Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
Aminex PLC’s (LON:AEX): Aminex PLC, through its subsidiaries, explores for, develops, and produces oil and gas reserves primarily in Tanzania and Europe. The UK£39m market-cap posted a loss in its most recent financial year of -US$2.3m and a latest trailing-twelve-month loss of -US$5.6m leading to an even wider gap between loss and breakeven. As path to profitability is the topic on AEX’s investors mind, I’ve decided to gauge market sentiment. I’ve put together a brief outline of industry analyst expectations for AEX, its year of breakeven and its implied growth rate.
AEX is bordering on breakeven, according to Oil and Gas analysts. They anticipate the company to incur a final loss in 2019, before generating positive profits of US$3.1m in 2020. Therefore, AEX is expected to breakeven roughly a few months from now. How fast will AEX have to grow each year in order to reach the breakeven point by 2020? Working backwards from analyst estimates, it turns out that they expect the company to grow 89% year-on-year, on average, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.
Given this is a high-level overview, I won’t go into details of AEX’s upcoming projects, but, take into account that typically oil and gas companies, depending on the stage of operation and resource produced, have irregular periods of cash flow. So, a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
One thing I’d like to point out is that AEX has no debt on its balance sheet, which is quite unusual for a cash-burning oil and gas company, which typically has high debt relative to its equity. AEX currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.
There are too many aspects of AEX to cover in one brief article, but the key fundamentals for the company can all be found in one place – AEX’s company page on Simply Wall St. I’ve also put together a list of key aspects you should further research:
- Valuation: What is AEX worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether AEX is currently mispriced by the market.
- Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Aminex’s board and the CEO’s back ground.
- Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.