ASX:MMR

Stock Analysis Report

Executive Summary

MEC Resources Limited, through its interest in Advent Energy Ltd, operates as an oil and gas exploration and development company in Australia.

Snowflake

Fundamentals

Imperfect balance sheet with questionable track record.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

MMR

0.6%

AU Oil and Gas

0.9%

AU Market


1 Year Return

-54.5%

MMR

3.4%

AU Oil and Gas

16.3%

AU Market

Return vs Industry: MMR underperformed the Australian Oil and Gas industry which returned 3.4% over the past year.

Return vs Market: MMR underperformed the Australian Market which returned 16.3% over the past year.


Shareholder returns

MMRIndustryMarket
7 Day0%0.6%0.9%
30 Day-16.7%3.6%1.4%
90 Day-16.7%12.5%6.0%
1 Year-44.1%-54.5%7.7%3.4%23.0%16.3%
3 Year-70.7%-77.3%22.2%9.4%41.6%22.3%
5 Year-80.5%-84.8%-5.2%-18.8%57.7%22.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.27x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: MMR is good value based on its PB Ratio (0.3x) compared to the AU Oil and Gas industry average (1.4x).


Next Steps

Future Growth

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

8.3%

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 MEC Resources 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 MEC Resources performed over the past 5 years?

-40.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MMR has high quality earnings.

Growing Profit Margin: MMR's current net profit margins (-1250.5%) are higher than last year (-11404.8%).


Past Earnings Growth Analysis

Earnings Trend: MMR is unprofitable, and losses have increased over the past 5 years at a rate of -40.3% per year.

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

Earnings vs Industry: MMR 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: MMR has a negative Return on Equity (-14.76%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is MEC Resources's financial position?


Financial Position Analysis

Short Term Liabilities: MMR's short term assets (A$996.4K) do not cover its short term liabilities (A$2.0M)

Long Term Liabilities: MMR has no long term liabilities


Debt to Equity History and Analysis

Debt Level: MMR's debt to equity ratio (8.2%) is considered satisfactory

Reducing Debt: MMR's debt to equity ratio has increased from 1.9% to 8.2% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: MMR's debt is covered by short term assets (assets are 1.3x debt).


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

Forecast Cash Runway: MMR has less than a year of cash runway if free cash flow continues to reduce at historical rates of -10.1% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.4%markettop25%5.6%industryaverage4.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

0.6yrs

Average management tenure


CEO

MEC Resources has no CEO, or we have no data on them.


Management Age and Tenure

0.6yrs

Average Tenure

Experienced Management: MMR's management team is not considered experienced ( 0.6 years average tenure), which suggests a new team.


Board Age and Tenure

1.3yrs

Average Tenure

57yo

Average Age

Experienced Board: MMR's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


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 37.9%.


Management Team

  • Hock Goh (64yo)

    Consultant

    • Tenure: 1.3yrs
    • Compensation: AU$2.00
  • Rob Marusco

    Joint Company Secretary

    • Tenure: 0.2yrs
  • Andrew Bald (55yo)

    Company Secretary & Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: AU$24.00k

Board Members

  • Tom Fontaine (54yo)

    Member of Advisory Panel

    • Tenure: 0yrs
  • Mike Sandy (66yo)

    Non-Executive Chairman

    • Tenure: 1.3yrs
    • Compensation: AU$24.00k
  • Matthew Battrick (59yo)

    Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: AU$71.77k
  • Andrew Bald (55yo)

    Company Secretary & Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: AU$24.00k
  • Guiming Ding

    Chairman of Advisory Panel

    • Tenure: 0yrs
  • Fred Kroh

    Member of Advisory Panel

    • Tenure: 0yrs
  • Jim Dirstein

    Member of Advisory Panel

    • Tenure: 0yrs

Company Information

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


Key Information

  • Name: MEC Resources Limited
  • Ticker: MMR
  • Exchange: ASX
  • Founded:
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: AU$3.275m
  • Shares outstanding: 655.05m
  • Website: https://www.mecresources.com.au

Location

  • MEC Resources Limited
  • 1111 Hay Street
  • Suite 2
  • West Perth
  • Western Australia
  • 6005
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MMRASX (Australian Securities Exchange)YesOrdinary SharesAUAUDMay 2006
MMRCHIA (Chi-X Australia)YesOrdinary SharesAUAUDMay 2006

Biography

MEC Resources Limited, through its interest in Advent Energy Ltd, operates as an oil and gas exploration and development company in Australia. It holds 100% interests in the EP386 and RL1 assets located in ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/17 10:34
End of Day Share Price2019/11/14 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.