TSX:AOI

Stock Analysis Report

Executive Summary

Africa Oil Corp., together with its subsidiaries, operates as an oil and gas exploration and development company in Kenya and Ethiopia.

Snowflake

Fundamentals

Excellent balance sheet and overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

1.8%

AOI

0.4%

CA Oil and Gas

-0.1%

CA Market


1 Year Return

-13.1%

AOI

-12.5%

CA Oil and Gas

0.9%

CA Market

Return vs Industry: AOI matched the Canadian Oil and Gas industry which returned -12.5% over the past year.

Return vs Market: AOI underperformed the Canadian Market which returned 0.9% over the past year.


Shareholder returns

AOIIndustryMarket
7 Day1.8%0.4%-0.1%
30 Day-11.0%-2.7%-2.1%
90 Day-8.1%-4.4%-1.6%
1 Year-13.1%-13.1%-8.6%-12.5%4.4%0.9%
3 Year-50.2%-50.2%-14.8%-23.4%15.5%5.2%
5 Year-73.0%-73.0%-22.2%-34.0%25.7%7.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.44x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: AOI (CA$1.13) is trading above our estimate of fair value (CA$0.95)

Significantly Undervalued: AOI is trading above our estimate of fair value.


Price To Earnings Ratio

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

PE vs Market: AOI is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: AOI is good value based on its PB Ratio (0.4x) compared to the CA Oil and Gas industry average (0.7x).


Next Steps

Future Growth

How is Africa Oil forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

98.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

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

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


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if AOI's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Africa Oil performed over the past 5 years?

24.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: AOI is unprofitable, but has reduced losses over the past 5 years at a rate of 24% per year.

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

Earnings vs Industry: AOI is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (62.2%).


Return on Equity

High ROE: AOI has a negative Return on Equity (-3.12%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: AOI is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: AOI is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Africa Oil's financial position?


Financial Position Analysis

Short Term Liabilities: AOI's short term assets ($343.1M) exceeds its short term liabilities ($30.6M)

Long Term Liabilities: AOI's short term assets (343.1M) exceeds its long term liabilities (868.0K)


Debt to Equity History and Analysis

Debt Level: AOI is debt free.

Reducing Debt: AOI has not had any debt for past 5 years.


Balance Sheet

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

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


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: AOI has sufficient cash runway for more than 3 years based on its current free cash flow.

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


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%6.0%industryaverage4.9%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

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


Next Steps

Management

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

9.3yrs

Average management tenure


CEO

Keith Hill (60yo)

10.6yrs

Tenure

US$1,796,688

Compensation

Mr. Keith C. Hill, B.Sc., M.Sc., MBA, serves as Chairman of the Board at TAG Oil Ltd., since January 30, 2018. He has been the Chief Executive Officer of Africa Oil Corp. since March 30, 2009 and has been  ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Keith's total compensation is reasonable compared to companies of similar size in the Canadian market.

Compensation vs Earnings: Keith's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

9.3yrs

Average Tenure

61yo

Average Age

Experienced Management: AOI's management team is seasoned and experienced (9.3 years average tenure).


Board Age and Tenure

3.5yrs

Average Tenure

60.5yo

Average Age

Experienced Board: AOI's board of directors are considered experienced (3.5 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Keith Hill (60yo)

    CEO, President & Non-Independent Director

    • Tenure: 10.6yrs
    • Compensation: US$1.80m
  • Bryan Benitz (85yo)

    Consultant

    • Tenure: 0yrs
    • Compensation: US$142.82k
  • Kevin Hisko (61yo)

    Corporate Secretary

    • Tenure: 10.1yrs
  • Tim Thomas (61yo)

    Chief Operating Officer

    • Tenure: 4.5yrs
    • Compensation: US$947.91k
  • Paul Martinez

    Vice President of Exploration

    • Tenure: 8.6yrs
    • Compensation: US$866.03k

Board Members

  • Keith Hill (60yo)

    CEO, President & Non-Independent Director

    • Tenure: 10.6yrs
    • Compensation: US$1.80m
  • John Craig (72yo)

    Independent Chairman of the Board

    • Tenure: 3.5yrs
    • Compensation: US$164.53k
  • Greg Guidry (63yo)

    Independent Director

    • Tenure: 11.3yrs
    • Compensation: US$175.88k
  • Ian Gibbs (50yo)

    Director

    • Tenure: 0.8yrs
    • Compensation: US$1.13m
  • Kimberley Wood (49yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$129.47k
  • Andy Bartlett (61yo)

    Independent Director

    • Tenure: 4.4yrs
    • Compensation: US$165.01k
  • Erin Johnston

    Director

    • Tenure: 0.2yrs

Company Information

Africa Oil Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Africa Oil Corp.
  • Ticker: AOI
  • Exchange: TSX
  • Founded: 1983
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: CA$532.472m
  • Shares outstanding: 471.21m
  • Website: https://www.africaoilcorp.com

Number of Employees


Location

  • Africa Oil Corp.
  • 885 West Georgia Street
  • Suite 2000
  • Vancouver
  • British Columbia
  • V6C 3E8
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AOITSX (The Toronto Stock Exchange)YesCommon SharesCACADJan 1996
AFZDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1996
AOIOM (OMX Nordic Exchange Stockholm)YesCommon SharesSESEKJan 1996
AOIF.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJan 1996
0QVLLSE (London Stock Exchange)YesCommon SharesGBSEKJan 1996
AOISBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBSEKJan 1996

Biography

Africa Oil Corp., together with its subsidiaries, operates as an oil and gas exploration and development company in Kenya and Ethiopia. It holds interests primarily in the East African Rift Basin. The comp ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 23:54
End of Day Share Price2019/10/11 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.