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TXP

Touchstone Exploration AIM:TXP Stock Report

Last Price

UK£0.96

Market Cap

UK£212.6m

7D

10.3%

1Y

17.1%

Updated

15 Aug, 2022

Data

Company Financials +
TXP fundamental analysis
Snowflake Score
Valuation4/6
Future Growth5/6
Past Performance4/6
Financial Health2/6
Dividends0/6

TXP Stock Overview

Touchstone Exploration Inc., an upstream oil and gas company, engages in the exploration, development, production, and sale of petroleum and natural gas properties in the Republic of Trinidad and Tobago.

Touchstone Exploration Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Touchstone Exploration
Historical stock prices
Current Share PriceCA$0.96
52 Week HighCA$1.61
52 Week LowCA$0.52
Beta0.82
1 Month Change69.91%
3 Month Change9.71%
1 Year Change17.07%
3 Year Change585.71%
5 Year Change1,013.04%
Change since IPO1,119.05%

Recent News & Updates

Shareholder Returns

TXPGB Oil and GasGB Market
7D10.3%-0.4%0.4%
1Y17.1%-5.6%-9.0%

Return vs Industry: TXP exceeded the UK Oil and Gas industry which returned -5.6% over the past year.

Return vs Market: TXP exceeded the UK Market which returned -9% over the past year.

Price Volatility

Is TXP's price volatile compared to industry and market?
TXP volatility
TXP Average Weekly Movement11.3%
Oil and Gas Industry Average Movement8.7%
Market Average Movement5.4%
10% most volatile stocks in GB Market10.8%
10% least volatile stocks in GB Market2.7%

Stable Share Price: TXP is more volatile than 90% of UK stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: TXP's weekly volatility (11%) has been stable over the past year, but is still higher than 75% of UK stocks.

About the Company

FoundedEmployeesCEOWebsite
201295Paul Baayhttps://www.touchstoneexploration.com

Touchstone Exploration Inc., an upstream oil and gas company, engages in the exploration, development, production, and sale of petroleum and natural gas properties in the Republic of Trinidad and Tobago. The company has interests in various private exploration mineral leasing properties; and two exploration blocks. Its primary exploration focus is the Ortoire exploration block.

Touchstone Exploration Fundamentals Summary

How do Touchstone Exploration's earnings and revenue compare to its market cap?
TXP fundamental statistics
Market CapUS$256.72m
Earnings (TTM)US$5.97m
Revenue (TTM)US$25.78m

43.0x

P/E Ratio

10.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TXP income statement (TTM)
RevenueUS$25.78m
Cost of RevenueUS$7.71m
Gross ProfitUS$18.07m
Other ExpensesUS$12.11m
EarningsUS$5.97m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.028
Gross Margin70.09%
Net Profit Margin23.14%
Debt/Equity Ratio43.9%

How did TXP perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is TXP undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for TXP?

Other financial metrics that can be useful for relative valuation.

TXP key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue10.9x
Enterprise Value/EBITDA30.1x
PEG Ratio0.3x

Price to Earnings Ratio vs Peers

How does TXP's PE Ratio compare to its peers?

TXP PE Ratio vs Peers
The above table shows the PE ratio for TXP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average8.1x
INDI Indus Gas
22xn/aUK£461.1m
ENQ EnQuest
1.6x-8.2%UK£516.0m
GKP Gulf Keystone Petroleum
3.7x-9.1%UK£520.9m
SEPL Seplat Energy
5x-3.9%UK£709.6m
TXP Touchstone Exploration
43x144.2%UK£331.1m

Price-To-Earnings vs Peers: TXP is expensive based on its Price-To-Earnings Ratio (43x) compared to the peer average (8.1x).


Price to Earnings Ratio vs Industry

How does TXP's PE Ratio compare vs other companies in the GB Oil and Gas Industry?

Price-To-Earnings vs Industry: TXP is expensive based on its Price-To-Earnings Ratio (43x) compared to the UK Oil and Gas industry average (7.7x)


Price to Earnings Ratio vs Fair Ratio

What is TXP's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

TXP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio43x
Fair PE Ratio82.7x

Price-To-Earnings vs Fair Ratio: TXP is good value based on its Price-To-Earnings Ratio (43x) compared to the estimated Fair Price-To-Earnings Ratio (82.7x).


Share Price vs Fair Value

What is the Fair Price of TXP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: TXP (£0.96) is trading below our estimate of fair value (£33.88)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

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

Future Growth Score

5/6

Future Growth Score 5/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


144.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TXP's forecast earnings growth (144.2% per year) is above the savings rate (0.9%).

Earnings vs Market: TXP's earnings (144.2% per year) are forecast to grow faster than the UK market (10% per year).

High Growth Earnings: TXP's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: TXP's revenue (105% per year) is forecast to grow faster than the UK market (4.4% per year).

High Growth Revenue: TXP's revenue (105% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


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Past Performance

How has Touchstone Exploration performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


16.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: TXP has a high level of non-cash earnings.

Growing Profit Margin: TXP's current net profit margins (23.1%) are higher than last year (1.3%).


Past Earnings Growth Analysis

Earnings Trend: TXP has become profitable over the past 5 years, growing earnings by 16.3% per year.

Accelerating Growth: TXP's earnings growth over the past year (2767.8%) exceeds its 5-year average (16.3% per year).

Earnings vs Industry: TXP earnings growth over the past year (2767.8%) exceeded the Oil and Gas industry 291.9%.


Return on Equity

High ROE: TXP's Return on Equity (8.7%) is considered low.


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Financial Health

How is Touchstone Exploration's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: TXP's short term assets ($20.7M) exceed its short term liabilities ($20.4M).

Long Term Liabilities: TXP's short term assets ($20.7M) do not cover its long term liabilities ($53.4M).


Debt to Equity History and Analysis

Debt Level: TXP's net debt to equity ratio (30.1%) is considered satisfactory.

Reducing Debt: TXP's debt to equity ratio has increased from 39.9% to 43.9% over the past 5 years.

Debt Coverage: TXP's debt is not well covered by operating cash flow (18.8%).

Interest Coverage: TXP's interest payments on its debt are not well covered by EBIT (2.8x coverage).


Balance Sheet


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Dividend

What is Touchstone Exploration current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

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

High Dividend: Unable to evaluate TXP's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if TXP's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TXP's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as TXP has not reported any payouts.


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Management

How experienced are the management team and are they aligned to shareholders interests?

8.3yrs

Average management tenure


CEO

Paul Baay (59 yo)

8.25yrs

Tenure

US$816,043

Compensation

Mr. Paul Raymond Baay, B.A., ICD D, has been the Chief Executive Officer of Touchstone Exploration Inc. since 2010 and serves as its President. Mr. Baay serves as an Acting Chief Executive Officer and Chie...


CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD816.04K) is about average for companies of similar size in the UK market ($USD706.77K).

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


Leadership Team

Experienced Management: TXP's management team is seasoned and experienced (8.3 years average tenure).


Board Members

Experienced Board: TXP's board of directors are considered experienced (5.2 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Touchstone Exploration Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Touchstone Exploration Inc.
  • Ticker: TXP
  • Exchange: AIM
  • Founded: 2012
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Implied Market Cap: CA$331.150m
  • Listing Market Cap: CA$212.571m
  • Shares outstanding: 212.28m
  • Website: https://www.touchstoneexploration.com

Number of Employees


Location

  • Touchstone Exploration Inc.
  • 350-7th Avenue SW
  • Suite 4100
  • Calgary
  • Alberta
  • T2P 3N9
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/15 00:00
End of Day Share Price2022/08/15 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.