DB:JLM

Stock Analysis Report

Executive Summary

Jericho Oil Corporation, together with its subsidiaries, acquires, explores for, develops, and produces oil and natural gas properties in the United States.

Risk Analysis

Earnings have declined by -33.8% per year over past 5 years

Has less than 1 year of cash runway

Makes less than USD$1m in revenue (CA$267K)

Currently unprofitable and not forecast to become profitable over the next 3 years

+ 3 more risks


Snowflake Analysis

Excellent balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-7.7%

JLM

-2.9%

DE Oil and Gas

-0.5%

DE Market


1 Year Return

-54.5%

JLM

79.7%

DE Oil and Gas

16.6%

DE Market

Return vs Industry: JLM underperformed the German Oil and Gas industry which returned 48.3% over the past year.

Return vs Market: JLM underperformed the German Market which returned 17.1% over the past year.


Shareholder returns

JLMIndustryMarket
7 Day-7.7%-2.9%-0.5%
30 Day-22.0%5.2%0.8%
90 Day-15.5%33.0%6.6%
1 Year-54.5%-54.5%85.7%79.7%20.2%16.6%
3 Year-59.8%-59.8%31.8%21.1%17.1%6.8%
5 Year-55.9%-55.9%326.3%259.4%29.7%11.9%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

0.66x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: JLM is good value based on its PB Ratio (0.7x) compared to the DE Oil and Gas industry average (1.1x).


Next Steps

Future Growth

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

5.9%

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 Jericho Oil 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 Jericho Oil performed over the past 5 years?

-33.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JLM is currently unprofitable.

Growing Profit Margin: JLM is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: JLM is unprofitable, and losses have increased over the past 5 years at a rate of -33.8% per year.

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

Earnings vs Industry: JLM is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-5.1%).


Return on Equity

High ROE: JLM has a negative Return on Equity (-10.33%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Jericho Oil's financial position?


Financial Position Analysis

Short Term Liabilities: JLM's short term assets (CA$2.3M) exceed its short term liabilities (CA$303.7K).

Long Term Liabilities: JLM's short term assets (CA$2.3M) exceed its long term liabilities (CA$152.4K).


Debt to Equity History and Analysis

Debt Level: JLM is debt free.

Reducing Debt: JLM has not had any debt for past 5 years.


Balance Sheet

Inventory Level: JLM has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if JLM's debt is covered by short term assets.


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: JLM has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: JLM has less than a year of cash runway if free cash flow continues to grow at historical rates of 26.2% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.6%industryaverage5.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if JLM's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if JLM'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 JLM'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 Jericho Oil's salary, the management and board of directors tenure and is there insider trading?

2.4yrs

Average management tenure


CEO

Brian Williamson 0

2.4yrs

Tenure

CA$414,784

Compensation

Mr. Brian Williamson has been Chief Executive Officer of Jericho Oil Corporation since August 21, 2017 and as its President and Director since March 1, 2019 and May 24, 2017 respectively. Mr. Williamson is ...


Management Age and Tenure

2.4yrs

Average Tenure

Experienced Management: JLM's management team is considered experienced (2.4 years average tenure).


Board Age and Tenure

5.7yrs

Average Tenure

Experienced Board: JLM's board of directors are considered experienced (5.7 years average tenure).


Insider Trading

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


Recent Insider Transactions

Buy€1,71524 Oct 19
Brian Williamson
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares10,000
Max Price€0.17
Buy€5,06902 Oct 19
Brian Williamson
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares25,000
Max Price€0.20

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.1%.


Management Team

  • Adam Rabiner

    Director of Investor Relations

    • Ben Holman (45yo)

      CFO & Secretary

      • Tenure: 1.8yrs
      • Compensation: CA$228.31k
    • Robin Peterson

      Chief Financial Officer (Leave of Absence)

      • Tenure: 6.1yrs
      • Compensation: CA$136.33k
    • Tony Blancato

      Director of Business Development & Marketing

      • Brian Williamson

        CEO, President & Director

        • Tenure: 2.4yrs
        • Compensation: CA$414.78k
      • Ryan Breen

        Director of M&A and Corporate Development


        Board Members

        • Nick Baxter (65yo)

          Independent Director

          • Tenure: 8.3yrs
          • Compensation: CA$20.00k
        • Allen Wilson (50yo)

          Director

          • Tenure: 8.3yrs
          • Compensation: CA$205.00k
        • Markus Seywerd

          Independent Director

          • Tenure: 3yrs
          • Compensation: CA$20.00k
        • Brian Williamson

          CEO, President & Director

          • Tenure: 2.4yrs
          • Compensation: CA$414.78k

        Company Information

        Jericho Oil Corporation's company bio, employee growth, exchange listings and data sources


        Key Information

        • Name: Jericho Oil Corporation
        • Ticker: JLM
        • Exchange: DB
        • Founded: 2010
        • Industry: Oil and Gas Exploration and Production
        • Sector: Energy
        • Market Cap: CA$26.365m
        • Listing Market Cap: CA$18.117m
        • Shares outstanding: 128.61m
        • Website: https://www.jerichooil.com

        Location

        • Jericho Oil Corporation
        • 750 West Pender Street
        • Suite 350
        • Vancouver
        • British Columbia
        • V6C 2T7
        • Canada

        Listings

        TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
        JCOTSXV (TSX Venture Exchange)YesCommon SharesCACADMay 2012
        JROO.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDMay 2012
        JLMDB (Deutsche Boerse AG)YesCommon SharesDEEURMay 2012

        Biography

        Jericho Oil Corporation, together with its subsidiaries, acquires, explores for, develops, and produces oil and natural gas properties in the United States. The company primarily focuses on exploration and development activities in the Anadarko Basin STACK Play, Hunton, Mississippi Lime, and Woodford Shale formations in Oklahoma. It has approximately 55,000 net acres of developed and undeveloped acreage. The company was formerly known as Dakar Resource Corp. and changed its name to Jericho Oil Corporation in February 2014. Jericho Oil Corporation 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 Analysis2020/01/16 22:12
        End of Day Share Price2020/01/16 00:00
        Earnings2019/09/30
        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.