TSX:AOI

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Fair value with moderate growth potential.


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

Stable Share Price: AOI is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: AOI's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

1.7%

AOI

-2.0%

CA Oil and Gas

-0.2%

CA Market


1 Year Return

-18.2%

AOI

-24.4%

CA Oil and Gas

1.5%

CA Market

Return vs Industry: AOI exceeded the Canadian Oil and Gas industry which returned -24.4% over the past year.

Return vs Market: AOI underperformed the Canadian Market which returned 1.4% over the past year.


Shareholder returns

AOIIndustryMarket
7 Day1.7%-2.0%-0.2%
30 Day6.1%5.9%2.7%
90 Day24.7%23.3%12.5%
1 Year-18.2%-18.2%-20.0%-24.4%5.2%1.5%
3 Year-25.3%-25.3%-21.0%-30.8%13.5%2.7%
5 Year-37.6%-37.6%-3.9%-21.0%60.0%35.5%

Long-Term 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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AOI (CA$1.21) is trading below our estimate of fair value (CA$3.97)

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


Price To Earnings Ratio

PE vs Industry: AOI is unprofitable, so we can't compare its PE Ratio to the CA 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

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 (0.7x) compared to the CA Oil and Gas industry average (1.2x).


Next Steps

Future Growth

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

59.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AOI is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.5%).

Earnings vs Market: AOI is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: AOI's is expected to become profitable in 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

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?

-36.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AOI is currently unprofitable.

Growing Profit Margin: AOI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AOI is unprofitable, and losses have increased over the past 5 years at a rate of 36% 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 (-52.6%).


Return on Equity

High ROE: AOI has a negative Return on Equity (-35.75%), as it is currently unprofitable.


Next Steps

Financial Health

How is Africa Oil's financial position?


Financial Position Analysis

Short Term Liabilities: AOI's short term assets ($32.6M) exceed its short term liabilities ($25.3M).

Long Term Liabilities: AOI's short term assets ($32.6M) do not cover its long term liabilities ($179.8M).


Debt to Equity History and Analysis

Debt Level: AOI's debt to equity ratio (26%) is considered satisfactory.

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


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: AOI has less than a year of cash runway 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 current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate AOI'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 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

How experienced are the management team and are they aligned to shareholders interests?

9.8yrs

Average management tenure


CEO

Keith Hill (61 yo)

11.83yrs

Tenure

US$1,954,869

Compensation

Mr. Keith C. Hill, B.Sc., M.Sc., MBA, has been the Chief Executive Officer of Africa Oil Corp. since October 2006 and has been its President and Director since October 2006. He has over30 years of experien...


CEO Compensation Analysis

Compensation vs Market: Keith's total compensation ($USD1.95M) is above average for companies of similar size in the Canadian market ($USD790.06K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Keith Hill
CEO, President & Non-Independent Director11.83yrsUS$1.95m0.28%
$ 1.6m
Pascal Nicodeme
Chief Financial Officer1.25yrsUS$959.88k0.0023%
$ 12.9k
Timothy Thomas
Chief Operating Officer5.75yrsUS$928.35k0.016%
$ 92.5k
Bryan Benitz
Consultantno dataUS$144.48kno data
Paul Martinez
Vice President of Exploration9.83yrsUS$970.52k0.033%
$ 188.9k
Kevin Hisko
Corporate Secretary11.33yrsno datano data

9.8yrs

Average Tenure

62yo

Average Age

Experienced Management: AOI's management team is seasoned and experienced (9.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Keith Hill
CEO, President & Non-Independent Director11.83yrsUS$1.95m0.28%
$ 1.6m
John Craig
Independent Chairman of the Board4.75yrsUS$189.08k0.052%
$ 296.8k
Gary Guidry
Independent Director12.58yrsUS$157.67k0.033%
$ 191.2k
Ian Gibbs
Director1.33yrsUS$836.55k0.21%
$ 1.2m
Kimberley Wood
Independent Director3yrsUS$153.90kno data
Andrew Bartlett
Independent Director5.67yrsUS$168.97k0.024%
$ 137.1k
Erin Johnston
Independent Director1.42yrsUS$18.77kno data

4.8yrs

Average Tenure

61yo

Average Age

Experienced Board: AOI's board of directors are considered experienced (4.8 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.


Ownership Breakdown

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


Top Shareholders

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$571.072m
  • Shares outstanding: 471.96m
  • 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. The company holds interests in producing and development assets in de...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/23 23:59
End of Day Share Price2021/01/22 00:00
Earnings2020/09/30
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.