AIM:WEN

Stock Analysis Report

Wentworth Resources

Executive Summary

Wentworth Resources plc, an exploration and production company, explores for, develops, and produces natural gas and other hydrocarbons.


Snowflake Analysis

Excellent balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

3.1%

WEN

15.3%

GB Oil and Gas

6.2%

GB Market


1 Year Return

-28.3%

WEN

-42.8%

GB Oil and Gas

-22.7%

GB Market

Return vs Industry: WEN exceeded the UK Oil and Gas industry which returned -42.8% over the past year.

Return vs Market: WEN underperformed the UK Market which returned -22.7% over the past year.


Shareholder returns

WENIndustryMarket
7 Day3.1%15.3%6.2%
30 Day-12.0%-27.2%-17.8%
90 Day-12.0%-41.9%-27.7%
1 Year-26.6%-28.3%-39.8%-42.8%-18.6%-22.7%
3 Yearn/a-21.8%-31.7%-13.4%-24.6%
5 Yearn/a-4.1%-24.0%1.3%-22.0%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WEN (£0.17) is trading below our estimate of fair value (£0.41)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: WEN is good value based on its PB Ratio (0.4x) compared to the GB Oil and Gas industry average (0.4x).


Next Steps

Future Growth

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

11.6%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if WEN's forecast earnings growth is above the savings rate (0.5%).

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

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

Revenue vs Market: WEN's revenue (11.6% per year) is forecast to grow faster than the UK market (2.6% per year).

High Growth Revenue: WEN's revenue (11.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Wentworth Resources performed over the past 5 years?

-64.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WEN is currently unprofitable.

Growing Profit Margin: WEN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: WEN is unprofitable, and losses have increased over the past 5 years at a rate of -64% per year.

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

Earnings vs Industry: WEN 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: WEN has a negative Return on Equity (-65.85%), as it is currently unprofitable.


Next Steps

Financial Health

How is Wentworth Resources's financial position?


Financial Position Analysis

Short Term Liabilities: WEN's short term assets ($22.7M) exceed its short term liabilities ($10.8M).

Long Term Liabilities: WEN's short term assets ($22.7M) exceed its long term liabilities ($1.0M).


Debt to Equity History and Analysis

Debt Level: WEN's debt to equity ratio (7.3%) is considered satisfactory.

Reducing Debt: WEN's debt to equity ratio has increased from 3.2% to 7.3% over the past 5 years.


Balance Sheet

Inventory Level: WEN has a high level of physical assets or inventory.

Debt Coverage by Assets: WEN's debt is covered by short term assets (assets are 3x debt).


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: Whilst unprofitable WEN has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: WEN is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 38.5% per year.


Next Steps

Dividend

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

5.04%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WEN's dividend (5.04%) is higher than the bottom 25% of dividend payers in the UK market (2.7%).

High Dividend: WEN's dividend (5.04%) is low compared to the top 25% of dividend payers in the UK market (7.3%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether WEN's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if WEN's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: WEN is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: WEN's dividends in 3 years are forecast to be covered by earnings (80.8% payout ratio).


Next Steps

Management

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

1.3yrs

Average board tenure


CEO

Roe Ward (40yo)

0.33

Tenure

US$398,959

Compensation

Mrs. Katherine Louise Margiad Ward, also known as Roe, is Chief Executive Officer at Wentworth Resources plc and serves as its Director since November 2, 2018. She served as Interim Chief Executive at Went ...


CEO Compensation Analysis

Compensation vs Market: Roe's total compensation ($USD398.96K) is about average for companies of similar size in the UK market ($USD332.86K).

Compensation vs Earnings: Insufficient data to compare Roe's compensation with company performance.


Board Members

NamePositionTenureCompensationOwnership
Katherine Louise Ward
CEO & Director0.33yrUS$398.96kno data
John William Bentley
Senior Independent Director1.33yrsUS$80.00kno data
Timothy Bushell
Deputy Chairman1.33yrsUS$18.03kno data
Iain McLaren
Independent Non-Executive Director1.33yrsUS$18.03k0.16% $49.9k
Robert McBean
Non-Executive Chairman9.58yrsUS$418.42k5.15% $1.6m

1.3yrs

Average Tenure

68yo

Average Age

Experienced Board: WEN's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


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

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


Key Information

  • Name: Wentworth Resources plc
  • Ticker: WEN
  • Exchange: AIM
  • Founded: 2000
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: UK£30.771m
  • Shares outstanding: 186.49m
  • Website: https://wentplc.com

Number of Employees


Location

  • Wentworth Resources plc
  • Thames Tower
  • 2nd Floor
  • Reading
  • Berkshire
  • RG1 1LX
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1W0DB (Deutsche Boerse AG)YesCommon SharesDEEURJul 2005
WENAIM (London Stock Exchange AIM Market)YesCommon SharesGBGBPJul 2005

Biography

Wentworth Resources plc, an exploration and production company, explores for, develops, and produces natural gas and other hydrocarbons. It owns interest in the Rovuma onshore block covering an area of approximately 2,500 square kilometers located in north-eastern Mozambique; and the Mnazi Bay concession totaling an area of approximately 756 square kilometers located in southern Tanzania. The company was incorporated in 2000 and is headquartered in Reading, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/29 23:05
End of Day Share Price2020/03/27 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.