AIM:PTAL

Stock Analysis Report

Executive Summary

PetroTal Corp. engages in the exploration, appraisal, and development of crude oil and natural gas in Peru, South America.

Rewards

Trading at 98.3% below its fair value

Earnings are forecast to grow 64.71% per year

Revenue grew by 784.2% over the past year

Risk Analysis

Shareholders have been substantially diluted in the past year

Has less than 1 year of cash runway

Highly volatile share price over past 3 months

Does not have a meaningful market cap (£106M)



Snowflake Analysis

Exceptional growth potential with mediocre balance sheet.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

5.0%

PTAL

4.5%

GB Oil and Gas

-5.4%

GB Market


1 Year Return

-19.2%

PTAL

-35.7%

GB Oil and Gas

-25.2%

GB Market

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

Return vs Market: PTAL exceeded the UK Market which returned -25% over the past year.


Shareholder returns

PTALIndustryMarket
7 Day5.0%4.5%-5.4%
30 Day-46.2%-20.8%-20.6%
90 Day-65.0%-35.8%-29.1%
1 Year-18.9%-19.2%-32.4%-35.7%-21.5%-25.2%
3 Yearn/a-14.1%-24.7%-15.3%-25.9%
5 Yearn/a-2.4%-18.5%-3.6%-25.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is PetroTal 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: PTAL (£0.11) is trading below our estimate of fair value (£6.12)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: PTAL is overvalued based on its PB Ratio (0.7x) compared to the GB Oil and Gas industry average (0.4x).


Next Steps

Future Growth

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

64.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PTAL is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.5%).

Earnings vs Market: PTAL is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: PTAL's is expected to become profitable in the next 3 years.

Revenue vs Market: PTAL's revenue (64.7% per year) is forecast to grow faster than the UK market (2.4% per year).

High Growth Revenue: PTAL's revenue (64.7% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PTAL's Return on Equity is forecast to be high in 3 years time (32.9%)


Next Steps

Past Performance

How has PetroTal performed over the past 5 years?

92.8%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: PTAL is currently unprofitable.

Growing Profit Margin: PTAL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if PTAL's year-on-year earnings growth rate was positive over the past 5 years.

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

Earnings vs Industry: PTAL 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: PTAL has a negative Return on Equity (-0.25%), as it is currently unprofitable.


Next Steps

Financial Health

How is PetroTal's financial position?


Financial Position Analysis

Short Term Liabilities: PTAL's short term assets ($41.7M) do not cover its short term liabilities ($45.3M).

Long Term Liabilities: PTAL's short term assets ($41.7M) exceed its long term liabilities ($13.2M).


Debt to Equity History and Analysis

Debt Level: PTAL is debt free.

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


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if PTAL's debt is 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: PTAL has less than a year of cash runway based on its current free cash flow.

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


Next Steps

Dividend

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

1.05%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PTAL's dividend (1.05%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (2.67%).

High Dividend: PTAL's dividend (1.05%) is low compared to the top 25% of dividend payers in the UK market (7.36%).


Stability and Growth of Payments

Stable Dividend: PTAL is not paying a notable dividend for the UK market, therefore no need to check if payments are stable.

Growing Dividend: PTAL is not paying a notable dividend for the UK market, therefore no need to check if payments are 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 PTAL'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?

2.3yrs

Average board tenure


CEO

Manolo Zuniga Pflucker (57yo)

2.33s

Tenure

US$1,082,939

Compensation

Mr. Manuel Pablo Zúñiga-Pflücker is President and Chief Executive Officer at PetroTal Corp. and has been its Director since December 18, 2017. Mr. Zúñiga-Pflücker was Chief Executive Officer and Director o ...


CEO Compensation Analysis

Compensation vs Market: Manolo's total compensation ($USD1.08M) is above average for companies of similar size in the UK market ($USD334.31K).

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


Board Members

NamePositionTenureCompensationOwnership
Manuel Zuniga Pflucker
President2.33yrsUS$1.08m0.42% $253.5k
Mark McComiskey
Independent Chairman of the Board0.42yrUS$57.68kno data
Gary Guidry
Independent Director2.33yrsUS$57.68kno data
Ryan Ellson
Independent Director2.33yrsUS$57.68kno data
Eleanor Barker
Independent Non-Executive Director0.33yrno datano data
Gavin Hugh Wilson
Independent Director6.83yrsUS$57.68kno data
Roger Tucker
Independent Non-Executive Director0.33yrno datano data

2.3yrs

Average Tenure

57yo

Average Age

Experienced Board: PTAL's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


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 62.6%.


Top Shareholders

Company Information

PetroTal Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: PetroTal Corp.
  • Ticker: PTAL
  • Exchange: AIM
  • Founded:
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: CA$106.390m
  • Listing Market Cap: CA$60.596m
  • Shares outstanding: 673.35m
  • Website: https://www.petrotal-corp.com

Number of Employees


Location

  • PetroTal Corp.
  • 11451 Katy Freeway
  • Suite 500
  • Houston
  • Texas
  • 77079
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TALTSXV (TSX Venture Exchange)YesCommon SharesCACADDec 2017
SER1DB (Deutsche Boerse AG)YesCommon SharesDEEURDec 2017
PTAL.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDDec 2017
PTALAIM (London Stock Exchange AIM Market)YesCommon SharesGBGBPDec 2017

Biography

PetroTal Corp. engages in the exploration, appraisal, and development of crude oil and natural gas in Peru, South America. Its primary property is the Bretana oil field located in the Maranon Basin of northern Peru. The company was formerly known as Sterling Resources Ltd. and changed its name to PetroTal Corp. in June 2018. PetroTal Corp. is headquartered in Houston, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/02 19:28
End of Day Share Price2020/04/02 00:00
Earnings2019/09/30
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.