Strong Financials Don’t Protect New Hope Corporation Limited From Market Decline of 20% in Three Months
April 27, 2023
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The recent market decline of 20% in New Hope ($ASX:NHC) Corporation Limited stock over the past three months has been a shock to many investors, given the company’s strong financial prospects. One has to wonder if the market is wrong in its assessment of the stock’s weaknesses. New Hope Corporation Limited is a diversified business that operates in multiple sectors including retail, banking, finance, and healthcare. The company has grown steadily over the years, with strong financial performance and a healthy balance sheet. Their competitive advantages have produced solid returns for shareholders and the company has gained a reputation for its solid long-term investments.
However, the market decline has cast doubts over the company’s ability to maintain its profitable position in the current environment. Analysts are questioning the sustainability of the company’s financials, as well as potential risks to their overall business strategy. Many investors are now left wondering if New Hope Corporation Limited can rebound from this decline and return to its former heights of success. However, they have recently experienced a 20% market decline in their stock due to uncertain market conditions. Whether or not they will be able to rebound and return to their former heights of success is yet to be seen.
Stock Price
Despite the company’s strong financials, this decline still occurred. On Thursday, the stock opened at AU$5.2 and closed at the same price, down by 1.0% from the prior closing price of AU$5.3. This drop in stock price demonstrates the vulnerability of strong financials to market fluctuations, even with a well-established company like NEW HOPE. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for New Hope. More…
| Total Revenues | Net Income | Net Margin |
| 3.1k | 1.32k | 42.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for New Hope. More…
| Operations | Investing | Financing |
| 1.67k | -296.32 | -909.47 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for New Hope. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.37k | 869.08 | 2.85 |
Key Ratios Snapshot
Some of the financial key ratios for New Hope are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 33.7% | 150.3% | 61.3% |
| FCF Margin | ROE | ROA |
| 49.8% | 49.3% | 35.3% |
Analysis
At GoodWhale, we have conducted a thorough analysis of NEW HOPE‘s wellbeing. According to our Risk Rating system, we have determined that the organization is a low risk investment in terms of both financial and business aspects. However, during our assessment, we did detect three risk warnings on the income sheet, balance sheet, and financial journal. To learn more about these warnings, please visit our website and register with GoodWhale.com. Here you can access our detailed report and view the risk warnings in greater detail. GoodWhale is committed to providing accurate and reliable reports that help organizations make informed decisions. Our analysis of NEW HOPE is just one example of how our team strives to provide value-added data and insights. More…
Peers
New Hope Corporation Limited is an Australian coal mining company. It is one of Australia’s largest coal producers and exporters with annual production in excess of 30 million tonnes of coal. The company has operations in Queensland and New South Wales. New Hope’s main competitors are Whitehaven Coal Limited, Guizhou Panjiang Refined Coal Co. Ltd., and Shanxi Hua Yang Group New Energy Co. Ltd.
– Whitehaven Coal Ltd ($ASX:WHC)
In 2022, Whitehaven Coal Ltd had a market capitalization of 9.27 billion Australian dollars and a return on equity of 48.41%. Whitehaven is an Australian coal company that operates mines in the states of New South Wales and Queensland. The company’s flagship mine is the Maules Creek mine in New South Wales, which is one of the largest coal mines in Australia. Whitehaven also has a minority interest in the Boggabri mine in New South Wales.
– Guizhou Panjiang Refined Coal Co Ltd ($SHSE:600395)
As of 2022, Guizhou Panjiang Refined Coal Co Ltd has a market cap of 15.09B and a Return on Equity of 15.96%. The company produces and sells refined coal products in China.
– Shan Xi Hua Yang Group New Energy Co Ltd ($SHSE:600348)
Shan Xi Hua Yang Group New Energy Co Ltd has a market cap of 45.24B as of 2022, a Return on Equity of 27.17%. The company is engaged in the business of developing, manufacturing and selling solar photovoltaic products. The company’s products are used in a variety of applications, including power generation, solar street lighting, solar water pumping, solar water heating and solar lighting.
Summary
New Hope Corporation Limited has seen a drop in its stock price of 20% over the past three months. Despite this, the company’s financial prospects remain strong. Investors should take this into consideration before making any decisions regarding their investments with New Hope. Analyzing key metrics such as free cash flow, debt-to-equity ratio, return on equity, and other ratios can help investors determine whether New Hope is a viable option.
Additionally, it may be worth looking at the company’s competitive landscape, product offerings, and other factors that could influence its future performance. Ultimately, investors should do their own due diligence before investing in New Hope.
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