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.
The last earnings update was 31 days ago.
Discounted Cash Flow Calculation for DB:YA1 using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
Note: Free cash flow to equity valuations ignore the company's cash or debt.
DB:YA1 DCF 1st Stage: Next 10 year cash flow forecast
Amount off the current price
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
Yancoal Australia's share price is below the future cash flow value, and at a moderate discount (> 20%).
Yancoal Australia's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
Yancoal Australia's earnings available for a low price, and how does
this compare to other companies in the same industry?
Unable to determine if Yancoal Australia is high growth as no earnings estimate data is available.
Yancoal Australia's revenue is expected to grow by 0.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Yancoal Australia's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
Oil and Gas
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
3/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
Yancoal Australia's finances.
The net worth of a company is the difference between its assets and liabilities.
Yancoal Australia's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
Yancoal Australia's long term commitments exceed its cash and other short term assets.
This treemap shows a more detailed breakdown of
Yancoal Australia's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
High level of physical assets or inventory.
Debt is not covered by short term assets, assets are 0.5x debt.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Mr. David James Moult, CEng, MBA, FAusIMM, FIMMM, has been Chief Executive Officer at Yancoal Australia Ltd. since March 9, 2020. Mr. Moult has been the Chairman of New South Wales Minerals Council since January 1, 2013. He serves as a Director of Australian Coal Association Low Emissions Technologies Limited (ACALET) and Member of Coal Innovation NSW (CINSW). He served as a Director at Centennial Coal Company Limited from July 1, 2011 to 2018. He was Independent Non-Executive Director at Yancoal Australia Ltd. from January 30, 2018 until March 9, 2020. He has been a Director of Coal Services Pty Limited since January 1, 2015. Mr. Moult has been a Director at Austral Coal Pty Limited since April 14, 2005. He served as the Chief Executive officer and Managing Director of Centennial Coal Company Limited since July 1, 2011 until May 2, 2017. Mr. Moult served as the Chief Operating Officer of Centennial Coal Co. Ltd. of Austral Coal Pty Limited since 2004. Mr. Moult has 37 years global coal mining experience. Mr. Moult served as General Manager of Operations of Centennial Coal Co. Ltd., since joining in January 1998. He spent nine years as a Mine Manager with both British Coal and then RJB Mining PLC (now UK Coal PLC). In 1995, he moved to Pittsburgh, USA as Global Business Development Manager for Joy Mining Machinery with responsibility for the US, UK, RSA and Australia. In July 1997, he moved to Australia with Joy Mining Machinery as the Regional Vice President with responsibility for Queensland. Mr. Moult, former director of the Newcastle Coal Infrastructure Group and the Port Kembla Coal Terminal. Mr. Moult is also a current director of the following industry organisations: Coal Mines Insurance Pty Ltd; and Mines Rescue Pty Ltd. From May 2014 to February 2015, he was a member of the Minerals Industry Taskforce, tasked with providing a roadmap for the growth in the minerals sector within NSW. He served as Director of the Australian Coal Association (ACA). Mr. Moult received an MBA from Nottingham Business School of the Nottingham Trent University in the UK and qualified as a Mining Engineer in 1979.
David's compensation has been consistent with company performance over the past year, both up more than 20%.
David's remuneration is lower than average for companies of similar size in Germany.
Management Team Tenure
Average tenure and age of the
management team in years:
The average tenure for the Yancoal Australia management team is over 5 years, this suggests they are a seasoned and experienced team.
Chief Executive Officer
Chief Operating Officer
General Manager of Investor Relations
Company Secretary & Chief Legal
Chief Development Officer
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Yancoal Australia board of directors is less than 3 years, this suggests a new board.
Board of Directors
Company Secretary & Chief Legal
Independent Non-Executive Director
Independent Non-Executive Director
Former Executive Director
Who owns this company?
Recent Insider Trading
No 3 month open market individual insider trading information.
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.
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