TSXV:NZ

Stock Analysis Report

New Zealand Energy

Executive Summary

New Zealand Energy Corp., through its subsidiaries, engages in the acquisition, exploration, development, and production of conventional oil and natural gas resources in New Zealand.


Snowflake Analysis

Excellent balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

NZ

-0.02%

CA Oil and Gas

1.6%

CA Market


1 Year Return

-33.3%

NZ

3.5%

CA Oil and Gas

9.9%

CA Market

Return vs Industry: NZ underperformed the Canadian Oil and Gas industry which returned 4.8% over the past year.

Return vs Market: NZ underperformed the Canadian Market which returned 10.2% over the past year.


Shareholder returns

NZIndustryMarket
7 Day0%-0.02%1.6%
30 Day0%1.9%2.9%
90 Day-33.3%10.8%6.4%
1 Year-33.3%-33.3%8.1%3.5%13.5%9.9%
3 Year-71.4%-71.4%-7.5%-17.2%17.4%6.7%
5 Year-66.7%-66.7%-5.7%-20.7%36.5%16.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is New Zealand Energy undervalued compared to its fair value and its price relative to the market?

0.64x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: NZ (CA$0.02) is trading above our estimate of fair value (CA$0.01)

Significantly Below Fair Value: NZ is trading above our estimate of fair value.


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: NZ is good value based on its PB Ratio (0.6x) compared to the CA Oil and Gas industry average (0.7x).


Next Steps

Future Growth

How is New Zealand Energy forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

-7.1%

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 New Zealand Energy 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 New Zealand Energy performed over the past 5 years?

70.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NZ is currently unprofitable.

Growing Profit Margin: NZ is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NZ is unprofitable, but has reduced losses over the past 5 years at a rate of 70.1% per year.

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

Earnings vs Industry: NZ is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (16.5%).


Return on Equity

High ROE: NZ has a negative Return on Equity (-55.95%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is New Zealand Energy's financial position?


Financial Position Analysis

Short Term Liabilities: NZ's short term assets (CA$2.8M) exceed its short term liabilities (CA$1.7M).

Long Term Liabilities: NZ's short term assets (CA$2.8M) do not cover its long term liabilities (CA$14.7M).


Debt to Equity History and Analysis

Debt Level: NZ is debt free.

Reducing Debt: NZ has no debt compared to 5 years ago when its debt to equity ratio was 0.08%.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if NZ'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: Whilst unprofitable NZ has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: NZ is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 106.8% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.9%markettop25%5.4%industryaverage4.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if NZ'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 NZ'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 New Zealand Energy's salary, the management and board of directors tenure and is there insider trading?

5.6yrs

Average management tenure


CEO

Mike Adams 0

4.5yrs

Tenure

CA$410,852

Compensation

Mr. Michael Adams, also known as Mike, M.Sc., B.Sc, MRSNZ has been the Chief Executive Officer of New Zealand Energy Corporation since July 17, 2015. Mr. Adams has 30 years of operational and reservoir eng ...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD314.46K) is above average for companies of similar size in the Canadian market ($USD165.67K).

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


Management Age and Tenure

5.6yrs

Average Tenure

Experienced Management: NZ's management team is seasoned and experienced (5.6 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

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


Management Team

  • Derek Gardiner (59yo)

    Chief Financial Officer

    • Tenure: 6yrs
    • Compensation: CA$267.11k
  • Newton Cockerill

    Financial Controller

    • Tenure: 6.3yrs
  • Mike Adams

    Chief Executive Officer

    • Tenure: 4.5yrs
    • Compensation: CA$410.85k
  • David Pay

    Legal Counsel & Corporate Secretary

    • Tenure: 5.3yrs
    • Compensation: CA$223.62k

Board Members

  • James Max Willis

    Chairman of the Board

    • Compensation: CA$32.29k
  • Mark Dunphy

    Independent Director

    • Tenure: 4.8yrs
  • David Llewellyn

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: CA$26.01k

Company Information

New Zealand Energy Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: New Zealand Energy Corp.
  • Ticker: NZ
  • Exchange: TSXV
  • Founded: 2010
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: CA$2.321m
  • Shares outstanding: 232.12m
  • Website: https://www.newzealandenergy.com

Location

  • New Zealand Energy Corp.
  • L2, 86-96 Victoria Street
  • PO Box 24 147
  • Wellington
  • New Zealand

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NZTSXV (TSX Venture Exchange)YesCommon SharesCACADAug 2011
NZER.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDAug 2011
0ZEDB (Deutsche Boerse AG)YesCommon SharesDEEURAug 2011

Biography

New Zealand Energy Corp., through its subsidiaries, engages in the acquisition, exploration, development, and production of conventional oil and natural gas resources in New Zealand. The company holds interests in three petroleum mining licenses, including Waihapa, Tariki, and Ngaere totalling 23,049 acres; Copper Moki petroleum mining permit covering 943.7 acres; and Eltham petroleum exploration permit located on the North Island in the Taranaki Basin. It also operates midstream assets. As of December 31, 2018, the company had proved and probable reserves of 753,600 barrels of oil. New Zealand Energy Corp. was founded in 2010 and is based in Wellington, New Zealand. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/18 00:22
End of Day Share Price2020/01/16 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.