DB:H73

Stock Analysis Report

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Executive Summary

Africa Energy Corp. operates as an oil and gas exploration and production company in South Africa and Namibia.


Snowflake Analysis

Flawless balance sheet with weak fundamentals.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: H73's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.2%

H73

6.5%

DE Oil and Gas

2.8%

DE Market


1 Year Return

37.2%

H73

38.2%

DE Oil and Gas

0.3%

DE Market

Return vs Industry: H73 exceeded the German Oil and Gas industry which returned 33.3% over the past year.

Return vs Market: H73 exceeded the German Market which returned 0.2% over the past year.


Shareholder returns

H73IndustryMarket
7 Day-1.2%6.5%2.8%
30 Day20.4%5.5%0.2%
90 Day78.1%20.6%27.7%
1 Year37.2%37.2%40.3%38.2%2.3%0.3%
3 Year68.1%68.1%18.1%7.4%3.5%-4.9%
5 Year136.2%136.2%164.9%128.1%11.4%-3.4%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

2.59x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate H73's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate H73's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: H73 is unprofitable, so we can't compare its PE Ratio to the Oil and Gas industry average.

PE vs Market: H73 is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate H73's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: H73 is overvalued based on its PB Ratio (2.6x) compared to the DE Oil and Gas industry average (1.3x).


Next Steps

Future Growth

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

-53.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: H73 is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: H73 is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: H73 is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: Insufficient data to determine if H73's revenue is forecast to grow faster than the German market.

High Growth Revenue: Insufficient data to determine if H73's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if H73's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Africa Energy performed over the past 5 years?

58.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: H73 is currently unprofitable.

Growing Profit Margin: H73 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: H73 is unprofitable, but has reduced losses over the past 5 years at a rate of 58.9% per year.

Accelerating Growth: Unable to compare H73's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: H73 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: H73 has a negative Return on Equity (-6.67%), as it is currently unprofitable.


Next Steps

Financial Health

How is Africa Energy's financial position?


Financial Position Analysis

Short Term Liabilities: H73's short term assets ($26.4M) exceed its short term liabilities ($1.7M).

Long Term Liabilities: H73's short term assets ($26.4M) exceed its long term liabilities ($11.0K).


Debt to Equity History and Analysis

Debt Level: H73 is debt free.

Reducing Debt: H73 has no debt compared to 5 years ago when its debt to equity ratio was 2.6%.


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: H73 has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: H73 has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of 7.8% each year


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate H73's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate H73'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 H73's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if H73'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 H73's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

7.1yrs

Average management tenure


CEO

Garrett Soden (46yo)

3yrs

Tenure

US$503,741

Compensation

Mr. Garrett Soden has been President, Chief Executive Officer and Director of Africa Energy Corp. since July 2017. Mr. Soden has extensive experience as a senior executive and Board Member of various publi ...


CEO Compensation Analysis

Compensation vs Market: Garrett's total compensation ($USD503.74K) is below average for companies of similar size in the German market ($USD753.32K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Garrett Soden
President3yrsUS$503.74k0.34% $530.8k
Jeromie Kufflick
Chief Financial Officer8.83yrsUS$339.13k0.34% $531.0k
Jan Maier
Vice President of Exploration5.33yrsUS$367.11k0.13% $205.9k
Ronda Fullerton
Secretary8.83yrsno datano data

7.1yrs

Average Tenure

48.5yo

Average Age

Experienced Management: H73's management team is seasoned and experienced (7.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Garrett Soden
President3yrsUS$503.74k0.34% $530.8k
Keith Hill
Independent Non-Executive Director9.08yrsUS$23.00k0.088% $137.6k
Ian Gibbs
Independent Non-Executive Director8.83yrsUS$25.00kno data
John Bentley
Independent Director5.33yrsUS$23.00k0.56% $864.3k
Adam Lundin
Independent Chairman of the Board0.083yrUS$20.00k0.052% $81.3k

5.3yrs

Average Tenure

48.5yo

Average Age

Experienced Board: H73's board of directors are considered experienced (5.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: H73 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 15.7%.


Top Shareholders

Company Information

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


Key Information

  • Name: Africa Energy Corp.
  • Ticker: H73
  • Exchange: DB
  • Founded: 2010
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: CA$237.445m
  • Listing Market Cap: CA$155.606m
  • Shares outstanding: 791.48m
  • Website: https://www.africaenergycorp.com

Number of Employees


Location

  • Africa Energy Corp.
  • 885 West Georgia Street
  • Suite 2000
  • Vancouver
  • British Columbia
  • V6C 3E8
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AFETSXV (TSX Venture Exchange)YesNew Common SharesCACADSep 2011
HPMC.FOTCPK (Pink Sheets LLC)YesNew Common SharesUSUSDSep 2011
H73DB (Deutsche Boerse AG)YesNew Common SharesDEEURSep 2011
AECOM (OMX Nordic Exchange Stockholm)YesNew Common SharesSESEKSep 2011

Biography

Africa Energy Corp. operates as an oil and gas exploration and production company in South Africa and Namibia. It holds a 90% interest in the Exploration Right for Block 2B offshore that covers an area of 3,604 square kilometers located in the west coast of South Africa; 30% interest in the Petroleum Exploration License 37 covering an area of 17,295 square kilometers located in the northern Namibian offshore region; and 4.9% interest in the Exploration Right for Block 11B/12B covering an area of approximately 19,000 square kilometers located in the Outeniqua Basin off the southern coast of South Africa. The company was formerly known as Horn Petroleum Corporation and changed its name to Africa Energy Corp. in March 2015. Africa Energy Corp. was incorporated in 2010 and is headquartered in Vancouver, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/03 22:16
End of Day Share Price2020/07/03 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.