Yancoal Australia (YAL) AI Stock Analysis

• Market Cap: AU$6.62B
• Dividend Yield: 11.62%
• Average Volume (3M): 2.91M
• Price to Earnings (P/E): 6.9
• Beta (1Y): 0.50
• Revenue Growth: -8.45%
• EPS Growth: -24.30%
• Country: AU
• Employees: 3,689
• Sector: Energy
• Sector Strength: 52
• Industry: Coal
• EPS (TTM): 0.12
• Shares Outstanding: 1,320,439,500
• 10 Day Avg. Volume: 5,089,261
• 30 Day Avg. Volume: 2,907,521
• PEG Ratio: -0.21
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 1.27
• P/FCF Ratio: 6.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$5.85
• Price Target Upside: 16.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.56
• Revenue Forecast (FY): AU$8.74B

• Rating: 73 Outperform
• Price Target: AU$6.00 ▲(19.76% Upside)

Yancoal Australia Ltd. has a strong financial foundation with low debt and high profitability, supported by an attractive valuation. However, declining revenues and coal prices, along with logistical challenges, pose risks. The technical indicators suggest a neutral market sentiment.

Positive Factors

Operational Efficiency

Achieving the best operational performance in five years indicates strong management and operational efficiency, which can lead to sustained profitability and competitive advantage.

Financial Position

A strong cash position and lack of interest-bearing debt enhance financial stability, providing flexibility for strategic investments and weathering market downturns.

Production Growth

Increased production capacity supports revenue potential and market share expansion, crucial for long-term growth in a competitive industry.

Negative Factors

Revenue Decline

Significant revenue contraction may indicate challenges in market demand or pricing power, potentially impacting long-term profitability and growth.

Coal Price Decline

Falling coal prices can pressure margins and reduce revenue, posing a risk to financial performance if the trend persists over the long term.

Global Demand Challenges

Reduced demand from key markets due to increased domestic production and alternative energy sources can limit growth opportunities and affect future sales.

Yancoal Australia Business Overview & Revenue Model

Company Description

Yancoal Australia (YAL) is a leading Australian coal producer, primarily engaged in the exploration, mining, and sale of thermal and metallurgical coal. The company operates several coal mines across New South Wales and Queensland, catering to both domestic and international markets. Yancoal focuses on delivering high-quality coal products, which are crucial for electricity generation and steel production, contributing significantly to Australia's economy and energy sector.

How the Company Makes Money

Yancoal Australia generates revenue primarily through the sale of coal, which includes both thermal coal used for electricity generation and metallurgical coal utilized in steel manufacturing. The company has established key revenue streams by supplying coal to various markets, including Asia, where demand for energy and steel production is high. Additionally, Yancoal benefits from long-term contracts with major customers, ensuring stable cash flow. The company also engages in strategic partnerships and joint ventures, which enhance its market position and operational efficiency. Factors such as global coal prices, production costs, and demand from key markets significantly influence Yancoal's earnings.

Yancoal Australia Financial Statement Overview

Summary

Yancoal Australia Ltd. shows strong profitability with a high gross profit margin and a solid balance sheet with low debt levels. However, declining revenues and fluctuations in cash flows present challenges.

Income Statement

Yancoal Australia Ltd. demonstrates strong profitability with a high gross profit margin consistently over 70% in recent years. However, there is a notable decline in total revenue from $10.657 billion in 2022 to $6.766 billion in 2024, indicating significant revenue contraction. The absence of EBIT in 2024 further impacts the profitability metrics, although EBITDA remains robust.

Balance Sheet

The company maintains a solid financial position with a low debt-to-equity ratio, decreasing from 0.08 in 2023 to 0.01 in 2024, indicating minimal leverage. The equity ratio remains strong, showing stability in asset financing primarily through equity. However, the drop in total assets from 2022 may signal underlying asset management challenges.

Cash Flow

Yancoal's free cash flow grew significantly from 2023 to 2024, demonstrating effective cash management and capital allocation. Although operating cash flow data for 2024 is unavailable, historical trends suggest strong cash generation capabilities. The company faces potential risks with fluctuating capital expenditures and financing cash flows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.26B	6.77B	7.80B	10.66B	5.52B	3.55B
Gross Profit	2.83B	5.37B	4.55B	7.51B	2.70B	855.00M
EBITDA	2.15B	2.47B	3.51B	6.34B	2.18B	-147.00M
Net Income	959.00M	1.22B	1.82B	3.59B	791.00M	-1.04B
Balance Sheet
Total Assets	11.78B	12.36B	11.81B	13.37B	12.34B	11.05B
Cash, Cash Equivalents and Short-Term Investments	1.79B	2.46B	1.40B	2.70B	1.50B	637.00M
Total Debt	128.00M	112.00M	146.00M	673.00M	3.44B	4.21B
Total Liabilities	2.98B	3.04B	3.37B	5.34B	6.19B	5.86B
Stockholders Equity	8.80B	9.31B	8.44B	8.03B	6.14B	5.19B
Cash Flow
Free Cash Flow	947.00M	1.43B	639.00M	6.01B	1.64B	337.00M
Operating Cash Flow	1.77B	2.13B	1.26B	6.56B	1.91B	616.00M
Investing Cash Flow	-823.00M	-687.00M	-596.00M	-334.00M	-317.00M	-602.00M
Financing Cash Flow	-754.00M	-498.00M	-1.98B	-5.13B	-761.00M	-314.00M

Yancoal Australia Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:YAL, the sentiment is Negative. The current price of 5.01 is below the 20-day moving average (MA) of 5.32, below the 50-day MA of 5.45, and below the 200-day MA of 5.46, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 38.82 is Neutral, neither overbought nor oversold. The STOCH value of 11.53 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:YAL.

Yancoal Australia Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WHC	77 Outperform	AU$6.42B	9.64	11.40%	1.92%	52.51%	82.60%
YAL	73 Outperform	AU$6.62B	6.90	11.04%	11.62%	-8.45%	-24.30%
NHC	71 Outperform	AU$3.31B	7.53	17.04%	8.67%	-1.53%	-7.57%
SMR	66 Neutral	AU$2.15B	553.49	0.15%	7.29%	-18.98%	-99.05%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
CRN	54 Neutral	AU$586.76M	-1.12	-36.13%	4.38%	-23.91%	-352.91%
BRL	45 Neutral	AU$155.98M	26.75	1.34%	―	-5.47%	-86.96%

Yancoal Australia Corporate Events

Yancoal Australia Releases November 2025 Monthly Return Notice

Yancoal Australia Ltd has released its monthly return notice for November 2025, as per the requirements of the Hong Kong Exchanges and Clearing Limited. The notice pertains to the movements in securities, specifically for equity issuers and Hong Kong Depositary Receipts. This submission is part of the company’s compliance with Chapter 19B of the Exchange Listing Rules, indicating a routine update with no significant changes in the company’s authorized or registered share capital.

Yancoal Australia Submits October 2025 Monthly Return Notice

Yancoal Australia Ltd has submitted its monthly return notice for October 2025 to the Hong Kong Exchanges and Clearing Limited, detailing movements in securities. This submission reflects the company’s compliance with regulatory requirements and its ongoing transparency in financial reporting, which is crucial for maintaining investor confidence and market positioning.

Yancoal Australia Reports Steady Q3 2025 Performance Amid Market Challenges

Yancoal Australia reported a steady performance for the third quarter of 2025, with ROM coal production reaching 15.8 Mt and saleable coal production at 12.3 Mt. Despite weather-related delays, the company managed to recover sales deficits from the previous quarter, achieving an average realized coal price of A$140 per tonne. The company’s cash balance stood at $1.8 billion, positioning it well to explore opportunities amid current market conditions. Yancoal remains on track to meet its operational guidance for 2025, with production and cost metrics aligning with expectations. The company noted that international coal indices faced strong supply and subdued demand, yet average prices improved marginally from the previous quarter.

Yancoal Australia Submits September 2025 Monthly Return to HKEX

Yancoal Australia Ltd has submitted its monthly return notice for September 2025 to the Hong Kong Exchanges and Clearing Limited. This submission is part of the company’s compliance with the HKEX’s listing rules, specifically concerning the movements in securities for equity issuers and Hong Kong Depositary Receipts. The announcement does not indicate any changes in the company’s authorized or registered share capital, suggesting stability in its financial structure.

Yancoal Australia Adjusts Equity Incentive Plan Amid Employee Changes

Yancoal Australia Ltd announced the cancellation of certain performance share rights under its Equity Incentive Plan due to employee resignations. This move reflects adjustments in the company’s incentive structures, potentially impacting employee retention and aligning with strategic operational changes.