AIM:PPC

Stock Analysis Report

Executive Summary

President Energy Plc engages in the exploration, evaluation, and production of oil and gas properties primarily in South America.


Snowflake Analysis

High growth potential and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: PPC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-14.1%

PPC

-11.2%

GB Oil and Gas

-8.6%

GB Market


1 Year Return

-58.1%

PPC

-14.7%

GB Oil and Gas

-1.3%

GB Market

Return vs Industry: PPC underperformed the UK Oil and Gas industry which returned -14.7% over the past year.

Return vs Market: PPC underperformed the UK Market which returned -1.3% over the past year.


Shareholder returns

PPCIndustryMarket
7 Day-14.1%-11.2%-8.6%
30 Day-20.2%-15.5%-8.4%
90 Day-14.1%-14.4%-5.3%
1 Year-58.1%-58.1%-10.3%-14.7%4.0%-1.3%
3 Year-45.7%-45.7%10.7%-3.4%7.6%-6.1%
5 Year-74.2%-74.2%26.0%1.5%23.4%-4.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

14.67x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PPC (£0.03) is trading above our estimate of fair value (£0.03)

Significantly Below Fair Value: PPC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: PPC is poor value based on its PE Ratio (15.2x) compared to the Oil and Gas industry average (5.4x).

PE vs Market: PPC is good value based on its PE Ratio (15.2x) compared to the UK market (16.8x).


Price to Earnings Growth Ratio

PEG Ratio: PPC is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: PPC is good value based on its PB Ratio (0.3x) compared to the GB Oil and Gas industry average (0.6x).


Next Steps

Future Growth

How is President Energy forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

93.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PPC's forecast earnings growth (93% per year) is above the savings rate (0.5%).

Earnings vs Market: PPC's earnings (93% per year) are forecast to grow faster than the UK market (13.2% per year).

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

Revenue vs Market: PPC's revenue (22.2% per year) is forecast to grow faster than the UK market (3.8% per year).

High Growth Revenue: PPC's revenue (22.2% 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 PPC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has President Energy performed over the past 5 years?

-16.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PPC has a large one-off loss of $2.3M impacting its June 30 2019 financial results.

Growing Profit Margin: PPC became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: PPC has become profitable over the past 5 years, growing earnings by -16.4% per year.

Accelerating Growth: PPC has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: PPC has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (26.8%).


Return on Equity

High ROE: PPC's Return on Equity (2.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is President Energy's financial position?


Financial Position Analysis

Short Term Liabilities: PPC's short term assets ($14.0M) do not cover its short term liabilities ($27.2M).

Long Term Liabilities: PPC's short term assets ($14.0M) do not cover its long term liabilities ($37.2M).


Debt to Equity History and Analysis

Debt Level: PPC's debt to equity ratio (18.6%) is considered satisfactory.

Reducing Debt: PPC's debt to equity ratio has increased from 0.07% to 18.6% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: PPC's debt is not covered by short term assets (assets are 0.5x 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: PPC is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: PPC is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.9%markettop25%5.4%industryaverage6.4%forecastin3Years0%

Current dividend yield vs market & industry

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

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

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

5.1yrs

Average management tenure


CEO

Peter Levine (63yo)

5.1yrs

Tenure

US$586,000

Compensation

Mr. Peter Michael Levine, M.A. (Oxon) has been the Chief Executive Officer of President Energy Plc since January 15, 2015 and serves as its Company Secretary. Mr. Levine serves as an International Legal Ad ...


CEO Compensation Analysis

Compensation vs Market: Peter's total compensation ($USD586.00K) is above average for companies of similar size in the UK market ($USD324.44K).

Compensation vs Earnings: Peter's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Peter Levine
Chairman5.1yrsUS$586.00kno data
Robert Shepherd
Group Finance Director & Director0yrsUS$248.00k0.085% $35.6k
Lucía D'Agostino
Director & General Counsel0yrsno datano data
Meade Hufford
Head of US Operations0yrsno datano data
Jim Allender
Head of Australian Operations0yrsno datano data
Jonathan Cohen
Executive Vice President of Exploration8.9yrsno datano data
Maria Perez
Chief Financial Officer of Argentina0yrsno data0.0034% $1.4k
Martin Gee
Head of Sub-Surface0.5yrsno datano data
John Hamilton
Senior Advisor5.1yrsno datano data
Richard Hubbard
Senior Advisor5.1yrsno datano data

5.1yrs

Average Tenure

63yo

Average Age

Experienced Management: PPC's management team is seasoned and experienced (5.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Peter Levine
Chairman5.1yrsUS$586.00kno data
Robert Shepherd
Group Finance Director & Director0yrsUS$248.00k0.085% $35.6k
Jorge Bongiovanni
Independent Non-Executive Director3.9yrsUS$47.00k0.013% $5.3k
Alexander Moody-Stuart
Independent Non-Executive Director1.9yrsUS$45.00k0.0080% $3.3k

3.9yrs

Average Tenure

63yo

Average Age

Experienced Board: PPC's board of directors are considered experienced (3.9 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: President Energy Plc
  • Ticker: PPC
  • Exchange: AIM
  • Founded: 2004
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: UK£42.008m
  • Shares outstanding: 1.25b
  • Website: https://www.presidentenergyplc.com

Number of Employees


Location

  • President Energy Plc
  • Carrwood Park
  • Selby Road
  • Leeds
  • Yorkshire
  • LS15 4LG
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PPCAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPJul 2004
PPCG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2004
NNH1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2004

Biography

President Energy Plc engages in the exploration, evaluation, and production of oil and gas properties primarily in South America. It holds oil and gas production assets in Argentina and the United States, as well as exploration assets in Argentina, the United States, and Paraguay. The company was formerly known as President Petroleum Company PLC and changed its name to President Energy Plc in September 2012. President Energy Plc was founded in 2004 and is headquartered in Leeds, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 21:25
End of Day Share Price2020/02/28 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.