Washington H. Soul Pattinson and Co. Limited (SOL)

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General Information
Company Name: Washington H. Soul Pattinson and Co. Limited
Stock Code: SOL
Website: www.whsp.com.au
GICS Sub-Industry: Coal & Consumable Fuels
Market Cap ($M): 3,344
Equiv. Shares (M): 239

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
 $ 13.990 $ 14.200 $ 14.230 $ 13.970 $ 13.970 11,315 $ 0.020  0.143 %

Current Broker Consensus Recommendation more
Recommendation: Hold (3)
Recommendation Date: 12th Nov 2014
Brokers Surveyed: 1

Company Overview

Business Description:
Washington H. Soul Pattinson and Co. Limited (SOL) is a diversified investor in basic commodities such as building products, coal, equities, telecommunications, financial services and pharmaceuticals in Australia. SOL’s main business activities includes: Investing activities, Coal mining, Copper mining and processing and Consulting.

Strategy Analysis:
SOL strategy is based on conservative and diversified long-term investment. Through strict adherence to this strategy SOL has delivered well above average total shareholder returns over many decades. Mistakes have been made but the successes have far outweighed the disappointments. Management remains focused on creating long-term shareholder wealth from a sensible and conservative investment strategy. New Hope is driving the group at present and adding to cash reserves which will be invested sensibly. Washington H. Soul Pattinson and Co reported NPAT down 25% to $74.26m for the half-year ended 31 January 2013. The regular profit after tax attributable to shareholders for the period was $71.4m, a decrease of 19.4% compared to $88.7m for the previous corresponding period. This net decrease was mainly attributable to a reduced contribution by New Hope and lower special dividend income which were partly offset by increased contributions by Brickworks and TPG Telecom. Revenues from ordinary activities were $384.32m, down 15.8% from the same period last year. Basic and Diluted EPS were 31.02 cents compared to 41.48 cents last year. Net operating cash flow was $77.84m compared to $30.98m last year. The interim dividend declared was 18 cents compared with 17 cents last year.

Financial Summary
Year to Jul NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2016  F 124.3 51.9 -5.2 26.9 49.0 3.5 100.0
2015  F 131.1 54.8 6.4 25.5 47.0 3.4 100.0
2014  A 123.2 51.5 -23.3 28.4 48.0 3.3 100.0
Source: Morningstar analyst estimates.

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2014 A 2015 F 2016 F 2014 A 2015 F 2016 F 2014 A 2015 F 2016 F
Energy Resources (ERA) $704 M -- -- -- -- -- -- 0.00 0.00 0.00
Washington H. Soul Pat (SOL) $3,349 M -0.3451 0.1152 -0.0518 28.4813 25.5385 26.9349 3.43 3.36 3.50
Whitehaven Coal (WHC) $1,287 M -- -- -- -- -- 60.6280 0.00 0.00 0.00

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio
SOL 1.30 27.4 1.10 9.69 5.73
Market 0.91 15.3 1.20 1.76 1.51
Sector 1.04 11.9 0.75 0.82 3.97

Name Position Start Date
Ms Melinda R Roderick Cheif Financial Officer,Non-Executive Director 01 November 2014
Mr Peter Raymond Robinson Chief Executive Officer,Executive Director 11 January 1984
Mr Robert Dobson Millner Non-Executive Chairman 11 January 1984
Mr David John Fairfull Non-Executive Director 14 August 1997
Mr Michael John Hawker Non-Executive Director 10 October 2012
Mr Warwick Martin Negus Non-Executive Director 01 November 2014
Mr David Wills Non-Executive Director 01 April 2006
Mr Robert Westphal Non-Executive Director 01 April 2006
Mr Thomas Charles Dobson Millner Non-Executive Director 01 January 2011

Name Position
S O Stephan Cheif Executive Officer
B D Denney Chief operating Officer
M J Busch Chief Financial Officer
M R Roderick Chief Financial Officer
Ian David Bloodworth Company Secretary

Substantial Shareholders
Holding Name
17,211,350 (7.19%) Thomas Charles Dobson Millner
29,318,700 (12.25%) Perpetual Limited and subsidiaries
102,257,830 (42.72%) Brickworks Limited and its subsidiaries
19,921,975 (8.32%) Robert Dobson Millner

Calendar of Events
Date Event
04 November 2015 Report (Annual)
23 October 2015 Report (Annual)
24 September 2015 Report (Prelim)
26 March 2015 Report (Interim)
08 December 2014 Div Pay Date
05 December 2014 AGM
© 2011 Morningstar, Inc. All rights reserved. The data and content contained herein are not guaranteed to be accurate, complete or timely. Neither Morningstar, nor its affiliates nor their content providers will have any liability for use or distribution of any of this information. To the extent that any of the content above constitutes advice, it is general advice that has been prepared by Morningstar Australasia Pty Ltd ABN: 95 090 665 544, AFSL: 240892 (a subsidiary of Morningstar, Inc.), without reference to your objectives, financial situation or needs. Before acting on any advice, you should consider the appropriateness of the advice and we recommend you obtain financial, legal and taxation advice before making any financial investment decision. If applicable investors should obtain the relevant product disclosure statement and consider it before making any decision to invest. Some material is copyright and published under licence from ASX Operations Pty Limited ACN 004 523 782 ("ASXO"). DISCLOSURE: Employees may have an interest in the securities discussed in this report. Please refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/fsg.asp.


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