TSXV:PSH

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

PetroShale Inc., an oil company, engages in the acquisition, development, and production of oil-weighted assets primarily in the North Dakota Bakken/Three Forks. More Details


Snowflake Analysis

Fair value with concerning outlook.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-5.0%

PSH

-2.5%

CA Oil and Gas

-1.0%

CA Market


1 Year Return

-80.8%

PSH

-34.5%

CA Oil and Gas

-4.3%

CA Market

Return vs Industry: PSH underperformed the Canadian Oil and Gas industry which returned -33.6% over the past year.

Return vs Market: PSH underperformed the Canadian Market which returned -4.2% over the past year.


Shareholder returns

PSHIndustryMarket
7 Day-5.0%-2.5%-1.0%
30 Day-17.4%-5.4%1.3%
90 Day-32.1%-12.5%1.9%
1 Year-80.8%-80.8%-30.9%-34.5%-0.9%-4.3%
3 Year-94.5%-94.5%-35.8%-43.7%6.4%-4.0%
5 Year-90.2%-90.2%-31.4%-43.4%33.3%12.8%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PSH (CA$0.1) is trading below our estimate of fair value (CA$0.83)

Significantly Below Fair Value: PSH is trading below fair value by more than 20%.


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: PSH is good value based on its PB Ratio (0.1x) compared to the CA Oil and Gas industry average (0.8x).


Next Steps

Future Growth

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

16.3%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if PSH's forecast earnings growth is above the savings rate (1.7%).

Earnings vs Market: Insufficient data to determine if PSH'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: PSH's revenue (16.3% per year) is forecast to grow faster than the Canadian market (5.8% per year).

High Growth Revenue: PSH's revenue (16.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

  • Explore growth companies in the Energy industry.

Past Performance

How has PetroShale performed over the past 5 years?

39.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PSH is currently unprofitable.

Growing Profit Margin: PSH is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PSH is unprofitable, but has reduced losses over the past 5 years at a rate of 39.5% per year.

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

Earnings vs Industry: PSH is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-50.9%).


Return on Equity

High ROE: PSH has a negative Return on Equity (-15.32%), as it is currently unprofitable.


Next Steps

Financial Health

How is PetroShale's financial position?


Financial Position Analysis

Short Term Liabilities: PSH's short term assets (CA$33.7M) do not cover its short term liabilities (CA$63.9M).

Long Term Liabilities: PSH's short term assets (CA$33.7M) do not cover its long term liabilities (CA$340.1M).


Debt to Equity History and Analysis

Debt Level: PSH's debt to equity ratio (197%) is considered high.

Reducing Debt: PSH's debt to equity ratio has reduced from 1248.7% to 197% over the past 5 years.


Balance Sheet


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: Insufficient data to determine if PSH has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if PSH has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

Jake Roorda (63 yo)

0.17

Tenure

Mr. Jacob Roorda, P.Eng, MBA, also known as Jake, serves as President and Chief Executive Officer at PetroShale Inc. since August 24, 2020. He serves as Managing Director and Chief Executive Officer of Win ...


Leadership Team

NamePositionTenureCompensationOwnership
M. Chernoff
Executive Chairman6.92yrsno data26.89%
CA$ 4.8m
Jacob Roorda
President0.17yrno data0.30%
CA$ 53.3k
Caleb Morgret
Chief Financial Officer1.83yrsCA$733.21k0.037%
CA$ 6.7k
Nicole Bacsalmasi
Corporate Secretary6.92yrsno datano data

1.8yrs

Average Tenure

48yo

Average Age

Experienced Management: PSH's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
M. Chernoff
Executive Chairman6.92yrsno data26.89%
CA$ 4.8m
Jacob Roorda
President0.17yrno data0.30%
CA$ 53.3k
Brett Herman
Independent Director8.58yrsno data0.21%
CA$ 38.0k
Kenneth McCagherty
Independent Director6.92yrsno data0.19%
CA$ 33.6k
David Rain
Director1.83yrsCA$539.50k0.45%
CA$ 80.4k
Gary Reaves
Independent Director0.42yrno datano data

6.9yrs

Average Tenure

54.5yo

Average Age

Experienced Board: PSH's board of directors are considered experienced (6.9 years average tenure).


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 not been meaningfully diluted in the past year.


Top Shareholders

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$17.894m
  • Shares outstanding: 188.36m
  • 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., an oil company, engages in the acquisition, development, and production of oil-weighted assets primarily in the North Dakota Bakken/Three Forks. The company holds approximately 8,218 net a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/22 01:15
End of Day Share Price2020/10/21 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.