ASX:AJQ

Stock Analysis Report

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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. More Details


Snowflake Analysis

Exceptional growth potential with mediocre 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

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


Market Performance


7 Day Return

-12.5%

AJQ

0.2%

AU Oil and Gas

-0.1%

AU Market


1 Year Return

-70.8%

AJQ

-39.6%

AU Oil and Gas

-12.0%

AU Market

Return vs Industry: AJQ underperformed the Australian Oil and Gas industry which returned -39.6% over the past year.

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


Shareholder returns

AJQIndustryMarket
7 Day-12.5%0.2%-0.1%
30 Day5.0%-9.8%-2.9%
90 Day-16.0%-12.0%1.1%
1 Year-70.8%-70.8%-37.4%-39.6%-8.7%-12.0%
3 Year-72.2%-73.1%-21.2%-29.6%17.7%2.6%
5 Year-81.8%-82.5%-15.4%-29.5%44.5%14.1%

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?

0.3x

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 AU 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 (0.3x) compared to the AU Oil and Gas industry average (1.4x).


Next Steps

Future Growth

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

113.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AJQ is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.3%).

Earnings vs Market: AJQ is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: AJQ's is expected to become profitable in the next 3 years.

Revenue vs Market: AJQ's revenue (29.3% per year) is forecast to grow faster than the Australian market (4.4% per year).

High Growth Revenue: AJQ's revenue (29.3% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AJQ's Return on Equity is forecast to be high in 3 years time (21%)


Next Steps

Past Performance

How has Armour Energy performed over the past 5 years?

-2.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AJQ is currently unprofitable.

Growing Profit Margin: AJQ is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AJQ is unprofitable, and losses have increased over the past 5 years at a rate of 2.3% 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 (-61.9%).


Return on Equity

High ROE: AJQ has a negative Return on Equity (-33.02%), as it is currently unprofitable.


Next Steps

Financial Health

How is Armour Energy's financial position?


Financial Position Analysis

Short Term Liabilities: AJQ's short term assets (A$18.2M) exceed its short term liabilities (A$11.1M).

Long Term Liabilities: AJQ's short term assets (A$18.2M) do not cover its long term liabilities (A$64.9M).


Debt to Equity History and Analysis

Debt Level: AJQ's debt to equity ratio (142.7%) 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


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 sufficient cash runway for 7 months based on last reported free cash flow, but has since raised additional capital.

Forecast Cash Runway: AJQ is forecast to have sufficient cash runway for 6 months based on free cash flow estimates, but has since raised additional capital.


Next Steps

Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate AJQ'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 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

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

0.2yrs

Average management tenure


CEO

Brad Lingo (59 yo)

0.25

Tenure

Mr. Bradley William Lingo, also known as Brad, BA (hons), Juris Doctorate, MAICD, has been Chief Executive Officer of Armour Energy Limited since June 15, 2020. He has been Chairman and Director at Pilot E ...


Leadership Team

NamePositionTenureCompensationOwnership
Nicholas Mather
Executive Chairmanno dataAU$210.00k0.13%
A$ 27.5k
Karl Schlobohm
Company Secretaryno dataAU$54.40k0.038%
A$ 8.2k
Bradley Lingo
Chief Executive Officer0.25yrno datano data
Erin Clark
Acting Chief Financial Officer0.17yrno datano data
Michael Laurent
Chief Operating Officer0.17yrno datano data
Luke Titus
Chief Technical Officer1.08yrsAU$311.57kno data

0.2yrs

Average Tenure

59yo

Average Age

Experienced Management: AJQ's management team is not considered experienced ( 0.2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Nicholas Mather
Executive Chairmanno dataAU$210.00k0.13%
A$ 27.5k
Eytan Uliel
Independent Non-Executive Director2.83yrsAU$50.00kno data
Stephen Bizzell
Non-Executive Director8.5yrsAU$50.00k0.13%
A$ 27.6k
Roland Sleeman
Independent Non-Executive Director8.92yrsAU$50.00k0.0057%
A$ 1.2k

8.5yrs

Average Tenure

52yo

Average Age

Experienced Board: AJQ's board of directors are considered experienced (8.5 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 101.9%.


Top Shareholders

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$21.604m
  • Shares outstanding: 1.03b
  • 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

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 Analysis2020/09/17 19:03
End of Day Share Price2020/09/17 00:00
Earnings2019/12/31
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.