Summary
The fund managers believe that NRW Holdings Limited presents a mixed investment outlook. While Clime notes concerns over the CFO's resignation and anticipated weaker half-year results, they maintain that NRW's operational performance and customer contracts are of high quality, suggesting potential value in its diversified growth story. In contrast, Plato Investment Management views NRW as a buy, highlighting its strong order book and solid earnings projections, despite acknowledging the inherent volatility in mining services. They point out that NRW's low P/E ratio of around 12 and a yield of about 7% make it an attractive investment. Conversely, Atlas Funds Management advises selling, citing the sector's unpredictability and NRW's significant $113 million liability to OneSteel, which could hinder future dividend payouts. Overall, the consensus reflects caution due to volatility, but some see potential value in NRW's fundamentals.
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
Source: Trading View
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Commentary From The Managers
Atlas Funds Management
25 July 2025
$3.23
Summary
- Atlas Funds Management continues to hold a cautious outlook on NRW Holdings Limited.
- Mining services and contracting companies are generally not reliable for consistent dividend yields.
- Past experiences with similar companies have led to unexpected downturns.
- Frequent contract renewals contribute to volatility in the sector.
- NRW Holdings has a significant liability of $113 million to OneSteel, which may impact future dividend payouts.
- The focus remains on maintaining a conservative approach amid these challenges.
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Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
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Commentary From The Managers
Atlas Funds Management
25 July 2025
$3.23
Summary
- Atlas Funds Management continues to hold a cautious outlook on NRW Holdings Limited.
- Mining services and contracting companies are generally not reliable for consistent dividend yields.
- Past experiences with similar companies have led to unexpected downturns.
- Frequent contract renewals contribute to volatility in the sector.
- NRW Holdings has a significant liability of $113 million to OneSteel, which may impact future dividend payouts.
- The focus remains on maintaining a conservative approach amid these challenges.
Plato Investment Management
25 July 2025
$3.23
Summary
- Plato Investment Management continues to hold NRW Holdings Limited due to its solid investment thesis.
- NRW Holdings is categorized as a mining service company, which is inherently variable and cyclical.
- Despite its cyclical nature, NRW's customer base consists of large clients that are increasing their investments.
- The company currently boasts a strong order book, indicating solid earnings potential for the next few years.
- There is an inherent risk of contract mismanagement in such companies, but the current pricing reflects this risk.
- NRW Holdings is trading at a low P/E ratio of approximately 12, with a yield around 7%.
- Overall, Plato Investment Management views NRW Holdings as a favorable investment opportunity.
Clime
31 Jan 2025
$3.43
Summary
- NWH finished the month lower due to CFO resignation and weaker half yearly result expectations.
- Clime continues to monitor NWH's operational performance.
- Clime considers NWH's customers and contracts to be high quality.
- There is perceived value in the company’s diversified growth story.
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
Frequently Asked Questions
Who has invested in NRW Holdings Limited (ASX:NWH)?
Fund managers including Clime, Plato Investment Management and Atlas Funds Management have invested in NRW Holdings Limited (ASX:NWH).
Why have investment managers invested in NRW Holdings Limited (ASX:NWH)?
Fund managers are investing in NRW Holdings Limited due to its strong customer base and diversified growth potential. Despite recent challenges, including the resignation of the CFO and expectations for weaker short-term results, fund managers like Clime emphasize the quality of NRW's contracts and operational performance. Additionally, Plato Investment Management views NRW as a buy, citing a solid order book and favorable earnings outlook, supported by a low price-to-earnings ratio and attractive yield. However, some caution is expressed, as Atlas Funds Management highlights the inherent volatility in mining services and the risks associated with contract management. Overall, the investment rationale combines optimism about future earnings with a recognition of the sector's cyclical nature.
What happened to NRW Holdings Limited (ASX:NWH)?
In July 2025, comments from fund managers regarding NRW Holdings Limited highlighted contrasting views amid a share price of approximately $3.23. Plato Investment Management expressed a bullish stance, labeling it a buy due to its solid order book and strong earnings potential, despite acknowledging the cyclical nature and inherent risks in mining services. Conversely, Atlas Funds Management recommended a sell, citing concerns over the volatility of mining services and a significant $113 million liability to OneSteel, which may impact future dividend payouts. This divergence in opinions underscores the complex investment landscape surrounding NRW Holdings.