ASX:BRU

Stock Analysis Report

Executive Summary

Buru Energy Limited engages in the exploration, development, and production of oil and gas resources in Western Australia.


Snowflake Analysis

Mediocre balance sheet with limited growth.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

3.2%

BRU

0.9%

AU Oil and Gas

1.5%

AU Market


1 Year Return

-31.9%

BRU

-7.9%

AU Oil and Gas

15.6%

AU Market

Return vs Industry: BRU underperformed the Australian Oil and Gas industry which returned -7.3% over the past year.

Return vs Market: BRU underperformed the Australian Market which returned 16.1% over the past year.


Shareholder returns

BRUIndustryMarket
7 Day3.2%0.9%1.5%
30 Day-3.0%-8.1%0.4%
90 Day-22.0%-3.8%4.1%
1 Year-31.9%-31.9%-4.0%-7.9%20.6%15.6%
3 Year-6.3%-8.6%12.7%1.2%37.1%18.7%
5 Year-56.9%-57.9%6.2%-12.8%50.9%17.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Buru 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 BRU's fair value to establish if it is undervalued.

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: BRU is good value based on its PB Ratio (0.8x) compared to the AU Oil and Gas industry average (1.2x).


Next Steps

Future Growth

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

128.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BRU is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: BRU is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: BRU is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: BRU's revenue (41.8% per year) is forecast to grow faster than the Australian market (4.2% per year).

High Growth Revenue: BRU's revenue (41.8% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if BRU's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Buru Energy performed over the past 5 years?

53.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BRU is currently unprofitable.

Growing Profit Margin: BRU is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: BRU is unprofitable, but has reduced losses over the past 5 years at a rate of 53.1% per year.

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

Earnings vs Industry: BRU is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (58.2%).


Return on Equity

High ROE: BRU has a negative Return on Equity (-5.92%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Buru Energy's financial position?


Financial Position Analysis

Short Term Liabilities: BRU's short term assets (A$62.7M) exceed its short term liabilities (A$12.6M).

Long Term Liabilities: BRU's short term assets (A$62.7M) exceed its long term liabilities (A$7.5M).


Debt to Equity History and Analysis

Debt Level: BRU's debt to equity ratio (5.1%) is considered satisfactory.

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


Balance Sheet

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

Debt Coverage by Assets: BRU's debt is covered by short term assets (assets are 13.6x 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: Insufficient data to determine if BRU has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if BRU has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%5.5%industryaverage4.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

1.6yrs

Average management tenure


CEO

Eric Streitberg (71yo)

AU$719,478

Compensation

Mr. Eric Charles Streitberg, BSc, FAusIMM, FAICD, serves as the Head of Technical, Management & Administrative services at ARC Energy NL. Mr. Streitberg serves as the Chief Executive Officer of Buru Energy ...


CEO Compensation Analysis

Compensation vs Market: Eric's total compensation ($USD483.42K) is above average for companies of similar size in the Australian market ($USD254.67K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Eric Streitberg
CEO & Executive Chairman0yrsAU$719.48k4.91% A$3.4m
Shane McDermott
CFO & Company Secretary5.6yrsAU$382.13k0.023% A$16.0k
A. Forcke
General Manager of Commercial1.6yrsAU$386.79kno data
Kris Waddington
Chief Operating Officer0.9yrsno datano data
Mark Royle
Operations Manager0yrsAU$397.02kno data

1.6yrs

Average Tenure

Experienced Management: BRU's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Eric Streitberg
CEO & Executive Chairman0yrsAU$719.48k4.91% A$3.4m
Eva Howell
Independent Non-Executive Director5.6yrsAU$126.31k0.068% A$47.0k
Robert Willes
Independent Non-Executive Director5.6yrsAU$126.31k0.031% A$21.1k

5.6yrs

Average Tenure

Experienced Board: BRU's board of directors are considered experienced (5.6 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.3%.


Top Shareholders

Company Information

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


Key Information

  • Name: Buru Energy Limited
  • Ticker: BRU
  • Exchange: ASX
  • Founded: 2008
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: AU$69.132m
  • Shares outstanding: 432.07m
  • Website: https://www.buruenergy.com

Number of Employees


Location

  • Buru Energy Limited
  • 16 Ord Street
  • Level 2
  • Perth
  • Western Australia
  • 6005
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BRUASX (Australian Securities Exchange)YesOrdinary SharesAUAUDSep 2008
BUDDB (Deutsche Boerse AG)YesOrdinary SharesDEEURSep 2008
BRNG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDSep 2008
BRUCHIA (Chi-X Australia)YesOrdinary SharesAUAUDSep 2008

Biography

Buru Energy Limited engages in the exploration, development, and production of oil and gas resources in Western Australia. The company operates through Oil, Gas, and Exploration segments. It holds interests in a portfolio of petroleum exploration permits covering an area of approximately 22,000 square kilometers located in Canning basin in the southwest Kimberley region of Western Australia. The company's principal property is the Ungani oil field project located onshore in the Canning Basin. Buru Energy Limited was founded in 2008 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 Analysis2020/02/17 10:38
End of Day Share Price2020/02/17 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.