AIM:TRP

Stock Analysis Report

Executive Summary

Tower Resources Plc operates as an independent oil and gas exploration company in Africa.


Snowflake Analysis

Mediocre balance sheet and overvalued.

Share Price & News

How has Tower Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-17.0%

TRP

7.4%

GB Oil and Gas

3.9%

GB Market


1 Year Return

-74.8%

TRP

-38.8%

GB Oil and Gas

-22.4%

GB Market

Return vs Industry: TRP underperformed the UK Oil and Gas industry which returned -42.4% over the past year.

Return vs Market: TRP underperformed the UK Market which returned -23% over the past year.


Shareholder returns

TRPIndustryMarket
7 Day-17.0%7.4%3.9%
30 Day-54.1%-21.3%-16.1%
90 Day-52.4%-36.8%-26.1%
1 Year-74.8%-74.8%-35.6%-38.8%-18.2%-22.4%
3 Year-91.8%-91.8%-16.6%-27.2%-11.7%-23.1%
5 Year-99.6%-99.6%0.7%-20.1%1.9%-21.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Tower Resources undervalued compared to its fair value and its price relative to the market?

0.069x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: TRP 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 Tower Resources forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

16.5%

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 Tower Resources 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 Tower Resources performed over the past 5 years?

49.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TRP is currently unprofitable.

Growing Profit Margin: TRP is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TRP is unprofitable, but has reduced losses over the past 5 years at a rate of 49.9% per year.

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

Earnings vs Industry: TRP 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: TRP has a negative Return on Equity (-10.17%), as it is currently unprofitable.


Next Steps

Financial Health

How is Tower Resources's financial position?


Financial Position Analysis

Short Term Liabilities: TRP's short term assets ($363.4K) do not cover its short term liabilities ($2.1M).

Long Term Liabilities: TRP has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: TRP is debt free.

Reducing Debt: TRP has not had any debt for past 5 years.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if TRP'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: Insufficient data to determine if TRP has enough cash runway based on its current free cash flow.

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


Next Steps

Dividend

What is Tower Resources's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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

3.4yrs

Average management tenure


CEO

Jeremy Asher (60yo)

3.25s

Tenure

US$314,813

Compensation

Mr. Jeremy Benjamin Gerald Asher, BSc (Econ), MBA, MEI has been Chief Executive Officer of Tower Resources PLC since November 1, 2016. Mr. Asher served as the President of P A Consulting Group (holding) In ...


CEO Compensation Analysis

Compensation vs Market: Jeremy's total compensation ($USD314.81K) is about average for companies of similar size in the UK market ($USD335.89K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jeremy Asher
Chairman & CEO3.25yrsUS$314.81k24.09% $584.0k
Mark Enfield
Head of Exploration7yrsno data0.15% $3.5k
Nigel Quinton
Consultant3.42yrsUS$324.18kno data

3.4yrs

Average Tenure

58yo

Average Age

Experienced Management: TRP's management team is considered experienced (3.4 years average tenure).


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 been substantially diluted in the past year, with total shares outstanding growing by 60.7%.


Top Shareholders

Company Information

Tower Resources plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tower Resources plc
  • Ticker: TRP
  • Exchange: AIM
  • Founded: 2004
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: UK£2.424m
  • Shares outstanding: 1.24b
  • Website: https://www.towerresources.co.uk

Number of Employees


Location

  • Tower Resources plc
  • 140 Buckingham Palace Road
  • Westminster
  • London
  • Greater London
  • SW1W 9SA
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TRPAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPAug 2005
ULF1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURAug 2005
RTWR.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDAug 2005

Biography

Tower Resources Plc operates as an independent oil and gas exploration company in Africa. The company holds a 100% interest in the Thali production sharing contract that covers an area of 119.2 square kilometers located in the Rio del Rey basin, offshore Cameroon; and a 50% interest in the Algoa-Gamtoos license that covers an area of 11,809 square kilometers located in the offshore South Africa. It also operates a 100% interest in Blocks 40 and 41 of the frontier Zambezi Basin, which cover a gross area of 6,946 square kilometers. The company was incorporated in 2004 and is based 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 Analysis2020/03/31 21:00
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.