ASX:EER

Stock Analysis Report

East Energy Resources

Executive Summary

East Energy Resources Limited operates as a coal exploration and development company in Australia.


Snowflake Analysis

Excellent balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

EER

-5.5%

AU Oil and Gas

-3.6%

AU Market


1 Year Return

n/a

EER

-14.1%

AU Oil and Gas

10.9%

AU Market

Return vs Industry: Insufficient data to determine how EER performed against the Australian Oil and Gas industry.

Return vs Market: Insufficient data to determine how EER performed against the Australian Market.


Shareholder returns

EERIndustryMarket
7 Day0%-5.5%-3.6%
30 Day-33.3%-13.5%-3.7%
90 Dayn/a-12.2%-0.2%
1 Yearn/a-10.8%-14.1%15.6%10.9%
3 Year-42.9%-42.9%9.0%-2.8%34.1%16.0%
5 Year-73.3%-73.3%-0.8%-17.5%44.9%12.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

1.1x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: EER is good value based on its PB Ratio (1.1x) compared to the AU Oil and Gas industry average (1.1x).


Next Steps

Future Growth

How is East Energy Resources forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

14.8%

Forecasted Energy industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as East Energy Resources has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has East Energy Resources performed over the past 5 years?

14.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EER is currently unprofitable.

Growing Profit Margin: EER is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: EER is unprofitable, but has reduced losses over the past 5 years at a rate of 14.7% per year.

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

Earnings vs Industry: EER is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-0.7%).


Return on Equity

High ROE: EER has a negative Return on Equity (-16.39%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is East Energy Resources's financial position?


Financial Position Analysis

Short Term Liabilities: EER's short term assets (A$907.2K) exceed its short term liabilities (A$18.3K).

Long Term Liabilities: EER's short term assets (A$907.2K) do not cover its long term liabilities (A$1.4M).


Debt to Equity History and Analysis

Debt Level: EER's debt to equity ratio (12.1%) is considered satisfactory.

Reducing Debt: EER's debt to equity ratio has reduced from 32% to 12.1% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: EER's debt is not covered by short term assets (assets are 0.6x 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: EER has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: EER has sufficient cash runway for 1.3 years if free cash flow continues to grow at historical rates of 32.1% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.4%markettop25%5.5%industryaverage4.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

1.8yrs

Average board tenure


CEO

Rex Littlewood (68yo)

1.8yrs

Tenure

AU$145,250

Compensation

Mr. Rex Anthony Littlewood, B.Sc., MAICD has been Chairman and Managing Director of East Energy Resources Limited since May 24, 2018. Mr. Littlewood has been Director of Project Management In The Midlands  ...


CEO Compensation Analysis

Compensation vs Market: Rex's total compensation ($USD95.91K) is below average for companies of similar size in the Australian market ($USD250.90K).

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


Board Members

NamePositionTenureCompensationOwnership
Rex Littlewood
Chairman & MD1.8yrsAU$145.25kno data
Ranko Matic
Company Secretary & Non-Executive Director12.6yrsAU$54.00k0.0069% A$879.6
Christopher Thoroughgood
Non-Executive Director1.8yrsAU$22.25kno data

1.8yrs

Average Tenure

Experienced Board: EER's board of directors are not considered experienced ( 1.8 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: East Energy Resources Limited
  • Ticker: EER
  • Exchange: ASX
  • Founded: 2007
  • Industry: Coal and Consumable Fuels
  • Sector: Energy
  • Market Cap: AU$12.804m
  • Shares outstanding: 3.20b
  • Website: https://www.eastenergy.com.au

Location

  • East Energy Resources Limited
  • 22 Mount Street
  • Level 2
  • Perth
  • Western Australia
  • 6000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EERASX (Australian Securities Exchange)YesOrdinary SharesAUAUDMay 2013
EERCHIA (Chi-X Australia)YesOrdinary SharesAUAUDMay 2013

Biography

East Energy Resources Limited operates as a coal exploration and development company in Australia. It owns a 100% interest in the Blackall project that consists of three main coal resource areas in three tenements located in the Eastern Eromanga Basin in central Western Queensland. The company was founded in 2007 and is based in Perth, Australia. East Energy Resources Limited is a subsidiary of Maylion Pty Ltd. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 10:36
End of Day Share Price2020/02/20 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.