ASX:ROG

Stock Analysis Report

Executive Summary

Red Sky Energy Limited engages in the exploration and development of oil and gas properties in the United States.


Snowflake Analysis

Worrying balance sheet with weak fundamentals.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

ROG

8.5%

AU Oil and Gas

7.1%

AU Market


1 Year Return

-66.7%

ROG

-46.9%

AU Oil and Gas

-19.4%

AU Market

Return vs Industry: ROG underperformed the Australian Oil and Gas industry which returned -46.7% over the past year.

Return vs Market: ROG underperformed the Australian Market which returned -18.8% over the past year.


Shareholder returns

ROGIndustryMarket
7 Day0%8.5%7.1%
30 Day-50.0%-34.9%-21.3%
90 Day-50.0%-46.5%-24.8%
1 Year-66.7%-66.7%-44.8%-46.9%-15.8%-19.4%
3 Year-88.9%-88.9%-37.4%-45.0%-2.4%-15.8%
5 Year-98.0%-98.0%-38.5%-49.5%8.4%-16.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

2.32x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: ROG is overvalued based on its PB Ratio (2.3x) compared to the AU Oil and Gas industry average (0.7x).


Next Steps

Future Growth

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

14.5%

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 Red Sky 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 Red Sky Energy performed over the past 5 years?

-1.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ROG is currently unprofitable.

Growing Profit Margin: ROG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ROG is unprofitable, and losses have increased over the past 5 years at a rate of -1% per year.

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

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


Return on Equity

High ROE: ROG has a negative Return on Equity (-245.43%), as it is currently unprofitable.


Next Steps

Financial Health

How is Red Sky Energy's financial position?


Financial Position Analysis

Short Term Liabilities: ROG's short term assets (A$198.6K) do not cover its short term liabilities (A$636.6K).

Long Term Liabilities: ROG has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: ROG's debt to equity ratio (44.8%) is considered high.

Reducing Debt: Insufficient data to determine if ROG's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: ROG's debt is not covered by short term assets (assets are 0.6x 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: ROG has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: ROG has less than a year of cash runway if free cash flow continues to reduce at historical rates of -8.1% each year


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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

1.7yrs

Average management tenure


CEO

Andrew Knox (57yo)

1.67s

Tenure

AU$174,572

Compensation

Mr. Andrew Melville Knox, B.Com, CA, CPA, FAICD has been Chief Executive Officer, Managing Director and Director at Red Sky Energy Limited since July 6, 2018. Mr. Knox is a Non-Executive Director of Rimfir ...


CEO Compensation Analysis

Compensation vs Market: Andrew's total compensation ($USD107.53K) is below average for companies of similar size in the Australian market ($USD245.57K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Andrew Knox
CEO, MD & Director1.67yrsAU$174.57k5.19% A$84.4k
Adrien Wing
Company Secretary & Non-Executive Director3.25yrsAU$102.00k3.2% A$52.0k
Pauline Moffatt
Joint Company Secretary1.17yrsno datano data
Phillip Cooney
Manager of Explorationno dataAU$20.16kno data

1.7yrs

Average Tenure

Experienced Management: ROG's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Andrew Knox
CEO, MD & Director1.67yrsAU$174.57k5.19% A$84.4k
Adrien Wing
Company Secretary & Non-Executive Director3.25yrsAU$102.00k3.2% A$52.0k
Gordon Ramsay
Non-Executive Chairman0.25yrno datano data
Clinton Carey
Non-Executive Director5.17yrsAU$121.43kno data

2.5yrs

Average Tenure

49yo

Average Age

Experienced Board: ROG's board of directors are not considered experienced ( 2.5 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: ROG 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 substantially diluted in the past year, with total shares outstanding growing by 74.6%.


Top Shareholders

Company Information

Red Sky Energy Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Red Sky Energy Limited
  • Ticker: ROG
  • Exchange: ASX
  • Founded:
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: AU$1.626m
  • Shares outstanding: 1.63b
  • Website: https://www.redskyenergy.com.au

Location

  • Red Sky Energy Limited
  • 500 Collins Street
  • Level 17
  • Melbourne
  • Victoria
  • 3000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ROGASX (Australian Securities Exchange)YesOrdinary SharesAUAUDMay 2007
ROGCHIA (Chi-X Australia)YesOrdinary SharesAUAUDMay 2007

Biography

Red Sky Energy Limited engages in the exploration and development of oil and gas properties in the United States. It holds interest in the Gold Nugget gas field located in the Wind River Basin, Wyoming. The company is based in Melbourne, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 10:41
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.