company background image
EEG

Empire Energy GroupASX:EEG Stock Report

Market Cap

AU$224.8m

7D

-2.6%

1Y

-5.1%

Updated

18 Oct, 2021

Data

Company Financials +
EEG fundamental analysis
Snowflake Score
Valuation0/6
Future Growth1/6
Past Performance0/6
Financial Health6/6
Dividends0/6

EEG Overview

Empire Energy Group Limited, together its subsidiaries, engages in the production and sale of oil and natural gas in the United States and Australia.

Price History & Performance

Summary of all time highs, changes and price drops for Empire Energy Group
Historical stock prices
Current Share PriceAU$0.38
52 Week HighAU$0.27
52 Week LowAU$0.43
Beta1.74
1 Month Change11.94%
3 Month Change25.00%
1 Year Change-5.06%
3 Year Change97.37%
5 Year Change120.59%
Change since IPO-98.75%

Recent News & Updates

Shareholder Returns

EEGAU Oil and GasAU Market
7D-2.6%0.5%0.9%
1Y-5.1%48.9%20.2%

Return vs Industry: EEG underperformed the Australian Oil and Gas industry which returned 48.9% over the past year.

Return vs Market: EEG underperformed the Australian Market which returned 20.2% over the past year.

Price Volatility

Is EEG's price volatile compared to industry and market?
EEG volatility
EEG Beta1.74
Industry Beta1.28
Market Beta1

Stable Share Price: EEG is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: EEG's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1981n/aAlex Underwoodhttps://www.empireenergygroup.net/

Empire Energy Group Limited, together its subsidiaries, engages in the production and sale of oil and natural gas in the United States and Australia. It operates through US Operations and Northern Territory segments. The company holds a 100% working interest in approximately 14.5 million acres of prospective shale oil and gas exploration acreage in the McArthur Basin and Beetaloo Sub-basin, Northern Territory, Australia.

Empire Energy Group Fundamentals Summary

How do Empire Energy Group's earnings and revenue compare to its market cap?
EEG fundamental statistics
Market CapAU$224.80m
Earnings (TTM)-AU$8.22m
Revenue (TTM)AU$6.05m

37.2x

P/S Ratio

-27.4x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
EEG income statement (TTM)
RevenueAU$6.05m
Cost of RevenueAU$4.81m
Gross ProfitAU$1.24m
ExpensesAU$9.46m
Earnings-AU$8.22m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.014
Gross Margin20.48%
Net Profit Margin-135.87%
Debt/Equity Ratio13.6%

How did EEG perform over the long term?

See historical performance and comparison

Valuation

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

3.72x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: EEG is overvalued based on its PB Ratio (3.7x) compared to the AU Oil and Gas industry average (2.5x).


Future Growth

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

49.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: EEG's revenue (13.2% per year) is forecast to grow faster than the Australian market (5.5% per year).

High Growth Revenue: EEG's revenue (13.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Past Performance

How has Empire Energy Group performed over the past 5 years?

-15.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EEG is currently unprofitable.

Growing Profit Margin: EEG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: EEG is unprofitable, and losses have increased over the past 5 years at a rate of 15.6% per year.

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

Earnings vs Industry: EEG is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-50.5%).


Return on Equity

High ROE: EEG has a negative Return on Equity (-13.6%), as it is currently unprofitable.


Financial Health

How is Empire Energy Group's financial position?


Financial Position Analysis

Short Term Liabilities: EEG's short term assets (A$44.8M) exceed its short term liabilities (A$16.7M).

Long Term Liabilities: EEG's short term assets (A$44.8M) exceed its long term liabilities (A$22.7M).


Debt to Equity History and Analysis

Debt Level: EEG's debt to equity ratio (13.6%) is considered satisfactory.

Reducing Debt: EEG's debt to equity ratio has reduced from 116% to 13.6% 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: EEG has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: EEG has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of 57.2% each year


Dividend

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


Dividend Yield vs Market

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

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

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

2.4yrs

Average management tenure


CEO

Alex Underwood (38 yo)

3.17yrs

Tenure

AU$799,593

Compensation

Mr. Alexander Underwood, also known as Alex, has been Chief Executive Officer and Managing Director of Empire Energy Group Limited since August 2018 and serves as its Director. He joined the company in Feb...


CEO Compensation Analysis

Compensation vs Market: Alex's total compensation ($USD593.48K) is about average for companies of similar size in the Australian market ($USD556.28K).

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


Leadership Team

Experienced Management: EEG's management team is considered experienced (2.4 years average tenure).


Board Members

Experienced Board: EEG's board of directors are not considered experienced ( 1.4 years average tenure), which suggests a new board.


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 85.3%.


Top Shareholders

Company Information

Empire Energy Group Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Empire Energy Group Limited
  • Ticker: EEG
  • Exchange: ASX
  • Founded: 1981
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: AU$224.803m
  • Shares outstanding: 599.47m
  • Website: https://www.empireenergygroup.net/

Location

  • Empire Energy Group Limited
  • 20 Bond Street
  • Level 19
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/18 15:12
End of Day Share Price2021/10/18 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.