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WSL

Wescoal HoldingsJSE:WSL Stock Report

Market Cap

R708.8m

7D

-1.5%

1Y

214.8%

Updated

17 Oct, 2021

Data

Company Financials
WSL fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance0/6
Financial Health1/6
Dividends0/6

WSL Overview

Wescoal Holdings Limited, together with its subsidiaries, engages in mining, processing, selling, and distributing of thermal coal primarily in South Africa.

Price History & Performance

Summary of all time highs, changes and price drops for Wescoal Holdings
Historical stock prices
Current Share PriceR1.92
52 Week HighR0.52
52 Week LowR2.19
Beta-0.27
1 Month Change12.94%
3 Month Change82.86%
1 Year Change214.75%
3 Year Change-1.54%
5 Year Change-23.20%
Change since IPO249.09%

Recent News & Updates

Jul 27
Wescoal Holdings (JSE:WSL) Has A Somewhat Strained Balance Sheet

Wescoal Holdings (JSE:WSL) Has A Somewhat Strained Balance Sheet

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

May 31
Wescoal Holdings (JSE:WSL) May Have Issues Allocating Its Capital

Wescoal Holdings (JSE:WSL) May Have Issues Allocating Its Capital

If you're looking for a multi-bagger, there's a few things to keep an eye out for. Firstly, we'll want to see a proven...

Shareholder Returns

WSLZA Trade DistributorsZA Market
7D-1.5%0.9%1.6%
1Y214.8%97.8%21.3%

Return vs Industry: WSL exceeded the ZA Trade Distributors industry which returned 97.8% over the past year.

Return vs Market: WSL exceeded the ZA Market which returned 21.3% over the past year.

Price Volatility

Is WSL's price volatile compared to industry and market?
WSL volatility
WSL Beta-0.27
Industry Beta0.79
Market Beta1

Stable Share Price: WSL is more volatile than 75% of ZA stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: WSL's weekly volatility (9%) has been stable over the past year, but is still higher than 75% of ZA stocks.

About the Company

FoundedEmployeesCEOWebsite
2005192Muthanyi Ramaitehttps://www.wescoal.com

Wescoal Holdings Limited, together with its subsidiaries, engages in mining, processing, selling, and distributing of thermal coal primarily in South Africa. The company is involved in the exploration, beneficiation, and mining of bituminous coal; and buys and sells coal to inland customers. It holds interests in the Elandspruit Colliery, Khanyisa Complex Colliery, and Vanggatfontein Colliery mines; and the Moabsvelden, Leeuw Braakfontein Colliery, Sterkfontein, and Braakfontein projects.

Wescoal Holdings Fundamentals Summary

How do Wescoal Holdings's earnings and revenue compare to its market cap?
WSL fundamental statistics
Market CapR708.82m
Earnings (TTM)-R35.83m
Revenue (TTM)R3.90b

0.2x

P/S Ratio

-19.8x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
WSL income statement (TTM)
RevenueR3.90b
Cost of RevenueR3.49b
Gross ProfitR411.38m
ExpensesR447.21m
Earnings-R35.83m

Last Reported Earnings

Mar 31, 2021

Next Earnings Date

Nov 30, 2021

Earnings per share (EPS)-0.097
Gross Margin10.54%
Net Profit Margin-0.92%
Debt/Equity Ratio117.8%

How did WSL perform over the long term?

See historical performance and comparison

Valuation

Is Wescoal Holdings 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: WSL (ZAR1.92) is trading below our estimate of fair value (ZAR16.41)

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


Price To Earnings Ratio

PE vs Industry: WSL is unprofitable, so we can't compare its PE Ratio to the ZA Trade Distributors industry average.

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: WSL's PB Ratio (0.8x) is in line with the ZA Trade Distributors industry average.


Future Growth

How is Wescoal Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

10.6%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Wescoal Holdings has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has Wescoal Holdings performed over the past 5 years?

-40.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WSL is currently unprofitable.

Growing Profit Margin: WSL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: WSL is unprofitable, and losses have increased over the past 5 years at a rate of 40.9% per year.

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

Earnings vs Industry: WSL is unprofitable, making it difficult to compare its past year earnings growth to the Trade Distributors industry (19.1%).


Return on Equity

High ROE: WSL has a negative Return on Equity (-4.22%), as it is currently unprofitable.


Financial Health

How is Wescoal Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: WSL's short term assets (ZAR1.2B) do not cover its short term liabilities (ZAR1.8B).

Long Term Liabilities: WSL's short term assets (ZAR1.2B) do not cover its long term liabilities (ZAR1.4B).


Debt to Equity History and Analysis

Debt Level: WSL's debt to equity ratio (117.8%) is considered high.

Reducing Debt: WSL's debt to equity ratio has increased from 64.7% to 117.8% over the past 5 years.

Debt Coverage: WSL's debt is well covered by operating cash flow (63.4%).

Interest Coverage: WSL's interest payments on its debt are not well covered by EBIT (0.6x coverage).


Balance Sheet


Dividend

What is Wescoal Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate WSL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate WSL's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if WSL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if WSL's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: WSL is not paying a notable dividend for the ZA market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of WSL's dividend in 3 years as they are not forecast to pay a notable one for the ZA market.


Next Steps

Management

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

1.5yrs

Average management tenure


CEO

Muthanyi Ramaite (52 yo)

0.58

Tenure

R256,000

Compensation

Mr. Muthanyi Robinson Ramaite, B.Juris MM serves as the Executive Chairman of Simeka Group (Pty) Limited. Mr. Ramaite has been involved in a number of investment initiatives in the Property, Mining, Aviati...


Leadership Team

Experienced Management: WSL's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

Experienced Board: WSL's board of directors are considered experienced (3.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: WSL 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

Wescoal Holdings Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Wescoal Holdings Limited
  • Ticker: WSL
  • Exchange: JSE
  • Founded: 2005
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: R708.824m
  • Shares outstanding: 369.18m
  • Website: https://www.wescoal.com

Number of Employees


Location

  • Wescoal Holdings Limited
  • Woodmead Business Park
  • First Floor, Building 10
  • Sandton
  • Gauteng
  • 2191
  • South Africa

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/17 17:06
End of Day Share Price2021/10/15 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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.