DB:7GN

Stock Analysis Report

Executive Summary

Granite Oil Corp. engages in the exploration for, exploitation, development, and production of oil and natural gas in Canada.

Snowflake

Fundamentals

Good value with concerning outlook.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

1.3%

7GN

3.7%

DE Oil and Gas

1.4%

DE Market


1 Year Return

-71.3%

7GN

50.0%

DE Oil and Gas

3.7%

DE Market

Return vs Industry: 7GN underperformed the German Oil and Gas industry which returned 50% over the past year.

Return vs Market: 7GN underperformed the German Market which returned 3.7% over the past year.


Shareholder returns

7GNIndustryMarket
7 Day1.3%3.7%1.4%
30 Day-25.5%2.1%1.3%
90 Day-21.6%13.5%3.4%
1 Year-70.5%-71.3%55.0%50.0%7.0%3.7%
3 Year-90.3%-92.3%43.7%30.0%18.5%8.3%
5 Year-80.6%-97.7%169.9%127.6%42.2%22.9%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

15.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: 7GN (€0.32) is trading below our estimate of fair value (€0.38)

Significantly Undervalued: 7GN is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 7GN is good value based on its PE Ratio (3.5x) compared to the Oil and Gas industry average (9.4x).

PE vs Market: 7GN is good value based on its PE Ratio (3.5x) compared to the German market (19.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate 7GN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 7GN is good value based on its PB Ratio (0.1x) compared to the DE Oil and Gas industry average (1.1x).


Next Steps

Future Growth

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

13.4%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if 7GN's forecast earnings growth is above the savings rate (0.2%).

Earnings vs Market: Insufficient data to determine if 7GN's earnings are forecast to grow faster than the German market

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

Revenue vs Market: 7GN's revenue (13.4% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: 7GN's revenue (13.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if 7GN's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Granite Oil performed over the past 5 years?

-57.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 7GN's earnings have declined by -57.8% per year over the past 5 years.

Accelerating Growth: 7GN has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 7GN has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (10%).


Return on Equity

High ROE: 7GN's Return on Equity (2.7%) is considered low.


Return on Assets

ROA vs Industry: 7GN's Return on Assets is below or equal to the Oil and Gas industry average last year.


Return on Capital Employed

ROCE Improving: 7GN has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Granite Oil's financial position?


Financial Position Analysis

Short Term Liabilities: 7GN's short term assets (CA$5.5M) do not cover its short term liabilities (CA$47.9M)

Long Term Liabilities: 7GN's short term assets (5.5M) do not cover its long term liabilities (31.0M)


Debt to Equity History and Analysis

Debt Level: 7GN's debt to equity ratio (22.8%) is considered satisfactory

Reducing Debt: 7GN's debt to equity ratio has increased from 21% to 22.8% over the past 5 years.

Debt Coverage: 7GN's debt is not well covered by operating cash flow (19.3%).

Interest Coverage: 7GN's interest payments on its debt are not well covered by EBIT (2.4x coverage).


Balance Sheet

Inventory Level: 7GN has a high level of physical assets or inventory.

Debt Coverage by Assets: 7GN's debt is not covered by short term assets (assets are 0.1x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%1.5%markettop25%3.8%industryaverage6.0%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate 7GN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 7GN'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 7GN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 7GN's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 7GN is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 7GN's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

What is the CEO of Granite Oil's salary, the management and board of directors tenure and is there insider trading?

4.4yrs

Average management tenure


CEO

Mike Kabanuk (48yo)

4.4yrs

Tenure

CA$225,364

Compensation

Mr. Michael Lyle Kabanuk, also known as Mike, P.Eng., has been Chief Executive Officer and President of Granite Oil Corp. since May 15, 2015. Mr. Kabanuk served as the Executive Chairman at Granite Oil Cor ...


CEO Compensation Analysis

Compensation vs. Market: Mike's total compensation ($USD171.59K) is about average for companies of similar size in the German market ($USD216.74K).

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


Management Age and Tenure

4.4yrs

Average Tenure

49yo

Average Age

Experienced Management: 7GN's management team is considered experienced (4.4 years average tenure).


Board Age and Tenure

11.3yrs

Average Tenure

56yo

Average Age

Experienced Board: 7GN's board of directors are seasoned and experienced ( 11.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$4,67421 Jun 19
Brendan Carrigy
EntityIndividual
Role
Chairman of the Board
Independent Chairman
Shares10,000
Max PriceCA$0.47
BuyCA$1,81311 Jun 19
Michael Kabanuk
EntityIndividual
Role
Chief Executive Officer
President
Shares4,000
Max PriceCA$0.45
BuyCA$4,20605 Jun 19
Brendan Carrigy
EntityIndividual
Role
Chairman of the Board
Independent Chairman
Shares10,000
Max PriceCA$0.44
BuyCA$1,75004 Jun 19
Michael Kabanuk
EntityIndividual
Role
Chief Executive Officer
President
Shares4,000
Max PriceCA$0.44
BuyCA$49103 Jun 19
Michael Kabanuk
EntityIndividual
Role
Chief Executive Officer
President
Shares1,000
Max PriceCA$0.49
BuyCA$1,75931 May 19
Brendan Carrigy
EntityIndividual
Role
Chairman of the Board
Independent Chairman
Shares3,500
Max PriceCA$0.51
BuyCA$51228 May 19
Michael Kabanuk
EntityIndividual
Role
Chief Executive Officer
President
Shares1,000
Max PriceCA$0.51
BuyCA$50523 May 19
Michael Kabanuk
EntityIndividual
Role
Chief Executive Officer
President
Shares1,000
Max PriceCA$0.51
BuyCA$56822 May 19
Michael Kabanuk
EntityIndividual
Role
Chief Executive Officer
President
Shares1,000
Max PriceCA$0.57
BuyCA$1,26427 Dec 18
Tyler Klatt
EntityIndividual
Shares4,000
Max PriceCA$0.32
BuyCA$15,46226 Dec 18
Thomas Claugus
EntityIndividual
Shares46,000
Max PriceCA$0.34
BuyCA$320,39226 Dec 18
GMT Capital Corp.
EntityCompany
Shares953,200
Max PriceCA$0.34
BuyCA$161,33922 Dec 18
Brendan Carrigy
EntityIndividual
Role
Chairman of the Board
Independent Chairman
Shares480,000
Max PriceCA$0.34
BuyCA$13,44522 Dec 18
Kathy Turgeon
EntityIndividual
Shares40,000
Max PriceCA$0.34
BuyCA$161,60822 Dec 18
Michael Kabanuk
EntityIndividual
Role
Chief Executive Officer
President
Shares480,800
Max PriceCA$0.34

Ownership Breakdown


Management Team

  • Martin Cheyne (58yo)

    Founder & Director

    • Tenure: 12.8yrs
    • Compensation: CA$21.00k
  • Mike Kabanuk (48yo)

    President

    • Tenure: 4.4yrs
    • Compensation: CA$225.36k
  • Dan Kenney (49yo)

    Corporate Secretary

    • Tenure: 10.3yrs
  • Jack Smith

    Interim Chief Financial Officer

    • Tenure: 0.4yrs
  • Devon Griffiths

    Chief Operating Officer

    • Tenure: 1.2yrs
    • Compensation: CA$145.37k

Board Members

  • Martin Cheyne (58yo)

    Founder & Director

    • Tenure: 12.8yrs
    • Compensation: CA$21.00k
  • Brad Porter (56yo)

    Independent Director

    • Tenure: 12.8yrs
    • Compensation: CA$21.54k
  • Mike Kabanuk (48yo)

    President

    • Tenure: 4.4yrs
    • Compensation: CA$225.36k
  • Brendan Carrigy (58yo)

    Independent Chairman

    • Tenure: 4.4yrs
    • Compensation: CA$21.54k
  • Kevin Andrus (49yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: CA$21.00k

Company Information

Granite Oil Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Granite Oil Corp.
  • Ticker: 7GN
  • Exchange: DB
  • Founded: 2015
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: CA$19.776m
  • Listing Market Cap: CA$13.517m
  • Shares outstanding: 38.78m
  • Website: https://www.graniteoil.ca

Number of Employees


Location

  • Granite Oil Corp.
  • 308 Fourth Avenue SW
  • Suite 3230
  • Calgary
  • Alberta
  • T2P 0H7
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GXOTSX (The Toronto Stock Exchange)YesCommon SharesCACADJun 2009
7GNDB (Deutsche Boerse AG)YesCommon SharesDEEURJun 2009
GXOC.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJun 2009

Biography

Granite Oil Corp. engages in the exploration for, exploitation, development, and production of oil and natural gas in Canada. The company holds a 98% working interest in the Alberta Bakken properties cover ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 21:19
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.