ASX:RLE

Stock Analysis Report

Executive Summary

Real Energy Corporation Limited engages in the exploration, evaluation, and development of oil and gas projects in Australia.


Snowflake Analysis

Excellent balance sheet with limited growth.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

5.0%

RLE

-5.5%

AU Oil and Gas

-3.6%

AU Market


1 Year Return

-84.4%

RLE

-14.1%

AU Oil and Gas

10.9%

AU Market

Return vs Industry: RLE underperformed the Australian Oil and Gas industry which returned -14.1% over the past year.

Return vs Market: RLE underperformed the Australian Market which returned 10.9% over the past year.


Shareholder returns

RLEIndustryMarket
7 Day5.0%-5.5%-3.6%
30 Day-30.0%-13.5%-3.7%
90 Day-41.7%-12.2%-0.2%
1 Year-84.4%-84.4%-10.8%-14.1%15.6%10.9%
3 Year-58.0%-58.0%9.0%-2.8%34.1%16.0%
5 Year-86.9%-86.9%-0.8%-17.5%44.9%12.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.22x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: RLE is good value based on its PB Ratio (0.2x) compared to the AU Oil and Gas industry average (1.1x).


Next Steps

Future Growth

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

82.9%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if RLE's forecast earnings growth is above the savings rate (1.1%).

Earnings vs Market: Insufficient data to determine if RLE's earnings are forecast to grow faster than the Australian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: RLE's revenue (82.9% per year) is forecast to grow faster than the Australian market (4.1% per year).

High Growth Revenue: RLE's revenue (82.9% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if RLE's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Real Energy performed over the past 5 years?

-48.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RLE is currently unprofitable.

Growing Profit Margin: RLE is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RLE is unprofitable, and losses have increased over the past 5 years at a rate of -48.7% per year.

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

Earnings vs Industry: RLE is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-0.7%).


Return on Equity

High ROE: RLE has a negative Return on Equity (-6.73%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Real Energy's financial position?


Financial Position Analysis

Short Term Liabilities: RLE's short term assets (A$3.5M) exceed its short term liabilities (A$1.1M).

Long Term Liabilities: RLE's short term assets (A$3.5M) exceed its long term liabilities (A$456.0K).


Debt to Equity History and Analysis

Debt Level: RLE is debt free.

Reducing Debt: RLE had no debt 5 years ago.


Balance Sheet

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

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

Forecast Cash Runway: RLE has sufficient cash runway for 1.1 years if free cash flow continues to reduce at historical rates of -11.5% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.4%markettop25%5.5%industryaverage4.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

AU$329k

CEO Compensation


CEO

Scott Brown (54yo)

AU$329,000

Compensation

Mr. Scott Brown, B.Bus., M.Com, CA is a Co-Founder of Real Energy Corporation Limited and serves as its Chief Executive Officer and Managing Director. Mr. Brown has an extensive background in finance and t ...


CEO Compensation Analysis

Compensation vs Market: Scott's total compensation ($USD217.23K) is about average for companies of similar size in the Australian market ($USD250.90K).

Compensation vs Earnings: Scott's compensation has been consistent with company performance over the past year.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: RLE 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 26.2%.


Top Shareholders

Company Information

Real Energy Corporation Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Real Energy Corporation Limited
  • Ticker: RLE
  • Exchange: ASX
  • Founded: 2009
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: AU$7.417m
  • Shares outstanding: 353.19m
  • Website: https://www.realenergy.com.au

Number of Employees


Location

  • Real Energy Corporation Limited
  • 32 Walker Street
  • Level 3
  • North Sydney
  • New South Wales
  • 2060
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RLEASX (Australian Securities Exchange)YesOrdinary SharesAUAUDDec 2013
RLECHIA (Chi-X Australia)YesOrdinary SharesAUAUDDec 2013

Biography

Real Energy Corporation Limited engages in the exploration, evaluation, and development of oil and gas projects in Australia. The company holds 100% interest in the ATP 927P and ATP 1161PA permits covering an area of 2,761 square kilometers located in the Cooper-Eromanga Basin, South-West Queensland. Real Energy Corporation Limited was founded in 2009 and is based in North Sydney, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 10:40
End of Day Share Price2020/02/26 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.