i3 Energy (AIM:I3E) - Share price, News & Analysis

I3E fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	2/6
Past Performance	2/6
Financial Health	4/6
Dividends	1/6

I3E Stock Overview

i3 Energy Plc, a holding company, engages in the development and production of oil and gas assets in the United Kingdom and Canada.

Rewards

Trading at 91.1% below our estimate of its fair value

Revenue is forecast to grow 32.46% per year

Earnings have grown 46.1% per year over the past 5 years

Risk Analysis

Shareholders have been substantially diluted in the past year

Dividend of 4.43% is not well covered by earnings

Volatile share price over the past 3 months

Large one-off items impacting financial results

+ 1 more risk

i3 Energy Competitors

Price History & Performance

Summary of all time highs, changes and price drops for i3 Energy
Historical stock prices
Current Share Price	UK£0.28
52 Week High	UK£0.32
52 Week Low	UK£0.075
Beta	0.99
1 Month Change	-1.90%
3 Month Change	43.69%
1 Year Change	238.69%
3 Year Change	-21.52%
5 Year Change	n/a
Change since IPO	-33.06%

Recent News & Updates

Apr 15

Improved Earnings Required Before i3 Energy Plc (LON:I3E) Stock's 52% Jump Looks Justified

Despite an already strong run, i3 Energy Plc ( LON:I3E ) shares have been powering on, with a gain of 52% in the last...

Shareholder Returns

	I3E	GB Oil and Gas	GB Market
7D	0.5%	1.7%	1.1%
1Y	238.7%	22.1%	-2.5%

Return vs Industry: I3E exceeded the UK Oil and Gas industry which returned 18.4% over the past year.

Return vs Market: I3E exceeded the UK Market which returned -2.5% over the past year.

Price Volatility

Is I3E's price volatile compared to industry and market?
I3E volatility
I3E Average Weekly Movement	10.6%
Oil and Gas Industry Average Movement	10.0%
Market Average Movement	6.1%
10% most volatile stocks in GB Market	11.7%
10% least volatile stocks in GB Market	3.2%

Stable Share Price: I3E is more volatile than 75% of UK stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: I3E's weekly volatility (11%) has been stable over the past year, but is still higher than 75% of UK stocks.

About the Company

Founded	Employees	CEO	Website
2014	47	Majid Shafiq	https://www.i3.energy

i3 Energy Plc, a holding company, engages in the development and production of oil and gas assets in the United Kingdom and Canada. The company owns a 100% interest in the 13/23c and 13/23d blocks of Liberator oil field; and 13/23c-10 well in the Serenity oil field. It also owns working interest in Central Alberta, Wapiti / Elmworth, Simonette, and the Clearwater play properties.

i3 Energy Fundamentals Summary

How do i3 Energy's earnings and revenue compare to its market cap?
I3E fundamental statistics
Market Cap	UK£320.47m
Earnings (TTM)	UK£25.08m
Revenue (TTM)	UK£86.76m

12.8x

P/E Ratio

3.7x

P/S Ratio

Is I3E overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
I3E income statement (TTM)
Revenue	UK£86.76m
Cost of Revenue	UK£37.95m
Gross Profit	UK£48.82m
Other Expenses	UK£23.74m
Earnings	UK£25.08m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.022
Gross Margin	56.27%
Net Profit Margin	28.91%
Debt/Equity Ratio	17.3%

How did I3E perform over the long term?

See historical performance and comparison

Dividends

4.4%

Current Dividend Yield

n/a

Payout Ratio

Does I3E pay a reliable dividends?

See I3E dividend history and benchmarks

When do you need to buy I3E by to receive an upcoming dividend?
i3 Energy dividend dates
Ex Dividend Date	May 19 2022
Dividend Pay Date	Jun 10 2022
Days until Ex dividend	0 days
Days until Dividend pay date	22 days

Does I3E pay a reliable dividends?

See I3E dividend history and benchmarks

Valuation

Is i3 Energy undervalued compared to its fair value and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: I3E (£0.28) is trading below our estimate of fair value (£3.19)

Significantly Below Fair Value: I3E is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: I3E is poor value based on its PE Ratio (12.8x) compared to the UK Oil and Gas industry average (10.3x).

PE vs Market: I3E is good value based on its PE Ratio (12.8x) compared to the UK market (15.3x).

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate I3E's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: I3E is overvalued based on its PB Ratio (2.3x) compared to the GB Oil and Gas industry average (1.1x).

Future Growth

How is i3 Energy forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

2/6

Future Growth Score 2/6

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

32.5%

Forecasted annual revenue growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if I3E's forecast earnings growth is above the savings rate (0.9%).

Earnings vs Market: Insufficient data to determine if I3E'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: I3E's revenue (32.5% per year) is forecast to grow faster than the UK market (4.1% per year).

High Growth Revenue: I3E's revenue (32.5% 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 I3E's Return on Equity is forecast to be high in 3 years time

Past Performance

How has i3 Energy performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

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

46.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: I3E has a large one-off gain of £24.6M impacting its December 31 2021 financial results.

Growing Profit Margin: I3E's current net profit margins (28.9%) are lower than last year (90.2%).

Past Earnings Growth Analysis

Earnings Trend: I3E has become profitable over the past 5 years, growing earnings by 46.1% per year.

Accelerating Growth: I3E's earnings growth over the past year (114.1%) exceeds its 5-year average (46.1% per year).

Earnings vs Industry: I3E earnings growth over the past year (114.1%) underperformed the Oil and Gas industry 344.7%.

Return on Equity

High ROE: I3E's Return on Equity (18.2%) is considered low.

Financial Health

How is i3 Energy's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: I3E's short term assets (£42.3M) exceed its short term liabilities (£23.1M).

Long Term Liabilities: I3E's short term assets (£42.3M) do not cover its long term liabilities (£155.1M).

Debt to Equity History and Analysis

Debt Level: I3E's net debt to equity ratio (6.2%) is considered satisfactory.

Reducing Debt: I3E had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: I3E's debt is well covered by operating cash flow (102.4%).

Interest Coverage: I3E's interest payments on its debt are not well covered by EBIT (2x coverage).

Balance Sheet

Dividend

What is i3 Energy current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

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

4.43%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: I3E's dividend (4.43%) is higher than the bottom 25% of dividend payers in the UK market (1.79%).

High Dividend: I3E's dividend (4.43%) is low compared to the top 25% of dividend payers in the UK market (4.82%).

Stability and Growth of Payments

Stable Dividend: Too early to tell whether I3E's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if I3E's dividend payments are increasing as they only just started paying a dividend.

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: With its high cash payout ratio (121.8%), I3E's dividend payments are not well covered by cash flows.

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

Majid Shafiq (56 yo)

3.58yrs

Tenure

UK£1,074,000

Compensation

Mr. Majid Shafiq has been Chief Executive Officer at i3 Energy Plc since October 8, 2018. Mr. Majid Shafiq serves Chief Executive Officer of Àrgentil Capital Partners since 2015. Mr. Shafiq has significant...

CEO Compensation Analysis

Compensation vs Market: Majid's total compensation ($USD1.33M) is above average for companies of similar size in the UK market ($USD1.02M).

Compensation vs Earnings: Majid's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: I3E's management team is not considered experienced ( 2 years average tenure), which suggests a new team.

Board Members

Experienced Board: I3E's board of directors are considered experienced (4.8 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 substantially diluted in the past year, with total shares outstanding growing by 55.9%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/18 00:00
End of Day Share Price	2022/05/18 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31