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Yancoal Australia

YAL.AX
46
Coal · Energy
Price
A$5.75
-0.03 (-0.52%)
Market Cap
A$7.59B
Exchange
Australian Securities Exchange
Winston Score
46
Winston is serious
Mixed quality — meaningful strengths and weaknesses.
Data as of Aug 23, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Mixed
Growth
Weak
Cash Flow
Strong
Stability
Exceptional
Valuation
Strong
Dividends
Mixed

Share count falling — buybacks

13.5% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 1.53B (2021) → 1.32B (2025)

Winston Score History

The full picture

Yancoal Australia is one of Australia's largest coal mining companies. It digs coal out of the ground at mines across New South Wales, Queensland, and Western Australia, then sells that coal to power plants and steel mills, mostly in Asia. The company is majority-owned by Chinese state-owned enterprise Yanzhou Coal Mining, which gives it strong ties to Asian buyers.

Yancoal makes money by selling thermal coal, used to generate electricity, and metallurgical coal, used to make steel. Most of its revenue comes from export sales to countries like Japan, South Korea, and China. The company operates at a large scale, with several major mines including the Hunter Valley Operations, one of Australia's biggest coal complexes. The main risk Yancoal faces is that coal prices are volatile and falling, and many governments and investors are pushing to reduce coal use as part of efforts to cut carbon emissions, which could shrink demand for its products over time.

Score breakdown

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Quality

Profit per sale
Gross Margin
32.8%
Modest — 32.8% gross margin
Profit after running costs
Operating Margin
5.1%
Thin — 5.1% operating margin
Return on the money invested
ROCE
5.5%
Weak — 5.5% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth
Sales YoY
-1.1%
Shrinking sales (-1.1% YoY)
Profit growth
EPS YoY
-69.0%
Earnings shrinking (-69.0% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

How steady the profit is
EPS Consistency
1/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash
Cash Conversion
428%
Turns 428% of profit into real cash
Spare cash per sale
FCF Margin
10.7%
Modest free cash flow (10.7%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

What it owes vs what it owns
Debt / Equity
0.00
Conservative — low debt load (0.00)
Covers its interest
Interest Cover
18.33x
Comfortably covers interest (18.3x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
25.8x
Growth-priced — P/E 25.8

P/E above the market average. People are paying up for expected growth.

Cheaper or dearer next year
P/E vs Forward
+17.0
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (25.8 → 8.8)

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Dividends

Dividend
Dividend Yield
3.11%
Moderate income — 3.11% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend record
Dividend Growth
-55.3%
Dividend cut (-55.3% YoY) — warning sign

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