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88E

88 EnergyASX:88E Stock Report

Market Cap

AU$446.4m

7D

6.9%

1Y

416.7%

Updated

15 Oct, 2021

Data

Company Financials +
88E fundamental analysis
Snowflake Score
Valuation0/6
Future Growth0/6
Past Performance0/6
Financial Health3/6
Dividends0/6

88E Overview

88 Energy Limited engages in the exploration of oil and gas properties in the United States.

88 Energy Competitors

Price History & Performance

Summary of all time highs, changes and price drops for 88 Energy
Historical stock prices
Current Share PriceAU$0.031
52 Week HighAU$0.006
52 Week LowAU$0.096
Beta0.84
1 Month Change6.90%
3 Month Change-11.43%
1 Year Change416.67%
3 Year Change72.22%
5 Year Change-26.19%
Change since IPO-99.99%

Recent News & Updates

Shareholder Returns

88EAU Oil and GasAU Market
7D6.9%0.4%0.1%
1Y416.7%48.8%19.3%

Return vs Industry: 88E exceeded the Australian Oil and Gas industry which returned 48.8% over the past year.

Return vs Market: 88E exceeded the Australian Market which returned 19.3% over the past year.

Price Volatility

Is 88E's price volatile compared to industry and market?
88E volatility
88E Beta0.84
Industry Beta1.28
Market Beta1

Stable Share Price: 88E is more volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 14% a week.

Volatility Over Time: 88E's weekly volatility has decreased from 27% to 14% over the past year, but is still higher than 75% of Australian stocks.

About the Company

FoundedEmployeesCEOWebsite
1996n/aAshley Gilberthttps://www.88energy.com

88 Energy Limited engages in the exploration of oil and gas properties in the United States. The company holds a 59% working interest in the Icewine project, which covers an area of approximately 231,000 acres located in North Slope of Alaska, the United States. It also holds a 100% working interest in the Yukon Gold leases covering an area of approximately 15,235 acres located on the eastern border of the Central North Slope of Alaska.

88 Energy Fundamentals Summary

How do 88 Energy's earnings and revenue compare to its market cap?
88E fundamental statistics
Market CapAU$446.41m
Earnings (TTM)-AU$17.57m
Revenue (TTM)AU$4.50m

100.0x

P/S Ratio

-25.6x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
88E income statement (TTM)
RevenueAU$4.50m
Cost of RevenueAU$0
Gross ProfitAU$4.50m
ExpensesAU$22.07m
Earnings-AU$17.57m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.0012
Gross Margin100.00%
Net Profit Margin-390.63%
Debt/Equity Ratio0.0%

How did 88E perform over the long term?

See historical performance and comparison

Valuation

Is 88 Energy undervalued compared to its fair value and its price relative to the market?

4.73x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 88E's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 88E's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 88E is unprofitable, so we can't compare its PE Ratio to the Australian Oil and Gas industry average.

PE vs Market: 88E is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 88E's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 88E is overvalued based on its PB Ratio (4.7x) compared to the AU Oil and Gas industry average (2.5x).


Future Growth

How is 88 Energy forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

63.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 88E is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: 88E is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: 88E is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: 88E's revenue is expected to decline over the next 3 years (-108.3% per year).

High Growth Revenue: 88E's revenue is forecast to decline over the next 3 years (-108.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 88E's Return on Equity is forecast to be high in 3 years time


Past Performance

How has 88 Energy performed over the past 5 years?

-22.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 88E is currently unprofitable.

Growing Profit Margin: 88E is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 88E is unprofitable, and losses have increased over the past 5 years at a rate of 22.9% per year.

Accelerating Growth: Unable to compare 88E's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 88E is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-50.5%).


Return on Equity

High ROE: 88E has a negative Return on Equity (-18.6%), as it is currently unprofitable.


Financial Health

How is 88 Energy's financial position?


Financial Position Analysis

Short Term Liabilities: 88E's short term assets (A$22.6M) do not cover its short term liabilities (A$22.8M).

Long Term Liabilities: 88E has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: 88E is debt free.

Reducing Debt: 88E has no debt compared to 5 years ago when its debt to equity ratio was 54.7%.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 88E has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: 88E has less than a year of cash runway if free cash flow continues to reduce at historical rates of 9.5% each year


Dividend

What is 88 Energy current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 88E's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 88E's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 88E's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 88E's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 88E's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.4yrs

Average management tenure


CEO

Ashley Gilbert (45 yo)

0.42

Tenure

AU$477,640

Compensation

Mr. Ashley Phillip Gilbert, B.Comm, CA, A Fin, GAICD, CSA(Cert) serves as Managing Director and Director at 88 Energy Limited since May 10, 2021. Mr. Gilbert serves as Director at XCD Energy Limited since...


CEO Compensation Analysis

Compensation vs Market: Ashley's total compensation ($USD354.20K) is below average for companies of similar size in the Australian market ($USD729.63K).

Compensation vs Earnings: Ashley's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: 88E's management team is not considered experienced ( 0.4 years average tenure), which suggests a new team.


Board Members

Experienced Board: 88E's board of directors are not considered experienced ( 0.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 61.2%.


Top Shareholders

Company Information

88 Energy Limited's employee growth, exchange listings and data sources


Key Information

  • Name: 88 Energy Limited
  • Ticker: 88E
  • Exchange: ASX
  • Founded: 1996
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: AU$446.413m
  • Shares outstanding: 14.40b
  • Website: https://www.88energy.com

Location

  • 88 Energy Limited
  • 516 Hay Street
  • Ground Floor
  • Subiaco
  • Western Australia
  • 6008
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/15 15:45
End of Day Share Price2021/10/15 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.