation: SAR11.34m
  • Mzila Mthenjane (49yo)

    Executive Head of Stakeholder Affairs

    • Tenure: 6.6yrs
    • Compensation: SAR9.52m
  • Mongezi Veti (55yo)

    Executive Head of Sustainability

    • Tenure: 9.9yrs
    • Compensation: SAR9.49m
  • Wim Diedericks (50yo)

    Executive Head of Strategy & Business Development

    • Tenure: 4.7yrs
    • Compensation: SAR10.34m
  • Johan Meyer (49yo)

    Executive Head of Projects & Technology

    • Tenure: 4.7yrs
    • Compensation: SAR10.08m
  • Vanisha Balgobind (46yo)

    Executive Head of Human Resources

    • Tenure: 3.9yrs
    • Compensation: SAR8.56m
  • Saret Loggerenberg (42yo)

    Group Company Secretary & Legal

    • Tenure: 2.2yrs
    • Compensation: SAR3.93m

Board Members

  • Monhla Hlahla (56yo)

    Non-Executive Director

    • Tenure: 4.5yrs
    • Compensation: SAR430.79k
  • Vincent Mntambo (62yo)

    Non-Executive Director

    • Tenure: 13.1yrs
    • Compensation: SAR582.45k
  • Jeff van Rooyen (69yo)

    Independent Non-Executive Chairman

    • Tenure: 1.5yrs
    • Compensation: SAR1.49m
  • Ras Myburgh (60yo)

    Independent Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: SAR835.98k
  • Mxolisi Mbuyisa Mgojo (58yo)

    CEO & Director

    • Tenure: 3.7yrs
    • Compensation: SAR28.71m
  • Riaan Koppeschaar (48yo)

    Finance Director & Director

    • Tenure: 3.4yrs
    • Compensation: SAR13.76m
  • Vuyisa Nkonyeni (50yo)

    Independent Non-Executive Director

    • Tenure: 5.5yrs
    • Compensation: SAR785.51k
  • Peet Hendrik Snyders (59yo)

    Independent Non-Executive Director

    • Tenure: 3.4yrs
    • Compensation: SAR822.16k
  • Geraldine Fraser-Moleketi (59yo)

    Lead Independent Director

    • Tenure: 1.5yrs
    • Compensation: SAR458.61k
  • Lenamile Mophatlane (45yo)

    Independent Non-executive Director

    • Tenure: 1.6yrs
    • Compensation: SAR623.26k

Company Information

Exxaro Resources Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Exxaro Resources Limited
  • Ticker: EXXA.Y
  • Exchange: OTCPK
  • Founded:
  • Industry: Coal and Consumable Fuels
  • Sector: Energy
  • Market Cap: SAR34.423b
  • Listing Market Cap: SAR2.368b
  • Shares outstanding: 250.94m
  • Website: https://www.exxaro.com

Number of Employees


Location

  • Exxaro Resources Limited
  • The Connexxion
  • 263B West Avenue
  • Centurion
  • Gauteng
  • 157
  • South Africa

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EXXJSE (The Johannesburg Securities Exchange)YesOrdinary SharesZAZARNov 2001
EXXA.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 2001
EXXA.YOTCPK (Pink Sheets LLC)SPON ADRUSUSDNov 2001

Biography

Exxaro Resources Limited engages in coal, iron ore investment, pigment manufacturing, renewable energy, and residual base metal businesses in South Africa, Europe, the United States, and Australia. The com ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/16 00:05
End of Day Share Price2019/12/11 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.