AIM:SOU

Stock Analysis Report

Executive Summary

Sound Energy plc, through its subsidiaries, engages in the exploration, appraisal, and development of oil and gas assets.


Snowflake Analysis

Mediocre balance sheet and overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

1.9%

SOU

17.3%

GB Oil and Gas

10.0%

GB Market


1 Year Return

-94.7%

SOU

-42.4%

GB Oil and Gas

-23.0%

GB Market

Return vs Industry: SOU underperformed the UK Oil and Gas industry which returned -42.8% over the past year.

Return vs Market: SOU underperformed the UK Market which returned -22.7% over the past year.


Shareholder returns

SOUIndustryMarket
7 Day1.9%17.3%10.0%
30 Day-31.6%-26.2%-17.6%
90 Day-47.0%-40.7%-27.3%
1 Year-94.7%-94.7%-39.4%-42.4%-18.9%-23.0%
3 Year-98.6%-98.6%-20.7%-30.7%-12.9%-24.2%
5 Year-93.2%-93.4%-2.7%-22.9%1.6%-21.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.066x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: SOU is good value based on its PB Ratio (0.1x) compared to the GB Oil and Gas industry average (0.4x).


Next Steps

Future Growth

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

16.1%

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 Sound Energy 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 Sound Energy performed over the past 5 years?

-12.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SOU is currently unprofitable.

Growing Profit Margin: SOU is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SOU is unprofitable, and losses have increased over the past 5 years at a rate of -12.6% per year.

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

Earnings vs Industry: SOU is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (38.2%).


Return on Equity

High ROE: SOU has a negative Return on Equity (-11.56%), as it is currently unprofitable.


Next Steps

Financial Health

How is Sound Energy's financial position?


Financial Position Analysis

Short Term Liabilities: SOU's short term assets (£14.2M) exceed its short term liabilities (£6.4M).

Long Term Liabilities: SOU's short term assets (£14.2M) do not cover its long term liabilities (£21.5M).


Debt to Equity History and Analysis

Debt Level: SOU's debt to equity ratio (12.5%) is considered satisfactory.

Reducing Debt: SOU's debt to equity ratio has reduced from 34.1% to 12.5% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: SOU's debt is not covered by short term assets (assets are 0.7x 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: Insufficient data to determine if SOU has enough cash runway based on its current free cash flow.

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


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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

0.3yrs

Average management tenure


CEO

Mohammed Seghiri (44yo)

0.25

Tenure

Mr. Mohammed Seghiri has been an Acting Chief Executive and a Director of Sound Energy plc since January 23, 2020. He was Managing Director of Morocco at Sound Energy plc since August 25, 2017 and served a ...


Leadership Team

NamePositionTenureCompensationOwnership
James Parsons
Consultant0.25yrUK£995.00k0.22% £27.0k
Brian Mitchener
Executive Officer2.83yrsUK£323.00k0.29% £35.4k
Graham Lyon
Executive Chairman0.17yrno datano data
Mohammed Seghiri
Acting CEO & Director0.25yrno datano data
Frederic Lacuha
General Counselno datano datano data
Luca Madeddu
Country Chairman of Morocco4.83yrsno datano data
Leonardo Spicci
Executive Vice President of Development & Production4.83yrsno datano data
Amanda Bateman
Company Secretaryno datano datano data

0.3yrs

Average Tenure

56yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
Brian Mitchener
Executive Officer2.83yrsUK£323.00k0.29% £35.4k
Graham Lyon
Executive Chairman0.17yrno datano data
Mohammed Seghiri
Acting CEO & Director0.25yrno datano data
Marco Fumagalli
Non-Executive Director5.75yrsUK£52.00kno data
Richard Liddell
Independent Non-Executive Directorno dataUK£116.00k0.0086% £1.0k
Nathan Luckey
Director1.92yrsno datano data

1.9yrs

Average Tenure

55yo

Average Age

Experienced Board: SOU'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: SOU insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 10.1%.


Top Shareholders

Company Information

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


Key Information

  • Name: Sound Energy plc
  • Ticker: SOU
  • Exchange: AIM
  • Founded: 2005
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: UK£12.072m
  • Shares outstanding: 1.16b
  • Website: https://www.soundenergyplc.com

Number of Employees


Location

  • Sound Energy plc
  • 4 Pembroke Road
  • 1st Floor
  • Sevenoaks
  • Kent
  • TN13 1XR
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SOUAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPJun 2005
SNEG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 2005
88S1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2005

Biography

Sound Energy plc, through its subsidiaries, engages in the exploration, appraisal, and development of oil and gas assets. The company holds 47.5% interest in the Greater Tendrara license covering an area of 14,500 square kilometers; and Anoual license, which covers an area of 8,853 square kilometers. It also holds 75% interest in the Sidi Moktar license covering an area of 4,712 square kilometers located in Southern Morocco. The company was formerly known as Sound Oil Plc and changed its name to Sound Energy plc in September 2015. Sound Energy plc was founded in 2005 and is based in Sevenoaks, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 01:04
End of Day Share Price2020/03/31 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.