Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
It is not possible to calculate the future cash flow value for
Leigh Creek Energy. This is due to cash flow or dividend data being
unavailable. The share price is
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
Leigh Creek Energy's
is considered below, and whether this is a fair price.
Price based on past earnings
Leigh Creek Energy's earnings available for a low price, and how does
this compare to other companies in the same industry?
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 Leigh Creek Energy 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 Simply Wall St do have past financial data. You can see them here.
Show me the analysis anyway
The future performance of a company is measured in the same way as past
performance, by looking at estimated
and how much profit it is expected to make.
Future estimates come from
professional analysts. Just like forecasting the weather, they don’t always get
Expected Oil and Gas industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Leigh Creek Energy
expected to grow at an
Unable to compare Leigh Creek Energy's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Leigh Creek Energy's earnings growth to the Australia market average as no estimate data is available.
Unable to compare Leigh Creek Energy's revenue growth to the Australia market average as no estimate data is available.
Unable to determine if Leigh Creek Energy is high growth as no earnings estimate data is available.
Unable to determine if Leigh Creek Energy is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Leigh Creek Energy's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
Oil and Gas
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
Leigh Creek Energy
has a total score of
0/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
Leigh Creek Energy's finances.
The net worth of a company is the difference between its assets and liabilities.
Leigh Creek Energy is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Leigh Creek Energy has no long term commitments.
This treemap shows a more detailed breakdown of
Leigh Creek Energy's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
High level of physical assets or inventory.
Debt is covered by short term assets, assets are 2.4x debt.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Mr. Phillip J. Staveley, also known as Phil, CPA, BA (Acc) (Hons), Dipl Btr, serves as Managing Director and Director of Leigh Creek Energy Limited since December 5, 2017. Mr. Staveley served as the Chief Executive Officer of Leigh Creek Energy Limited since February 10, 2016 and served as its Chief Financial Officer until October 7, 2016. Mr. Staveley started his career in the oil and gas sector working for Schlumberger in London, followed by a number of years with SAGASCO and SAOG (South Australian Oil and Gas Company). He spent almost ten years with Normandy Mining Ltd. Whilst with Normandy he fulfilled a number of planning, finance, M&A and commercial roles, including the establishment of a Group Supply Function and three years based in Rio de Janeiro as the CFO of TVX Normandy Americas. He is a qualified Accountant who has 30 years’ experience working in the resources sector.
Phil's compensation has increased whilst company is loss making.
Phil's remuneration is about average for companies of similar size in Australia.
Management Team Tenure
Average tenure of the
Leigh Creek Energy
management team in years:
The average tenure for the Leigh Creek Energy management team is less than 2 years, this suggests a new team.
MD & Director
General Manager Technical
Consultant & Non-Executive Director
Human Resource Manager
Company Secretary (Leave of Absence)
Joint Company Secretary
Board of Directors Tenure
Average tenure of the
Leigh Creek Energy
board of directors in years:
The average tenure for the Leigh Creek Energy board of directors is less than 3 years, this suggests a new board.
Does Leigh Creek Energy Limited (ASX:LCK) Have A Volatile Share Price?
Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market. … Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … Any stock with a beta of greater than one is considered more volatile than the market, while those with a beta below one are either less volatile or poorly correlated with the market.
Can We See Significant Insider Ownership On The Leigh Creek Energy Limited (ASX:LCK) Share Register?
A look at the shareholders of Leigh Creek Energy Limited (ASX:LCK) can tell us which group is most powerful. … Leigh Creek Energy is not a large company by global standards. … See our latest analysis for Leigh Creek Energy
Is Leigh Creek Energy Limited (ASX:LCK) Undervalued?
Leigh Creek Energy Limited (ASX:LCK), an energy company based in Australia, saw a significant share price rise of over 20% in the past couple of months on the ASX. … Another thing to keep in mind is that Leigh Creek Energy’s share price is quite stable relative to the rest of the market, as indicated by its low beta. … Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price.
IPD’s projected future profit growth is an exceptional 72.31%, with an underlying triple-digit growth from its revenues expected over the upcoming years. … ASX:IPD Future Profit May 14th 18 Cooper Energy Limited (ASX:COE) Cooper Energy Limited, a petroleum exploration and production company, finds, develops, and sells oil and gas properties. … COE’s projected future profit growth is an exceptional 79.54%, with an underlying triple-digit growth from its revenues expected over the upcoming years.
Interested In Energy? Why Leigh Creek Energy Limited (ASX:LCK) May Be The Entry Point
Below, I will examine the sector growth prospects, and also determine whether Leigh Creek Energy is a laggard or leader relative to its energy sector peers. … Check out our latest analysis for Leigh Creek Energy What’s the catalyst for Leigh Creek Energy's sector growth? … ASX:LCK Past Future Earnings Apr 26th 18 The oil price collapse triggered a wave of cost reduction among energy businesses as the sector as a whole faced negative growth over the past five years.
Did Leigh Creek Energy Limited's (ASX:LCK) Earnings Growth Outperform The Industry?
Understanding how Leigh Creek Energy Limited (ASX:LCK) is performing as a company requires looking at more than just a years' earnings. … Today I will run you through a basic sense check to gain perspective on how Leigh Creek Energy is doing by comparing its latest earnings with its long-term trend as well as the performance of its oil and gas industry peers. … See our latest analysis for Leigh Creek Energy Were LCK's earnings stronger than its past performances and the industry?
Leigh Creek Energy Limited (ASX:LCK): Are Analysts Optimistic?
Leigh Creek Energy Limited's (ASX:LCK): Leigh Creek Energy Limited operates as an energy company in Australia. … See our latest analysis for Leigh Creek Energy According to the industry analysts covering LCK, breakeven is near. … Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Leigh Creek Energy’s board and the CEO’s back ground.
Is Leigh Creek Energy Limited (ASX:LCK) A Financially Sound Company?
With this growth in debt, the current cash and short-term investment levels stands at AU$8.76M , ready to deploy into the business. … Moving onto cash from operations, its operating cash flow is not yet significant enough to calculate a meaningful cash-to-debt ratio, indicating that operational efficiency is something we’d need to take a look at. … Risk around debt is very low for LCK, and the company also has the ability and headroom to increase debt if needed going forward.Next Steps: Although LCK’s debt level is relatively low, its cash flow levels still could not copiously cover its borrowings.
Want To Invest In Leigh Creek Energy Limited (ASX:LCK)? Here's How It Performed Lately
Today I will examine Leigh Creek Energy Limited's (ASX:LCK) latest earnings update (30 June 2017) and compare these figures against its performance over the past couple of years, in addition to how the rest of LCK's industry performed. … Check out our latest analysis for Leigh Creek Energy Was LCK weak performance lately part of a long-term decline? … Leigh Creek Energy's latest earnings -A$5.8M, which compared to the previous year's figure, has become more negative.
Have Investors Already Priced In Oil & Gas Growth For Leigh Creek Energy Limited (ASX:LCK)?
ASX:LCK Past Future Earnings Nov 16th 17 The oil price collapse drove a negative 40% growth in the energy sector in the past five years. … Only now has the sector begun to emerge from its turmoil, and in the past year, the industry turnaround delivered growth of over 50%, beating the Australian market growth of 5.37%. … If your initial investment thesis is around the growth prospects of LCK, there are other oil and gas companies that have delivered higher growth, and perhaps trading at a discount to the industry average.
Leigh Creek Energy Limited operates as an energy company in Australia. The company explores for coal and synthesis gas comprising methane, hydrogen, and carbon monoxide. It focuses on developing the Leigh Creek Energy project located to the north of Adelaide, South Australia. The company also operates energy markets, including National Electricity Market, South Australia Electricity Market, and National Wholesale Gas Markets. The company was formerly known as Marathon Resources Limited and changed its name to Leigh Creek Energy Limited in August 2015. Leigh Creek Energy Limited is headquartered in Adelaide, Australia.
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