ASX:TAP

Stock Analysis Report

Executive Summary

Tap Oil Limited engages in oil and gas exploration and production business in Asia and Australia.

Snowflake

Fundamentals

Flawless balance sheet and undervalued.


Similar Companies

Share Price & News

How has Tap Oil's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

TAP

0.8%

AU Oil and Gas

0.4%

AU Market


1 Year Return

42.9%

TAP

3.6%

AU Oil and Gas

14.8%

AU Market

Return vs Industry: TAP exceeded the Australian Oil and Gas industry which returned 3.6% over the past year.

Return vs Market: TAP exceeded the Australian Market which returned 14.8% over the past year.


Shareholder returns

TAPIndustryMarket
7 Day0%0.8%0.4%
30 Day4.0%3.3%0.4%
90 Day31.3%10.7%4.6%
1 Year42.9%42.9%7.8%3.6%21.4%14.8%
3 Year60.5%60.5%20.9%8.2%40.2%21.4%
5 Year-72.1%-76.8%-0.2%-18.3%54.5%19.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Tap Oil undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TAP (A$0.13) is trading below our estimate of fair value (A$0.54)

Significantly Below Fair Value: TAP is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TAP is good value based on its PE Ratio (2x) compared to the Oil and Gas industry average (8.9x).

PE vs Market: TAP is good value based on its PE Ratio (2x) compared to the Australian market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate TAP's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: TAP is good value based on its PB Ratio (0.8x) compared to the AU Oil and Gas industry average (1.3x).


Next Steps

Future Growth

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

8.3%

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 Tap Oil 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 Tap Oil performed over the past 5 years?

46.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TAP has a high level of non-cash earnings.

Growing Profit Margin: TAP's current net profit margins (41.8%) are higher than last year (-29.2%).


Past Earnings Growth Analysis

Earnings Trend: TAP has become profitable over the past 5 years, growing earnings by 46.7% per year.

Accelerating Growth: TAP has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: TAP has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (68.1%).


Return on Equity

High ROE: TAP's Return on Equity (38.4%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Tap Oil's financial position?


Financial Position Analysis

Short Term Liabilities: TAP's short term assets ($41.9M) exceeds its short term liabilities ($5.1M)

Long Term Liabilities: TAP's short term assets (41.9M) exceeds its long term liabilities (22.0M)


Debt to Equity History and Analysis

Debt Level: TAP is debt free.

Reducing Debt: TAP has no debt compared to 5 years ago when its debt to equity ratio was 21.3%.

Debt Coverage: TAP has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: TAP has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if TAP's debt is covered by short term assets.


Next Steps

Dividend

What is Tap Oil's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.4%markettop25%5.6%industryaverage4.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if TAP'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 TAP's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

What is the CEO of Tap Oil's salary, the management and board of directors tenure and is there insider trading?

1.1yrs

Average board tenure


CEO

Tap Oil has no CEO, or we have no data on them.


Board Age and Tenure

1.1yrs

Average Tenure

Experienced Board: TAP's board of directors are not considered experienced ( 1.1 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$715,15903 Oct 19
Risco Energy Investments Pte Ltd.
EntityCompany
Shares5,959,270
Max PriceUS$0.12

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Chris Newton

    Executive Chairman

    • Tenure: 1.1yrs
    • Compensation: US$171.14k
  • Shannon Coates

    Company Secretary

    • Tenure: 2.3yrs

Board Members

  • Dave King (72yo)

    Independent Non-Executive Director

    • Tenure: 1.1yrs
    • Compensation: US$9.87k
  • Chris Newton

    Executive Chairman

    • Tenure: 1.1yrs
    • Compensation: US$171.14k
  • Kamarudin bin Baba

    Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: US$44.22k
  • Zane Robert Lewis

    Independent Non-Executive Director

    • Tenure: 1.2yrs
    • Compensation: US$13.03k

Company Information

Tap Oil Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tap Oil Limited
  • Ticker: TAP
  • Exchange: ASX
  • Founded: 1995
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: AU$54.035m
  • Shares outstanding: 425.47m
  • Website: https://www.tapoil.com.au

Number of Employees


Location

  • Tap Oil Limited
  • 190 Saint Georges Terrace
  • Level 2
  • Perth
  • Western Australia
  • 6000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TAPO.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDSep 1996
TAPASX (Australian Securities Exchange)YesOrdinary SharesAUAUDSep 1996
TAKDB (Deutsche Boerse AG)YesOrdinary SharesDEEURSep 1996
TAPCHIA (Chi-X Australia)YesOrdinary SharesAUAUDSep 1996

Biography

Tap Oil Limited engages in oil and gas exploration and production business in Asia and Australia. It operates through Oil & Gas Production and Development; Oil & Gas Exploration; and Third Party Gas segmen ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/13 10:32
End of Day Share Price2019/11/12 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.