ASX:ADX

Stock Analysis Report

Executive Summary

ADX Energy Ltd engages in the exploration of oil and gas properties.

Risk Analysis

Earnings have declined by -6.33% per year over past 5 years

Has less than 1 year of cash runway

Makes less than USD$1m in revenue (A$11K)

Does not have a meaningful market cap (A$14M)

+ 3 more risks


Snowflake Analysis

Adequate balance sheet with weak fundamentals.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

12.5%

ADX

-1.9%

AU Oil and Gas

-2.0%

AU Market


1 Year Return

-10.0%

ADX

7.9%

AU Oil and Gas

16.7%

AU Market

Return vs Industry: ADX underperformed the Australian Oil and Gas industry which returned 7.9% over the past year.

Return vs Market: ADX underperformed the Australian Market which returned 16.7% over the past year.


Shareholder returns

ADXIndustryMarket
7 Day12.5%-1.9%-2.0%
30 Day0%0.3%-0.7%
90 Day-25.0%5.6%0.2%
1 Year-10.0%-10.0%12.6%7.9%22.5%16.7%
3 Year50.0%50.0%17.8%5.4%35.4%16.8%
5 Year50.0%50.0%19.1%-1.9%60.6%24.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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


In this section, we usually try to help investors determine whether ADX Energy is trading at an attractive price based on the cash flow it is expected to produce in the future. But as ADX Energy 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.


Next Steps

  • Examine ADX Energy's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
  • 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 ADX Energy regulatory filings.
  • Explore potentially undervalued companies in the Energy industry.

Future Growth

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

7.4%

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 ADX 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 ADX Energy performed over the past 5 years?

-6.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ADX is currently unprofitable.

Growing Profit Margin: ADX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ADX is unprofitable, and losses have increased over the past 5 years at a rate of -6.3% per year.

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

Earnings vs Industry: ADX is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (68.1%).


Return on Equity

High ROE: ADX has a negative Return on Equity (-72.67%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is ADX Energy's financial position?


Financial Position Analysis

Short Term Liabilities: ADX's short term assets (A$4.0M) exceed its short term liabilities (A$884.7K).

Long Term Liabilities: ADX's short term assets (A$4.0M) exceed its long term liabilities (A$257.8K).


Debt to Equity History and Analysis

Debt Level: ADX is debt free.

Reducing Debt: ADX has not had any debt for past 5 years.


Balance Sheet

Inventory Level: ADX has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if ADX's debt is covered by short term assets.


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: ADX has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: ADX has less than a year of cash runway if free cash flow continues to reduce at historical rates of -30.3% each year


Next Steps

Dividend

What is ADX Energy's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.4%markettop25%5.6%industryaverage4.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate ADX'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 ADX's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ADX'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 ADX's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

What is the CEO of ADX Energy's salary, the management and board of directors tenure and is there insider trading?

4.3yrs

Average management tenure


CEO

Paul Fink 0

4.3yrs

Tenure

AU$300,850

Compensation

Mr. Paul Fink, MSc, has been the Chief Executive Officer and Executive Director of ADX Energy Ltd. (Alternate Name: Audax Resources Ltd.) since September 28, 2015. Mr. Fink serves as a Technical Director o ...


CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD206.17K) is about average for companies of similar size in the Australian market ($USD255.57K).

Compensation vs Earnings: Paul's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.3yrs

Average Tenure

Experienced Management: ADX's management team is considered experienced (4.3 years average tenure).


Board Age and Tenure

4.3yrs

Average Tenure

Experienced Board: ADX's board of directors are considered experienced (4.3 years average tenure).


Insider Trading

Insider Buying: ADX insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyAU$8,00024 Oct 19
Ian Tchacos
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares800,000
Max PriceAU$0.01
SellAU$8,00024 Oct 19
Ian Tchacos
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares800,000
Max PriceAU$0.01
BuyAU$12,06524 Sep 19
Ian Tchacos
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares1,000,000
Max PriceAU$0.012
BuyAU$1,63910 Jul 19
Andrew Childs
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares200,000
Max PriceAU$0.0082
BuyAU$1,43907 Jun 19
Andrew Childs
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares200,000
Max PriceAU$0.0072
BuyAU$1,23905 Jun 19
Andrew Childs
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares200,000
Max PriceAU$0.0062
BuyAU$1,43913 May 19
Andrew Childs
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares200,000
Max PriceAU$0.0072
BuyAU$4,34911 Apr 19
Andrew Childs
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares600,000
Max PriceAU$0.0072
BuyAU$486,57326 Mar 19
Jetosea Pty Ltd
EntityCompany
Shares47,163,210
Max PriceAU$0.01

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 7.8%.


Management Team

  • Peter Ironside (65yo)

    Company Secretary

    • Tenure: 24.8yrs
    • Compensation: AU$30.00k
  • Ian Tchacos

    Executive Chairman

    • Tenure: 4.3yrs
    • Compensation: AU$377.13k
  • Paul Fink

    CEO, Technical Director & Executive Director

    • Tenure: 4.3yrs
    • Compensation: AU$300.85k
  • Amanda Sparks

    Joint Company Secretary

    • Tenure: 4.2yrs
    • Compensation: AU$9.60k

Board Members

  • Ian Tchacos

    Executive Chairman

    • Tenure: 4.3yrs
    • Compensation: AU$377.13k
  • Andrew Childs (60yo)

    Non-Executive Director

    • Tenure: 10.1yrs
    • Compensation: AU$33.00k
  • Paul Fink

    CEO, Technical Director & Executive Director

    • Tenure: 4.3yrs
    • Compensation: AU$300.85k
  • Rob Brown

    Non Executive Director

    • Tenure: 3.2yrs
    • Compensation: AU$50.81k
  • Philip Haydn-Slater (58yo)

    Non Executive Director

    • Tenure: 2.4yrs
    • Compensation: AU$46.63k

Company Information

ADX Energy Ltd's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ADX Energy Ltd
  • Ticker: ADX
  • Exchange: ASX
  • Founded: 1987
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: AU$13.728m
  • Shares outstanding: 1.53b
  • Website: https://adx-energy.com

Location

  • ADX Energy Ltd
  • 210 Bagot Road
  • Suite 14
  • Perth
  • Western Australia
  • 6008
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ADXASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
ADXR.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
GHUDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
GHUBST (Boerse-Stuttgart)YesOrdinary SharesDEEURJan 1992
ADXCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992

Biography

ADX Energy Ltd engages in the exploration of oil and gas properties. It owns oil and gas assets in Tunisia, Italy, and Romania. The company was formerly known as AuDAX Resources Ltd. ADX Energy Ltd was inc ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/08 10:31
End of Day Share Price2019/12/05 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.