ASX:ERA

Stock Analysis Report

Energy Resources of Australia

Executive Summary

Energy Resources of Australia Ltd engages in producing and selling uranium oxide.

Snowflake

Fundamentals

Mediocre balance sheet with weak fundamentals.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-2.4%

ERA

2.6%

AU Oil and Gas

0.4%

AU Market


1 Year Return

-40.6%

ERA

-10.4%

AU Oil and Gas

9.8%

AU Market

Return vs Industry: ERA underperformed the Australian Oil and Gas industry which returned -10.4% over the past year.

Return vs Market: ERA underperformed the Australian Market which returned 9.8% over the past year.


Shareholder returns

ERAIndustryMarket
7 Day-2.4%2.6%0.4%
30 Day2.5%-1.2%-1.1%
90 Day-10.9%1.9%-0.6%
1 Year-40.6%-40.6%-6.7%-10.4%16.1%9.8%
3 Year-40.6%-40.6%16.3%4.1%36.1%17.9%
5 Year-83.5%-83.5%-12.2%-28.2%49.4%15.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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


In this section, we usually try to help investors determine whether Energy Resources of Australia is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Energy Resources of Australia has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of ERA’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the potential returns from the core activities, the size of each contract's opportunity, and the capacity of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through Energy Resources of Australia regulatory filings.
  • Explore potentially undervalued companies in the Energy industry.

Future Growth

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

7.5%

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 Energy Resources of Australia 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 Energy Resources of Australia performed over the past 5 years?

-1.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ERA is unprofitable, and losses have increased over the past 5 years at a rate of -1.3% per year.

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

Earnings vs Industry: ERA 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: ERA's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets

ROA vs Industry: ERA is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: ERA is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Energy Resources of Australia's financial position?


Financial Position Analysis

Short Term Liabilities: ERA has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: ERA has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: ERA is debt free.

Reducing Debt: ERA's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if ERA'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: ERA has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: ERA has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of -118.4% each year


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%2.4%markettop25%5.6%industryaverage4.5%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

Stable Dividend: Insufficient data to determine if ERA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ERA's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: ERA is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ERA'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 Energy Resources of Australia's salary, the management and board of directors tenure and is there insider trading?

2.3yrs

Average management tenure


CEO

Paul Arnold 0

2.2yrs

Tenure

AU$876,000

Compensation

Mr. Paul Arnold has been the Chief Executive & Managing Director of Energy Resources of Australia Ltd since June 2017. Mr. Arnold has extensive experience to ERA gained over more than 25 years in the resou ...


CEO Compensation Analysis

Compensation vs. Market: Paul has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Australian market.

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


Management Age and Tenure

2.3yrs

Average Tenure

Experienced Management: ERA's management team is considered experienced (2.3 years average tenure).


Board Age and Tenure

3.1yrs

Average Tenure

Experienced Board: ERA's board of directors are considered experienced (3.1 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyAU$1,270,54525 Jun 19
Zentree Investments Ltd
EntityCompany
Shares5,678,980
Max PriceAU$0.22
BuyAU$1,310,64112 Apr 19
Zentree Investments Ltd
EntityCompany
Shares5,261,768
Max PriceAU$0.25
BuyAU$1,519,82221 Dec 18
Zentree Investments Ltd
EntityCompany
Shares5,265,631
Max PriceAU$0.29

Ownership Breakdown


Management Team

  • Alan Tietzel

    Chief Advisor of Agreements

    • Tenure: 7.1yrs
    • Compensation: AU$745.00k
  • Lesley Bryce

    General Manager of Operations

    • Tenure: 2.3yrs
    • Compensation: AU$596.00k
  • Paul Arnold

    CEO, MD & Director

    • Tenure: 2.2yrs
    • Compensation: AU$876.00k
  • James O’Connell

    Company Secretary & Legal Counsel

    • Tenure: 2.3yrs
  • David Blanch

    Chief Financial Officer

    • Tenure: 1.3yrs
    • Compensation: AU$381.32k
  • Rachel Storrs

    Investor Relations Officer

    • Tenure: 0yrs

Board Members

  • Paul Dowd (69yo)

    Non-Executive Director

    • Tenure: 4yrs
    • Compensation: AU$142.00k
  • Peter Mansell (73yo)

    Chairman of the Board

    • Tenure: 4yrs
    • Compensation: AU$225.00k
  • Andrea Sutton

    Non-Executive Director

    • Tenure: 1yrs
    • Compensation: AU$16.00k
  • Shane Charles

    Non-Executive Director

    • Tenure: 4yrs
    • Compensation: AU$144.00k
  • Paul Arnold

    CEO, MD & Director

    • Tenure: 2.2yrs
    • Compensation: AU$876.00k
  • Justin Carey

    Non-Executive Director

    • Tenure: 0.2yrs

Company Information

Energy Resources of Australia Ltd's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Energy Resources of Australia Ltd
  • Ticker: ERA
  • Exchange: ASX
  • Founded: 1980
  • Industry: Coal and Consumable Fuels
  • Sector: Energy
  • Market Cap: AU$106.134m
  • Shares outstanding: 517.73m
  • Website: https://www.energyres.com.au

Number of Employees


Location

  • Energy Resources of Australia Ltd
  • Energy House
  • Level 3
  • Darwin
  • Northern Territories
  • 801
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EGRA.FOTCPK (Pink Sheets LLC)YesClass A SharesUSUSDJun 1995
EJ7DB (Deutsche Boerse AG)YesClass A SharesDEEURJun 1995
ERAASX (Australian Securities Exchange)YesClass A SharesAUAUDJun 1995
ERACHIA (Chi-X Australia)YesClass A SharesAUAUDJun 1995
EGRA.YOTCPK (Pink Sheets LLC)ADR RPSTG ASHSUSUSDMar 2009

Biography

Energy Resources of Australia Ltd engages in producing and selling uranium oxide. The company holds interests in threes assets, such as the Ranger Stockpiles, the Ranger 3 Deeps underground resource, and t ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 10:32
End of Day Share Price2019/10/18 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.