TSXV:PRE

Stock Analysis Report

Paleo Resources

Executive Summary

Paleo Resources, Inc., an oil and gas, and mineral exploration company, engages in the acquisition, exploration, and development of the precious and base metal properties, and oil and gas hydrocarbons in Canada and the United States.


Snowflake Analysis

Slightly overvalued with questionable track record.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

25.0%

PRE

0.3%

CA Oil and Gas

0.1%

CA Market


1 Year Return

-58.3%

PRE

-0.7%

CA Oil and Gas

4.7%

CA Market

Return vs Industry: PRE underperformed the Canadian Oil and Gas industry which returned -0.7% over the past year.

Return vs Market: PRE underperformed the Canadian Market which returned 4.7% over the past year.


Shareholder returns

PREIndustryMarket
7 Day25.0%0.3%0.1%
30 Day-16.7%-0.4%0.8%
90 Day0%3.4%3.7%
1 Year-58.3%-58.3%3.6%-0.7%7.9%4.7%
3 Year-82.1%-82.1%-3.5%-13.7%17.9%7.3%
5 Year-50.0%-50.0%-7.2%-22.0%33.8%14.4%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Paleo Resources undervalued compared to its fair value and its price relative to the market?

3.4x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

PE vs Industry: PRE is good value based on its PE Ratio (3.4x) compared to the Oil and Gas industry average (11.3x).

PE vs Market: PRE is good value based on its PE Ratio (3.4x) compared to the Canadian market (16.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: PRE is overvalued based on its PB Ratio (1.2x) compared to the CA Oil and Gas industry average (0.6x).


Next Steps

Future Growth

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

0.1%

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 Paleo 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 Paleo Resources performed over the past 5 years?

-28.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PRE has a high level of non-cash earnings.

Growing Profit Margin: PRE became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: PRE has become profitable over the past 5 years, growing earnings by -28.2% per year.

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

Earnings vs Industry: PRE has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (4.1%).


Return on Equity

High ROE: Whilst PRE's Return on Equity (36.32%) is high, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Paleo Resources's financial position?


Financial Position Analysis

Short Term Liabilities: PRE's short term assets ($586.3K) do not cover its short term liabilities ($5.0M).

Long Term Liabilities: PRE's short term assets ($586.3K) do not cover its long term liabilities ($2.2M).


Debt to Equity History and Analysis

Debt Level: PRE's debt to equity ratio (146%) is considered high.

Reducing Debt: PRE had negative shareholder equity 5 years ago, but is now positive and has therefore improved.


Balance Sheet

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

Debt Coverage by Assets: PRE's debt is not covered by short term assets (assets are 0.1x 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: PRE is profitable, therefore cash runway is not a concern.

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


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.4%industryaverage4.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

0.3yrs

Average management tenure


CEO

Roger Braugh 0

0.3yrs

Tenure

0

Mr. Roger S. Braugh, Jr. is Interim Chief Executive Officer of Paleo Resources, Inc. since October 2019. He is the founder and President of the Santa Rosa Energy family of companies, including Santa Rosa E ...


Leadership Team

NamePositionTenureCompensationOwnership
Roger Braugh
Executive Chairman & Interim CEO0.3yrsno data29.22% $1.7m
Thomas Crain
President & Director3.6yrsUS$413.22k0.27% $16.0k
Steven Vucurevich
Chief Financial Officer2.6yrsUS$154.08kno data
Marc Rhoades
Chief Operating Officer0.3yrsno datano data

0.3yrs

Average Tenure

Experienced Management: PRE's management team is not considered experienced ( 0.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Roger Braugh
Executive Chairman & Interim CEO0.3yrsno data29.22% $1.7m
Thomas Crain
President & Director3.6yrsUS$413.22k0.27% $16.0k
Roy Hudson
Independent Director2.9yrsUS$126.30kno data
Christopher Pettit
Independent Director2.8yrsno data24.87% $1.5m

2.9yrs

Average Tenure

Experienced Board: PRE's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


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 30.5%.


Top Shareholders

Company Information

Paleo Resources, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Paleo Resources, Inc.
  • Ticker: PRE
  • Exchange: TSXV
  • Founded: 1946
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: CA$5.882m
  • Shares outstanding: 235.29m
  • Website: https://www.paleoresources.com

Location

  • Paleo Resources, Inc.
  • 144 4th Avenue SW
  • Suite 1600
  • Calgary
  • Alberta
  • T2P 3N4
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PRETSXV (TSX Venture Exchange)YesCommon SharesCACADJan 1975
PRIE.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJan 1975

Biography

Paleo Resources, Inc., an oil and gas, and mineral exploration company, engages in the acquisition, exploration, and development of the precious and base metal properties, and oil and gas hydrocarbons in Canada and the United States. It holds a 50% interest in the Joffre D-3 B Oil Pool located in Alberta; and a 100% interest in the Burchell Lake property covering an area of 5,900 hectares located in the Shebandowan gold camp in Ontario. The company’s Burchell Lake Property is prospective for gold, copper, and molybdenum minerals. It also develops and produces oil and gas assets in Polk and Tyler counties, Texas. The company was formerly known as Tanager Energy Inc. and changed its name to Paleo Resources, Inc. in April 2019. Paleo Resources, Inc. was incorporated in 1946 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 Analysis2020/02/23 00:55
End of Day Share Price2020/02/20 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.