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
Sirius Petroleum. 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
Sirius Petroleum's earnings available for a low price, and how does
this compare to other companies in the same industry?
Sirius Petroleum's earnings are expected to grow significantly at over 20% yearly.
Sirius Petroleum's revenue is expected to grow significantly at over 20% yearly.
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.
Sirius Petroleum'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
Sirius Petroleum's finances.
The net worth of a company is the difference between its assets and liabilities.
Sirius Petroleum's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
Sirius Petroleum's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Sirius Petroleum'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.
Debt is covered by short term assets, assets are 4.4x debt.
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. Olukayode O. Kuti, also known as Bobo, has been the Chief Executive Officer of Sirius Petroleum plc since September 25, 2013. Mr. Kuti served as Business Development Director of Sirius Petroleum plc until September 25, 2013. He serves as Executive Director of Sirius Petroleum plc and previously served as its Non Executive Director since August 19, 2008 until September 25, 2013. He served as Non Executive Director of Global Gaming Technologies plc. since August 2008.
Bobo's compensation has increased whilst company is loss making.
Bobo's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure
Average tenure of the
management team in years:
The average tenure for the Sirius Petroleum management team is less than 2 years, this suggests a new team.
CEO & Executive Director
CFO & Director
Company Secretary & Non-Executive Director
Interim Chief Operating Officer
Board of Directors Tenure
Average tenure of the
board of directors in years:
The average tenure for the Sirius Petroleum board of directors is less than 3 years, this suggests a new board.
Should You Be Holding Sirius Petroleum plc (LON:SRSP) Right Now?
Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … While we should keep in mind that Warren Buffett has cautioned that 'Volatility is far from synonymous with risk', beta is still a useful factor to consider. … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market.
Is Sirius Petroleum plc's (LON:SRSP) Balance Sheet Strong Enough To Weather A Storm?
Investors are always looking for growth in small-cap stocks like Sirius Petroleum plc (LON:SRSP), with a market cap of UK£29.34m. … However, an important fact which most ignore is: how financially healthy is the business?
Can Sirius Petroleum plc (LON:SRSP) Improve Your Portfolio Returns?
SRSP’s beta indicates it is a stock that investors may find valuable if they want to reduce the overall market risk exposure of their stock portfolio. … This is an interesting conclusion, since both SRSP’s size and industry indicates the stock should have a higher beta than it currently has. … An asset-heavy company tends to have a higher beta because the risk associated with running fixed assets during a downturn is highly expensive.
How Financially Strong Is Sirius Petroleum plc (LON:SRSP)?
With this increase in debt, SRSP's cash and short-term investments stands at US$830.00K for investing into the business. … With current liabilities at US$5.55M, it appears that the company is not able to meet these obligations given the level of current assets of US$995.00K, with a current ratio of 0.18x below the prudent level of 3x. … Maintaining a high level of debt, while revenues are still below costs, can be dangerous as liquidity tends to dry up in unexpected downturns.Next Steps: At its current level of cash flow coverage, SRSP has room for improvement to better cushion for events which may require debt repayment.
Want To Invest In Sirius Petroleum plc (LON:SRSP)? Here's How It Performed Lately
After reading Sirius Petroleum plc's (AIM:SRSP) latest earnings update (30 June 2017), I found it beneficial to look back at how the company has performed in the past and compare this against the most recent numbers. … See our latest analysis for Sirius Petroleum Did SRSP beat its long-term earnings growth trend and its industry? … For Sirius Petroleum, its most recent trailing-twelve-month earnings is -US$2.46M, which compared to last year’s level, has become less negative.
Want To Invest In Sirius Petroleum plc (AIM:SRSP)? Here's How It Performed Lately
Analyzing Sirius Petroleum plc's (AIM:SRSP) track record of past performance is a valuable exercise for investors. … Check out our latest analysis for Sirius Petroleum Commentary On SRSP's Past Performance I like to use data from the most recent 12 months, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data. … Sirius Petroleum's most recent earnings -$2.5M, which, against last year’s figure, has become less negative.
Is Sirius Petroleum plc's (AIM:SRSP) Balance Sheet Strong Enough To Weather A Storm?
However, its small level of operating cash flow means calculating cash-to-debt wouldn't be too useful, though these low levels of cash means that operational efficiency is worth a look. … Its cash flow coverage of less than a quarter of debt means that operating efficiency could be an issue. … SRSP's high debt levels along with poor cash coverage as well as low liquidity coverage of short-term commitments may not be what you're after in an investment.
Sirius Petroleum plc, an independent oil development company, focuses on acquiring and developing offshore proven oil discoveries in Nigeria. The company is also involved in the trading of oil; and exploration of mineral resources. In addition, it provides management services. Sirius Petroleum plc was incorporated in 2004 and is based 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.