ASX:88E

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Imperfect balance sheet with weak fundamentals.


Similar Companies

Share Price & News

How has 88 Energy's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 88E's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

31.3%

88E

12.5%

AU Oil and Gas

5.0%

AU Market


1 Year Return

50.0%

88E

-41.4%

AU Oil and Gas

-19.2%

AU Market

Return vs Industry: 88E exceeded the Australian Oil and Gas industry which returned -46.9% over the past year.

Return vs Market: 88E exceeded the Australian Market which returned -19.4% over the past year.


Shareholder returns

88EIndustryMarket
7 Day31.3%12.5%5.0%
30 Day-4.5%-29.2%-20.3%
90 Day-16.0%-43.4%-25.8%
1 Year50.0%50.0%-39.0%-41.4%-15.6%-19.2%
3 Year-52.0%-52.3%-33.5%-41.5%-3.6%-16.8%
5 Year83.8%82.6%-35.5%-47.0%6.6%-17.5%

Price Volatility Vs. Market

How volatile is 88 Energy's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

2.23x

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 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 (2x) compared to the AU Oil and Gas industry average (0.7x).


Next Steps

Future Growth

How is 88 Energy forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

14.8%

Forecasted Energy industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as 88 Energy has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has 88 Energy performed over the past 5 years?

-6.1%

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 -6.1% 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 (-16%).


Return on Equity

High ROE: 88E has a negative Return on Equity (-56.94%), as it is currently unprofitable.


Next Steps

Financial Health

How is 88 Energy's financial position?


Financial Position Analysis

Short Term Liabilities: 88E's short term assets (A$17.0M) exceed its short term liabilities (A$6.3M).

Long Term Liabilities: 88E's short term assets (A$17.0M) do not cover its long term liabilities (A$22.7M).


Debt to Equity History and Analysis

Debt Level: 88E's debt to equity ratio (35.1%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 88E's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: 88E has a high level of physical assets or inventory.

Debt Coverage by Assets: 88E's debt is not covered by short term assets (assets are 0.8x debt).


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 -21.4% each year


Next Steps

Dividend

What is 88 Energy's 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 payouts.

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

5.6yrs

Average management tenure


CEO

Dave Wall

6s

Tenure

AU$659,129

Compensation

Mr. David James Wall, also known as Dave, has been a Managing Director of 88 Energy Limited (formerly Tangiers Petroleum Limited) since April 15, 2014. Prior to this, from October 2012 to April 2014, Mr. W ...


CEO Compensation Analysis

Compensation vs Market: Dave's total compensation ($USD404.35K) is above average for companies of similar size in the Australian market ($USD246.06K).

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


Leadership Team

NamePositionTenureCompensationOwnership
David Wall
MD & Director6yrsAU$659.13k0.55% A$827.5k
Ashley Gilbert
CFO & Joint Company Secretary3.25yrsAU$453.77kno data
Elizabeth Pattillo
Senior Geologist & Exploration Managerno datano datano data
Sarah Smith
Joint Company Secretary5.58yrsno datano data

5.6yrs

Average Tenure

Experienced Management: 88E's management team is seasoned and experienced (5.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Wall
MD & Director6yrsAU$659.13k0.55% A$827.5k
Michael Evans
Non-Executive Chairman6yrsAU$153.30k0.30% A$445.0k
George Henry Staley
Non-Executive Director6yrsAU$65.00k0.16% A$234.0k

6.0yrs

Average Tenure

Experienced Board: 88E's board of directors are considered experienced (6 years average tenure).


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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.3%.


Top Shareholders

Company Information

88 Energy Limited's company bio, 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$149.302m
  • Shares outstanding: 7.11b
  • Website: https://www.88energy.com

Location

  • 88 Energy Limited
  • 5 Ord Street
  • Level 2
  • West Perth
  • Western Australia
  • 6005
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
POQDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 2000
88EASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 2000
88EAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPJan 2000
88ECHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 2000
POQBRSE (Berne Stock Exchange)YesOrdinary SharesCHCHFJan 2000

Biography

88 Energy Limited engages in the exploration of oil and gas properties in the United States. The company holds a 64% working interest in the Icewine project, which covers an area of approximately 486,000 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. In addition, it holds rights to 36% working interest in Western Blocks project, which covers an area of approximately 22,711 acres located in Alaska. The company was formerly known as Tangiers Petroleum Limited and changed its name to 88 Energy Limited in February 2015. 88 Energy Limited was incorporated in 1996 and is based in West Perth, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 10:35
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.