DB:RJN

Stock Analysis Report

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Executive Summary

Strike Energy Limited explores for and develops oil and gas resources in Australia.


Snowflake Analysis

Excellent balance sheet with weak fundamentals.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0.9%

RJN

10.6%

DE Oil and Gas

5.0%

DE Market


1 Year Return

197.4%

RJN

29.8%

DE Oil and Gas

4.1%

DE Market

Return vs Industry: RJN exceeded the German Oil and Gas industry which returned 26.9% over the past year.

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


Shareholder returns

RJNIndustryMarket
7 Day0.9%10.6%5.0%
30 Day62.2%24.5%13.8%
90 Day37.3%-2.3%3.3%
1 Year197.4%197.4%33.7%29.8%5.8%4.1%
3 Year190.0%190.0%5.4%-4.7%-0.9%-8.5%
5 Year41.2%39.8%158.4%121.9%10.5%-3.6%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

2.55x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: RJN is overvalued based on its PB Ratio (2.5x) compared to the DE Oil and Gas industry average (1.1x).


Next Steps

Future Growth

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

61.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

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

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


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RJN is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Strike Energy performed over the past 5 years?

23.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RJN is currently unprofitable.

Growing Profit Margin: RJN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RJN is unprofitable, but has reduced losses over the past 5 years at a rate of 23.9% per year.

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

Earnings vs Industry: RJN is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-8.4%).


Return on Equity

High ROE: RJN has a negative Return on Equity (-3.8%), as it is currently unprofitable.


Next Steps

Financial Health

How is Strike Energy's financial position?


Financial Position Analysis

Short Term Liabilities: RJN's short term assets (A$28.6M) exceed its short term liabilities (A$2.7M).

Long Term Liabilities: RJN's short term assets (A$28.6M) exceed its long term liabilities (A$19.8M).


Debt to Equity History and Analysis

Debt Level: RJN is debt free.

Reducing Debt: RJN has no debt compared to 5 years ago when its debt to equity ratio was 17.5%.


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

Forecast Cash Runway: Insufficient data to determine if RJN has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Strike Energy's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if RJN'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 RJN'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?

3.2yrs

Average management tenure


CEO

Stuart Nicholls

3.17yrs

Tenure

AU$501,075

Compensation

Mr. Stuart Nicholls, B.Comm (Acct & Fin), has been the Managing Director and Executive Director of Strike Energy Limited since August 18, 2017 and its Chief Executive Officer since April 10, 2017. Mr. Nich ...


CEO Compensation Analysis

Compensation vs Market: Stuart's total compensation ($USD339.53K) is below average for companies of similar size in the German market ($USD713.01K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Stuart Nicholls
MD, CEO & Executive Director3.17yrsAU$501.08k0.075% A$153.8k
Justin Ferravant
CFO & Company Secretary2.83yrsAU$404.57k0.018% A$37.1k
Pax Barkla
Chief Operating Officerno datano datano data
Lucy Gauvin
General Counselno datano datano data
David Baker
Consultant3.17yrsAU$481.14kno data

3.2yrs

Average Tenure

Experienced Management: RJN's management team is considered experienced (3.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Stuart Nicholls
MD, CEO & Executive Director3.17yrsAU$501.08k0.075% A$153.8k
Stephen Bizzell
Non-Executive Director1.5yrsAU$34.26k0.61% A$1.3m
Andrew Seaton
Non-Executive Director2.83yrsAU$77.28k0.037% A$76.0k
Neville Power
Deputy Chairman0.75yrno data0.74% A$1.5m
John Poynton
Non-Executive Chairman3.17yrsAU$87.25k0.50% A$1.0m
Jody Rowe
Non-Executive Director6yrsAU$68.11k0.057% A$118.2k

2.8yrs

Average Tenure

54yo

Average Age

Experienced Board: RJN's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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 10.2%.


Top Shareholders

Company Information

Strike Energy Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Strike Energy Limited
  • Ticker: RJN
  • Exchange: DB
  • Founded: 1997
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: AU$332.718m
  • Listing Market Cap: AU$205.731m
  • Shares outstanding: 1.71b
  • Website: https://www.strikeenergy.com.au

Location

  • Strike Energy Limited
  • 31-35 George Street
  • Unit1
  • Thebarton
  • South Australia
  • 5031
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
STXASX (Australian Securities Exchange)YesOrdinary SharesAUAUDAug 2004
RJNDB (Deutsche Boerse AG)YesOrdinary SharesDEEURAug 2004
STXCHIA (Chi-X Australia)YesOrdinary SharesAUAUDAug 2004

Biography

Strike Energy Limited explores for and develops oil and gas resources in Australia. The company primarily focuses on the Southern Cooper Basin Gas Project located in South Australia. Its exploration permits and applications cover an area of approximately 9,232 square kilometers within the Cooper/Eromanga basin. Strike Energy Limited was founded in 1997 and is based in Thebarton, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/03 20:36
End of Day Share Price2020/06/03 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


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.