Chariot (AIM:CHAR) - Share price, News & Analysis

Q: What is the Fair Price of CHAR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

CHAR (£0.18) is trading below our estimate of [[fair value]] (£0.32)

CHAR fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	0/6
Past Performance	0/6
Financial Health	6/6
Dividends	0/6

CHAR Stock Overview

Chariot Limited, together with its subsidiaries, engages in the oil and gas exploration and appraisal activities.

Rewards

Trading at 42.4% below our estimate of its fair value

Earnings have grown 2.5% per year over the past 5 years

Risk Analysis

Highly volatile share price over the past 3 months

Shareholders have been substantially diluted in the past year

Makes less than USD$1m in revenue ($0)

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

Chariot Competitors

Phoenix Global Resources

AIM:PGR

UK£178.3m

Hurricane Energy

AIM:HUR

UK£146.2m

i3 Energy

AIM:I3E

UK£304.7m

Kistos

AIM:KIST

UK£339.7m

Price History & Performance

Summary of all time highs, changes and price drops for Chariot
Historical stock prices
Current Share Price	UK£0.18
52 Week High	UK£0.27
52 Week Low	UK£0.05
Beta	1.22
1 Month Change	-12.14%
3 Month Change	-19.08%
1 Year Change	256.87%
3 Year Change	304.61%
5 Year Change	53.75%
Change since IPO	-87.90%

Recent News & Updates

May 03

Chariot Limited (LON:CHAR) Shares Could Be 22% Below Their Intrinsic Value Estimate

Does the May share price for Chariot Limited ( LON:CHAR ) reflect what it's really worth? Today, we will estimate the...

Shareholder Returns

	CHAR	GB Oil and Gas	GB Market
7D	4.2%	0.6%	-1.1%
1Y	256.9%	1.9%	-9.7%

Return vs Industry: CHAR exceeded the UK Oil and Gas industry which returned 1.9% over the past year.

Return vs Market: CHAR exceeded the UK Market which returned -9.7% over the past year.

Price Volatility

Is CHAR's price volatile compared to industry and market?
CHAR volatility
CHAR Average Weekly Movement	13.0%
Oil and Gas Industry Average Movement	8.6%
Market Average Movement	5.4%
10% most volatile stocks in GB Market	10.6%
10% least volatile stocks in GB Market	2.8%

Stable Share Price: CHAR is more volatile than 90% of UK stocks over the past 3 months, typically moving +/- 13% a week.

Volatility Over Time: CHAR's weekly volatility (13%) has been stable over the past year, but is still higher than 75% of UK stocks.

About the Company

Founded	Employees	CEO	Website
2007	n/a	Adonis Pouroulis	https://www.chariotenergygroup.com

Chariot Limited, together with its subsidiaries, engages in the oil and gas exploration and appraisal activities. The company operates through Transactional Gas and Transactional Power segments. The company holds interests in the Rissana offshore license that covers an area of approximately 8,489 square kilometers; and Lixus license comprising an area of approximately 2,390 square kilometers in Morocco.

Chariot Fundamentals Summary

How do Chariot's earnings and revenue compare to its market cap?
CHAR fundamental statistics
Market Cap	US$236.27m
Earnings (TTM)	-US$6.96m
Revenue (TTM)	n/a

0.0x

P/S Ratio

-34.0x

P/E Ratio

Is CHAR overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
CHAR income statement (TTM)
Revenue	US$0
Cost of Revenue	US$0
Gross Profit	US$0
Other Expenses	US$6.96m
Earnings	-US$6.96m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	-0.0065
Gross Margin	0.00%
Net Profit Margin	0.00%
Debt/Equity Ratio	0%

How did CHAR perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is CHAR undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Price-To-Book vs Peers
Price-To-Book vs Industry
Price-To-Book vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CHAR?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for CHAR. This is calculated by dividing CHAR's market cap by their current preferred multiple.
What is CHAR's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$236.27m

CHAR key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	n/a
Enterprise Value/EBITDA	-34.2x
PEG Ratio	n/a

Price to Book Ratio vs Peers

How does CHAR's PB Ratio compare to its peers?

CHAR PB Ratio vs Peers

The above table shows the PB ratio for CHAR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PB	Estimated Growth	Market Cap
Peer Average	54.5x
PGR Phoenix Global Resources	208.1x	n/a	UK£178.3m
HUR Hurricane Energy	2x	38.5%	UK£146.2m
I3E i3 Energy	2.2x	n/a	UK£304.7m
KIST Kistos	5.6x	11.5%	UK£339.7m
CHAR Chariot	6.1x	n/a	UK£196.4m

Price-To-Book vs Peers: CHAR is good value based on its Price-To-Book Ratio (6.1x) compared to the peer average (54.5x).

Price to Earnings Ratio vs Industry

How does CHAR's PE Ratio compare vs other companies in the GB Oil and Gas Industry?

Price-To-Book vs Industry: CHAR is expensive based on its Price-To-Book Ratio (6.1x) compared to the UK Oil and Gas industry average (0.8x)

Price to Book Ratio vs Fair Ratio

What is CHAR's PB Ratio compared to its Fair PB Ratio? This is the expected PB Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CHAR PB Ratio vs Fair Ratio.
Fair Ratio
Current PB Ratio	6.1x
Fair PB Ratio	n/a

Price-To-Book vs Fair Ratio: Insufficient data to calculate CHAR's Price-To-Book Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of CHAR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CHAR (£0.18) is trading below our estimate of fair value (£0.32)

Significantly Below Fair Value: CHAR is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

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

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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

0.4%

Forecasted Energy industry annual growth in earnings

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if CHAR's forecast earnings growth is above the savings rate (0.9%).

Earnings vs Market: Insufficient data to determine if CHAR's earnings are forecast to grow faster than the UK market

High Growth Earnings: Insufficient data to determine if CHAR's earnings are expected to grow significantly over the next 3 years.

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

High Growth Revenue: CHAR is forecast to have no revenue next year.

Earnings per Share Growth Forecasts

Future Return on Equity

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

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Past Performance

How has Chariot performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

2.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CHAR is currently unprofitable.

Growing Profit Margin: CHAR is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: CHAR is unprofitable, but has reduced losses over the past 5 years at a rate of 2.5% per year.

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

Earnings vs Industry: CHAR is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (377.8%).

Return on Equity

High ROE: CHAR has a negative Return on Equity (-17.86%), as it is currently unprofitable.

Discover strong past performing companies

Financial Health

How is Chariot's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: CHAR's short term assets ($21.8M) exceed its short term liabilities ($15.8M).

Long Term Liabilities: CHAR has no long term liabilities.

Debt to Equity History and Analysis

Debt Level: CHAR is debt free.

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

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

Forecast Cash Runway: CHAR has sufficient cash runway for 1.6 years if free cash flow continues to grow at historical rates of 12.1% each year.

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Dividend

What is Chariot current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

11.26%

Forecast Dividend Yield

Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if CHAR's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as CHAR has not reported any payouts.

Discover strong dividend paying companies

Management

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

2.0yrs

Average management tenure

CEO

Adonis Pouroulis (52 yo)

2yrs

Tenure

US$518,000

Compensation

Mr. Adonis Pouroulis, B.Sc., Eng., serves as Acting Chief Executive Officer at Chariot Limited since July 21, 2020. He serves as Non-Executive Chairman at Golden Rim Resources Limited since January 16, 202...

CEO Compensation Analysis

Compensation vs Market: Adonis's total compensation ($USD518.00K) is about average for companies of similar size in the UK market ($USD717.34K).

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

Leadership Team

Experienced Management: CHAR's management team is considered experienced (2 years average tenure).

Board Members

Experienced Board: CHAR's board of directors are considered experienced (3.5 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: CHAR 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 substantially diluted in the past year, with total shares outstanding growing by 67.4%.

Data	Last Updated (UTC time)
Company Analysis	2022/07/03 00:00
End of Day Share Price	2022/07/01 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31