ASX:CVN

Stock Analysis Report

Carnarvon Petroleum

Executive Summary

Carnarvon Petroleum Limited explores for, develops, and produces oil and gas in Australia.

Risk Analysis

Earnings are forecast to decline by an average of -2% per year for the next 3 years

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Excellent balance sheet with weak fundamentals.


Similar Companies

Share Price & News

How has Carnarvon Petroleum's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-3.1%

CVN

1.6%

AU Oil and Gas

0.3%

AU Market


1 Year Return

-3.1%

CVN

8.5%

AU Oil and Gas

17.3%

AU Market

Return vs Industry: CVN underperformed the Australian Oil and Gas industry which returned 8.5% over the past year.

Return vs Market: CVN underperformed the Australian Market which returned 17.3% over the past year.


Shareholder returns

CVNIndustryMarket
7 Day-3.1%1.6%0.3%
30 Day-12.7%0.7%-1.0%
90 Day-16.2%5.8%-0.1%
1 Year-3.1%-3.1%13.2%8.5%23.1%17.3%
3 Year210.0%210.0%19.8%7.2%36.2%17.5%
5 Year121.4%121.4%16.2%-5.0%61.4%25.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Carnarvon Petroleum undervalued compared to its fair value and its price relative to the market?

2.59x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: CVN is overvalued based on its PB Ratio (2.6x) compared to the AU Oil and Gas industry average (1.3x).


Next Steps

Future Growth

How is Carnarvon Petroleum forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

-2.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: Insufficient data to determine if CVN's revenue is forecast to grow faster than the Australian market.

High Growth Revenue: Insufficient data to determine if CVN's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CVN's Return on Equity is forecast to be low in 3 years time (6.6%).


Next Steps

Past Performance

How has Carnarvon Petroleum performed over the past 5 years?

-8.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CVN is currently unprofitable.

Growing Profit Margin: CVN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CVN is unprofitable, and losses have increased over the past 5 years at a rate of -8.7% per year.

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

Earnings vs Industry: CVN 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: CVN has a negative Return on Equity (-4.96%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Carnarvon Petroleum's financial position?


Financial Position Analysis

Short Term Liabilities: CVN's short term assets (A$74.7M) exceed its short term liabilities (A$2.2M).

Long Term Liabilities: CVN's short term assets (A$74.7M) exceed its long term liabilities (A$283.0K).


Debt to Equity History and Analysis

Debt Level: CVN is debt free.

Reducing Debt: CVN has not had any debt for past 5 years.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if CVN's debt is covered by short term assets.


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: CVN has sufficient cash runway for more than a year based on its current free cash flow.

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


Next Steps

Dividend

What is Carnarvon Petroleum's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.4%markettop25%5.6%industryaverage4.2%forecastin3Years0%

Current dividend yield vs market & industry

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

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

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

6.4yrs

Average management tenure


CEO

Adrian Cook (52yo)

8.4yrs

Tenure

AU$1,298,958

Compensation

Mr. Adrian Caldwell Cook, B.Bus., C.A., M.App.Fin., FAICD has been the Chief Executive officer and Managing Director of Carnarvon Petroleum Limited since July 1, 2011. Mr. Cook served as a General Manager  ...


CEO Compensation Analysis

Compensation vs Market: Adrian's total compensation ($USD896.27K) is about average for companies of similar size in the Australian market ($USD712.34K).

Compensation vs Earnings: Adrian's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

6.4yrs

Average Tenure

Experienced Management: CVN's management team is seasoned and experienced (6.4 years average tenure).


Board Age and Tenure

6.5yrs

Average Tenure

Experienced Board: CVN's board of directors are considered experienced (6.5 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyAU$14,95926 Nov 19
Peter Moore
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares44,000
Max PriceAU$0.34
BuyAU$49,91815 Apr 19
Foster Pty Ltd
EntityCompany
Shares113,636
Max PriceAU$0.44
BuyAU$69,94914 Mar 19
S. Ryan
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares159,240
Max PriceAU$0.45
BuyAU$42,00010 Mar 19
Peter Moore
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares100,000
Max PriceAU$0.42

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 19.1%.


Management Team

  • Andy Padman

    Chief Geophysicist

    • Tenure: 0yrs
  • Adrian Cook (52yo)

    CEO, MD & Executive Director

    • Tenure: 8.4yrs
    • Compensation: AU$1.30m
  • Philip Huizenga

    Chief Operating Officer

    • Tenure: 11.9yrs
    • Compensation: AU$1.46m
  • Thomson Naude

    CFO & Joint Company Secretary

    • Tenure: 4.4yrs
    • Compensation: AU$762.08k
  • Jeff Goodall

    Chief Geologist

    • Tenure: 0yrs
  • Alex Doering

    Joint Company Secretary

    • Tenure: 0.3yrs

Board Members

  • Peter Leonhardt (72yo)

    Non-Executive Chairman

    • Tenure: 14.7yrs
    • Compensation: AU$120.82k
  • Adrian Cook (52yo)

    CEO, MD & Executive Director

    • Tenure: 8.4yrs
    • Compensation: AU$1.30m
  • Peter Moore

    Non-Executive Director

    • Tenure: 4.5yrs
    • Compensation: AU$78.80k
  • Bill Foster

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: AU$83.47k
  • S. Ryan

    Non-Executive Director

    • Tenure: 1.4yrs
    • Compensation: AU$72.86k

Company Information

Carnarvon Petroleum Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Carnarvon Petroleum Limited
  • Ticker: CVN
  • Exchange: ASX
  • Founded:
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: AU$484.958m
  • Shares outstanding: 1.56b
  • Website: https://www.carnarvon.com.au

Location

  • Carnarvon Petroleum Limited
  • 76 Kings Park Road
  • Level 2
  • West Perth
  • Western Australia
  • 6005
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CVNASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
CVON.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
CJBDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
CVNCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992

Biography

Carnarvon Petroleum Limited explores for, develops, and produces oil and gas in Australia. The company owns interests in the Phoenix project located in the Bedout Sub-basin acreage offshore of Western Aust ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/13 10:31
End of Day Share Price2019/12/13 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.