ASX:ATS

Stock Analysis Report

Australis Oil & Gas

Executive Summary

Australis Oil & Gas Limited engages in the oil and gas exploration, development, and production activities.

Rewards

PE ratio (1x) is below the Australian market (12.6x)

Earnings are forecast to grow 59.21% per year

Earnings grew by 8145.9% over the past year

Risk Analysis

High level of non-cash earnings

Does not have a meaningful market cap (A$12M)

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

High growth potential and good value.


Similar Companies

Share Price & News

How has Australis Oil & Gas's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

9.1%

ATS

4.4%

AU Oil and Gas

0.1%

AU Market


1 Year Return

-95.1%

ATS

-48.2%

AU Oil and Gas

-22.8%

AU Market

Return vs Industry: ATS underperformed the Australian Oil and Gas industry which returned -48.2% over the past year.

Return vs Market: ATS underperformed the Australian Market which returned -22.8% over the past year.


Shareholder returns

ATSIndustryMarket
7 Day9.1%4.4%0.1%
30 Day-79.7%-40.3%-28.8%
90 Day-85.5%-49.4%-30.1%
1 Year-95.1%-95.1%-46.2%-48.2%-19.4%-22.8%
3 Year-95.6%-95.6%-40.3%-47.6%-9.5%-21.7%
5 Yearn/a-40.0%-50.7%2.1%-20.8%

Price Volatility Vs. Market

How volatile is Australis Oil & Gas's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Australis Oil & Gas undervalued compared to its fair value and its price relative to the market?

1.02x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

PE vs Industry: ATS is good value based on its PE Ratio (1x) compared to the Oil and Gas industry average (6.9x).

PE vs Market: ATS is good value based on its PE Ratio (1x) compared to the Australian market (12.6x).


Price to Earnings Growth Ratio

PEG Ratio: ATS is good value based on its PEG Ratio (0x)


Price to Book Ratio

PB vs Industry: ATS is good value based on its PB Ratio (0x) compared to the AU Oil and Gas industry average (0.7x).


Next Steps

Future Growth

How is Australis Oil & Gas forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

59.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ATS's forecast earnings growth (59.2% per year) is above the savings rate (1.1%).

Earnings vs Market: ATS's earnings (59.2% per year) are forecast to grow faster than the Australian market (10% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ATS's revenue (56.7% per year) is forecast to grow faster than the Australian market (4.2% per year).

High Growth Revenue: ATS's revenue (56.7% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ATS's Return on Equity is forecast to be low in 3 years time (10%).


Next Steps

Past Performance

How has Australis Oil & Gas performed over the past 5 years?

110.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ATS has a high level of non-cash earnings.

Growing Profit Margin: ATS's current net profit margins (13.8%) are higher than last year (0.3%).


Past Earnings Growth Analysis

Earnings Trend: ATS has become profitable over the past 5 years, growing earnings by 110.1% per year.

Accelerating Growth: ATS's earnings growth over the past year (8145.9%) exceeds its 5-year average (110.1% per year).

Earnings vs Industry: ATS earnings growth over the past year (8145.9%) exceeded the Oil and Gas industry -16%.


Return on Equity

High ROE: ATS's Return on Equity (3.9%) is considered low.


Next Steps

Financial Health

How is Australis Oil & Gas's financial position?


Financial Position Analysis

Short Term Liabilities: ATS's short term assets ($22.3M) exceed its short term liabilities ($16.6M).

Long Term Liabilities: ATS's short term assets ($22.3M) do not cover its long term liabilities ($31.2M).


Debt to Equity History and Analysis

Debt Level: ATS's debt to equity ratio (17.3%) is considered satisfactory.

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


Balance Sheet

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

Debt Coverage by Assets: ATS's debt is not covered by short term assets (assets are 0.7x 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: ATS is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: ATS is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is Australis Oil & Gas's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if ATS'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 ATS'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?

4.3yrs

Average management tenure


CEO

Ian Lusted

4.33s

Tenure

US$565,346

Compensation

Mr. Ian Lincoln Lusted, B.Sc (Hons.), MBA, has been the Chief Executive Officer and Managing Director of Australis Oil & Gas Limited since December 1, 2015. Mr. Lusted served as Technical Director of Auro ...


CEO Compensation Analysis

Compensation vs Market: Ian's total compensation ($USD565.35K) is above average for companies of similar size in the Australian market ($USD242.11K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Ian Lusted
CEO, MD & Director4.33yrsUS$565.35k1.58% $186.9k
Graham Dowland
Finance Director4.33yrsUS$415.21k1.55% $183.0k
Darren Wasylucha
Chief Corporate Officer2.25yrsUS$404.55k0.035% $4.1k
David Greene
Vice President of Operations0.33yrno datano data
Malcolm Bult
Vice President of Corporate & Business Developmentno datano datano data
Julie Foster
VP of Finance & Company Secretary4.33yrsno datano data

4.3yrs

Average Tenure

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


Board Members

NamePositionTenureCompensationOwnership
Ian Lusted
CEO, MD & Director4.33yrsUS$565.35k1.58% $186.9k
Graham Dowland
Finance Director4.33yrsUS$415.21k1.55% $183.0k
Jonathan Stewart
Non-Executive Chairman4.33yrsUS$175.01k6.94% $820.0k
Alan James Watson
Independent Non-Executive Director3.83yrsUS$72.88k0.43% $50.3k
Stephen Scudamore
Independent Non-Executive Director3.33yrsUS$74.96k0.030% $3.6k

4.3yrs

Average Tenure

Experienced Board: ATS's board of directors are considered experienced (4.3 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 diluted in the past year, with total shares outstanding growing by 12%.


Top Shareholders

Company Information

Australis Oil & Gas Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Australis Oil & Gas Limited
  • Ticker: ATS
  • Exchange: ASX
  • Founded: 2015
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: AU$11.820m
  • Shares outstanding: 985.03m
  • Website: https://www.australisoil.com

Location

  • Australis Oil & Gas Limited
  • Allendale Square
  • Level 29
  • Perth
  • Western Australia
  • 6000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ATSASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJul 2016
ATSCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJul 2016
ASTT.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2016

Biography

Australis Oil & Gas Limited engages in the oil and gas exploration, development, and production activities. The company operates through Oil & Gas Production, Exploration, and Other segments. The company holds 100% interest in the Tuscaloosa Marine Shale covering an area of 115,000 net acres located in Louisiana and Mississippi, the United States. It also has a 100% interest in the Batalha and Pombal concessions, which cover an area of approximately 620,000 acres located onshore in the Lusitanian Basin, Portugal. Australis Oil & Gas Limited was founded in 2015 and is headquartered in Perth, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 10:50
End of Day Share Price2020/03/27 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.