ASX:IPB

Stock Analysis Report

Executive Summary

IPB Petroleum Limited, together with its subsidiaries, engages in the exploration of oil and gas properties in Australia.

Snowflake

Fundamentals

Adequate balance sheet with poor track record.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-3.6%

IPB

-0.3%

AU Oil and Gas

0.3%

AU Market


1 Year Return

3.8%

IPB

7.3%

AU Oil and Gas

18.1%

AU Market

Return vs Industry: IPB underperformed the Australian Oil and Gas industry which returned 7.3% over the past year.

Return vs Market: IPB underperformed the Australian Market which returned 18.1% over the past year.


Shareholder returns

IPBIndustryMarket
7 Day-3.6%-0.3%0.3%
30 Day22.7%3.3%0.8%
90 Day28.6%5.6%3.3%
1 Year3.8%3.8%11.8%7.3%23.9%18.1%
3 Year107.7%107.7%17.4%5.2%37.1%18.4%
5 Year-12.9%-12.9%-8.2%-21.4%53.7%19.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

1.53x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: IPB is overvalued based on its PB Ratio (1.5x) compared to the AU Oil and Gas industry average (1.4x).


Next Steps

Future Growth

How is IPB Petroleum forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

7.6%

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 IPB Petroleum 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 IPB Petroleum performed over the past 5 years?

30.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IPB has high quality earnings.

Growing Profit Margin: IPB is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: IPB is unprofitable, but has reduced losses over the past 5 years at a rate of 30.2% per year.

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

Earnings vs Industry: IPB 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: IPB has a negative Return on Equity (-18.56%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is IPB Petroleum's financial position?


Financial Position Analysis

Short Term Liabilities: IPB's short term assets (A$1.1M) exceeds its short term liabilities (A$120.0K)

Long Term Liabilities: IPB has no long term liabilities


Debt to Equity History and Analysis

Debt Level: IPB is debt free.

Reducing Debt: IPB has not had any debt for past 5 years.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if IPB'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: IPB has less than a year of cash runway based on its current free cash flow.

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


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.4%markettop25%5.6%industryaverage4.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if IPB'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 IPB'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 IPB Petroleum's salary, the management and board of directors tenure and is there insider trading?

6.0yrs

Average management tenure


CEO

Brendan Brown 0

9.1yrs

Tenure

AU$364,176

Compensation

Mr. Brendan Brown, BSc, BE (Hons), MBA (Melb), F.Fin has been Managing Director of IPB Petroleum Limited since October 1, 2010. Mr. Brown founded IPB Petroleum Limited in May 2009 and has over 20 years' ex ...


CEO Compensation Analysis

Compensation vs Market: Brendan's total compensation ($USD247.72K) is about average for companies of similar size in the Australian market ($USD256.04K).

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


Management Age and Tenure

6.0yrs

Average Tenure

Experienced Management: IPB's management team is seasoned and experienced (6 years average tenure).


Board Age and Tenure

6.8yrs

Average Tenure

Experienced Board: IPB's board of directors are considered experienced (6.8 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 26.3%.


Management Team

  • Phil Smith

    Technical Director & Director

    • Tenure: 9.1yrs
    • Compensation: AU$44.59k
  • Martin Warwick (56yo)

    Company Secretary

    • Tenure: 4.8yrs
  • Brendan Brown

    MD & Director

    • Tenure: 9.1yrs
    • Compensation: AU$364.18k

Board Members

  • Bruce McKay (70yo)

    Non-Executive Chairman

    • Tenure: 5.5yrs
    • Compensation: AU$33.47k
  • Geoff King (71yo)

    Independent Non-Executive Director

    • Tenure: 6.8yrs
    • Compensation: AU$17.58k
  • Phil Smith

    Technical Director & Director

    • Tenure: 9.1yrs
    • Compensation: AU$44.59k
  • Brendan Brown

    MD & Director

    • Tenure: 9.1yrs
    • Compensation: AU$364.18k
  • Brod Wray

    Independent Non-Executive Director

    • Tenure: 5.5yrs
    • Compensation: AU$17.44k

Company Information

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


Key Information

  • Name: IPB Petroleum Limited
  • Ticker: IPB
  • Exchange: ASX
  • Founded: 2009
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: AU$6.227m
  • Shares outstanding: 230.64m
  • Website: https://www.ipbpet.com.au

Number of Employees


Location

  • IPB Petroleum Limited
  • 181 Bay Street
  • Level 1
  • Brighton
  • Victoria
  • 3186
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IPBASX (Australian Securities Exchange)YesOrdinary SharesAUAUDApr 2013
IPBCHIA (Chi-X Australia)YesOrdinary SharesAUAUDApr 2013

Biography

IPB Petroleum Limited, together with its subsidiaries, engages in the exploration of oil and gas properties in Australia. The company holds a 100% interest in the WA-424-P located in the Browse basin. IPB  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/21 10:35
End of Day Share Price2019/11/21 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.