Reconnaissance Energy Africa Ltd.

TSXV:RECO Stock Report

Market Cap: CA$270.9m

Reconnaissance Energy Africa Valuation

Is RECO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of RECO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate RECO's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate RECO's fair value for valuation analysis.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for RECO?

Key metric: As RECO is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for RECO. This is calculated by dividing RECO's market cap by their current earnings.
What is RECO's PE Ratio?
PE Ratio4.1x
EarningsCA$65.70m
Market CapCA$270.88m

Price to Earnings Ratio vs Peers

How does RECO's PE Ratio compare to its peers?

The above table shows the PE ratio for RECO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average4.6x
SNM ShaMaran Petroleum
3x23.7%CA$311.9m
LOU Lucero Energy
6.5xn/aCA$261.4m
PRQ Petrus Resources
4.2xn/aCA$177.9m
SDE Spartan Delta
4.6xn/aCA$638.9m
RECO Reconnaissance Energy Africa
4.1xn/aCA$270.9m

Price-To-Earnings vs Peers: RECO is good value based on its Price-To-Earnings Ratio (4.1x) compared to the peer average (4.6x).


Price to Earnings Ratio vs Industry

How does RECO's PE Ratio compare vs other companies in the CA Oil and Gas Industry?

7 CompaniesPrice / EarningsEstimated GrowthMarket Cap
HAM Highwood Asset Management
1.2x-43.9%US$64.52m
ALPS.U Alpine Summit Energy Partners
1xn/aUS$24.02m
KUB.H Carcetti Capital
0.7xn/aUS$5.82m
GCOM Green Shift Commodities
1.4xn/aUS$4.43m
RECO 4.1xIndustry Avg. 11.4xNo. of Companies13PE0816243240+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: RECO is good value based on its Price-To-Earnings Ratio (4.1x) compared to the Canadian Oil and Gas industry average (11.4x).


Price to Earnings Ratio vs Fair Ratio

What is RECO's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

RECO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio4.1x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate RECO's Price-To-Earnings Fair Ratio for valuation analysis.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst RECO forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$1.02
CA$2.41
+135.9%
12.7%CA$2.82CA$2.10n/a3
Nov ’25CA$0.95
CA$2.42
+154.8%
12.3%CA$2.82CA$2.10n/a3
Oct ’25CA$1.02
CA$2.40
+135.3%
12.3%CA$2.80CA$2.10n/a3
Sep ’25CA$0.92
CA$2.40
+160.9%
12.3%CA$2.80CA$2.10n/a3
Aug ’25CA$1.03
CA$2.56
+149.6%
9.5%CA$2.80CA$2.32n/a2
Jul ’25CA$1.40
CA$2.06
+47.1%
34.5%CA$2.79CA$1.10n/a3
Jun ’25CA$1.25
CA$2.06
+64.7%
34.3%CA$2.78CA$1.10n/a3
May ’25CA$0.91
CA$2.15
+136.4%
29.5%CA$2.79CA$1.52n/a2

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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