ASX:XST

Stock Analysis Report

Xstate Resources

Executive Summary

Xstate Resources Limited, together with its subsidiaries, engages in the development, exploration, and evaluation of oil and natural gas properties in the United States.


Snowflake Analysis

Worrying balance sheet with weak fundamentals.

Share Price & News

How has Xstate Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

XST

15.5%

AU Oil and Gas

2.8%

AU Market


1 Year Return

-33.3%

XST

-39.0%

AU Oil and Gas

-16.2%

AU Market

Return vs Industry: XST exceeded the Australian Oil and Gas industry which returned -39% over the past year.

Return vs Market: XST underperformed the Australian Market which returned -16.2% over the past year.


Shareholder returns

XSTIndustryMarket
7 Day0%15.5%2.8%
30 Day0%-23.3%-15.2%
90 Day-50.0%-41.6%-23.4%
1 Year-33.3%-33.3%-36.5%-39.0%-12.4%-16.2%
3 Year-77.8%-77.8%-31.7%-40.1%-0.2%-13.9%
5 Year-80.0%-80.0%-33.1%-45.0%11.5%-13.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Xstate Resources undervalued compared to its fair value and its price relative to the market?


In this section, we usually try to help investors determine whether Xstate Resources is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Xstate Resources has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of XST’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the potential returns from the core activities, the size of each contract's opportunity, and the capacity of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through Xstate Resources regulatory filings.
  • Explore potentially undervalued companies in the Energy industry.

Future Growth

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

14.9%

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 Xstate Resources 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 Xstate Resources performed over the past 5 years?

3.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: XST is currently unprofitable.

Growing Profit Margin: XST is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: XST is unprofitable, but has reduced losses over the past 5 years at a rate of 3.2% per year.

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

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


Return on Equity

High ROE: XST's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is Xstate Resources's financial position?


Financial Position Analysis

Short Term Liabilities: XST has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: XST has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: XST is debt free.

Reducing Debt: XST's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


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: XST has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: XST has less than a year of cash runway if free cash flow continues to reduce at historical rates of -5.7% each year


Next Steps

Dividend

What is Xstate Resources's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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

0.4yrs

Average board tenure


CEO

David McArthur (56yo)

0.42

Tenure

AU$99,356

Compensation

Mr. David Maxwell McArthur serves as Company Secretary of Tox Free Solutions Ltd. Mr. McArthur has been Company Secretary of Mobilarm Ltd. since January 11, 2011 and Company Secretary at Lodestar Minerals  ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD60.55K) is below average for companies of similar size in the Australian market ($USD238.47K).

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


Board Members

NamePositionTenureCompensationOwnership
David McArthur
Interim MD0.42yrAU$99.36k1.75% A$50.0k
Richard Lorentz
Non-Executive Director0.42yrno datano data
Christopher Hodge
Independent Non-Executive Director6.42yrsAU$44.61k0.054% A$1.5k

0.4yrs

Average Tenure

63yo

Average Age

Experienced Board: XST's board of directors are not considered experienced ( 0.4 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: Shareholders have been diluted in the past year, with total shares outstanding growing by 41%.


Top Shareholders

Company Information

Xstate Resources Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Xstate Resources Limited
  • Ticker: XST
  • Exchange: ASX
  • Founded:
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: AU$2.851m
  • Shares outstanding: 1.43b
  • Website: https://www.xstate.com.au

Location

  • Xstate Resources Limited
  • 31 Cliff Street
  • Level 1
  • Fremantle
  • Western Australia
  • 6160
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
XSTASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
XSTCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992

Biography

Xstate Resources Limited, together with its subsidiaries, engages in the development, exploration, and evaluation of oil and natural gas properties in the United States. The company holds interests in the conventional gas and oil exploration assets located in onshore California with a focus on the Sacramento basin. It also has an interest in the King Brown gold tenement. The company is based in Fremantle, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 10:36
End of Day Share Price2020/03/25 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.