Union Jack Oil (AIM:UJO) - Share price, News & Analysis

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

UJO (£0.24) is trading above our estimate of [[fair value]] (£0)

UJO fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	2/6
Past Performance	0/6
Financial Health	5/6
Dividends	0/6

UJO Stock Overview

Union Jack Oil plc operates as an onshore oil and gas company in the United Kingdom.

Rewards

Revenue is forecast to grow 42.58% per year

Risk Analysis

Earnings have declined by 15.6% per year over past 5 years

Shareholders have been diluted in the past year

Does not have meaningful revenue (£2M)

Does not have a meaningful market cap (£27M)

Union Jack Oil Competitors

UK Oil & Gas

AIM:UKOG

UK£18.7m

Block Energy

AIM:BLOE

UK£9.2m

United Oil & Gas

AIM:UOG

UK£11.3m

Reabold Resources

AIM:RBD

UK£24.1m

Price History & Performance

Summary of all time highs, changes and price drops for Union Jack Oil
Historical stock prices
Current Share Price	UK£0.24
52 Week High	UK£0.38
52 Week Low	UK£0.10
Beta	0.85
1 Month Change	-13.39%
3 Month Change	-19.84%
1 Year Change	-20.49%
3 Year Change	-40.85%
5 Year Change	-6.73%
Change since IPO	-59.58%

Shareholder Returns

	UJO	GB Oil and Gas	GB Market
7D	-5.8%	0.6%	-1.1%
1Y	-20.5%	1.9%	-9.7%

Return vs Industry: UJO underperformed the UK Oil and Gas industry which returned 1.9% over the past year.

Return vs Market: UJO underperformed the UK Market which returned -9.7% over the past year.

Price Volatility

Is UJO's price volatile compared to industry and market?
UJO volatility
UJO Average Weekly Movement	5.5%
Oil and Gas Industry Average Movement	8.6%
Market Average Movement	5.4%
10% most volatile stocks in GB Market	10.6%
10% least volatile stocks in GB Market	2.8%

Stable Share Price: UJO is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: UJO's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2011	4	n/a	https://unionjackoil.com

Union Jack Oil plc operates as an onshore oil and gas company in the United Kingdom. The company focuses on production, drilling, development, and investment in hydrocarbon projects. It holds interests in the West Newton, Wressle Discovery, Broughton North, Biscathorpe, Keddington Oilfield Louth, North Somercotes, Louth Extension, Fiskerton Airfield Oilfield, North Kelsey, Dukes Wood, Kirklington, Widmerpool Gulf, Humber Basin, and Laughton projects.

Union Jack Oil Fundamentals Summary

How do Union Jack Oil's earnings and revenue compare to its market cap?
UJO fundamental statistics
Market Cap	UK£27.33m
Earnings (TTM)	-UK£853.01k
Revenue (TTM)	UK£1.89m

14.4x

P/S Ratio

-32.1x

P/E Ratio

Is UJO overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
UJO income statement (TTM)
Revenue	UK£1.89m
Cost of Revenue	UK£377.15k
Gross Profit	UK£1.52m
Other Expenses	UK£2.37m
Earnings	-UK£853.01k

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	-0.0076
Gross Margin	80.10%
Net Profit Margin	-45.02%
Debt/Equity Ratio	0.0%

How did UJO perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

0/6

Valuation Score 0/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for UJO. This is calculated by dividing UJO's market cap by their current preferred multiple.
What is UJO's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	UK£27.33m

UJO 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/Revenue	11.3x
Enterprise Value/EBITDA	-95.7x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does UJO's PS Ratio compare to its peers?

UJO PS Ratio vs Peers

The above table shows the PS ratio for UJO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	9.1x
UKOG UK Oil & Gas	11.5x	n/a	UK£18.7m
BLOE Block Energy	1.8x	n/a	UK£9.2m
UOG United Oil & Gas	0.6x	n/a	UK£11.3m
RBD Reabold Resources	22.5x	-25.6%	UK£24.1m
UJO Union Jack Oil	14.4x	42.6%	UK£27.3m

Forward PS

Price-To-Sales vs Peers: UJO is expensive based on its Price-To-Sales Ratio (14.4x) compared to the peer average (9.1x).

Price to Earnings Ratio vs Industry

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

Price-To-Sales vs Industry: UJO is expensive based on its Price-To-Sales Ratio (14.4x) compared to the UK Oil and Gas industry average (1.7x)

Price to Sales Ratio vs Fair Ratio

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

UJO PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	14.4x
Fair PS Ratio	5.1x

Price-To-Sales vs Fair Ratio: UJO is expensive based on its Price-To-Sales Ratio (14.4x) compared to the estimated Fair Price-To-Sales Ratio (5.1x).

Share Price vs Fair Value

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

Below Fair Value: UJO (£0.24) is trading above our estimate of fair value (£0)

Significantly Below Fair Value: UJO is trading above our estimate of fair value.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate UJO's PEG Ratio to determine if it is good value.

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Future Growth

How is Union Jack Oil forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

42.6%

Forecasted annual revenue growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if UJO's forecast earnings growth is above the savings rate (0.9%).

Earnings vs Market: Insufficient data to determine if UJO's earnings are forecast to grow faster than the UK market

High Growth Earnings: Insufficient data to determine if UJO's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: UJO's revenue (42.6% per year) is forecast to grow faster than the UK market (4.2% per year).

High Growth Revenue: UJO's revenue (42.6% 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 UJO's Return on Equity is forecast to be high in 3 years time

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Past Performance

How has Union Jack Oil performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-15.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: UJO is currently unprofitable.

Growing Profit Margin: UJO is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: UJO is unprofitable, and losses have increased over the past 5 years at a rate of 15.6% per year.

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

Earnings vs Industry: UJO is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (377.8%).

Return on Equity

High ROE: UJO has a negative Return on Equity (-4.22%), as it is currently unprofitable.

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Financial Health

How is Union Jack Oil's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: UJO's short term assets (£8.1M) exceed its short term liabilities (£2.4M).

Long Term Liabilities: UJO's short term assets (£8.1M) exceed its long term liabilities (£1.9M).

Debt to Equity History and Analysis

Debt Level: UJO is debt free.

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

Balance Sheet

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: UJO has sufficient cash runway for more than a year based on its current free cash flow.

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

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Dividend

What is Union Jack Oil 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
Future Dividend Coverage

Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if UJO'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 UJO has not reported any payouts.

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Management

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

9.5yrs

Average board tenure

CEO

Union Jack Oil has no CEO, or we have no data on them.

Board Members

Experienced Board: UJO's board of directors are considered experienced (9.5 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 diluted in the past year, with total shares outstanding growing by 13.8%.

Data	Last Updated (UTC time)
Company Analysis	2022/07/03 00:00
End of Day Share Price	2022/07/01 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31