TSXV:PSH

Stock Analysis Report

Executive Summary

PetroShale Inc., a junior oil and natural gas company, engages in the acquisition and development of oil-weighted assets primarily in the North Dakota Bakken/Three Forks.

Snowflake

Fundamentals

High growth potential and good value.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-8.3%

PSH

-0.5%

CA Oil and Gas

-0.2%

CA Market


1 Year Return

-66.0%

PSH

-12.8%

CA Oil and Gas

1.1%

CA Market

Return vs Industry: PSH underperformed the Canadian Oil and Gas industry which returned -12.8% over the past year.

Return vs Market: PSH underperformed the Canadian Market which returned 1.1% over the past year.


Shareholder returns

PSHIndustryMarket
7 Day-8.3%-0.5%-0.2%
30 Day-21.4%-5.7%-2.9%
90 Day-26.7%-4.0%-1.6%
1 Year-66.0%-66.0%-8.9%-12.8%4.6%1.1%
3 Year-38.9%-38.9%-17.4%-25.7%13.1%3.1%
5 Year-75.0%-75.0%-22.3%-34.1%24.7%6.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

5.38x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: Insufficient data to calculate PSH's fair value to establish if it is undervalued.

Significantly Undervalued: Insufficient data to calculate PSH's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: PSH is good value based on its PE Ratio (5.4x) compared to the Oil and Gas industry average (8.4x).

PE vs Market: PSH is good value based on its PE Ratio (5.4x) compared to the Canadian market (13.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: PSH is good value based on its PEG Ratio (0.1x)


Price to Book Ratio

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


Next Steps

Future Growth

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

57.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PSH's forecast earnings growth (57.8% per year) is above the savings rate (1.9%).

Earnings vs Market: PSH's earnings (57.8% per year) are forecast to grow faster than the Canadian market (13.1% per year).

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

Revenue vs Market: PSH's revenue (61.7% per year) is forecast to grow faster than the Canadian market (5.7% per year).

High Growth Revenue: PSH's revenue (61.7% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if PSH's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has PetroShale performed over the past 5 years?

56.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: PSH has become profitable over the past 5 years, growing earnings by 56.5% per year.

Accelerating Growth: PSH's earnings growth over the past year (204.8%) exceeds its 5-year average (56.5% per year).

Earnings vs Industry: PSH earnings growth over the past year (204.8%) exceeded the Oil and Gas industry 62.2%.


Return on Equity

High ROE: PSH's Return on Equity (10.2%) is considered low.


Return on Assets

ROA vs Industry: PSH has a higher Return on Assets than the Oil and Gas industry average last year.


Return on Capital Employed

ROCE Improving: PSH's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is PetroShale's financial position?


Financial Position Analysis

Short Term Liabilities: PSH's short term assets (CA$46.3M) do not cover its short term liabilities (CA$86.0M)

Long Term Liabilities: PSH's short term assets (46.3M) do not cover its long term liabilities (224.4M)


Debt to Equity History and Analysis

Debt Level: PSH's debt to equity ratio (116.3%) is considered high

Reducing Debt: PSH's debt to equity ratio has reduced from 137.1% to 116.3% over the past 5 years.

Debt Coverage: PSH's debt is well covered by operating cash flow (26.7%).

Interest Coverage: PSH's interest payments on its debt are not well covered by EBIT (1.9x coverage).


Balance Sheet

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

Debt Coverage by Assets: PSH's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%6.0%industryaverage4.9%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

Stable Dividend: Insufficient data to determine if PSH's dividends per share have been stable in the past.

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

5.9yrs

Average board tenure


CEO

David Rain (54yo)

0yrs

Tenure

CA$200,016

Compensation

Mr. David James Rain, CA is Director of Petroshale Inc. since December 3, 2018. Mr. Rain serves as Interim Chief Executive Officer of Petroshale Inc. since October 15, 2019. He was the Chief Financial Offi ...


CEO Compensation Analysis

Compensation vs. Market: David has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Canadian market.

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


Board Age and Tenure

5.9yrs

Average Tenure

53.5yo

Average Age

Experienced Board: PSH's board of directors are considered experienced (5.9 years average tenure).


Insider Trading

Insider Buying: PSH insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$1,159,99912 Sep 19
M. Chernoff
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares2,000,000
Max PriceCA$0.58
BuyCA$989,99930 Jul 19
M. Chernoff
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares1,500,000
Max PriceCA$0.66
SellCA$51,02513 Feb 19
Kenneth McCagherty
EntityIndividual
Role
Member of the Board of Directors
Director
Shares50,000
Max PriceCA$1.02

Ownership Breakdown


Management Team

  • M. Chernoff (53yo)

    Executive Chairman

    • Tenure: 5.9yrs
  • David Rain (54yo)

    Interim CEO & Director

    • Tenure: 0yrs
    • Compensation: CA$200.02k
  • Nicole Bacsalmasi (38yo)

    Corporate Secretary

    • Tenure: 5.9yrs
  • Caleb Morgret (41yo)

    Chief Financial Officer

    • Tenure: 0.8yrs
    • Compensation: CA$921.43k

Board Members

  • Brett Herman (51yo)

    Director

    • Tenure: 7.6yrs
  • Ken McCagherty (61yo)

    Director

    • Tenure: 5.9yrs
  • M. Chernoff (53yo)

    Executive Chairman

    • Tenure: 5.9yrs
  • Jake Roorda (62yo)

    Director

    • Tenure: 7.6yrs
  • David Rain (54yo)

    Interim CEO & Director

    • Tenure: 0yrs
    • Compensation: CA$200.02k
  • Brooks Shughart (41yo)

    Director

    • Tenure: 1.8yrs
    • Compensation: CA$120.00k

Company Information

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


Key Information

  • Name: PetroShale Inc.
  • Ticker: PSH
  • Exchange: TSXV
  • Founded:
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: CA$105.740m
  • Shares outstanding: 192.25m
  • Website: https://www.petroshaleinc.com

Number of Employees


Location

  • PetroShale Inc.
  • 421-7th Avenue SW
  • Suite 3230
  • Calgary
  • Alberta
  • T2P 4K9
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PSHI.FOTCPK (Pink Sheets LLC)YesVoting SharesUSUSDMar 2012
PSHTSXV (TSX Venture Exchange)YesVoting SharesCACADMar 2012
5PQDB (Deutsche Boerse AG)YesVoting SharesDEEURMar 2012

Biography

PetroShale Inc., a junior oil and natural gas company, engages in the acquisition and development of oil-weighted assets primarily in the North Dakota Bakken/Three Forks. The company holds approximately 7, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 00:23
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
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.