AIM:SDX

Stock Analysis Report

Executive Summary

SDX Energy plc engages in the exploration, production, and development of oil and gas with a principal focus on North Africa.


Snowflake Analysis

Flawless balance sheet and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.8%

SDX

-1.5%

GB Oil and Gas

-3.3%

GB Market


1 Year Return

-62.2%

SDX

-39.8%

GB Oil and Gas

-25.0%

GB Market

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

Return vs Market: SDX underperformed the UK Market which returned -25% over the past year.


Shareholder returns

SDXIndustryMarket
7 Day-1.8%-1.5%-3.3%
30 Day-27.0%-24.3%-19.5%
90 Day-38.6%-39.1%-28.9%
1 Year-62.2%-62.2%-36.7%-39.8%-21.0%-25.0%
3 Year-75.4%-75.4%-19.4%-29.6%-14.7%-25.8%
5 Yearn/a-2.3%-22.5%-1.5%-24.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is SDX Energy 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: SDX (£0.14) is trading below our estimate of fair value (£7.04)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: SDX is good value based on its PB Ratio (0.3x) compared to the GB Oil and Gas industry average (0.4x).


Next Steps

Future Growth

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

36.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: SDX's revenue is expected to decline over the next 3 years (-6.7% per year).

High Growth Revenue: SDX's revenue is forecast to decline over the next 3 years (-6.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if SDX's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has SDX Energy performed over the past 5 years?

-0.001%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SDX is currently unprofitable.

Growing Profit Margin: SDX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SDX is unprofitable, and losses have increased over the past 5 years at a rate of -0% per year.

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

Earnings vs Industry: SDX 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: SDX has a negative Return on Equity (-3.5%), as it is currently unprofitable.


Next Steps

Financial Health

How is SDX Energy's financial position?


Financial Position Analysis

Short Term Liabilities: SDX's short term assets ($37.5M) exceed its short term liabilities ($18.2M).

Long Term Liabilities: SDX's short term assets ($37.5M) exceed its long term liabilities ($5.6M).


Debt to Equity History and Analysis

Debt Level: SDX is debt free.

Reducing Debt: SDX has no debt compared to 5 years ago when its debt to equity ratio was 6%.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if SDX'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: SDX has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: SDX has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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

1.8yrs

Average board tenure


CEO

Mark Reid (51yo)

0.92

Tenure

US$1,283,424

Compensation

Mr. Mark Reid served as Chief Financial Officer of SDX Energy plc since November 13, 2015 until November 2019. and its Interim Chief Executive Officer since May 31, 2019 until November 2019. He has been Ch ...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD905.45K) is above average for companies of similar size in the UK market ($USD334.31K).

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


Board Members

NamePositionTenureCompensationOwnership
Mark Reid
CEO & Director0.92yrUS$1.28m0.22% $62.1k
Nicholas Box
CFO, Group Financial Controller & Director0.42yrno datano data
Timothy James Linacre
Independent Non-Executive Director1.83yrsUS$30.28k0.078% $21.6k
Michael Doyle
Independent Non-Executive Chairman4.5yrsUS$95.17k2.12% $586.7k
David John Mitchell
Independent Non-Executive Director4.5yrsUS$60.57k0.88% $244.3k
Catherine Elizabeth Stalker
Independent Non-Executive Director0.17yrno datano data
Amro Saad Al Menhali
Non-Executive Director0.42yrno datano data

1.8yrs

Average Tenure

50.5yo

Average Age

Experienced Board: SDX's board of directors are not considered experienced ( 1.8 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

SDX Energy plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SDX Energy plc
  • Ticker: SDX
  • Exchange: AIM
  • Founded:
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: UK£27.638m
  • Shares outstanding: 204.72m
  • Website: https://www.sdxenergy.com

Number of Employees


Location

  • SDX Energy plc
  • 38 Welbeck Street
  • London
  • Greater London
  • W1G 8DP
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3KXDB (Deutsche Boerse AG)YesCommon SharesDEEURApr 2010
SDXAIM (London Stock Exchange AIM Market)YesCommon SharesGBGBPApr 2010
SDXE.FOTCPK (Pink Sheets LLC)ORD SHSUSUSDMay 2019

Biography

SDX Energy plc engages in the exploration, production, and development of oil and gas with a principal focus on North Africa. The company has interest in two producing assets, including 50% in North West Gemsa and 50% in Meseda located onshore in the Eastern Desert, adjacent to the Gulf of Suez, Egypt. It also holds a 75% interest in the Sebou concession situated in the Rharb Basin, Morocco. The company is headquartered in London, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/02 01:11
End of Day Share Price2020/04/01 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.