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Thalassa Holdings

AIM:THAL
Snowflake Description

Flawless balance sheet and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
THAL
AIM
£20M
Market Cap
  1. Home
  2. GB
  3. Energy
2017/12/16
Company description

Thalassa Holdings Limited, together with its subsidiaries, provides geophysical project management services and supplies equipment. More info.


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  • Thalassa Holdings is covered by less than 3 analysts.
SHARE PRICE
3 Month History
THAL
Industry
5yr Volatility vs Market
Competitors

Sorry, no analysis for Thalassa Holdings's competitors could be found in our database.

Value

 Is Thalassa Holdings undervalued based on future cash flows and its price relative to the stock market?

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 undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Thalassa Holdings to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.

How is this discounted cash flow calculated?

  • The current share price of Thalassa Holdings is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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 Thalassa Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Thalassa Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
  • Thalassa Holdings is good value based on earnings compared to the Global Energy Equipment and Services industry average.
  • Thalassa Holdings is good value based on earnings compared to the GB market.
Price based on expected Growth
Does Thalassa Holdings's expected growth come at a high price?
  • Unable to calculate PEG ratio for Thalassa Holdings, we can't assess if it's growth is good value.
Price based on value of assets
What value do investors place on Thalassa Holdings's assets?
  • Thalassa Holdings is good value based on assets compared to the Global Energy Equipment and Services industry average.
X
Value checks
We assess Thalassa Holdings's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Energy Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Energy Services industry average (and greater than 0)? (1 check)
  5. Thalassa Holdings has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
    Note 2: PEG ratio is based on analysts EPS growth expectations in 1 year (0%).

    Full details on the Value part of the Simply Wall St company analysis model.
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Discounted cash flow (2 Stage Free Cash Flow to Equity)

The calculations below outline how an intrinsic value for Thalassa Holdings is arrived at by discounting future cash flows to their present value. We use analyst's estimates of cash flows going forward 5 years.

See our documentation to learn about this calculation.

5 year cash flow forecast

Present value of next 5 years cash flows:
$0

Terminal Value

Terminal Value = FCF2021 × (1 + g) ÷ (Discount Rate – g)

Terminal Value = $0 × (1 + 1.49%) ÷ (8.3% – 1.49%)

Terminal value based on the Perpetuity Method where growth (g) = 1.49%:
$1

Present value of terminal value:
$1

Equity Value

Equity Value (Total value) = Present value of next 5 years cash flows + terminal value
$1 = $0 + $1

Value = Total value / Shares Outstanding ($1 / 20)

Discount to Share Price

Value per share (USD): $0.06

Exchange rate USD/GBP = 0.751

Value per share (GBP): £0.05

Current discount (share price of £1): -1966.25%



Estimate of Discount Rate

The discount rate, or required rate of return, is estimated by calculating the Cost of Equity.

Discount rate = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)

Discount rate = 8.3% = 1.49% + (0.8 * 8.51%)



Estimate of Bottom Up Beta

The Levered Beta is the Unlevered Beta adjusted for financial leverage. It is limited to 0.8 to 2.0 (practical range for a stable firm). Note the market value of equity is used not the book value (£19,808,387).

Levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))

0.362 = 0.362 (1 + (1- 35%) (0%))

Levered Beta used in calculation = 0.8



Assumptions
  1. The risk free rate of 1.49% is from the 10 year government bond rate in GBP.
  2. The bottom-up beta is estimated by analysing other companies in the same industry.
  3. The Equity Risk Premium is calculated by subtracting the risk free rate from the market return premium (8.51%) (source: Buffet).
  4. The dividend discount model is automatically used for companies in the following industries: Banks, Insurance, Real Estate Investment Trusts (REITs), Diversified Financial Services and Capital Markets.

Future Performance

 How is Thalassa Holdings expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

  • Thalassa Holdings is covered by less than 3 analysts.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-1.7%
Expected annual growth in revenue.
Earnings growth vs Low Risk Savings
Is Thalassa Holdings expected to grow at an attractive rate?
  • Unable to compare Thalassa Holdings's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare Thalassa Holdings's earnings growth to the GB market average as no estimate data is available.
  • Thalassa Holdings's revenues are expected to decrease over the next 1-3 years, this is below the GB market average.
Annual Growth Rates Comparison
Analysts growth expectations
Super high growth metrics
High Growth Checks
  • Unable to determine if Thalassa Holdings is high growth as no earnings estimate data is available.
  • Thalassa Holdings'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.
Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • No +3 year Return on Equity (ROE) data.

Improvement & Relative to industry
  • No +3 year Return on Equity (ROE) or industry average data.
  • No +3 year Return on Equity (ROE) data.
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Future performance checks
We assess Thalassa Holdings's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the GB market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the GB market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Thalassa Holdings has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Thalassa Holdings performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Thalassa Holdings's growth in the last year to its industry (Energy Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Thalassa Holdings's year on year growth rate is negative over the past 5 years, however the most recent earnings are above average.
  • Thalassa Holdings has been loss making last year but is now profitable.
  • Thalassa Holdings has become profitable in the last year making it difficult to compare the industry average.
Earnings and Revenue History
Thalassa Holdings's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Poor return on shareholders funds (ROE < 20%) last year.
  • Thalassa Holdings performed above the Global Energy Equipment and Services industry average based on Return on Assets (ROA) last year.
  • Performance based on Return on Capital Employed (ROCE) has improved significantly over 3 years.
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Past performance checks
We assess Thalassa Holdings's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Energy Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. 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.
Thalassa Holdings has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Thalassa Holdings's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Thalassa Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Thalassa Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Thalassa Holdings has no long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Thalassa Holdings'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 checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of stock/ inventory/ unsold assets.
  • Thalassa Holdings has no debt, it does not need to be covered by total short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, 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.
  • Thalassa Holdings has no debt.
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Financial health checks
We assess Thalassa Holdings's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by short term assets? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Thalassa Holdings has a total score of 6/6, see the detailed checks below.


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Thalassa Holdings's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Thalassa Holdings dividends.
If you bought £2,000 of Thalassa Holdings shares you are expected to receive £0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Not paying a dividend.
  • Not paying a dividend.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
  • Not paying a notable dividend.
  • Not paying a notable dividend.
Current Payout to shareholders
What portion of Thalassa Holdings's earnings are paid to the shareholders as a dividend.
  • Not paying a notable dividend.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years.
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Income/ dividend checks
We assess Thalassa Holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.5%) - if not then the rest of the checks are ignored.
  2. Current dividend yield, is there one at all, is it higher than the low risk savings rate, and is it above the top 25% of dividend payers? (2 checks)
  3. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  4. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  5. How sustainable is the dividend, can Thalassa Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  6. Thalassa Holdings has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Thalassa Holdings's salary, the management and board of directors tenure and is there insider trading?

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.
CEO
Dave Grant, image provided by Google.
Dave Grant
CEO Bio

Dave Grant serves as Chief Executive Officer of Autonomous Robotics Ltd at Thalassa Holdings Ltd.

CEO Compensation
  • Thalassa Holdings has a new CEO, we can't show their compensation history.
Management Team

Charles Soukup

TITLE
Chairman
COMPENSATION
$200K
AGE
63

Julian Henley-Price

TITLE
Company Secretary

Dave Grant

TITLE
Chief Executive Officer of Autonomous Robotics Ltd
Board of Directors Tenure

Average tenure and age of the Thalassa Holdings board of directors in years:

7.8
Average Tenure
63.3
Average Age
  • The tenure for the Thalassa Holdings board of directors is about average.
Board of Directors

Charles Soukup

TITLE
Chairman
COMPENSATION
$200K
AGE
63

Graham Cole

TITLE
Non-Executive Director
COMPENSATION
$15K
AGE
71
TENURE
9.7 yrs

David Thomas

TITLE
Non-Executive Director
COMPENSATION
$24K
AGE
67
TENURE
9.7 yrs

August Smulders

TITLE
Non Executive Director
COMPENSATION
$146K
AGE
52
TENURE
4.2 yrs
Recent Insider Trading
  • No 3 month insider trading information.
Who owns this company?
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Management checks
We assess Thalassa Holdings's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap and profit (greater than 0.5% of the company's profit + 0.03% of market cap)? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Thalassa Holdings has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

Company News

Company Info

Map
Description

Thalassa Holdings Limited, together with its subsidiaries, provides geophysical project management services and supplies equipment. It offers marine geophysical services in the areas of production enhancement, exploration, and surveying, as well as provides permanent reservoir monitoring services. The company was incorporated in 2007 and is based in Road Town, the British Virgin Islands.

Details
Name: Thalassa Holdings Limited
Ticker: THAL
Exchange: AIM
Founded: 2007
Market Cap: £19,808,387
Shares outstanding: 20,212,640
Website: http://www.thalassaenergyltd.com
Address: Thalassa Holdings Limited
Folio Chambers,
PO Box 800,
Road Town,
Tortola, VG1110,
British Virgin Islands
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
AIM THAL Ordinary Shares London Stock Exchange AIM Market GB GBP 20. Jan 2009
Number of employees
Current staff
Staff numbers
0
Thalassa Holdings employees.
Industry
Industry: Oil and Gas Equipment and Services
Sector: Energy