ASX:GGX

Stock Analysis Report

Executive Summary

Gas2Grid Limited operates as the petroleum exploration company in Australia, the Philippines, and France.


Snowflake Analysis

Slightly overvalued with weak fundamentals.

Share Price & News

How has Gas2Grid's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

GGX

15.5%

AU Oil and Gas

2.8%

AU Market


1 Year Return

-75.0%

GGX

-39.0%

AU Oil and Gas

-16.2%

AU Market

Return vs Industry: GGX underperformed the Australian Oil and Gas industry which returned -41.3% over the past year.

Return vs Market: GGX underperformed the Australian Market which returned -19.1% over the past year.


Shareholder returns

GGXIndustryMarket
7 Day0%15.5%2.8%
30 Day-50.0%-23.3%-15.2%
90 Day-66.7%-41.6%-23.4%
1 Year-75.0%-75.0%-36.5%-39.0%-12.4%-16.2%
3 Year-66.7%-66.7%-31.7%-40.1%-0.2%-13.9%
5 Year-85.7%-85.7%-33.1%-45.0%11.5%-13.6%

Price Volatility Vs. Market

How volatile is Gas2Grid's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Gas2Grid undervalued compared to its fair value and its price relative to the market?

38.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GGX (A$0) is trading below our estimate of fair value (A$0)

Significantly Below Fair Value: GGX is trading below fair value by more than 20%.


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: GGX has negative assets, so we can't compare its PB Ratio to the AU Oil and Gas industry average.


Next Steps

Future Growth

How is Gas2Grid 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 Gas2Grid 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 Gas2Grid performed over the past 5 years?

36.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GGX is currently unprofitable.

Growing Profit Margin: GGX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GGX is unprofitable, but has reduced losses over the past 5 years at a rate of 36.3% per year.

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

Earnings vs Industry: GGX is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-16%).


Return on Equity

High ROE: GGX's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is Gas2Grid's financial position?


Financial Position Analysis

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

Long Term Liabilities: GGX 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: GGX has negative shareholder equity, which is a more serious situation than a high debt level.

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


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: GGX has less than a year of cash runway based on its current free cash flow.

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


Next Steps

Dividend

What is Gas2Grid's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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

12.1yrs

Average board tenure


CEO

Dennis Morton

12.08s

Tenure

AU$145,000

Compensation

Mr. Dennis James Morton, BSc (Hons), served as Non-executive Director at International Base Metals Limited since January 23, 2018 until 2019. He has been the Managing Director at Gas2grid Limited since Mar ...


CEO Compensation Analysis

Compensation vs Market: Dennis's total compensation ($USD87.13K) is below average for companies of similar size in the Australian market ($USD238.47K).

Compensation vs Earnings: Dennis's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
David Munns
Non Executive Chairman & Operations Consultant15.33yrsAU$35.00k4.68% A$60.8k
Dennis Morton
MD & Executive Director12.08yrsAU$145.00k16.44% A$213.6k
Wong Voon Sam Yue
CFO, Company Secretary & Executive Director10.5yrsAU$165.40k10.05% A$130.6k

12.1yrs

Average Tenure

Experienced Board: GGX's board of directors are seasoned and experienced ( 12.1 years average tenure).


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 diluted in the past year, with total shares outstanding growing by 31.4%.


Top Shareholders

Company Information

Gas2Grid Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Gas2Grid Limited
  • Ticker: GGX
  • Exchange: ASX
  • Founded: 2004
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: AU$1.299m
  • Shares outstanding: 1.30b
  • Website: https://www.gas2grid.com

Location

  • Gas2Grid Limited
  • 58 Pitt Street
  • Suite 22
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GGXASX (Australian Securities Exchange)YesOrdinary SharesAUAUDMay 2005
GGXCHIA (Chi-X Australia)YesOrdinary SharesAUAUDMay 2005

Biography

Gas2Grid Limited operates as the petroleum exploration company in Australia, the Philippines, and France. The company holds a 100% interest in the Service Contract 44 covering an area of approximately 750 square kilometers located on Cebu Island, the Philippines; and St Griede license covering an area of approximately 652 square kilometers located in onshore Aquitaine Basin, France. Gas2Grid Limited was founded in 2004 and is headquartered in Sydney, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 10:40
End of Day Share Price2020/04/07 00:00
Earnings2019/12/31
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.