TSXV:OEC

Stock Analysis Report

Executive Summary

Oracle Energy Corp., an exploration stage company, focuses on the acquisition, exploration, evaluation, and development of oil and gas properties.

Risk Analysis

Earnings have declined by -30.75% per year over past 5 years

Has less than 1 year of cash runway

Shares are highly illiquid

Shareholders have been substantially diluted in the past year

+ 2 more risks


Snowflake Analysis

Weak fundamentals or lack of information.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

OEC

2.9%

CA Oil and Gas

-0.08%

CA Market


1 Year Return

-62.5%

OEC

4.9%

CA Oil and Gas

10.8%

CA Market

Return vs Industry: OEC underperformed the Canadian Oil and Gas industry which returned 4.9% over the past year.

Return vs Market: OEC underperformed the Canadian Market which returned 10.8% over the past year.


Shareholder returns

OECIndustryMarket
7 Day0%2.9%-0.08%
30 Day-40.0%0.6%0.01%
90 Day-40.0%3.2%1.2%
1 Year-62.5%-62.5%9.7%4.9%14.4%10.8%
3 Year-90.0%-90.0%-13.7%-22.4%15.0%4.6%
5 Year-97.3%-97.3%-0.5%-16.2%40.1%19.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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


In this section, we usually try to help investors determine whether Oracle Energy is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Oracle Energy has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of OEC’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the potential returns from the core activities, the size of each contract's opportunity, and the capacity of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through Oracle Energy regulatory filings.
  • Explore potentially undervalued companies in the Energy industry.

Future Growth

How is Oracle 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 Oracle 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 Oracle Energy performed over the past 5 years?

-30.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OEC is currently unprofitable.

Growing Profit Margin: OEC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: OEC is unprofitable, and losses have increased over the past 5 years at a rate of -30.8% per year.

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

Earnings vs Industry: OEC 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: OEC's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Oracle Energy's financial position?


Financial Position Analysis

Short Term Liabilities: OEC has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: OEC has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: OEC has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: OEC's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

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

Debt Coverage by Assets: OEC 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.

Stable Cash Runway: OEC has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: OEC has less than a year of cash runway if free cash flow continues to reduce at historical rates of -72.9% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.6%industryaverage4.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

3.6yrs

Average management tenure


CEO

Oracle Energy has no CEO, or we have no data on them.


Management Age and Tenure

3.6yrs

Average Tenure

Experienced Management: OEC's management team is considered experienced (3.6 years average tenure).


Board Age and Tenure

0.3yrs

Average Tenure

Experienced Board: OEC's board of directors are not considered experienced ( 0.3 years average tenure), which suggests a new board.


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 been substantially diluted in the past year, with total shares outstanding growing by 150.9%.


Management Team

  • Gord Fretwell (66yo)

    Corporate Secretary

    • Tenure: 5.2yrs
  • Reese Mitchell

    Senior Vice President of Operations

    • Tenure: 1.3yrs
  • Mark Forster

    Interim Chief Financial Officer

    • Tenure: 3.6yrs
    • Compensation: CA$28.50k

Board Members

  • James Ladner (79yo)

    Independent Director

    • Tenure: 12.4yrs
    • Compensation: CA$15.00k
  • Loren Currie

    Director

    • Tenure: 0.4yrs
    • Compensation: CA$14.50k
  • Jeff Calvert

    Director

    • Tenure: 0.08yrs
  • Pieter Bakker

    Director

    • Tenure: 0.08yrs

Company Information

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


Key Information

  • Name: Oracle Energy Corp.
  • Ticker: OEC
  • Exchange: TSXV
  • Founded: 1985
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: CA$1.010m
  • Shares outstanding: 67.32m
  • Website: https://www.oracleenergy.com

Location

  • Oracle Energy Corp.
  • 1040 West Georgia Street
  • Suite 1500
  • Vancouver
  • British Columbia
  • V6E 4H1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OECTSXV (TSX Venture Exchange)YesCommon SharesCACADNov 1999
O2EMDB (Deutsche Boerse AG)YesCommon SharesDEEURNov 1999
OECC.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDNov 1999

Biography

Oracle Energy Corp., an exploration stage company, focuses on the acquisition, exploration, evaluation, and development of oil and gas properties. The company was incorporated in 1985 and is headquartered  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/09 23:47
End of Day Share Price2019/12/09 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.