Fact based stock research
Whitehaven Coal (ASX:WHC)

AU000000WHC8

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

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Whitehaven Coal stock research in summary

whitehavencoal.com.au

ANALYSIS: With an Obermatt Combined Rank of 34 (worse than 66% compared with investment alternatives), Whitehaven Coal (Coal & Consumable Fuels, Australia) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Whitehaven Coal are a good value (attractively priced) with a consolidated Value Rank of 71 (better than 71% of alternatives) but show below-average growth (Growth Rank of 31), and are riskily financed (Safety Rank of 21), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 34, is a hold recommendation based on Whitehaven Coal's financial characteristics. As the company Whitehaven Coal's key financial metrics exhibit good value (Obermatt Value Rank of 71) but low growth (Obermatt Growth Rank of 31) and risky financing practices (Obermatt Safety Rank of 21), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 71% of comparable companies, may indicate the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	71
Growth Rank	31
Safety Rank	21
Combined Rank	34

Country	Australia
Industry	Coal & Consumable Fuels
Index	ASX 200, ASX 300
Size class	X-Large

14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Whitehaven Coal

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	27	100	73	71
GROWTH
GROWTH	86	63	27	31
SAFETY
SAFETY	23	8	96	21
SENTIMENT
SENTIMENT	n/a	96	44	^new
360° VIEW
360° VIEW	n/a	90	62	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Whitehaven Coal is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	27	100	73	71
GROWTH
GROWTH	86	63	27	31
SAFETY
SAFETY	23	8	96	21
COMBINED
COMBINED	5	68	71	34

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of Whitehaven Coal the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 71 (better than 71% compared with alternatives), Whitehaven Coal shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for Whitehaven Coal. Price-to-Sales is 72 which means that the stock price compared with what market professionals expect for future sales is lower than for 72% of comparable companies, indicating a good value for Whitehaven Coal's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 51% of alternatives, and this is also true for the Price-to-Book capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 63. Compared with other companies in the same industry, dividend yields of Whitehaven Coal are expected to be higher than for 63% of all competitors (a Dividend Yield rank of 63). ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 71, is a buy recommendation based on Whitehaven Coal's stock price compared with the company's operational size and dividend yields. Since all value metrics are above the industry average, there is no objection to investing in Whitehaven Coal based on its detailed value metrics. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	64	80	57	72
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	9	97	82	51
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	76	84	57	63
DIVIDEND YIELD
DIVIDEND YIELD	1	96	61	63
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	27	100	73	71

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Whitehaven Coal; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 31 (better than 31% compared with alternatives), Whitehaven Coal shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below average for Whitehaven Coal. Only Capital Growth has a good rank of 51, which means that currently professionals expect the company to grow its invested capital more than 12% of its competitors. The other three indicators are pointing South: Sales Growth has a rank of 36 which means that currently professionals expect the company to grow less than 64% of its competitors. Profit Growth with a rank of 12 and Stock Returns with a rank of 49 are also low (below 51% of alternative investments). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 31, is a hold recommendation for growth and momentum investors. The good news from the invested capital side is surprising. A company with disappointing revenues, profits, and disappointed shareholders typically doesn't invest above average. Overall, the growth momentum for Whitehaven Coal is thus negative. As it is intriguing to see that company executives are optimistic about their investment policy, it is worthwhile looking into the details of the capital investment projects. They may indicate future growth and profits and thus if accompanied by a good value, a sign of good timing to invest in the stock. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is limited here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	65	6	100	36
PROFIT GROWTH
PROFIT GROWTH	77	96	8	12
CAPITAL GROWTH
CAPITAL GROWTH	n/a	53	29	51
STOCK RETURNS
STOCK RETURNS	78	81	15	49
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	86	63	27	31

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Whitehaven Coal.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 21 (better than 21% compared with alternatives), the company Whitehaven Coal has much riskier financing practices than comparable other companies, which means that their overall debt burden is significantly above the industry average. This doesn't mean that the business of Whitehaven Coal is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Whitehaven Coal. Liquidity is at 67, meaning the company generates more profit to service its debt than 67% of its competitors. This indicates that the company is safer when it comes to debt service. But Refinancing is riskier at a rank of 5, which means that the portion of the debt that is about to be refinanced is above average. It has more debt in the refinancing stage than 95% of its competitors. Leverage is also high at a rank of 40, which means that the company has an above-average debt-to-equity ratio. It has more debt than 60% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 21 (worse than 79% compared with alternatives), Whitehaven Coal has a financing structure that is significantly riskier than that of its competitors. High Leverage (a low Obermatt Leverage Rank) is good in good times, because it usually indicates that shareholders get higher returns. The good Liquidity performance of the company is an indicator that this is the case. However, if you expect an economic downturn, you may stay clear of this stock because they have an above-average debt level that needs refinancing soon. If the company is sailing with good winds, as may be visible from the Growth and Sentiment performance, the refinancing risk may be lower than the low Refinancing rank suggests. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	18	37	82	40
REFINANCING
REFINANCING	62	11	81	5
LIQUIDITY
LIQUIDITY	37	15	94	67
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	23	8	96	21

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Whitehaven Coal and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	64	40	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	63	28	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	94	53	^new
MARKET PULSE
MARKET PULSE	n/a	98	81	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	96	44	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Whitehaven Coal.
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