ASX:NWE

Stock Analysis Report

Executive Summary

Norwest Energy NL explores for hydrocarbon resources in Australia.


Snowflake Analysis

Excellent balance sheet with weak fundamentals.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

NWE

13.1%

AU Oil and Gas

5.1%

AU Market


1 Year Return

50.0%

NWE

-41.3%

AU Oil and Gas

-19.1%

AU Market

Return vs Industry: NWE exceeded the Australian Oil and Gas industry which returned -41.4% over the past year.

Return vs Market: NWE exceeded the Australian Market which returned -19.2% over the past year.


Shareholder returns

NWEIndustryMarket
7 Day0%13.1%5.1%
30 Day-14.3%-27.2%-18.7%
90 Day-57.1%-44.2%-25.7%
1 Year50.0%50.0%-38.9%-41.3%-15.4%-19.1%
3 Year-25.0%-25.0%-33.5%-41.5%-3.3%-16.6%
5 Year-19.6%-25.0%-35.5%-47.0%6.9%-17.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

3.41x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: NWE is overvalued based on its PB Ratio (3.4x) compared to the AU Oil and Gas industry average (0.7x).


Next Steps

Future Growth

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

14.9%

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 Norwest 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 Norwest Energy performed over the past 5 years?

5.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NWE is currently unprofitable.

Growing Profit Margin: NWE is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NWE is unprofitable, but has reduced losses over the past 5 years at a rate of 5.7% per year.

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

Earnings vs Industry: NWE is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-16%).


Return on Equity

High ROE: NWE has a negative Return on Equity (-170.99%), as it is currently unprofitable.


Next Steps

Financial Health

How is Norwest Energy's financial position?


Financial Position Analysis

Short Term Liabilities: NWE's short term assets (A$3.3M) exceed its short term liabilities (A$204.1K).

Long Term Liabilities: NWE's short term assets (A$3.3M) exceed its long term liabilities (A$1.0M).


Debt to Equity History and Analysis

Debt Level: NWE's debt to equity ratio (26.6%) is considered satisfactory.

Reducing Debt: NWE's debt to equity ratio has increased from 11.5% to 26.6% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: NWE's debt is covered by short term assets (assets are 3.3x 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: NWE has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: NWE has sufficient cash runway for 1.3 years if free cash flow continues to grow at historical rates of 22% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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

1.0yrs

Average board tenure


CEO

Iain Smith

1

Tenure

AU$278,760

Compensation

Mr. Iain Peter Smith serves as Director of Norwest Energy NL since April 2, 2019 and its Managing Director since April 3, 2019 . He served as an Executive Officer of Pilot Energy Limited since August 9, 20 ...


CEO Compensation Analysis

Compensation vs Market: Iain's total compensation ($USD167.51K) is about average for companies of similar size in the Australian market ($USD238.58K).

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


Board Members

NamePositionTenureCompensationOwnership
Iain Smith
MD & Director1yrAU$278.76k0.091% A$12.9k
Ernest Myers
Non-Executive Chairman2.25yrsAU$21.00k0.091% A$12.9k
Bruce Frederick Clement
Non-Executive Director0.33yrno datano data
Graham Mulligan
Director of Norwest Holdings UKno datano datano data

1.0yrs

Average Tenure

Experienced Board: NWE's board of directors are not considered experienced ( 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: NWE 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 14.4%.


Top Shareholders

Company Information

Norwest Energy NL's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Norwest Energy NL
  • Ticker: NWE
  • Exchange: ASX
  • Founded: 1997
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: AU$14.203m
  • Shares outstanding: 4.73b
  • Website: https://www.norwestenergy.com.au

Number of Employees


Location

  • Norwest Energy NL
  • 30 Richardson Street
  • Level 2
  • West Perth
  • Western Australia
  • 6005
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NUXDB (Deutsche Boerse AG)YesOrdinary SharesDEEURFeb 1998
NWEASX (Australian Securities Exchange)YesOrdinary SharesAUAUDFeb 1998
NWECHIA (Chi-X Australia)YesOrdinary SharesAUAUDFeb 1998

Biography

Norwest Energy NL explores for hydrocarbon resources in Australia. It owns 25% interests in TP/15 license; 27.945% interests in EP413 license; 20% interests in EP368 license; 22.22% interests in EP426 license; and 6.278% interests in L14 Jingemia oilfield located in Australia. The company was founded in 1997 and is based in West Perth, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/06 10:33
End of Day Share Price2020/04/06 00:00
Earnings2019/12/31
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.