ASX:FDM

Stock Analysis Report

Freedom Oil and Gas

Executive Summary

Freedom Oil and Gas Ltd, a development stage independent oil and gas company, engages in the exploration and production of oil and gas in the United States.


Snowflake Analysis

Overvalued with worrying balance sheet.


Similar Companies

Share Price & News

How has Freedom Oil and Gas's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

FDM

13.1%

AU Oil and Gas

5.1%

AU Market


1 Year Return

-93.9%

FDM

-41.3%

AU Oil and Gas

-19.1%

AU Market

Return vs Industry: FDM underperformed the Australian Oil and Gas industry which returned 11.1% over the past year.

Return vs Market: FDM underperformed the Australian Market which returned 19.4% over the past year.


Shareholder returns

FDMIndustryMarket
7 Day0%13.1%5.1%
30 Day0%-27.2%-18.7%
90 Day-15.4%-44.2%-25.7%
1 Year-93.9%-93.9%-38.9%-41.3%-15.4%-19.1%
3 Year-87.4%-87.4%-33.5%-41.5%-3.3%-16.6%
5 Year-93.3%-93.3%-35.5%-47.0%6.9%-17.3%

Price Volatility Vs. Market

How volatile is Freedom Oil and Gas's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Freedom Oil and Gas undervalued compared to its fair value and its price relative to the market?

0.13x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: FDM is good value based on its PB Ratio (0.1x) compared to the AU Oil and Gas industry average (1.4x).


Next Steps

Future Growth

How is Freedom Oil and Gas forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

14.9%

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 Freedom Oil and Gas 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 Freedom Oil and Gas performed over the past 5 years?

11.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FDM is currently unprofitable.

Growing Profit Margin: FDM is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: FDM is unprofitable, but has reduced losses over the past 5 years at a rate of 11.7% per year.

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

Earnings vs Industry: FDM 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: FDM has a negative Return on Equity (-1.49%), as it is currently unprofitable.


Next Steps

Financial Health

How is Freedom Oil and Gas's financial position?


Financial Position Analysis

Short Term Liabilities: FDM's short term assets ($18.0M) do not cover its short term liabilities ($20.1M).

Long Term Liabilities: FDM's short term assets ($18.0M) do not cover its long term liabilities ($18.9M).


Debt to Equity History and Analysis

Debt Level: FDM's debt to equity ratio (28.1%) is considered satisfactory.

Reducing Debt: FDM's debt to equity ratio has increased from 3% to 28.1% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: FDM's debt is covered by short term assets (assets are 1x 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 FDM has enough cash runway based on its current free cash flow.

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


Next Steps

Dividend

What is Freedom Oil and Gas's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if FDM'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 FDM'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 management tenure


CEO

Russ Porter (57yo)

0.83

Tenure

Mr. James Russell Porter, also known as Russ, has been Consultant of Gastar Exploration Inc. since February 26, 2018. Mr. Porter has been Chief Executive Officer of Freedom Oil and Gas Ltd. since January 1 ...


Leadership Team

NamePositionTenureCompensationOwnership
Mark Mabile
Vice President of Operations1.83yrsUS$273.44k0.038% $4.5k
James Porter
Executive Chairman & CEO0.83yrno datano data
Lloyd DeLano
Controller and Accounting Managerno datano datano data
Andrew Crawford
Company Secretary9.75yrsUS$189.38kno data

1.8yrs

Average Tenure

57yo

Average Age

Experienced Management: FDM's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
James Porter
Executive Chairman & CEO0.83yrno datano data
Winston Talbert
Independent Director0.92yrUS$56.25kno data
David Casey
Independent Non-Executive Director0.58yrno datano data
Lee Clarke
Independent Vice Chairman0.83yrUS$50.32k2.36% $279.8k
Heath Sumrow
Independent Non-Executive Director0.58yrno datano data

0.8yrs

Average Tenure

57yo

Average Age

Experienced Board: FDM's board of directors are not considered experienced ( 0.8 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 been diluted in the past year, with total shares outstanding growing by 21.4%.


Top Shareholders

Company Information

Freedom Oil and Gas Ltd's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Freedom Oil and Gas Ltd
  • Ticker: FDM
  • Exchange: ASX
  • Founded: 2007
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: AU$11.847m
  • Shares outstanding: 1.08b
  • Website: https://www.freedomog.com

Number of Employees


Location

  • Freedom Oil and Gas Ltd
  • 5151 San Felipe
  • Suite 800
  • Houston
  • Texas
  • 77056
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FDMASX (Australian Securities Exchange)YesOrdinary SharesAUAUDSep 2010
FDMQ.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDSep 2010
7MDDB (Deutsche Boerse AG)YesOrdinary SharesDEEURSep 2010
FDMCHIA (Chi-X Australia)YesOrdinary SharesAUAUDSep 2010

Biography

Freedom Oil and Gas Ltd, a development stage independent oil and gas company, engages in the exploration and production of oil and gas in the United States. As of December 31, 2018, its leasehold position totaled 9,337 net acres of undeveloped land located in the Eagle Ford Shale play in Dimmit County, South Texas. The company was formerly known as Maverick Drilling & Exploration Limited and changed its name to Freedom Oil and Gas Ltd in November 2016. Freedom Oil and Gas Ltd was founded in 2007 and is headquartered in Houston, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/02 10:36
End of Day Share Price2019/08/05 00:00
Earnings2018/12/31
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.