TSX:NKO

Stock Analysis Report

Niko Resources

Executive Summary

Niko Resources Ltd. engages in the exploration, development, and production of oil and natural gas in India and Bangladesh.

Snowflake

Fundamentals

Mediocre balance sheet and slightly overvalued.

Risks

  • Niko Resources has significant price volatility in the past 3 months.
  • Niko Resources is not covered by any analysts.

Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0%

NKO

3.1%

CA Oil and Gas

1.3%

CA Market


1 Year Return

-81.3%

NKO

-10.7%

CA Oil and Gas

-0.1%

CA Market

NKO underperformed the Oil and Gas industry which returned -0.7% over the past year.

NKO underperformed the Market in Canada which returned -0.2% over the past year.


Share holder returns

NKOIndustryMarket
7 Day0%3.1%1.3%
30 Day0%10.0%4.7%
90 Day-40.0%1.0%1.6%
1 Year-81.3%-81.3%-6.6%-10.7%3.4%-0.1%
3 Year-94.5%-94.5%-5.2%-15.0%19.1%8.4%
5 Year-99.3%-99.3%-24.1%-35.3%23.2%5.7%

Price Volatility Vs. Market

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


Simply Wall St News

1 year ago | Simply Wall St

Want To Invest In Niko Resources Ltd (TSE:NKO)? Here's How It Performed Lately

Valuation

Is Niko Resources undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Niko Resources's share price is below the future cash flow value, and at a moderate discount (> 20%).

Niko Resources's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Niko Resources is loss making, we can't compare its value to the CA Oil and Gas industry average.

Niko Resources is loss making, we can't compare the value of its earnings to the Canada market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Niko Resources, we can't assess if its growth is good value.


Price Based on Value of Assets

Niko Resources has negative assets, we can't compare the value of its assets to the CA Oil and Gas industry average.


Next Steps

Future Growth

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

-4.3%

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 Niko 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 Niko Resources performed over the past 5 years?

51.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Niko Resources does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.

Unable to compare Niko Resources's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Niko Resources's 1-year growth to the CA Oil and Gas industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Niko Resources has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.


Return on Assets

It is difficult to establish if Niko Resources has efficiently used its assets last year compared to the CA Oil and Gas industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Niko Resources improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to its liabilities exceeding its assets.


Next Steps

Financial Health

How is Niko Resources's financial position?


Financial Position Analysis

Niko Resources's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Niko Resources has no long term commitments.


Debt to Equity History and Analysis

Niko Resources has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.

Irrelevant to check if Niko Resources's debt level has increased considering it has negative shareholder equity.


Balance Sheet

High level of physical assets or inventory.

Niko Resources has negative shareholder equity (liabilities exceed assets) therefore debt is not 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.

Niko Resources has sufficient cash runway for 1.4 years based on current free cash flow.

Niko Resources has sufficient cash runway for 1.4 years if free cash flow continues to grow at historical rates of 13.5% each year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Niko Resources's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Niko Resources's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Niko Resources has not reported any payouts.

Unable to verify if Niko Resources's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Niko Resources has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Bill Hornaday (62yo)

2.3yrs

Tenure

US$392,864

Compensation

Mr. William Thomas Hornaday, also known as Bill, B.Sc., P. Eng, has been the Chief Executive Officer of Niko Resources Ltd. since December 19, 2016 and served as its Chief Operating Officer since December  ...


CEO Compensation Analysis

Bill's remuneration is higher than average for companies of similar size in Canada.

Bill's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.3yrs

Average Tenure

The tenure for the Niko Resources management team is about average.


Board Age and Tenure

2.7yrs

Average Tenure

64yo

Average Age

The average tenure for the Niko Resources board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month insider trading information.


Recent Insider Transactions

SellUS$2,35615 Nov 18
Alan Knowles
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares58,900
Max PriceUS$0.04

Ownership Breakdown


Management Team

  • Jake Brace (61yo)

    Advisor to the Board

    • Tenure: 2.1yrs
    • Compensation: US$57.82k
  • Bill Hornaday (62yo)

    CEO & Director

    • Tenure: 2.3yrs
    • Compensation: US$392.86k
  • Glen Valk

    VP of Finance

    • Tenure: 6.2yrs
    • Compensation: US$236.36k

Board Members

  • Chris Rudge (73yo)

    Chairman

    • Tenure: 2.7yrs
    • Compensation: US$144.16k
  • Bill Hornaday (62yo)

    CEO & Director

    • Tenure: 2.3yrs
    • Compensation: US$392.86k
  • Glenn Carley (65yo)

    Independent Director

    • Tenure: 2.5yrs
    • Compensation: US$85.72k
  • Alan Knowles (64yo)

    Independent Director

    • Tenure: 4.5yrs
    • Compensation: US$105.20k
  • Scott Brandt (53yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$47.27k

Company Information

Niko Resources Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Niko Resources Ltd.
  • Ticker: NKO
  • Exchange: TSX
  • Founded: 1987
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: CA$1.411m
  • Shares outstanding: 94.05m
  • Website: https://www.nikoresources.com

Number of Employees


Location

  • Niko Resources Ltd.
  • 205-5th Avenue SW
  • Suite 1500
  • Calgary
  • Alberta
  • T2P 2V7
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NKOTSX (The Toronto Stock Exchange)YesCommon SharesCACADSep 1988
NRYDB (Deutsche Boerse AG)YesCommon SharesDEEURSep 1988
NKRS.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDSep 1988

Biography

Niko Resources Ltd. engages in the exploration, development, and production of oil and natural gas in India and Bangladesh. It primarily holds interests in the D6 Block consisting of Dhirubhai 1 and 3 Fiel ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/03/17 23:39
End of Day Share Price2019/03/13 00:00
Earnings2018/12/31
Annual Earnings2018/03/31


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.