Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
In this section, we usually try to help investors determine whether Adavale Resources is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Adavale Resources has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.
This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis. You can see them here.
Show me the analysis anyway
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
It is not possible to calculate the future cash flow value for
Adavale Resources. This is due to cash flow or dividend data being
unavailable. The share price is
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
Adavale Resources's earnings available for a low price, and how does
this compare to other companies in the same industry?
Adavale Resources has negative assets, we can't compare the value of its assets to the AU Oil and Gas industry average.
When valuing a company like this, investors focus more on how they perceive the potential returns from the core activities, the size of each contract's opportunity, and the capacity of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through Adavale Resources's regulatory filings and announcements.
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 Adavale Resources 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 Simply Wall St do have past financial data. You can see them here.
Show me the analysis anyway
The future performance of a company is measured in the same way as past
performance, by looking at estimated
and how much profit it is expected to make.
Future estimates come from
professional analysts. Just like forecasting the weather, they don’t always get
Expected Oil and Gas industry annual growth in earnings.
Earnings growth vs Low Risk Savings
expected to grow at an
Unable to compare Adavale Resources's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Adavale Resources's earnings growth to the Australia market average as no estimate data is available.
Unable to compare Adavale Resources's revenue growth to the Australia market average as no estimate data is available.
Unable to determine if Adavale Resources is high growth as no earnings estimate data is available.
Unable to determine if Adavale Resources is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Adavale Resources's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
Oil and Gas
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
0/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
Adavale Resources's finances.
The net worth of a company is the difference between its assets and liabilities.
Adavale Resources's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
Adavale Resources's long term commitments exceed its cash and other short term assets.
This treemap shows a more detailed breakdown of
Adavale Resources's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Low level of unsold assets.
Adavale Resources has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
Who Are The Top Investors In Adavale Resources Limited (ASX:ADD)?
In this article, I'm going to take a look at Adavale Resources Limited’s (ASX:ADD) latest ownership structure, a non-fundamental factor which is important, but remains a less discussed subject among investors. … Although this is an important factor for long-term investors, many investors can also be impacted by institutional presence and their high-volume trading. … View our latest analysis for Adavale Resources
Why Adavale Resources Limited's (ASX:ADD) Ownership Structure Is Important
ADD hardly has any institutional ownership, leaving investors little to think about sharp price volatility in the stock that could take place due to institutional trading. … Insider Ownership I find insiders are another important group of stakeholders, who are directly involved in making key decisions related to the use of capital. … With this size of ownership, retail investors can collectively play a role in major company policies that affect shareholders returns, including executive remuneration and the appointment of directors.
Before You Buy Adavale Resources Limited's (ASX:ADD), Consider This
Generally, an investor should consider two types of risk that impact the market value of ADD. … Every stock in the market is exposed to this risk, which arises from macroeconomic factors such as economic growth and geo-political tussles just to name a few. … Based on this beta value, ADD appears to be a stock that an investor with a high-beta portfolio would look for to reduce risk exposure to the market.
Adavale Resources Limited (ASX:ADD): Does The -125.85% Earnings Drop Reflect A Longer Term Trend?
View our latest analysis for Adavale Resources Was ADD's recent earnings decline worse than the long-term trend and the industry? … ASX:ADD Income Statement Mar 20th 18 We can further analyze Adavale Resources's loss by looking at what the industry has been experiencing over the past few years. … Each year, for the past five years Adavale Resources has seen an annual decline in revenue of -14.11%, on average.
Is Adavale Resources Limited (ASX:ADD) Cheap And High Growth?
Below, I will examine the sector growth prospects, as well as evaluate whether Adavale Resources is lagging or leading its competitors in the industry. … See our latest analysis for Adavale Resources What’s the catalyst for Adavale Resources's sector growth? … ASX:ADD Past Future Earnings Feb 14th 18 Over the past couple of years, the energy sector delivered a disappointing 40% negative growth rate, driven by the oil price collapse.
All You Need To Know About Adavale Resources Limited's (ASX:ADD) Risks
Adavale Resources's beta of 0.4 indicates that the stock value will be less variable compared to the whole stock market. … ADD's beta implies it may be a stock that investors with high-beta portfolios might find relevant if they wanted to reduce their exposure to market risk, especially during times of downturns. … ADD, with its market capitalisation of A$126.32M, is a small-cap stock, which generally have higher beta than similar companies of larger size.
Should You Be Concerned About Adavale Resources Limited's (ASX:ADD) Investors?
This size of ownership gives retail investors collective power in deciding on major policy decisions such as executive compensation, appointment of directors and acquisitions of businesses. … This level of ownership gives retail investors the power to sway key policy decisions such as board composition, executive compensation, and potential acquisitions. … With a low level of institutional ownership, investors in ADD need not worry about non-fundamental factors such as ownership structure causing large impact on stock prices.
Future Outlook Of The Energy Industry And Adavale Resources Limited (ASX:ADD)
This rate is below the growth rate of the Australian stock market as a whole. … Only now has the sector begun to emerge from its turmoil, and over the past year, the industry turnaround led to growth of over 50%, beating the Australian market growth of 5.37%. … ASX:ADD PE PEG Gauge Nov 7th 17 The oil and gas industry is trading at a PE ratio of 11x, below the broader Australian stock market PE of 17x.
Adavale Resources Limited engages in the mining exploration and development activities in Australia and Indonesia. The company holds a 100% interest in the Lake Surprise uranium project with three exploration licenses in the northern part of the Lake Frome Embayment, South Australia. The company is based in Sydney, Australia.
Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.