ASX:LKO

Stock Analysis Report

Executive Summary

Lakes Oil NL, together with its subsidiaries, engages in the exploration of oil and gas properties in Australia, the United States, and Papua New Guinea.


Snowflake Analysis

Mediocre balance sheet with limited growth.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

LKO

-0.6%

AU Oil and Gas

0.8%

AU Market


1 Year Return

50.0%

LKO

-8.9%

AU Oil and Gas

15.3%

AU Market

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

Return vs Market: LKO exceeded the Australian Market which returned 19.4% over the past year.


Shareholder returns

LKOIndustryMarket
7 Day0%-0.6%0.8%
30 Day0%-9.0%0.3%
90 Day-25.0%-3.4%5.3%
1 Year50.0%50.0%-5.0%-8.9%20.5%15.3%
3 Year-25.0%-25.0%11.7%0.3%37.4%18.8%
5 Year-62.5%-62.5%5.7%-12.9%50.7%16.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

3.09x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: LKO is overvalued based on its PB Ratio (3.1x) compared to the AU Oil and Gas industry average (1.4x).


Next Steps

Future Growth

How is Lakes Oil forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

0.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LKO is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: LKO is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: LKO is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: LKO's revenue (59.9% per year) is forecast to grow faster than the Australian market (3.8% per year).

High Growth Revenue: LKO's revenue (59.9% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LKO is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Lakes Oil performed over the past 5 years?

6.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LKO is currently unprofitable.

Growing Profit Margin: LKO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: LKO is unprofitable, but has reduced losses over the past 5 years at a rate of 6.3% per year.

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

Earnings vs Industry: LKO 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: LKO has a negative Return on Equity (-20.57%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Lakes Oil's financial position?


Financial Position Analysis

Short Term Liabilities: LKO's short term assets (A$3.5M) do not cover its short term liabilities (A$4.0M).

Long Term Liabilities: LKO's short term assets (A$3.5M) exceed its long term liabilities (A$550.0K).


Debt to Equity History and Analysis

Debt Level: LKO is debt free.

Reducing Debt: LKO has no debt compared to 5 years ago when its debt to equity ratio was 0.1%.


Balance Sheet

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

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

Forecast Cash Runway: LKO has less than a year of cash runway if free cash flow continues to reduce at historical rates of -7.9% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%5.5%industryaverage4.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

3.5yrs

Average management tenure


CEO

Roland Sleeman 0

3.5yrs

Tenure

AU$304,247

Compensation

Mr. Roland Kingsbury Sleeman, B.Eng (Mech), MBA has been Director of Rawson Oil and Gas Limited since August, 2018. He has been Chief Executive Officer and Director of Lakes Oil NL since June 8, 2016 and N ...


CEO Compensation Analysis

Compensation vs Market: Roland's total compensation ($USD212.37K) is about average for companies of similar size in the Australian market ($USD262.68K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Roland Sleeman
CEO & Director3.5yrsAU$304.25k0.45% A$225.1k
Tim O'Brien
Operations Manager12.9yrsAU$263.22k0.13% A$67.5k
Melanie Jaye Leydin
CFO & Company Secretary3.4yrsno datano data
Robert Thompson
Executive Officer0yrsno datano data
Sarah Rooke
Executive Officer0yrsno datano data
Theo Theophanous
Executive Officer0yrsno datano data
Guy Holdgate
Technical Consultant0yrsno datano data

3.5yrs

Average Tenure

Experienced Management: LKO's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Roland Sleeman
CEO & Director3.5yrsAU$304.25k0.45% A$225.1k
Nicholas Mather
Non-Executive Director7.8yrsAU$33.33kno data
Richard Ash
Non-Executive Director1.3yrsAU$28.70k0.080% A$40.2k

1.3yrs

Average Tenure

Experienced Board: LKO's board of directors are not considered experienced ( 1.3 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 16.9%.


Top Shareholders

Company Information

Lakes Oil NL's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lakes Oil NL
  • Ticker: LKO
  • Exchange: ASX
  • Founded: 1946
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: AU$50.066m
  • Shares outstanding: 33.38b
  • Website: https://lakesoil.net.au

Number of Employees


Location

  • Lakes Oil NL
  • 100 Albert Road
  • Level 4
  • South Melbourne
  • Victoria
  • 3205
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LKOASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
LKSDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
LKOL.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
LKOCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992

Biography

Lakes Oil NL, together with its subsidiaries, engages in the exploration of oil and gas properties in Australia, the United States, and Papua New Guinea. It holds interests in various exploration permits located onshore Gippsland basin and onshore Otway basin, Victoria; onshore Queensland; and onshore South Australia, as well as a 17.97% interest in the Eagle prospect located onshore California, the United States. The company was founded in 1946 and is based in South Melbourne, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/28 10:33
End of Day Share Price2019/09/30 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.