Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
It is not possible to calculate the future cash flow value for
Rockhopper Exploration. This is due to cash flow or dividend data being
unavailable. The share price is
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
Rockhopper Exploration's earnings available for a low price, and how does
this compare to other companies in the same industry?
Rockhopper Exploration is not considered high growth as it is expected to be loss making for the next 1-3 years.
Rockhopper Exploration's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Rockhopper Exploration's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
Oil and Gas
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
0/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
Rockhopper Exploration's finances.
The net worth of a company is the difference between its assets and liabilities.
Rockhopper Exploration is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Rockhopper Exploration's long term commitments exceed its cash and other short term assets.
This treemap shows a more detailed breakdown of
Rockhopper Exploration's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Low level of unsold assets.
Rockhopper Exploration has no debt, it does not need to be covered by short term assets.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Mr. Samuel John Moody, also known as Sam, is a Co-founder of Rockhopper Exploration plc. (Rockhopper Exploration Limited) and also has been its Chief Executive Officer and Managing Director since September 2010. Mr. Moody has been responsible for building and managing the group from its formation in early 2004. He previously worked in several roles within the financial sector at companies including AXA Equity & Law Investment Management and St Pauls Investment Management, where he was an investment director. He is a Fellow of the Securities Institute. He has been a Director of Rockhopper Exploration plc. since February 21, 2005. Mr. Moody serves as a Director of Bennett Harrison Limited, Rockhopper Exploration (Hydrocarbons) Limited, Rockhopper Exploration (Oil) Limited (incorporated in England & Wales), Rockhopper Exploration (Oil) Limited (incorporated in the Falkland Islands), Rockhopper Exploration (Petrochemicals) Limited and Rockhopper Resources Limited.
Sam's compensation has been consistent with company performance over the past year.
Sam's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
CFO & Executive Director
Group Financial Controller
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Rockhopper Exploration board of directors is about average.
How Should Investors Feel About Rockhopper Exploration plc's (LON:RKH) CEO Pay?
First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Sam Moody's Compensation Compare With Similar Sized Companies. … At the time of writing our data says that Rockhopper Exploration plc has a market cap of UK£118m, and is paying total annual CEO compensation of US$525k.
How Does Investing In Rockhopper Exploration plc (LON:RKH) Impact The Volatility Of Your Portfolio?
In finance, Beta is a measure of volatility. … Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market. … Beta is a widely used metric to measure a stock's exposure to market risk (volatility).
What You Must Know About Rockhopper Exploration plc's (LON:RKH) Financial Strength
Rockhopper Exploration plc (LON:RKH), which has zero-debt on its balance sheet, can maximize capital returns by increasing debt due to its lower cost of capital. … However, the trade-off is RKH will have to follow strict debt obligations which will reduce its financial flexibility. … Is RKH right in choosing financial flexibility over lower cost of capital
Does The Rockhopper Exploration plc (LON:RKH) Share Price Fall With The Market?
Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market. … In comparison a stock with a beta of over one tends to be move in a similar direction to the market in the long term, but with greater changes in price.
Is Rockhopper Exploration plc's (LON:RKH) Balance Sheet Strong Enough To Weather A Storm?
However, it also faces higher cost of capital given interest cost is generally lower than equity. … Does RKH's growth rate justify its decision for financial flexibility over lower cost of capital. … Debt funding can be cheaper than issuing new equity due to lower interest cost on debt
What You Must Know About Rockhopper Exploration plc's (LON:RKH) Market Risks
For Rockhopper Exploration plc’s (LON:RKH) shareholders, and also potential investors in the stock, understanding how the stock’s risk and return characteristics can impact your portfolio is important. … The other type of risk, which cannot be diversified away, is market risk. … Every stock in the market is exposed to this risk, which arises from macroeconomic factors such as economic growth and geo-political tussles just to name a few.
What does Rockhopper Exploration plc's (LON:RKH) Balance Sheet Tell Us About Its Future?
The direct benefit for Rockhopper Exploration plc (LON:RKH), which sports a zero-debt capital structure, to include debt in its capital structure is the reduced cost of capital. … However, the trade-off is RKH will have to adhere to stricter debt covenants and have less financial flexibility. … Does RKH's growth rate justify its decision for financial flexibility over lower cost of capital
Rockhopper Exploration plc (LON:RKH) And The Oil & Gas Industry Prospect For 2018
Today, I will analyse the industry outlook, and also determine whether Rockhopper Exploration is a laggard or leader relative to its energy sector peers. … View our latest analysis for Rockhopper Exploration What’s the catalyst for Rockhopper Exploration's sector growth? … However, recently the sector saw a reversal in the downturn, and in the previous year, the industry saw growth in the thirties, beating the UK market growth of 18.58%.
Rockhopper Exploration plc (LON:RKH): How Does It Impact Your Portfolio?
A popular measure of market risk for a stock is its beta, and the market as a whole represents a beta value of one. … Thus, we can expect RKH to be more stable in the face of market movements, relative to its peers of similar size but with a higher portion of fixed assets on their books. … However, this is the opposite to what RKH’s actual beta value suggests, which is higher stock volatility relative to the market.
Rockhopper Exploration plc operates as an oil and gas exploration and production company primarily in the United Kingdom. It engages in the exploration and exploitation of its oil and gas acreage primarily in the North Falkland Basin and the Greater Mediterranean region. The company holds 95.50% interests in the PL003a production licenses; 60.50% interests in PL003b production licenses; 64.00% interests in PL004a, PL004b, and PL004c production licenses; 100% interests in PL005 production licenses; 40% interests in PL032 and PL033 production licenses in North Falkland Basin; and 100% interest in PL010-PL016, PL025-PL029, and PL031 production licenses. It also has a portfolio of production and exploration interests in Italy, Egypt, and Croatia. The company was founded in 2004 and is headquartered in London, the United Kingdom.
Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.