TSXV:RZE

Stock Analysis Report

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Executive Summary

Razor Energy Corp. engages in the acquisition, exploration, development, and production of oil and natural gas properties in Alberta.


Snowflake Analysis

Imperfect balance sheet with weak fundamentals.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-23.3%

RZE

-0.08%

CA Oil and Gas

1.5%

CA Market


1 Year Return

-94.3%

RZE

-29.9%

CA Oil and Gas

-11.5%

CA Market

Return vs Industry: RZE underperformed the Canadian Oil and Gas industry which returned -29.9% over the past year.

Return vs Market: RZE underperformed the Canadian Market which returned -11.5% over the past year.


Shareholder returns

RZEIndustryMarket
7 Day-23.3%-0.08%1.5%
30 Day-28.1%-11.8%-2.3%
90 Day-47.7%8.8%12.2%
1 Year-93.9%-94.3%-26.1%-29.9%-8.4%-11.5%
3 Year-93.5%-94.5%-26.0%-35.0%4.4%-5.5%
5 Yearn/a-30.8%-42.6%21.9%3.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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


Share Price vs. Fair Value

Below Fair Value: RZE (CA$0.12) is trading above our estimate of fair value (CA$0.01)

Significantly Below Fair Value: RZE is trading above our estimate of fair value.


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: RZE has negative assets, so we can't compare its PB Ratio to the CA Oil and Gas industry average.


Next Steps

Future Growth

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

49.3%

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 Razor 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 Razor Energy performed over the past 5 years?

-101.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RZE is currently unprofitable.

Growing Profit Margin: RZE is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RZE is unprofitable, and losses have increased over the past 5 years at a rate of -101.6% per year.

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

Earnings vs Industry: RZE is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-16.2%).


Return on Equity

High ROE: RZE's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is Razor Energy's financial position?


Financial Position Analysis

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

Long Term Liabilities: RZE 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: RZE has negative shareholder equity, which is a more serious situation than a high debt level.

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


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: Whilst unprofitable RZE has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: RZE is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 73.9% per year.


Next Steps

Dividend

What is Razor Energy current dividend yield, its reliability and sustainability?

8.70%

Forecast Dividend Yield


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if RZE's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: RZE is not paying a notable dividend for the Canadian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RZE'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?

3.7yrs

Average management tenure


CEO

Doug Bailey (47yo)

3.67yrs

Tenure

CA$428,044

Compensation

Mr. Douglas Bailey, also known as Doug, has been the Chief Executive Officer and President of Razor Energy Corp. since November 2016. Mr. Bailey served as the Chief Executive Officer and President of Strik ...


CEO Compensation Analysis

Compensation vs Market: Doug's total compensation ($USD0.00) is below average for companies of similar size in the Canadian market ($USD173.55K).

Compensation vs Earnings: Doug's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Douglas Bailey
President3.67yrsCA$428.04k6.87% CA$188.1k
Kevin Braun
Chief Financial Officer3.42yrsCA$330.80k1.54% CA$42.0k
Frank Muller
Senior VP4.08yrsCA$397.90k9.37% CA$256.6k
Hass Keshavji
Corporate Secretaryno datano datano data

3.7yrs

Average Tenure

48yo

Average Age

Experienced Management: RZE's management team is considered experienced (3.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Douglas Bailey
President3.67yrsCA$428.04k6.87% CA$188.1k
Frank Muller
Senior VP4.08yrsCA$397.90k9.37% CA$256.6k
Sanjib Gill
Director3.67yrsno data1.89% CA$51.8k
Shahin Mottahed
Independent Director3.67yrsCA$40.00k2.06% CA$56.3k
Vick Saxon
Independent Director3.67yrsCA$90.00k2.15% CA$59.0k

3.7yrs

Average Tenure

47yo

Average Age

Experienced Board: RZE's board of directors are considered experienced (3.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 33.6%.


Top Shareholders

Company Information

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


Key Information

  • Name: Razor Energy Corp.
  • Ticker: RZE
  • Exchange: TSXV
  • Founded: 2016
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: CA$2.738m
  • Shares outstanding: 21.06m
  • Website: https://www.razor-energy.com

Number of Employees


Location

  • Razor Energy Corp.
  • 500-5th Avenue SW
  • Suite 800
  • Calgary
  • Alberta
  • T2P 3L5
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RZETSXV (TSX Venture Exchange)YesNew Common SharesCACADFeb 2017
RZRE.FOTCPK (Pink Sheets LLC)YesNew Common SharesUSUSDFeb 2017
R9NDB (Deutsche Boerse AG)YesNew Common SharesDEEURFeb 2017

Biography

Razor Energy Corp. engages in the acquisition, exploration, development, and production of oil and natural gas properties in Alberta. As of December 31, 2019, it operated assets in the Swan Hills area covering 199,200 gross acres of total land and the Kaybob area covering 89,440 gross acres of total land located in the west central Alberta, as well as the District South area covering 79,902 gross acres of total land located in the southern Alberta. The company 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 Analysis2020/07/08 00:13
End of Day Share Price2020/07/07 00:00
Earnings2020/03/31
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.