AIM:ROSE

Stock Analysis Report

Executive Summary

Rose Petroleum plc, together with its subsidiaries, primarily explores for and develops oil and gas resources in the United States.

Rewards

Earnings have grown 40% per year over the past 5 years

Risk Analysis

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

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

Has less than 1 year of cash runway

Highly volatile share price over past 3 months

+ 1 more risk


Snowflake Analysis

Adequate balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

ROSE

-1.4%

GB Oil and Gas

0.6%

GB Market


1 Year Return

-63.0%

ROSE

4.5%

GB Oil and Gas

12.1%

GB Market

Return vs Industry: ROSE underperformed the UK Oil and Gas industry which returned 4.5% over the past year.

Return vs Market: ROSE underperformed the UK Market which returned 12.7% over the past year.


Shareholder returns

ROSEIndustryMarket
7 Day0%-1.4%0.6%
30 Day-2.4%2.9%1.5%
90 Day-24.5%2.3%8.1%
1 Year-63.0%-63.0%9.8%4.5%18.0%12.1%
3 Year-91.3%-91.3%28.8%12.3%23.9%8.1%
5 Year-99.4%-99.4%64.0%31.3%41.7%8.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Rose Petroleum undervalued compared to its fair value and its price relative to the market?

0.16x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate ROSE's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate ROSE's fair value to establish if it is undervalued.


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: ROSE is good value based on its PB Ratio (0.2x) compared to the GB Oil and Gas industry average (0.7x).


Next Steps

Future Growth

How is Rose Petroleum forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

3.7%

Forecasted Energy industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Rose Petroleum has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Rose Petroleum performed over the past 5 years?

40.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ROSE is currently unprofitable.

Growing Profit Margin: ROSE is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ROSE is unprofitable, but has reduced losses over the past 5 years at a rate of 40% per year.

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

Earnings vs Industry: ROSE is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (24.4%).


Return on Equity

High ROE: ROSE has a negative Return on Equity (-7.52%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Rose Petroleum's financial position?


Financial Position Analysis

Short Term Liabilities: ROSE's short term assets ($859.0K) exceed its short term liabilities ($406.0K).

Long Term Liabilities: ROSE has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: ROSE is debt free.

Reducing Debt: ROSE had no debt 5 years ago.


Balance Sheet

Inventory Level: ROSE has a low level of unsold assets or inventory.

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

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


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.8%markettop25%4.9%industryaverage5.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if ROSE'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 ROSE'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 Rose Petroleum's salary, the management and board of directors tenure and is there insider trading?

2.5yrs

Average management tenure


CEO

John Harrington (46yo)

0.3yrs

Tenure

0

Mr. Colin Harrington has been Chief Executive Officer at Rose Petroleum plc since September 03, 2019. He is a Managing Director at Wellford Energy Group LLC. In early 2008, Mr. Harrington founded Draketail ...


Management Age and Tenure

2.5yrs

Average Tenure

50yo

Average Age

Experienced Management: ROSE's management team is considered experienced (2.5 years average tenure).


Board Age and Tenure

0.7yrs

Average Tenure

50yo

Average Age

Experienced Board: ROSE's board of directors are not considered experienced ( 0.7 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUK£1,58112 Apr 19
Christopher Eadie
EntityIndividual
Role
Member of the Board of Directors
CFO & Director
Shares945,600
Max PriceUK£0.0017
BuyUK£35,00012 Apr 19
Matthew Idiens
EntityIndividual
Shares2,000,000
Max PriceUK£0.018

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 49.2%.


Management Team

  • Ian McNeill

    Secretary

    • Chris Eadie (50yo)

      CFO & Director

      • Tenure: 4.9yrs
      • Compensation: US$157.00k
    • Kris Hefton (64yo)

      Consultant

      • Tenure: 2.5yrs
      • Compensation: US$56.00k
    • John Harrington (46yo)

      CEO & Director

      • Tenure: 0.3yrs
    • Alan Edwards

      Principal Geologist


      Board Members

      • Tom Reynolds (49yo)

        Non-Executive Director

        • Tenure: 0.8yrs
      • Gordon Stein (60yo)

        Independent Non-Executive Director

        • Tenure: 0.3yrs
      • Chris Eadie (50yo)

        CFO & Director

        • Tenure: 4.9yrs
        • Compensation: US$157.00k
      • John Harrington (46yo)

        CEO & Director

        • Tenure: 0.3yrs
      • Rick Grant (64yo)

        Non-Executive Chairman

        • Tenure: 0.3yrs

      Company Information

      Rose Petroleum plc's company bio, employee growth, exchange listings and data sources


      Key Information

      • Name: Rose Petroleum plc
      • Ticker: ROSE
      • Exchange: AIM
      • Founded: 2002
      • Industry: Oil and Gas Exploration and Production
      • Sector: Energy
      • Market Cap: UK£2.871m
      • Shares outstanding: 287.11m
      • Website: https://www.rosepetroleum.com

      Number of Employees


      Location

      • Rose Petroleum plc
      • Newmarket House
      • First Floor
      • Newbury
      • Berkshire
      • RG14 5DP
      • United Kingdom

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      ROSEAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPJun 2004
      VNHL.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 2004

      Biography

      Rose Petroleum plc, together with its subsidiaries, primarily explores for and develops oil and gas resources in the United States. The company holds a 75% working interest in Paradox Basin covering an approximately 80,000 net acres located in Utah, the United States. The company was formerly known as VANE Minerals plc and changed its name to Rose Petroleum plc in August 2013. Rose Petroleum plc was incorporated in 2002 and is headquartered in Newbury, the United Kingdom. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/20 20:31
      End of Day Share Price2020/01/20 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.