ASX:STX

Stock Analysis Report

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Executive Summary

Strike Energy Limited explores for and develops oil and gas resources in Australia.


Snowflake Analysis

Excellent balance sheet with weak fundamentals.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

9.1%

STX

1.5%

AU Oil and Gas

1.4%

AU Market


1 Year Return

65.5%

STX

-26.5%

AU Oil and Gas

-4.5%

AU Market

Return vs Industry: STX exceeded the Australian Oil and Gas industry which returned -27.3% over the past year.

Return vs Market: STX exceeded the Australian Market which returned -4.2% over the past year.


Shareholder returns

STXIndustryMarket
7 Day9.1%1.5%1.4%
30 Day17.1%1.3%1.7%
90 Day45.5%7.6%14.7%
1 Year65.5%65.5%-23.3%-26.5%-0.8%-4.5%
3 Year220.0%220.0%-11.2%-20.7%19.6%4.1%
5 Year120.5%118.2%-8.2%-24.8%45.4%14.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

3.14x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: STX is overvalued based on its PB Ratio (3.1x) compared to the AU Oil and Gas industry average (1.1x).


Next Steps

Future Growth

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

61.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STX is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: STX is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: STX is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: Insufficient data to determine if STX's revenue is forecast to grow faster than the Australian market.

High Growth Revenue: Insufficient data to determine if STX's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: STX is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Strike Energy performed over the past 5 years?

23.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: STX is currently unprofitable.

Growing Profit Margin: STX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: STX is unprofitable, but has reduced losses over the past 5 years at a rate of 23.9% per year.

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

Earnings vs Industry: STX is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-15.6%).


Return on Equity

High ROE: STX has a negative Return on Equity (-3.8%), as it is currently unprofitable.


Next Steps

Financial Health

How is Strike Energy's financial position?


Financial Position Analysis

Short Term Liabilities: STX's short term assets (A$28.6M) exceed its short term liabilities (A$2.7M).

Long Term Liabilities: STX's short term assets (A$28.6M) exceed its long term liabilities (A$19.8M).


Debt to Equity History and Analysis

Debt Level: STX is debt free.

Reducing Debt: STX has no debt compared to 5 years ago when its debt to equity ratio was 17.5%.


Balance Sheet


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: STX has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if STX has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Strike Energy current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate STX's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if STX's dividends per share have been stable in the past.

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

3.3yrs

Average management tenure


CEO

Stuart Nicholls

3.33yrs

Tenure

AU$501,075

Compensation

Mr. Stuart Nicholls, B.Comm (Acct & Fin), has been the Managing Director and Executive Director of Strike Energy Limited since August 18, 2017 and its Chief Executive Officer since April 10, 2017. Mr. Nich ...


CEO Compensation Analysis

Compensation vs Market: Stuart's total compensation ($USD359.27K) is about average for companies of similar size in the Australian market ($USD511.46K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Stuart Nicholls
MD, CEO & Executive Director3.33yrsAU$501.08k0.16%
A$ 678.6k
Justin Ferravant
CFO & Company Secretary3yrsAU$404.57k0.018%
A$ 73.8k
Pax Barkla
Chief Operating Officerno datano datano data
Lucy Gauvin
General Counselno datano datano data
David Baker
Consultant3.33yrsAU$481.14kno data

3.3yrs

Average Tenure

Experienced Management: STX's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Stuart Nicholls
MD, CEO & Executive Director3.33yrsAU$501.08k0.16%
A$ 678.6k
Stephen Bizzell
Non-Executive Director1.67yrsAU$34.26k0.60%
A$ 2.5m
Andrew Seaton
Non-Executive Director3yrsAU$77.28k0.037%
A$ 151.3k
Neville Power
Deputy Chairman0.92yrno data0.73%
A$ 3.0m
John Poynton
Non-Executive Chairman3.33yrsAU$87.25k0.49%
A$ 2.0m
Jody Rowe
Non-Executive Director6.17yrsAU$68.11k0.057%
A$ 235.2k

3.0yrs

Average Tenure

55yo

Average Age

Experienced Board: STX's board of directors are considered experienced (3 years average tenure).


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 11%.


Top Shareholders

Company Information

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


Key Information

  • Name: Strike Energy Limited
  • Ticker: STX
  • Exchange: ASX
  • Founded: 1997
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: AU$412.899m
  • Shares outstanding: 1.72b
  • Website: https://www.strikeenergy.com.au

Location

  • Strike Energy Limited
  • 31-35 George Street
  • Unit1
  • Thebarton
  • South Australia
  • 5031
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
STXASX (Australian Securities Exchange)YesOrdinary SharesAUAUDAug 2004
RJNDB (Deutsche Boerse AG)YesOrdinary SharesDEEURAug 2004
STXCHIA (Chi-X Australia)YesOrdinary SharesAUAUDAug 2004

Biography

Strike Energy Limited explores for and develops oil and gas resources in Australia. The company primarily focuses on the Southern Cooper Basin Gas Project located in South Australia. Its exploration permit ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/14 01:27
End of Day Share Price2020/08/13 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.