AIM:ECHO

Stock Analysis Report

Executive Summary

Echo Energy plc, through its subsidiaries, focuses on developing as an exploration, gas focused E&P company in Latin America.


Snowflake Analysis

Weak fundamentals or lack of information.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-13.0%

ECHO

-1.5%

GB Oil and Gas

-3.3%

GB Market


1 Year Return

-84.6%

ECHO

-39.8%

GB Oil and Gas

-25.0%

GB Market

Return vs Industry: ECHO underperformed the UK Oil and Gas industry which returned -39.8% over the past year.

Return vs Market: ECHO underperformed the UK Market which returned -25% over the past year.


Shareholder returns

ECHOIndustryMarket
7 Day-13.0%-1.5%-3.3%
30 Day-53.5%-24.3%-19.5%
90 Day-78.3%-39.1%-28.9%
1 Year-84.6%-84.6%-36.7%-39.8%-21.0%-25.0%
3 Year-95.3%-95.3%-19.4%-29.6%-14.7%-25.8%
5 Year-98.8%-98.8%-2.3%-22.5%-1.5%-24.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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


In this section, we usually try to help investors determine whether Echo Energy is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Echo Energy has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of ECHO’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the potential returns from the core activities, the size of each contract's opportunity, and the capacity of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through Echo Energy regulatory filings.
  • Explore potentially undervalued companies in the Energy industry.

Future Growth

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

16.1%

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 Echo 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 Echo Energy performed over the past 5 years?

-59.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ECHO is currently unprofitable.

Growing Profit Margin: ECHO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ECHO is unprofitable, and losses have increased over the past 5 years at a rate of -59.7% per year.

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

Earnings vs Industry: ECHO is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (47.5%).


Return on Equity

High ROE: ECHO's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is Echo Energy's financial position?


Financial Position Analysis

Short Term Liabilities: ECHO has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: ECHO has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: ECHO has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: ECHO's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

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

Debt Coverage by Assets: ECHO has negative shareholder equity (liabilities exceed assets) therefore debt is not 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: Insufficient data to determine if ECHO has enough cash runway based on its current free cash flow.

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


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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

2.8yrs

Average management tenure


CEO

Martin George Hull (40yo)

1.33s

Tenure

US$410,186

Compensation

Mr. Martin George Michael Hull has been Chief Executive Officer of Echo Energy plc since May 20, 2019 and as its Director since October 02, 2018. He served as Chief Financial Officer at Echo Energy plc fro ...


CEO Compensation Analysis

Compensation vs Market: Martin George's total compensation ($USD510.68K) is above average for companies of similar size in the UK market ($USD334.31K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Martin George Hull
CEO & Director1.33yrsUS$410.19k0.084% $3.0k
Julian Bessa
Vice President of Exploration2.83yrsno datano data
A. Bateman
Company Secretaryno datano datano data
Roberto Bencini
Part Time Consultant5.25yrsno datano data

2.8yrs

Average Tenure

Experienced Management: ECHO's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Martin George Hull
CEO & Director1.33yrsUS$410.19k0.084% $3.0k
Marco Fumagalli
Non-Executive Director3.08yrsUS$60.09kno data
James Parsons
Non-Executive Chairman3.08yrsUS$101.11kno data
Stephen Whyte
Non-Executive Director3.08yrsUS$60.09kno data
Gavin Graham
Independent Non-Executive Director1.42yrsUS$9.59kno data

3.1yrs

Average Tenure

49yo

Average Age

Experienced Board: ECHO's board of directors are considered experienced (3.1 years average tenure).


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 diluted in the past year, with total shares outstanding growing by 21.7%.


Top Shareholders

Company Information

Echo Energy plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Echo Energy plc
  • Ticker: ECHO
  • Exchange: AIM
  • Founded: 2005
  • Industry: Integrated Oil and Gas
  • Sector: Energy
  • Market Cap: UK£3.559m
  • Shares outstanding: 711.72m
  • Website: https://www.echoenergyplc.com

Number of Employees


Location

  • Echo Energy plc
  • 40 George Street
  • 4th Floor
  • London
  • Greater London
  • W1U 7DW
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ECHOAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPDec 2005
A3Z1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2005

Biography

Echo Energy plc, through its subsidiaries, focuses on developing as an exploration, gas focused E&P company in Latin America. It engages in the appraisal of oil and gas exploration permits; and holding Argentinian and Bolivian branch assets. The company was formerly known as Independent Resources plc. Echo Energy plc was incorporated in 2005 and is based in London, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 21:37
End of Day Share Price2020/04/01 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.