TSXV:LXE

Stock Analysis Report

Leucrotta Exploration

Executive Summary

Leucrotta Exploration Inc., an oil and natural gas company, acquires, explores for, develops, and produces oil and natural gas reserves in northeastern British Columbia, Canada.

Rewards

Revenue is forecast to grow 19.4% per year

Became profitable this year

Risk Analysis

Highly volatile share price over past 3 months

Large one-off items impacting financial results



Snowflake Analysis

Excellent balance sheet with questionable track record.

Share Price & News

How has Leucrotta Exploration's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

LXE

0.6%

CA Oil and Gas

0.6%

CA Market


1 Year Return

-28.3%

LXE

0.2%

CA Oil and Gas

5.8%

CA Market

Return vs Industry: LXE underperformed the Canadian Oil and Gas industry which returned 0.2% over the past year.

Return vs Market: LXE underperformed the Canadian Market which returned 5.8% over the past year.


Shareholder returns

LXEIndustryMarket
7 Day0%0.6%0.6%
30 Day-6.6%-2.3%0.5%
90 Day22.4%3.8%3.6%
1 Year-28.3%-28.3%4.6%0.2%9.1%5.8%
3 Year-67.9%-67.9%-7.0%-16.9%15.4%5.0%
5 Year-21.1%-21.1%-9.6%-24.0%33.6%14.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Leucrotta Exploration undervalued compared to its fair value and its price relative to the market?

316.4x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate LXE's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate LXE's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: LXE is poor value based on its PE Ratio (316.4x) compared to the Oil and Gas industry average (11x).

PE vs Market: LXE is poor value based on its PE Ratio (316.4x) compared to the Canadian market (15.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: LXE is good value based on its PB Ratio (0.5x) compared to the CA Oil and Gas industry average (0.7x).


Next Steps

Future Growth

How is Leucrotta Exploration forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

19.4%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

Earnings vs Market: Insufficient data to determine if LXE'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: LXE's revenue (19.4% per year) is forecast to grow faster than the Canadian market (4.9% per year).

High Growth Revenue: LXE's revenue (19.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LXE is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Leucrotta Exploration performed over the past 5 years?

-27.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LXE has a large one-off gain of CA$1.4M impacting its September 30 2019 financial results.

Growing Profit Margin: LXE became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: LXE has become profitable over the past 5 years, growing earnings by -27.3% per year.

Accelerating Growth: LXE has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: LXE has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (6%).


Return on Equity

High ROE: LXE's Return on Equity (0.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Leucrotta Exploration's financial position?


Financial Position Analysis

Short Term Liabilities: LXE's short term assets (CA$5.4M) exceed its short term liabilities (CA$3.3M).

Long Term Liabilities: LXE's short term assets (CA$5.4M) do not cover its long term liabilities (CA$14.7M).


Debt to Equity History and Analysis

Debt Level: LXE is debt free.

Reducing Debt: LXE had no debt 5 years ago.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if LXE'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: LXE is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: LXE is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is Leucrotta Exploration's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.9%markettop25%5.3%industryaverage4.8%forecastin3Years0%

Current dividend yield vs market & industry

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

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

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

5.6yrs

Average management tenure


CEO

Rob Zakresky (52yo)

5.7yrs

Tenure

CA$377,250

Compensation

Mr. Robert John Zakresky, also known as Rob, CA, has been the President and Chief Executive Officer of Leucrotta Exploration Inc. since June 10, 2014. Mr. Zakresky served as the Chief Executive Officer and ...


CEO Compensation Analysis

Compensation vs Market: Rob's total compensation ($USD284.67K) is above average for companies of similar size in the Canadian market ($USD155.16K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Robert Zakresky
President5.7yrsCA$377.25k2.66% CA$3.8m
Nolan Chicoine
VP of Finance & CFO5.7yrsCA$299.63k0.37% CA$522.9k
Terry Trudeau
VP of Operations & COO5.6yrsCA$381.91k0.97% CA$1.4m
Richard Sereda
Senior Vice President of Exploration5.6yrsCA$312.46k0.49% CA$697.9k
Helmut Eckert
Vice President of Land5.6yrsCA$299.63k0.65% CA$926.3k
Peter James Cochrane
Vice President of Engineering5.6yrsCA$298.29k0.38% CA$536.5k
Gregory Peterson
Corporate Secretary5.6yrsno datano data

5.6yrs

Average Tenure

Experienced Management: LXE's management team is seasoned and experienced (5.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Zakresky
President5.7yrsCA$377.25k2.66% CA$3.8m
John Brussa
Independent Director5.5yrsCA$30.00k0.28% CA$396.5k
Tom Medvedic
Independent Director5.6yrsCA$27.50k0.073% CA$104.4k
Kelvin Johnston
Independent Director5.6yrsCA$27.50k0.17% CA$235.1k
Daryl Gilbert
Independent Chairman of the Board0yrsCA$33.00k0.40% CA$570.4k
Donald Cowie
Independent Director5.6yrsCA$27.50k0.10% CA$148.3k
Brian Krausert
Independent Director5.6yrsCA$27.50k0.24% CA$342.9k

5.6yrs

Average Tenure

62yo

Average Age

Experienced Board: LXE's board of directors are considered experienced (5.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: LXE insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Leucrotta Exploration Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Leucrotta Exploration Inc.
  • Ticker: LXE
  • Exchange: TSXV
  • Founded: 2014
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: CA$142.373m
  • Shares outstanding: 200.53m
  • Website: https://www.leucrotta.ca

Number of Employees


Location

  • Leucrotta Exploration Inc.
  • 639–5th Avenue S.W.
  • Suite 700
  • Calgary
  • Alberta
  • T2P 0M9
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LXETSXV (TSX Venture Exchange)YesVoting Common SharesCACADAug 2014
LCRT.FOTCPK (Pink Sheets LLC)YesVoting Common SharesUSUSDAug 2014
1L4DB (Deutsche Boerse AG)YesVoting Common SharesDEEURAug 2014

Biography

Leucrotta Exploration Inc., an oil and natural gas company, acquires, explores for, develops, and produces oil and natural gas reserves in northeastern British Columbia, Canada. It holds approximately 194,300 gross acres of land in Doe/Mica. The company was incorporated in 2014 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 Analysis2020/02/17 00:39
End of Day Share Price2020/02/14 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.