AIM:HYR

Stock Analysis Report

Executive Summary

Hydrodec Group plc, together with its subsidiaries, operates as an industrial oil re-refining company in the United States.

Snowflake

Fair value with limited growth.

Rewards

Trading at 82.6% below its fair value

Revenue is forecast to grow by 29.3% next year

Earnings have grown 23.3% per year over the past 5 years

Risk Analysis

Has less than 1 year of cash runway

Shareholders have been substantially diluted in the past year

Does not have a meaningful market cap (£3M)

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

+ 2 more risks

Share Price & News

How has Hydrodec Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-2.2%

HYR

-1.3%

GB Oil and Gas

-0.3%

GB Market


1 Year Return

-84.9%

HYR

7.2%

GB Oil and Gas

3.9%

GB Market

Return vs Industry: HYR underperformed the UK Oil and Gas industry which returned 7.2% over the past year.

Return vs Market: HYR underperformed the UK Market which returned 3.9% over the past year.


Shareholder returns

HYRIndustryMarket
7 Day-2.2%-1.3%-0.3%
30 Day-8.2%4.6%1.8%
90 Day-77.9%7.1%4.9%
1 Year-84.9%-84.9%12.6%7.2%9.3%3.9%
3 Year-94.0%-94.0%49.6%30.2%23.2%7.6%
5 Year-98.7%-98.7%38.2%12.6%34.3%3.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Hydrodec Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HYR (£0.11) is trading below our estimate of fair value (£0.65)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: HYR is good value based on its PB Ratio (0.2x) compared to the GB Oil and Gas industry average (0.8x).


Next Steps

Future Growth

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

49.7%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if HYR's forecast earnings growth is above the savings rate (1.2%).

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

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

Revenue vs Market: HYR's revenue (49.7% per year) is forecast to grow faster than the UK market (3.8% per year).

High Growth Revenue: HYR's revenue (49.7% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Hydrodec Group performed over the past 5 years?

23.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HYR has high quality earnings.

Growing Profit Margin: HYR's current net profit margins (-44.7%) are lower than last year (-25.1%).


Past Earnings Growth Analysis

Earnings Trend: HYR is unprofitable, but has reduced losses over the past 5 years at a rate of 23.3% per year.

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

Earnings vs Industry: HYR is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (24.7%).


Return on Equity

High ROE: HYR has a negative Return on Equity (-34.17%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Hydrodec Group's financial position?


Financial Position Analysis

Short Term Liabilities: HYR's short term assets ($3.1M) do not cover its short term liabilities ($12.6M)

Long Term Liabilities: HYR's short term assets (3.1M) do not cover its long term liabilities (4.0M)


Debt to Equity History and Analysis

Debt Level: HYR's debt to equity ratio (24.3%) is considered satisfactory

Reducing Debt: HYR's debt to equity ratio has increased from 0.01% to 24.3% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: HYR's debt is not covered by short term assets (assets are 0.6x debt).


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: HYR has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: HYR has less than a year of cash runway if free cash flow continues to reduce at historical rates of -0.5% each year


Next Steps

Dividend

What is Hydrodec Group's current dividend yield, its reliability and sustainability?

45.35%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.3%industryaverage5.2%forecastin3Years45.3%

Current dividend yield vs market & industry

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

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

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


Next Steps

Management

What is the CEO of Hydrodec Group's salary, the management and board of directors tenure and is there insider trading?

6.0yrs

Average board tenure


CEO

Chris Ellis (58yo)

0.08yrs

Tenure

0

Mr. Christopher John Ellis, also known as Chris, has been Director at Hydrodec Group plc since October 2019 and serves as its Chief Executive Officer since October 2019. He was Non-Executive Director of Hy ...


CEO Compensation Analysis

Compensation vs Market: Chris's total compensation ($USD373.00K) is about average for companies of similar size in the UK market ($USD319.88K).

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


Board Age and Tenure

6.0yrs

Average Tenure

63yo

Average Age

Experienced Board: HYR's board of directors are considered experienced (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

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 190.6%.


Management Team

  • Chris Ellis (58yo)

    CEO & Director

    • Tenure: 0.08yrs
  • Colin Moynihan (63yo)

    Executive Chairman

    • Tenure: 7.1yrs
    • Compensation: US$494.00k
  • Mike Preen

    Company Secretary

    • Tenure: 0yrs
  • Takuichi Murachi-San

    President of Hydrodec Japan

    • Tenure: 0yrs
  • David Dinwoodie (39yo)

    Interim Chief Financial Officer

    • Tenure: 1.6yrs
    • Compensation: US$416.90k

Board Members

  • Bert Black

    Non-Executive & Non-Independent Director

    • Tenure: 8.3yrs
  • Chris Ellis (58yo)

    CEO & Director

    • Tenure: 0.08yrs
  • Colin Moynihan (63yo)

    Executive Chairman

    • Tenure: 7.1yrs
    • Compensation: US$494.00k
  • Mary Archer (74yo)

    Independent Non-Executive Director

    • Tenure: 5yrs
    • Compensation: US$76.00k

Company Information

Hydrodec Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hydrodec Group plc
  • Ticker: HYR
  • Exchange: AIM
  • Founded: 2001
  • Industry: Oil and Gas Refining and Marketing
  • Sector: Energy
  • Market Cap: UK£3.125m
  • Shares outstanding: 27.78m
  • Website: https://www.hydrodec.com

Number of Employees


Location

  • Hydrodec Group plc
  • International House
  • 24 Holborn Viaduct
  • London
  • Greater London
  • EC1A 2BN
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HYRAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPDec 2004

Biography

Hydrodec Group plc, together with its subsidiaries, operates as an industrial oil re-refining company in the United States. The company re-refines used and contaminated waste oil to produce, market, and di ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/12 20:33
End of Day Share Price2019/11/12 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.