ASX:NSE

Stock Analysis Report

New Standard Energy

Executive Summary

New Standard Energy Limited explores for oil and gas properties.

Rewards

Earnings have grown 50.8% per year over the past 5 years

Risk Analysis

Has less than 1 year of cash runway

Makes less than USD$1m in revenue (A$-16)

Does not have a meaningful market cap (A$4M)

Currently unprofitable and not forecast to become profitable over the next 3 years

+ 1 more risk


Snowflake Analysis

Adequate balance sheet with weak fundamentals.

Share Price & News

How has New Standard Energy's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NSE has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

NSE

0.8%

AU Oil and Gas

0.7%

AU Market


1 Year Return

n/a

NSE

-8.5%

AU Oil and Gas

15.8%

AU Market

Return vs Industry: Insufficient data to determine how NSE performed against the Australian Oil and Gas industry.

Return vs Market: Insufficient data to determine how NSE performed against the Australian Market.


Shareholder returns

NSEIndustryMarket
7 Day0%0.8%0.7%
30 Day0%-8.5%0.4%
90 Day-20.0%-1.8%6.5%
1 Yearn/a-4.6%-8.5%21.0%15.8%
3 Year-20.0%-20.0%12.1%0.7%37.4%19.1%
5 Year-90.7%-90.7%5.7%-11.1%50.7%17.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is New Standard Energy undervalued compared to its fair value and its price relative to the market?

64.52x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: NSE is overvalued based on its PB Ratio (64.5x) compared to the AU Oil and Gas industry average (1.4x).


Next Steps

Future Growth

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

11.4%

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 New Standard 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 SimplyWall St do have past financial data.


Next Steps

Past Performance

How has New Standard Energy performed over the past 5 years?

50.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NSE is currently unprofitable.

Growing Profit Margin: NSE is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NSE is unprofitable, but has reduced losses over the past 5 years at a rate of 50.8% per year.

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

Earnings vs Industry: NSE 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: NSE has a negative Return on Equity (-984.76%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is New Standard Energy's financial position?


Financial Position Analysis

Short Term Liabilities: NSE's short term assets (A$245.9K) exceed its short term liabilities (A$236.8K).

Long Term Liabilities: NSE has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: NSE is debt free.

Reducing Debt: NSE has no debt compared to 5 years ago when its debt to equity ratio was 11.6%.


Balance Sheet

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

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

Forecast Cash Runway: NSE has less than a year of cash runway if free cash flow continues to grow at historical rates of 60.3% each year.


Next Steps

Dividend

What is New Standard Energy's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%5.4%industryaverage4.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

2.1yrs

Average board tenure


CEO

Xiaofeng Liu (53yo)

2.2yrs

Tenure

0

Mr. Xiaofeng Liu serves as the Chief Geologist of Huizhou Energy Investment (Beijing) Co., Ltd. Mr. Liu has 26 years of experience in the oil field including extensive experience in seismic interpretation, ...


Board Members

NamePositionTenureCompensationOwnership
Xiaofeng Liu
MD & Director2.2yrsno datano data
Ming Li
Company Secretary & Non-Executive Director2.1yrsno data0.66% A$23.6k
Kunfang Liu
Independent Non-Executive Chairman2.1yrsno datano data
Peng Zhang
Non-Executive Director2.1yrsno datano data
Xiaoning Lin
Independent Non-Executive Director0.8yrsno datano data

2.1yrs

Average Tenure

Experienced Board: NSE's board of directors are not considered experienced ( 2.1 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 10.4%.


Top Shareholders

Company Information

New Standard Energy Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: New Standard Energy Limited
  • Ticker: NSE
  • Exchange: ASX
  • Founded: 1995
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: AU$3.555m
  • Shares outstanding: 888.75m
  • Website: https://newstandard.com.au

Number of Employees


Location

  • New Standard Energy Limited
  • 117 Brisbane Street
  • Unit 1
  • Perth
  • Western Australia
  • 6000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NSEASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJul 2008
NWST.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2008
NSECHIA (Chi-X Australia)YesOrdinary SharesAUAUDJul 2008

Biography

New Standard Energy Limited explores for oil and gas properties. It owns a 100% interest in the EP481, an exploration permit located in the Carnarvon Basin in Western Australia. The company was founded in 1995 and is headquartered in Perth, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/05 10:34
End of Day Share Price2019/10/08 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.