ASX:MEL

Stock Analysis Report

Executive Summary

Metgasco Limited engages in the exploration, evaluation, appraisal, and development of oil and gas in Australia.

Snowflake

Fundamentals

Excellent balance sheet and overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-11.1%

MEL

0.8%

AU Oil and Gas

0.1%

AU Market


1 Year Return

-28.6%

MEL

-7.2%

AU Oil and Gas

11.9%

AU Market

Return vs Industry: MEL underperformed the Australian Oil and Gas industry which returned -7.2% over the past year.

Return vs Market: MEL underperformed the Australian Market which returned 11.9% over the past year.


Shareholder returns

MELIndustryMarket
7 Day-11.1%0.8%0.1%
30 Day-16.7%-1.2%-1.1%
90 Day14.3%-1.1%-1.4%
1 Year-28.6%-28.6%-3.3%-7.2%18.5%11.9%
3 Year-1.2%-37.5%12.6%0.4%36.4%18.1%
5 Year5.4%-33.3%-10.7%-26.9%50.9%16.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

1.05x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: MEL is good value based on its PB Ratio (1.1x) compared to the AU Oil and Gas industry average (1.4x).


Next Steps

Future Growth

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

8.0%

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 Metgasco 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 Metgasco performed over the past 5 years?

51.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MEL is unprofitable, but has reduced losses over the past 5 years at a rate of 51.8% per year.

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

Earnings vs Industry: MEL 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: MEL has a negative Return on Equity (-95.71%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: MEL is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: MEL is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Metgasco's financial position?


Financial Position Analysis

Short Term Liabilities: MEL's short term assets (A$7.8M) exceeds its short term liabilities (A$1.9M)

Long Term Liabilities: MEL's short term assets (7.8M) exceeds its long term liabilities (21.6K)


Debt to Equity History and Analysis

Debt Level: MEL is debt free.

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


Balance Sheet

Inventory Level: MEL has a low level of unsold assets or inventory.

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

Forecast Cash Runway: MEL has sufficient cash runway for 1.635417 years if free cash flow continues to grow at historical rates of 39.7% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.4%markettop25%5.6%industryaverage4.5%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

Stable Dividend: Insufficient data to determine if MEL's dividends per share have been stable in the past.

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

1.7yrs

Average board tenure


CEO

Ken Aitken 0

0yrs

Tenure

AU$231,362

Compensation

Mr. Ken J. Aitken, BSc, MICD has been the Chief Executive Officer at Empire Oil & Gas NL since May 5, 2014. Mr. Aitken was an Executive Director of Metgasco Ltd. since September 4, 2018 until November 27,  ...


CEO Compensation Analysis

Compensation vs. Market: Ken's total compensation ($USD158.84K) is about average for companies of similar size in the Australian market ($USD260.53K).

Compensation vs Earnings: Insufficient data to compare Ken's compensation with company performance.


Board Age and Tenure

1.7yrs

Average Tenure

Experienced Board: MEL's board of directors are not considered experienced ( 1.7 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: MEL insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyAU$26,49916 Oct 19
Keybridge Capital Limited
EntityCompany
Shares608,072
Max PriceAU$0.044
SellAU$579,18016 Oct 19
Keybridge Capital Limited
EntityCompany
Shares12,850,150
Max PriceAU$0.048
BuyAU$99,00015 Oct 19
Robbert Willink
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares2,200,000
Max PriceAU$0.045
BuyAU$41,55915 Oct 19
Philip Amery
EntityIndividual
Role
Chairman of the Board
Independent Non-Executive Chairman
Shares923,523
Max PriceAU$0.045
BuyAU$1,83604 Jun 19
Philip Amery
EntityIndividual
Role
Chairman of the Board
Independent Non-Executive Chairman
Shares39,529
Max PriceAU$0.046
BuyAU$2,62611 Feb 19
Philip Amery
EntityIndividual
Role
Chairman of the Board
Independent Non-Executive Chairman
Shares50,000
Max PriceAU$0.053
BuyAU$5,30007 Nov 18
Philip Amery
EntityIndividual
Role
Chairman of the Board
Independent Non-Executive Chairman
Shares100,000
Max PriceAU$0.053
BuyAU$3,74002 Nov 18
Philip Amery
EntityIndividual
Role
Chairman of the Board
Independent Non-Executive Chairman
Shares71,948
Max PriceAU$0.052

Ownership Breakdown


Management Team

  • Ken Aitken

    Chief Executive Officer

    • Tenure: 0yrs
    • Compensation: AU$231.36k
  • Mark Langan

    CFO & Company Secretary

    • Tenure: 0yrs

Board Members

  • Rob Willink (66yo)

    Independent Non-Executive Director

    • Tenure: 1.7yrs
    • Compensation: AU$62.33k
  • John Patton

    Non-Executive Director

    • Tenure: 3.1yrs
    • Compensation: AU$50.00k
  • Philip Amery

    Independent Non-Executive Chairman

    • Tenure: 1.2yrs
    • Compensation: AU$58.33k

Company Information

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


Key Information

  • Name: Metgasco Limited
  • Ticker: MEL
  • Exchange: ASX
  • Founded: 1999
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: AU$17.577m
  • Shares outstanding: 390.60m
  • Website: https://www.metgasco.com.au

Location

  • Metgasco Limited
  • 2 Elizabeth Plaza
  • Level 3
  • North Sydney
  • New South Wales
  • 2060
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MELASX (Australian Securities Exchange)YesOrdinary SharesAUAUDDec 2004
MELCHIA (Chi-X Australia)YesOrdinary SharesAUAUDDec 2004

Biography

Metgasco Limited engages in the exploration, evaluation, appraisal, and development of oil and gas in Australia. It also invests in and develops associated energy infrastructure. The company was incorporat ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 10:33
End of Day Share Price2019/10/23 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.