ASX:BRK

Stock Analysis Report

Brookside Energy

Executive Summary

Brookside Energy Limited, together with its subsidiaries, engages in the exploration, production, and appraisal of oil and gas projects in Australia and the United States.

Rewards

Trading at 82.7% below its fair value

Revenue is forecast to grow 17.72% per year

Became profitable this year

Risk Analysis

Interest payments are not well covered by earnings

High level of non-cash earnings

Does not have a meaningful market cap (A$4M)

Highly volatile share price over past 3 months

+ 2 more risks


Snowflake Analysis

Undervalued with questionable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-25.0%

BRK

15.0%

AU Oil and Gas

4.0%

AU Market


1 Year Return

-80.0%

BRK

-39.7%

AU Oil and Gas

-16.5%

AU Market

Return vs Industry: BRK underperformed the Australian Oil and Gas industry which returned -41.3% over the past year.

Return vs Market: BRK underperformed the Australian Market which returned -19% over the past year.


Shareholder returns

BRKIndustryMarket
7 Day-25.0%15.0%4.0%
30 Day-62.5%-23.0%-15.4%
90 Day-62.5%-41.7%-23.5%
1 Year-80.0%-80.0%-37.3%-39.7%-12.8%-16.5%
3 Year-76.9%-76.9%-30.8%-39.1%-0.9%-14.5%
5 Yearn/a-33.1%-44.9%11.2%-13.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BRK (A$0) is trading below our estimate of fair value (A$0.02)

Significantly Below Fair Value: BRK is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BRK is good value based on its PE Ratio (4.4x) compared to the Oil and Gas industry average (8x).

PE vs Market: BRK is good value based on its PE Ratio (4.4x) compared to the Australian market (13x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate BRK's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: BRK is good value based on its PB Ratio (0.5x) compared to the AU Oil and Gas industry average (0.7x).


Next Steps

Future Growth

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

17.7%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if BRK's forecast earnings growth is above the savings rate (1.1%).

Earnings vs Market: Insufficient data to determine if BRK's earnings are forecast to grow faster than the Australian market

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

Revenue vs Market: BRK's revenue (17.7% per year) is forecast to grow faster than the Australian market (4.1% per year).

High Growth Revenue: BRK's revenue (17.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BRK's Return on Equity is forecast to be low in 3 years time (4.4%).


Next Steps

Past Performance

How has Brookside Energy performed over the past 5 years?

75.1%

Historical annual earnings growth


Earnings and Revenue History

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

Growing Profit Margin: BRK became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: BRK has become profitable over the past 5 years, growing earnings by 75.1% per year.

Accelerating Growth: BRK has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: BRK has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-16%).


Return on Equity

High ROE: BRK's Return on Equity (10.3%) is considered low.


Next Steps

Financial Health

How is Brookside Energy's financial position?


Financial Position Analysis

Short Term Liabilities: BRK's short term assets (A$1.5M) do not cover its short term liabilities (A$5.4M).

Long Term Liabilities: BRK has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: BRK's debt to equity ratio (60.2%) is considered high.

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

Debt Coverage: BRK's debt is not well covered by operating cash flow (9.2%).

Interest Coverage: BRK's interest payments on its debt are not well covered by EBIT (1.4x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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

8.7yrs

Average management tenure


CEO

David Prentice (55yo)

16s

Tenure

AU$180,000

Compensation

Mr. David Prentice, Grad. Dip BA, MBA has been an Independent Non-Executive Director at Comet Resources Limited since October 11, 2018. Mr. David Prentice serves as Non-Executive Chairman at Lustrum Minera ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD108.17K) is below average for companies of similar size in the Australian market ($USD238.47K).

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


Leadership Team

NamePositionTenureCompensationOwnership
David Prentice
CEO, MD & Executive Director16yrsAU$180.00k0.96% A$28.9k
Loren Anne King
Company Secretary4.83yrsAU$30.00kno data
Kevin Humphrey
Chief Financial Officer8.67yrsAU$386.52kno data
Perry Gilstrap
Executive Director of Operationsno dataAU$857.69kno data
Christopher Girouard
Vice President of Landno dataAU$424.74kno data

8.7yrs

Average Tenure

Experienced Management: BRK's management team is seasoned and experienced (8.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Prentice
CEO, MD & Executive Director16yrsAU$180.00k0.96% A$28.9k
Loren Anne King
Company Secretary4.83yrsAU$30.00kno data
Michael Fry
Independent Non Executive Chairman16yrsAU$50.00k0.55% A$16.5k
Richard Homsany
Non-Executive Director0.17yrno data0.012% A$375.0

10.4yrs

Average Tenure

55yo

Average Age

Experienced Board: BRK's board of directors are seasoned and experienced ( 10.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: BRK 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 9.2%.


Top Shareholders

Company Information

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


Key Information

  • Name: Brookside Energy Limited
  • Ticker: BRK
  • Exchange: ASX
  • Founded: 2004
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: AU$3.005m
  • Shares outstanding: 1.00b
  • Website: https://www.brookside-energy.com.au

Number of Employees


Location

  • Brookside Energy Limited
  • 330 Churchill Avenue
  • Suite 9
  • Subiaco
  • Western Australia
  • 6008
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BRKASX (Australian Securities Exchange)YesOrdinary SharesAUAUDOct 2005
RDFE.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 2005
BRKCHIA (Chi-X Australia)YesOrdinary SharesAUAUDOct 2005

Biography

Brookside Energy Limited, together with its subsidiaries, engages in the exploration, production, and appraisal of oil and gas projects in Australia and the United States. It is also involved in the leasing and development of oil and gas acreage opportunities. The company was formerly known as Red Fork Energy Limited and changed its name to Brookside Energy Limited in June 2015. Brookside Energy Limited was founded in 2004 and is headquartered in Subiaco, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 10:40
End of Day Share Price2020/04/07 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.