TSXV:ALV

Stock Analysis Report

Alvopetro Energy

Executive Summary

Alvopetro Energy Ltd. engages in the acquisition, exploration, development, and production of hydrocarbons in the Recôncavo basins in onshore Brazil.


Snowflake Analysis

Mediocre balance sheet and slightly overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: ALV has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

13.6%

ALV

-9.0%

CA Oil and Gas

-6.2%

CA Market


1 Year Return

80.7%

ALV

-10.4%

CA Oil and Gas

-2.0%

CA Market

Return vs Industry: ALV exceeded the Canadian Oil and Gas industry which returned -10.4% over the past year.

Return vs Market: ALV exceeded the Canadian Market which returned -2% over the past year.


Shareholder returns

ALVIndustryMarket
7 Day13.6%-9.0%-6.2%
30 Day-1.3%-8.4%-5.0%
90 Day11.9%-4.6%-2.8%
1 Year80.7%80.7%-6.6%-10.4%1.1%-2.0%
3 Year206.1%206.1%-13.1%-22.3%10.7%0.6%
5 Year57.9%57.9%-14.8%-28.4%27.6%8.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Alvopetro Energy 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: ALV (CA$0.75) is trading below our estimate of fair value (CA$2.59)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: ALV is overvalued based on its PB Ratio (1x) compared to the CA Oil and Gas industry average (0.6x).


Next Steps

Future Growth

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

37.7%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if ALV's forecast earnings growth is above the savings rate (1.4%).

Earnings vs Market: Insufficient data to determine if ALV's earnings are forecast to grow faster than the Canadian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ALV's revenue (37.7% per year) is forecast to grow faster than the Canadian market (4.7% per year).

High Growth Revenue: ALV's revenue (37.7% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ALV's Return on Equity is forecast to be low in 3 years time (15.2%).


Next Steps

Past Performance

How has Alvopetro Energy performed over the past 5 years?

36.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ALV is currently unprofitable.

Growing Profit Margin: ALV is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ALV is unprofitable, but has reduced losses over the past 5 years at a rate of 36.2% per year.

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

Earnings vs Industry: ALV is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (4.3%).


Return on Equity

High ROE: ALV has a negative Return on Equity (-9.87%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Alvopetro Energy's financial position?


Financial Position Analysis

Short Term Liabilities: ALV's short term assets ($2.7M) do not cover its short term liabilities ($6.0M).

Long Term Liabilities: ALV's short term assets ($2.7M) exceed its long term liabilities ($1.6M).


Debt to Equity History and Analysis

Debt Level: ALV is debt free.

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


Balance Sheet

Inventory Level: ALV has a high level of physical assets or inventory.

Debt Coverage by Assets: ALV's debt is not covered by short term assets (assets are -9.6196888040633E+16x 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: ALV has less than a year of cash runway based on its current free cash flow.

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


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.1%markettop25%5.9%industryaverage5.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

6.3yrs

Average management tenure


CEO

Corey Ruttan 0

6.3yrs

Tenure

US$376,597

Compensation

Mr. Corey Christopher Ruttan, CA, has been the Chief Executive Officer and President at Alvopetro Energy Ltd. since November 2013. Mr. Ruttan has been the Chief Executive Officer and President of Petromine ...


CEO Compensation Analysis

Compensation vs Market: Corey's total compensation ($USD281.84K) is above average for companies of similar size in the Canadian market ($USD157.16K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Corey Ruttan
CEO, President & Director6.3yrsUS$376.60k2.07% $1.5m
Alison Howard
Chief Financial Officer6.3yrsUS$277.28k0.57% $419.1k
Andrea Hatzinikolas
VP of Legal & Corporate and Corporate Secretary6.3yrsUS$147.47k0.47% $348.6k

6.3yrs

Average Tenure

Experienced Management: ALV's management team is seasoned and experienced (6.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Corey Ruttan
CEO, President & Director6.3yrsUS$376.60k2.07% $1.5m
John Wright
Chairman6.3yrsUS$26.90k4.42% $3.3m
Kenneth McKinnon
Independent Director6.3yrsUS$24.08k0.31% $230.3k
Geir Ytreland
Independent Director6.3yrsUS$24.08k0.068% $50.2k
Roderick Fraser
Independent Director6.2yrsUS$24.08k0.11% $78.6k
Firoz Talakshi
Independent Director6.3yrsUS$24.08k0.073% $53.6k

6.3yrs

Average Tenure

60yo

Average Age

Experienced Board: ALV's board of directors are considered experienced (6.3 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 been diluted in the past year, with total shares outstanding growing by 12.9%.


Top Shareholders

Company Information

Alvopetro Energy Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Alvopetro Energy Ltd.
  • Ticker: ALV
  • Exchange: TSXV
  • Founded: 2013
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: CA$73.759m
  • Shares outstanding: 98.35m
  • Website: https://www.alvopetro.com

Number of Employees


Location

  • Alvopetro Energy Ltd.
  • 525 – 8th Avenue SW
  • Suite 1700
  • Calgary
  • Alberta
  • T2P 1G1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ALVTSXV (TSX Venture Exchange)YesCommon SharesCACADDec 2013
ALVO.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDDec 2013
A6YDB (Deutsche Boerse AG)YesCommon SharesDEEURDec 2013

Biography

Alvopetro Energy Ltd. engages in the acquisition, exploration, development, and production of hydrocarbons in the Recôncavo basins in onshore Brazil. The company holds interests in the Caburé and Gomo natural gas assets; two oil fields, including Bom Lugar and Mãe-da-lua; and seven other exploration assets comprising 65,151 gross acres in the Recôncavo basin onshore Brazil. The company was incorporated in 2013 and is headquartered in Calgary, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 01:54
End of Day Share Price2020/02/27 00:00
Earnings2019/09/30
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.