Aurizon Holdings Ltd
AZJ: XASX (AUS)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
A$8.80 | Dlb | Vvbtqlb |
Risks from Weak Coal Prices but Aurizon Appears Decent Value
Business Strategy and Outlook
Aurizon is a narrow-moat business operating in efficiently scaled markets. Its rail operations hold significant cost advantages over other forms of bulk commodity transportation, though the industry is highly cyclical. Coal prices have weakened again, increasing risk to haulage rates and volumes.