DB:R8P

Stock Analysis Report

Executive Summary

RAK Petroleum plc operates as an oil and gas investment company.

Snowflake

Fundamentals

Undervalued with solid track record.

Share Price & News

How has RAK Petroleum's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-5.5%

R8P

3.7%

DE Oil and Gas

1.4%

DE Market


1 Year Return

n/a

R8P

50.0%

DE Oil and Gas

3.7%

DE Market

Return vs Industry: Insufficient data to determine how R8P performed against the German Oil and Gas industry.

Return vs Market: Insufficient data to determine how R8P performed against the German Market.


Shareholder returns

R8PIndustryMarket
7 Day-5.5%3.7%1.4%
30 Day-15.4%2.1%1.3%
90 Day-19.1%13.5%3.4%
1 Yearn/a55.0%50.0%7.0%3.7%
3 Yearn/a43.7%30.0%18.5%8.3%
5 Yearn/a169.9%127.6%42.2%22.9%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is RAK Petroleum undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: R8P (€1.04) is trading below our estimate of fair value (€2.42)

Significantly Undervalued: R8P is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: R8P is good value based on its PE Ratio (2x) compared to the Oil and Gas industry average (9.4x).

PE vs Market: R8P is good value based on its PE Ratio (2x) compared to the German market (19.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate R8P's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: R8P is good value based on its PB Ratio (0.4x) compared to the DE Oil and Gas industry average (1.1x).


Next Steps

Future Growth

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

8.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: R8P's forecast earnings growth (8.1% per year) is above the savings rate (0.2%).

Earnings vs Market: R8P's earnings (8.1% per year) are forecast to grow slower than the German market (12.7% per year).

High Growth Earnings: R8P's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if R8P's revenue is forecast to grow faster than the German market.

High Growth Revenue: Insufficient data to determine if R8P's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if R8P's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has RAK Petroleum performed over the past 5 years?

70.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: R8P has become profitable over the past 5 years, growing earnings by 70% per year.

Accelerating Growth: R8P's earnings growth over the past year (122.6%) exceeds its 5-year average (70% per year).

Earnings vs Industry: R8P earnings growth over the past year (122.6%) exceeded the Oil and Gas industry 10%.


Return on Equity

High ROE: R8P's Return on Equity (25.9%) is considered high.


Return on Assets

ROA vs Industry: R8P has a higher Return on Assets than the Oil and Gas industry average last year.


Return on Capital Employed

ROCE Improving: R8P's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is RAK Petroleum's financial position?


Financial Position Analysis

Short Term Liabilities: R8P's short term assets ($1.1B) exceeds its short term liabilities ($317.4M)

Long Term Liabilities: R8P's short term assets (1.1B) do not cover its long term liabilities (1.7B)


Debt to Equity History and Analysis

Debt Level: R8P's debt to equity ratio (67%) is considered high

Reducing Debt: R8P's debt to equity ratio has increased from 0.01% to 67% over the past 5 years.

Debt Coverage: R8P's debt is well covered by operating cash flow (35.5%).

Interest Coverage: R8P's interest payments on its debt are well covered by EBIT (6.2x coverage).


Balance Sheet

Inventory Level: R8P has a high level of physical assets or inventory.

Debt Coverage by Assets: R8P's debt is not covered by short term assets (assets are 1x debt).


Next Steps

Dividend

What is RAK Petroleum's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage6.0%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate R8P's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate R8P'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 R8P's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if R8P'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 R8P'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 RAK Petroleum's salary, the management and board of directors tenure and is there insider trading?

2.5yrs

Average management tenure


CEO

Bijan Mossavar-Rahmani (67yo)

9.6yrs

Tenure

US$1,745,500

Compensation

Mr. Bijan Mossavar-Rahmani serves as the Chief Executive Officer of RAK Petroleum plc since and has been its Executive Chairman May 2010. Mr. Mossavar-Rahmani serves as the Chief Executive Officer of Mond ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Bijan's total compensation is reasonable compared to companies of similar size in the German market.

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


Management Age and Tenure

2.5yrs

Average Tenure

Experienced Management: R8P's management team is considered experienced (2.5 years average tenure).


Board Age and Tenure

9.6yrs

Average Tenure

Experienced Board: R8P's board of directors are considered experienced (9.6 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.


Ownership Breakdown


Management Team

  • Bijan Mossavar-Rahmani (67yo)

    Executive Chairman & CEO

    • Tenure: 9.6yrs
    • Compensation: US$1.75m
  • Kevin Toner

    MD & General Counsel

    • Tenure: 6.2yrs
    • Compensation: US$650.00k
  • Shelley Watson

    CFO & COO

    • Tenure: 2.4yrs
    • Compensation: US$605.25k
  • Arya Bolurfrushan

    • Tenure: 2.5yrs
    • Compensation: US$180.00k
  • Lisa McPhillips

    Chief of Staff & Deputy General Counsel

    • Tenure: 0.9yrs
    • Compensation: US$239.62k

Board Members

  • Bijan Mossavar-Rahmani (67yo)

    Executive Chairman & CEO

    • Tenure: 9.6yrs
    • Compensation: US$1.75m
  • Ahmed Bin Bin Hassan Jawa (63yo)

    Non-Executive Director

    • Tenure: 10.8yrs
    • Compensation: US$50.00k
  • Amir Handjani

    Non-Executive Director

    • Tenure: 9.8yrs
    • Compensation: US$50.00k
  • Bjørn Dale

    Non-Executive Director

    • Tenure: 4.3yrs
    • Compensation: US$50.00k
  • Sultan Abdulla Majid Al Ghurair

    Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: US$50.00k

Company Information

RAK Petroleum plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: RAK Petroleum plc
  • Ticker: R8P
  • Exchange: DB
  • Founded: 2005
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: kr3.200b
  • Listing Market Cap: kr312.798m
  • Shares outstanding: 296.28m
  • Website: https://www.rakpetroleum.uk

Number of Employees


Location

  • RAK Petroleum plc
  • Elder House
  • St Georges Business Park
  • Weybridge
  • Surrey
  • KT13 0TS
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RAKPOB (Oslo Bors)YesClass A SharesNONOKNov 2014
0R47LSE (London Stock Exchange)YesClass A SharesGBNOKNov 2014
RAKPOBATS-CHIXE (BATS 'Chi-X Europe')YesClass A SharesGBNOKNov 2014
R8PDB (Deutsche Boerse AG)YesClass A SharesDEEURNov 2014

Biography

RAK Petroleum plc operates as an oil and gas investment company. The company primarily holds 40.45 % interests in DNO ASA that holds stakes in onshore and offshore licenses at various stages of exploration ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 22:06
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.