ASX:WGO

Stock Analysis Report

Executive Summary

Warrego Energy Limited engages in the exploration and development of oil and gas properties.


Snowflake Analysis

Excellent balance sheet with weak fundamentals.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-5.1%

WGO

0.2%

AU Oil and Gas

0.02%

AU Market


1 Year Return

n/a

WGO

-8.4%

AU Oil and Gas

14.6%

AU Market

Return vs Industry: Insufficient data to determine how WGO performed against the Australian Oil and Gas industry.

Return vs Market: Insufficient data to determine how WGO performed against the Australian Market.


Shareholder returns

WGOIndustryMarket
7 Day-5.1%0.2%0.02%
30 Day-24.5%-8.0%0.2%
90 Day-11.9%-3.8%5.7%
1 Yearn/a-5.5%-8.4%19.7%14.6%
3 Yearn/a12.8%1.3%38.7%20.2%
5 Yearn/a5.0%-12.0%50.6%17.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

8.27x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: WGO is overvalued based on its PB Ratio (8.3x) compared to the AU Oil and Gas industry average (1.2x).


Next Steps

Future Growth

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

13.5%

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 Warrego 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 Warrego Energy performed over the past 5 years?

-2824.6%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: WGO is currently unprofitable.

Growing Profit Margin: WGO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Unable to establish if WGO's year-on-year earnings growth rate was positive over the past 5 years as it has been trading publicly for less than 3 years.

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

Earnings vs Industry: WGO is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (14.4%).


Return on Equity

High ROE: WGO has a negative Return on Equity (-55.2%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Warrego Energy's financial position?


Financial Position Analysis

Short Term Liabilities: WGO's short term assets (A$7.7M) exceed its short term liabilities (A$2.8M).

Long Term Liabilities: WGO's short term assets (A$7.7M) exceed its long term liabilities (A$98.6K).


Debt to Equity History and Analysis

Debt Level: WGO's debt to equity ratio (8.2%) is considered satisfactory.

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


Balance Sheet

Inventory Level: WGO has a low level of unsold assets or inventory.

Debt Coverage by Assets: WGO's debt is covered by short term assets (assets are 6.9x 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: WGO has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: WGO has sufficient cash runway for 1.9 years if free cash flow continues to reduce at historical rates of -183.1% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%5.3%industryaverage4.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

0.9yrs

Average board tenure


CEO

Dennis Donald 0

AU$284,018

Compensation

Mr. Dennis Donald serves as the Group Chief Executive Officer and Managing Director at Warrego Energy Ltd. and has been its Director since March 21, 2019. Mr. Donald served as Managing Director, Chief Exec ...


CEO Compensation Analysis

Compensation vs Market: Dennis's total compensation ($USD188.45K) is about average for companies of similar size in the Australian market ($USD251.50K).

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


Board Members

NamePositionTenureCompensationOwnership
Dennis Donald
Group CEO0yrsAU$284.02k19.81% A$26.0m
Owain Philip Franks
Executive Director of Finance0.9yrsAU$247.21k2.05% A$2.7m
Duncan MacNiven
Executive Director of Approvals0.9yrsAU$247.21k19.81% A$26.0m
Mark Routh
Non-Executive Director7.4yrsAU$21.24k1% A$1.3m
Gregory Columbus
Chairman0yrsAU$41.57k4.26% A$5.6m
David Arthur Biggs
Non-Executive Director0.9yrsAU$26.67k0.063% A$82.4k

0.9yrs

Average Tenure

Experienced Board: WGO's board of directors are not considered experienced ( 0.9 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: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: WGO only recently listed within the past 12 months, with total shares outstanding growing by 249.6% in the past year..


Top Shareholders

Company Information

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


Key Information

  • Name: Warrego Energy Limited
  • Ticker: WGO
  • Exchange: ASX
  • Founded:
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: AU$131.182m
  • Shares outstanding: 709.09m
  • Website: https://www.warregoenergy.com

Location

  • Warrego Energy Limited
  • 10 Bridge Street
  • Level 6
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WGOASX (Australian Securities Exchange)YesOrdinary SharesAUAUDMar 2019
WGOCHIA (Chi-X Australia)YesOrdinary SharesAUAUDMar 2019
PRYG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMar 2019

Biography

Warrego Energy Limited engages in the exploration and development of oil and gas properties. The company holds 100% interest in the EP469 basin covering an area of 224 square kilometers; and interests in the EPA-0127 basin, which comprises an area of 8,700 square kilometers located in Perth Basin, Western Australia. It also holds interests in the Tesorillo project, which include two petroleum exploration licenses, such as the Tesorillo and Ruedalabola permits covering an area of 38,000 hectares in Spain. The company is based in Sydney, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 10:56
End of Day Share Price2020/02/21 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.