AIM:CAB

Stock Analysis Report

Executive Summary

Cabot Energy Plc engages in the exploration, appraisal, development, and production of oil and gas properties in Canada, Italy, the United Kingdom, French Guiana, and Australia.


Snowflake Analysis

Imperfect balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-14.3%

CAB

9.6%

GB Oil and Gas

-2.4%

GB Market


1 Year Return

-99.0%

CAB

-37.1%

GB Oil and Gas

-25.9%

GB Market

Return vs Industry: CAB underperformed the UK Oil and Gas industry which returned 4.5% over the past year.

Return vs Market: CAB underperformed the UK Market which returned 12.7% over the past year.


Shareholder returns

CABIndustryMarket
7 Day-14.3%9.6%-2.4%
30 Day-14.3%-15.9%-18.0%
90 Day-62.5%-36.5%-29.1%
1 Year-99.0%-99.0%-33.8%-37.1%-22.2%-25.9%
3 Year-99.6%-99.6%-14.3%-25.0%-16.0%-26.6%
5 Year-99.9%-99.9%1.6%-19.4%-4.5%-26.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.0085x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: CAB is good value based on its PB Ratio (0x) compared to the GB Oil and Gas industry average (0.7x).


Next Steps

Future Growth

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

15.3%

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 Cabot Energy 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 Cabot Energy performed over the past 5 years?

55.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CAB is currently unprofitable.

Growing Profit Margin: CAB is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CAB is unprofitable, but has reduced losses over the past 5 years at a rate of 55.6% per year.

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

Earnings vs Industry: CAB is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (24.4%).


Return on Equity

High ROE: CAB has a negative Return on Equity (-5.93%), as it is currently unprofitable.


Next Steps

Financial Health

How is Cabot Energy's financial position?


Financial Position Analysis

Short Term Liabilities: CAB's short term assets ($1.5M) do not cover its short term liabilities ($3.1M).

Long Term Liabilities: CAB's short term assets ($1.5M) do not cover its long term liabilities ($13.2M).


Debt to Equity History and Analysis

Debt Level: CAB is debt free.

Reducing Debt: CAB has no debt compared to 5 years ago when its debt to equity ratio was 1.5%.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if CAB'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: CAB has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: CAB has less than a year of cash runway if free cash flow continues to reduce at historical rates of -51.2% each year


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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


Next Steps

Management

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

1.5yrs

Average management tenure


CEO

Scott Aitken

1.5s

Tenure

US$177,270

Compensation

Mr. Scott Aitken has been the Chief Executive Officer of Cabot Energy Plc since June 18, 2018. Mr. Aitken serves as Chief Executive Officer at High Power Petroleum LLC. Prior to joining High Power Petroleu ...


CEO Compensation Analysis

Compensation vs Market: Scott's total compensation ($USD177.27K) is below average for companies of similar size in the UK market ($USD326.78K).

Compensation vs Earnings: Insufficient data to compare Scott's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Scott Aitken
Chief Executive Officer1.5yrsUS$177.27kno data
Petro Mychalkiw
CFO & Executive Director2yrsUS$193.00kno data
Campbell Airlie
CTO & Executive Director3yrsUS$110.00kno data
William Anderson
Company Secretaryno datano datano data

1.5yrs

Average Tenure

Experienced Management: CAB's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Petro Mychalkiw
CFO & Executive Director2yrsUS$193.00kno data
Campbell Airlie
CTO & Executive Director3yrsUS$110.00kno data
James Dewar
Interim Independent Non-Executive Chairman & Senior Independent Director1.42yrsUS$51.00kno data
Paul Lafferty
Executive Director2.08yrsUS$306.00k0.15% $1.6k
Rachel Stella Maguire
Independent Non-Executive Director1.08yrsUS$10.00kno data

2.0yrs

Average Tenure

59yo

Average Age

Experienced Board: CAB's board of directors are not considered experienced ( 2 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 221.5%.


Top Shareholders

Company Information

Cabot Energy Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Cabot Energy Plc
  • Ticker: CAB
  • Exchange: AIM
  • Founded: 1994
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: UK£1.117m
  • Shares outstanding: 74.46m
  • Website: https://www.cabot-energy.com

Number of Employees


Location

  • Cabot Energy Plc
  • 93-95 Gloucester Place
  • London
  • Greater London
  • W1U 6JQ
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NNPT.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 1995
CABAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPDec 1995
NU6BDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 1995

Biography

Cabot Energy Plc engages in the exploration, appraisal, development, and production of oil and gas properties in Canada, Italy, the United Kingdom, French Guiana, and Australia. It holds 100% interest in oil production play comprising approximately 74,000 acres located in north west Alberta, Canada; and 5 exploration permits and 7 applications for exploration permits offshore in Southern Adriatic and Sicily Channel, as well as onshore permits in Po Valley region located in Italy. The company was formerly known as Northern Petroleum Plc and changed its name to Cabot Energy Plc in June 2017. The company was incorporated in 1994 and is headquartered in London, the United Kingdom. Cabot Energy Plc is a subsidiary of High Power Petroleum LLC. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/03 20:52
End of Day Share Price2019/12/02 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.