ASX:AJQ

Stock Analysis Report

Executive Summary

Armour Energy Limited, together with its subsidiaries, focuses on the discovery, development, and production of natural gas and associated liquid resources in Australia.

Snowflake

Fundamentals

Overvalued with worrying balance sheet.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

36.7%

AJQ

-0.4%

AU Oil and Gas

-0.2%

AU Market


1 Year Return

-29.5%

AJQ

-10.4%

AU Oil and Gas

10.5%

AU Market

Return vs Industry: AJQ underperformed the Australian Oil and Gas industry which returned -10.4% over the past year.

Return vs Market: AJQ underperformed the Australian Market which returned 10.5% over the past year.


Shareholder returns

AJQIndustryMarket
7 Day36.7%-0.4%-0.2%
30 Day-6.9%-1.7%-1.4%
90 Day-2.9%-1.0%-1.0%
1 Year-29.5%-29.5%-6.8%-10.4%16.9%10.5%
3 Year-11.8%-15.2%14.4%2.2%36.9%18.6%
5 Year-12.9%-16.3%-12.1%-28.0%50.2%16.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.76x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

PE vs Market: AJQ 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 AJQ's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AJQ is good value based on its PB Ratio (0.8x) compared to the AU Oil and Gas industry average (1.3x).


Next Steps

Future Growth

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

7.8%

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 Armour 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 Armour Energy performed over the past 5 years?

-6.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: AJQ is unprofitable, and losses have increased over the past 5 years at a rate of -6% per year.

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

Earnings vs Industry: AJQ 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: AJQ has a negative Return on Equity (-26.1%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: AJQ is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: AJQ is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Armour Energy's financial position?


Financial Position Analysis

Short Term Liabilities: AJQ's short term assets (A$14.4M) exceeds its short term liabilities (A$6.7M)

Long Term Liabilities: AJQ's short term assets (14.4M) do not cover its long term liabilities (65.1M)


Debt to Equity History and Analysis

Debt Level: AJQ's debt to equity ratio (131%) is considered high

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


Balance Sheet

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

Debt Coverage by Assets: AJQ's debt is not covered by short term assets (assets are 0.2x 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: AJQ has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: AJQ has less than a year of cash runway if free cash flow continues to reduce at historical rates of -1.9% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.4%markettop25%5.6%industryaverage4.5%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

Growing Dividend: Insufficient data to determine if AJQ'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 AJQ'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 Armour Energy's salary, the management and board of directors tenure and is there insider trading?

0.8yrs

Average management tenure


CEO

Armour Energy has no CEO, or we have no data on them.


Management Age and Tenure

0.8yrs

Average Tenure

Experienced Management: AJQ's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Age and Tenure

7.6yrs

Average Tenure

51yo

Average Age

Experienced Board: AJQ's board of directors are considered experienced (7.6 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyAU$999,99217 Oct 19
Rookharp Capital Pty Limited
EntityCompany
Shares20,000,000
Max PriceAU$0.05
BuyAU$22,49917 Oct 19
David Rooke
EntityIndividual
Shares450,000
Max PriceAU$0.05
BuyAU$12,03803 Oct 19
DGR Global Limited
EntityCompany
Shares150,000
Max PriceAU$0.08
BuyAU$999,99203 Oct 19
Tenstar Trading Limited
EntityCompany
Shares20,000,000
Max PriceAU$0.05
BuyAU$1,960,20523 Apr 19
Tenstar Trading Limited
EntityCompany
Shares22,275,072
Max PriceAU$0.088

Ownership Breakdown


Management Team

  • Nick Mather (62yo)

    Executive Chairman

    • Tenure: 0yrs
    • Compensation: AU$210.00k
  • Karl Schlobohm (51yo)

    Company Secretary

    • Tenure: 0yrs
    • Compensation: AU$54.40k
  • Luke Titus

    Chief Technical Officer

    • Tenure: 0.2yrs
    • Compensation: AU$311.57k
  • Richard Aden

    Chief Financial Officer

    • Tenure: 1.3yrs
    • Compensation: AU$357.34k
  • Stewart Black

    Operations Manager

    • Tenure: 0.8yrs

Board Members

  • Eytan Uliel (46yo)

    Independent Non-Executive Director

    • Tenure: 1.9yrs
    • Compensation: AU$50.00k
  • Nick Mather (62yo)

    Executive Chairman

    • Tenure: 0yrs
    • Compensation: AU$210.00k
  • Stephen Bizzell (51yo)

    Non-Executive Director

    • Tenure: 7.6yrs
    • Compensation: AU$50.00k
  • Roland Sleeman

    Independent Non-Executive Director

    • Tenure: 8yrs
    • Compensation: AU$50.00k

Company Information

Armour Energy Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Armour Energy Limited
  • Ticker: AJQ
  • Exchange: ASX
  • Founded: 2009
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: AU$39.492m
  • Shares outstanding: 589.44m
  • Website: https://www.armourenergy.com.au

Number of Employees


Location

  • Armour Energy Limited
  • 111 Eagle Street
  • Level 27
  • Brisbane
  • Queensland
  • 4000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AJQASX (Australian Securities Exchange)YesOrdinary SharesAUAUDApr 2012
8ANDB (Deutsche Boerse AG)YesOrdinary SharesDEEURApr 2012
AJQCHIA (Chi-X Australia)YesOrdinary SharesAUAUDApr 2012
AJQCHIA (Chi-X Australia)YesOrdinary SharesAUAUDApr 2012

Biography

Armour Energy Limited, together with its subsidiaries, focuses on the discovery, development, and production of natural gas and associated liquid resources in Australia. The company operates in two segment ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 10:34
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.