Great Eastern Energy (LSE:GEEC) - Share price, News & Analysis

GEEC fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	2/6
Financial Health	2/6
Dividends	0/6

GEEC Stock Overview

Great Eastern Energy Corporation Limited engages in exploring, developing, extracting, distributing, and marketing coal bed methane and compressed natural gas in India.

Rewards

Trading at 71.2% below our estimate of its fair value

Risk Analysis

Interest payments are not well covered by earnings

Profit margins (10%) are lower than last year (14.3%)

Latest financial reports are more than 6 months old

Does not have a meaningful market cap (£24M)

Great Eastern Energy Competitors

Beach Energy

ASX:BPT

AU$3.7b

Karoon Energy

ASX:KAR

AU$1.0b

Cooper Energy

ASX:COE

AU$432.7m

Horizon Oil

ASX:HZN

AU$197.4m

Price History & Performance

Summary of all time highs, changes and price drops for Great Eastern Energy
Historical stock prices
Current Share Price	UK£0.20
52 Week High	UK£0.45
52 Week Low	UK£0.095
Beta	0.67
1 Month Change	-23.08%
3 Month Change	-48.72%
1 Year Change	45.46%
3 Year Change	-62.62%
5 Year Change	-34.43%
Change since IPO	-82.21%

Recent News & Updates

May 05

Great Eastern Energy (LON:GEEC) Is Experiencing Growth In Returns On Capital

If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. One common...

Jan 05

Does Great Eastern Energy (LON:GEEC) Have A Healthy Balance Sheet?

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Nov 14

Returns Are Gaining Momentum At Great Eastern Energy (LON:GEEC)

What are the early trends we should look for to identify a stock that could multiply in value over the long term...

Sep 22

Is Great Eastern Energy (LON:GEEC) Using Too Much Debt?

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Shareholder Returns

	GEEC	GB Oil and Gas	GB Market
7D	-13.0%	-1.1%	0.2%
1Y	45.5%	15.7%	-3.8%

Return vs Industry: GEEC exceeded the UK Oil and Gas industry which returned 15.7% over the past year.

Return vs Market: GEEC exceeded the UK Market which returned -3.8% over the past year.

Price Volatility

Is GEEC's price volatile compared to industry and market?
GEEC volatility
GEEC Average Weekly Movement	7.9%
Oil and Gas Industry Average Movement	10.0%
Market Average Movement	6.1%
10% most volatile stocks in GB Market	11.7%
10% least volatile stocks in GB Market	3.1%

Stable Share Price: GEEC is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: GEEC's weekly volatility (8%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1992	n/a	Prashant Modi	https://www.geecl.com

Great Eastern Energy Corporation Limited engages in exploring, developing, extracting, distributing, and marketing coal bed methane and compressed natural gas in India. It owns interests in the Raniganj (South) block that covers an area of approximately 210 square kilometers located in West Bengal; and Mannargudi block, which covers an area of approximately 667 square kilometers in Mannargudi, Tamil Nadu. The company was incorporated in 1992 and is based in Gurugram, India.

Great Eastern Energy Fundamentals Summary

How do Great Eastern Energy's earnings and revenue compare to its market cap?
GEEC fundamental statistics
Market Cap	US$29.15m
Earnings (TTM)	US$2.69m
Revenue (TTM)	US$26.91m

10.8x

P/E Ratio

1.1x

P/S Ratio

Is GEEC overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
GEEC income statement (TTM)
Revenue	US$26.91m
Cost of Revenue	US$1.16m
Gross Profit	US$25.76m
Other Expenses	US$23.06m
Earnings	US$2.69m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.023
Gross Margin	95.70%
Net Profit Margin	10.00%
Debt/Equity Ratio	61.4%

How did GEEC perform over the long term?

See historical performance and comparison

Valuation

Is Great Eastern Energy undervalued compared to its fair value and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: GEEC (£0.2) is trading below our estimate of fair value (£0.69)

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

Price To Earnings Ratio

PE vs Industry: GEEC is poor value based on its PE Ratio (10.8x) compared to the UK Oil and Gas industry average (10.3x).

PE vs Market: GEEC is good value based on its PE Ratio (10.8x) compared to the UK market (15.3x).

Price to Earnings Growth Ratio

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

Price to Book Ratio

PB vs Industry: GEEC is good value based on its PB Ratio (0.3x) compared to the GB Oil and Gas industry average (1.1x).

Future Growth

How is Great Eastern Energy forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

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

-1.2%

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 Great Eastern Energy 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.

Past Performance

How has Great Eastern Energy performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

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

37.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: GEEC has high quality earnings.

Growing Profit Margin: GEEC's current net profit margins (10%) are lower than last year (14.3%).

Past Earnings Growth Analysis

Earnings Trend: GEEC has become profitable over the past 5 years, growing earnings by 37.5% per year.

Accelerating Growth: GEEC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: GEEC had negative earnings growth (-33.8%) over the past year, making it difficult to compare to the Oil and Gas industry average (344.7%).

Return on Equity

High ROE: GEEC's Return on Equity (3%) is considered low.

Financial Health

How is Great Eastern Energy'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: GEEC's short term assets ($8.9M) do not cover its short term liabilities ($12.2M).

Long Term Liabilities: GEEC's short term assets ($8.9M) do not cover its long term liabilities ($49.4M).

Debt to Equity History and Analysis

Debt Level: GEEC's net debt to equity ratio (55.1%) is considered high.

Reducing Debt: GEEC's debt to equity ratio has reduced from 118.3% to 61.4% over the past 5 years.

Debt Coverage: GEEC's debt is well covered by operating cash flow (26.1%).

Interest Coverage: GEEC's interest payments on its debt are not well covered by EBIT (1.5x coverage).

Balance Sheet

Dividend

What is Great Eastern Energy 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 GEEC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

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

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

Next Steps

Explore strong dividend paying companies in the Energy industry.

Management

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

10.1yrs

Average board tenure

CEO

Prashant Modi (48 yo)

6.67yrs

Tenure

US$246,247

Compensation

Mr. Prashant Modi has been the Managing Director and Chief Executive Officer of Great Eastern Energy Corporation Limited since September 22, 2015. He served as the President and Chief Operating Officer...

Board Members

Experienced Board: GEEC's board of directors are seasoned and experienced ( 10.1 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.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/15 00:00
End of Day Share Price	2022/05/13 00:00
Earnings	2021/09/30
Annual Earnings	2021/03/31