OTCPK:WHIT.F

Stock Analysis Report

Executive Summary

Whitehaven Coal Limited develops and operates coal mines in New South Wales and Queensland.

Rewards

PE ratio (4.4x) is below the US market (18.3x)

Earnings grew by 0.6% over the past year

Risk Analysis

Earnings are forecast to decline by an average of -16.8% per year for the next 3 years

Shares are highly illiquid

Unstable dividend track record



Snowflake Analysis

Excellent balance sheet established dividend payer.


Similar Companies

Share Price & News

How has Whitehaven Coal's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

WHIT.F

-0.3%

US Oil and Gas

0.5%

US Market


1 Year Return

-48.8%

WHIT.F

-17.7%

US Oil and Gas

20.3%

US Market

Return vs Industry: WHIT.F underperformed the US Oil and Gas industry which returned -19.5% over the past year.

Return vs Market: WHIT.F underperformed the US Market which returned 19.4% over the past year.


Shareholder returns

WHIT.FIndustryMarket
7 Day0%-0.3%0.5%
30 Day-6.7%-7.5%2.0%
90 Day-21.5%-6.4%9.4%
1 Year-48.8%-48.8%-14.4%-17.7%22.8%20.3%
3 Year-26.2%-26.2%-11.8%-20.1%50.1%40.4%
5 Year35.1%35.1%-21.0%-32.6%73.1%54.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Whitehaven Coal undervalued compared to its fair value and its price relative to the market?

4.4x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WHIT.F ($1.68) is trading above our estimate of fair value ($1.07)

Significantly Below Fair Value: WHIT.F is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: WHIT.F is good value based on its PE Ratio (4.4x) compared to the Oil and Gas industry average (8.9x).

PE vs Market: WHIT.F is good value based on its PE Ratio (4.4x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: WHIT.F is good value based on its PB Ratio (0.7x) compared to the US Oil and Gas industry average (0.8x).


Next Steps

Future Growth

How is Whitehaven Coal forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

-16.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WHIT.F's earnings are forecast to decline over the next 3 years (-16.8% per year).

Earnings vs Market: WHIT.F's earnings are forecast to decline over the next 3 years (-16.8% per year).

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

Revenue vs Market: WHIT.F's revenue (0.2% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: WHIT.F's revenue (0.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WHIT.F's Return on Equity is forecast to be low in 3 years time (7%).


Next Steps

  • Explore growth companies in the Energy industry.

Past Performance

How has Whitehaven Coal performed over the past 5 years?

61.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WHIT.F has high quality earnings.

Growing Profit Margin: WHIT.F's current net profit margins (21.2%) are lower than last year (23.2%).


Past Earnings Growth Analysis

Earnings Trend: WHIT.F has become profitable over the past 5 years, growing earnings by 61% per year.

Accelerating Growth: WHIT.F's earnings growth over the past year (0.6%) is below its 5-year average (61% per year).

Earnings vs Industry: WHIT.F earnings growth over the past year (0.6%) exceeded the Oil and Gas industry -10.9%.


Return on Equity

High ROE: WHIT.F's Return on Equity (15%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Whitehaven Coal's financial position?


Financial Position Analysis

Short Term Liabilities: WHIT.F's short term assets (A$424.3M) exceed its short term liabilities (A$339.1M).

Long Term Liabilities: WHIT.F's short term assets (A$424.3M) do not cover its long term liabilities (A$983.8M).


Debt to Equity History and Analysis

Debt Level: WHIT.F's debt to equity ratio (4.9%) is considered satisfactory.

Reducing Debt: WHIT.F's debt to equity ratio has reduced from 21.1% to 4.9% over the past 5 years.

Debt Coverage: WHIT.F's debt is well covered by operating cash flow (527.1%).

Interest Coverage: WHIT.F's interest payments on its debt are well covered by EBIT (31.4x coverage).


Balance Sheet

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

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


Next Steps

Dividend

What is Whitehaven Coal's current dividend yield, its reliability and sustainability?

21.28%

Current Dividend Yield


Dividend Yield vs Market

company21.3%marketbottom25%1.4%markettop25%3.7%industryaverage4.5%forecastin3Years4.3%

Current dividend yield vs market & industry

Notable Dividend: WHIT.F's dividend (21.28%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: WHIT.F's dividend (21.28%) is in the top 25% of dividend payers in the US market (3.7%)


Stability and Growth of Payments

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

Growing Dividend: WHIT.F's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (52.4%), WHIT.F's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WHIT.F's dividends in 3 years are forecast to be well covered by earnings (41.9% payout ratio).


Next Steps

Management

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

5.8yrs

Average management tenure


CEO

Paul Flynn 0

6.9yrs

Tenure

AU$2,871,782

Compensation

Mr. Paul J. Flynn, BComm, FCA, has been the Chief Executive Officer and Managing Director of Whitehaven Coal Limited since March 25, 2013. Mr. Flynn served as the Chief Executive Officer and Managing Direc ...


CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD1.92M) is below average for companies of similar size in the US market ($USD3.81M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Paul Flynn
MD, CEO & Director6.9yrsAU$2.87m0.23% A$3.5m
Kevin Ball
Chief Financial Officer6.2yrsAU$1.12m0.054% A$847.2k
Timothy Burt
General Counsel & Company Secretary10.6yrsAU$984.88k0.048% A$746.6k
Scott Knights
Executive General Manager of Marketing & Logistics5.5yrsAU$1.01mno data
Michael Maanen
Executive General Manager of Corporate0yrsAU$559.50kno data
Quentin Granger
Executive General Manager - Operations0.2yrsno datano data
Ian McAleese
General Manager of Investor Relations0yrsno datano data
Leigh Martin
Executive General Manager of People & Culture0yrsno datano data
Mark Stevens
Executive General Manager of Project Delivery0.08yrsno datano data
Paul Verner
Group Treasurer0yrsno datano data

5.8yrs

Average Tenure

Experienced Management: WHIT.F's management team is seasoned and experienced (5.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Paul Flynn
MD, CEO & Director6.9yrsAU$2.87m0.23% A$3.5m
John Conde
Deputy Chairman of the Board7.8yrsAU$283.03k0.071% A$1.1m
Fiona Robertson
Independent Non-Executive Director2yrsAU$218.62k0.0022% A$33.8k
Julie Beeby
Independent Non-Executive Director4.6yrsAU$197.10k0.0055% A$86.4k
Mark Anthony Vaile
Independent Chairman of the Board7.8yrsAU$395.53k0.15% A$2.4m
G. Zage
Non-Executive Director6.5yrsno data0.93% A$14.5m
Lindsay Ward
Independent Non-Executive Director1yrsAU$74.73kno data

6.5yrs

Average Tenure

63yo

Average Age

Experienced Board: WHIT.F's board of directors are considered experienced (6.5 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

Whitehaven Coal Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Whitehaven Coal Limited
  • Ticker: WHIT.F
  • Exchange: OTCPK
  • Founded: 1999
  • Industry: Coal and Consumable Fuels
  • Sector: Energy
  • Market Cap: AU$2.331b
  • Listing Market Cap: AU$1.560b
  • Shares outstanding: 992.03m
  • Website: https://www.whitehavencoal.com.au

Number of Employees


Location

  • Whitehaven Coal Limited
  • 259 George Street
  • Level 28
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WHCASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJun 2007
WC2DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2007
WHIT.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 2007
WHCCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJun 2007

Biography

Whitehaven Coal Limited develops and operates coal mines in New South Wales and Queensland. The company operates in two segments, Open Cut Operations and Underground Operations. The company operates five mines in North West New South Wales; four open cut mines at Maules Creek, Tarrawonga, Werris Creek, and Sunnyside; and one underground mine at Narrabri. It offers thermal and metallurgical coal. The company sells its coal primarily in Japan, Taiwan, Korea, India, China, Malaysia, Indonesia, Vietnam, the Philippines, Australia, New Caledonia, and internationally. Whitehaven Coal Limited was founded in 1999 and is headquartered in Sydney, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 01:04
End of Day Share Price2020/02/07 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.