Pharos Energy (LSE:PHAR) - Share price, News & Analysis

PHAR fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	2/6
Past Performance	0/6
Financial Health	2/6
Dividends	0/6

PHAR Stock Overview

Pharos Energy plc engages in the exploration, development, and production of oil and gas properties.

Rewards

Trading at 75.2% below our estimate of its fair value

Risk Analysis

Earnings are forecast to decline by an average of 29.3% per year for the next 3 years

Has less than 1 year of cash runway

Pharos Energy Competitors

Serica Energy

AIM:SQZ

UK£880.4m

Tullow Oil

LSE:TLW

UK£780.8m

EnQuest

LSE:ENQ

UK£646.3m

Capricorn Energy

LSE:CNE

UK£616.7m

Price History & Performance

Summary of all time highs, changes and price drops for Pharos Energy
Historical stock prices
Current Share Price	UK£0.26
52 Week High	UK£0.33
52 Week Low	UK£0.19
Beta	2.15
1 Month Change	-5.19%
3 Month Change	-3.03%
1 Year Change	2.81%
3 Year Change	-62.24%
5 Year Change	-80.46%
Change since IPO	-57.51%

Recent News & Updates

Mar 17

Analyst Forecasts For Pharos Energy plc (LON:PHAR) Are Surging Higher

Shareholders in Pharos Energy plc ( LON:PHAR ) may be thrilled to learn that the analysts have just delivered a major...

Shareholder Returns

	PHAR	GB Oil and Gas	GB Market
7D	5.8%	1.1%	-0.4%
1Y	2.8%	19.5%	-4.0%

Return vs Industry: PHAR underperformed the UK Oil and Gas industry which returned 19.5% over the past year.

Return vs Market: PHAR exceeded the UK Market which returned -4% over the past year.

Price Volatility

Is PHAR's price volatile compared to industry and market?
PHAR volatility
PHAR Average Weekly Movement	8.4%
Oil and Gas Industry Average Movement	10.0%
Market Average Movement	6.2%
10% most volatile stocks in GB Market	11.6%
10% least volatile stocks in GB Market	3.2%

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

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

About the Company

Founded	Employees	CEO	Website
1997	65	Jann Brown	https://www.pharos.energy

Pharos Energy plc engages in the exploration, development, and production of oil and gas properties. The company holds a 30.5% working interest in the Te Giac Trang Field of Block 16-1 located in the shallow water Cuu Long Basin, as well as a 25% working interest in the Ca Ngu Vang field of Block 9-2 located in the shallow water Cuu Long Basin, offshore southern Vietnam; a 70% interest in the Blocks 125 & 126 located in the Phu Khanh Basin, offshore central Vietnam; and a 100% working interest in the onshore El Fayum concession in the Western Desert, Egypt. It also holds a 33.33 % working interest in eight licenses located in Israel.

Pharos Energy Fundamentals Summary

How do Pharos Energy's earnings and revenue compare to its market cap?
PHAR fundamental statistics
Market Cap	US$141.90m
Earnings (TTM)	-US$4.70m
Revenue (TTM)	US$124.00m

1.1x

P/S Ratio

-30.2x

P/E Ratio

Is PHAR overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
PHAR income statement (TTM)
Revenue	US$124.00m
Cost of Revenue	US$104.50m
Gross Profit	US$19.50m
Other Expenses	US$24.20m
Earnings	-US$4.70m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	-0.011
Gross Margin	15.73%
Net Profit Margin	-3.79%
Debt/Equity Ratio	26.4%

How did PHAR perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

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: PHAR (£0.26) is trading below our estimate of fair value (£1.03)

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

Price To Earnings Ratio

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

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

Price to Book Ratio

PB vs Industry: PHAR is good value based on its PB Ratio (0.5x) compared to the GB Oil and Gas industry average (1x).

Future Growth

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

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

-29.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: PHAR's earnings are forecast to decline over the next 3 years (-29.3% per year).

Earnings vs Market: PHAR is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: PHAR's is expected to become profitable in the next 3 years.

Revenue vs Market: PHAR's revenue (2.6% per year) is forecast to grow slower than the UK market (4% per year).

High Growth Revenue: PHAR's revenue (2.6% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: PHAR is forecast to be unprofitable in 3 years.

Past Performance

How has Pharos Energy 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

-34.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PHAR is currently unprofitable.

Growing Profit Margin: PHAR is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: PHAR is unprofitable, and losses have increased over the past 5 years at a rate of 34% per year.

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

Earnings vs Industry: PHAR is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (344.7%).

Return on Equity

High ROE: PHAR has a negative Return on Equity (-1.54%), as it is currently unprofitable.

Financial Health

How is Pharos Energy's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

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

Financial Position Analysis

Short Term Liabilities: PHAR's short term assets ($129.4M) exceed its short term liabilities ($77.8M).

Long Term Liabilities: PHAR's short term assets ($129.4M) do not cover its long term liabilities ($207.5M).

Debt to Equity History and Analysis

Debt Level: PHAR's net debt to equity ratio (17.5%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if PHAR's debt to equity ratio has reduced over the 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: PHAR has less than a year of cash runway based on its current free cash flow.

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

Dividend

What is Pharos 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 PHAR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

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

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

Earnings Payout to Shareholders

Earnings Coverage: PHAR is not paying a notable dividend for the UK market.

Cash Payout to Shareholders

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

Discover strong dividend paying companies

Management

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

0.8yrs

Average management tenure

CEO

Jann Brown (66 yo)

0.17

Tenure

US$1,145,000

Compensation

Ms. Janice Margaret Brown, also known as Jann, M.A.(Hons), C.A., C.T.A. has been Independent Non-Executive Director at RHI Magnesita N.V. since June 10, 2021 and was its Board Observer since April 27, 2021...

CEO Compensation Analysis

Compensation vs Market: Jann's total compensation ($USD1.15M) is above average for companies of similar size in the UK market ($USD319.38K).

Compensation vs Earnings: Jann's compensation has increased whilst the company is unprofitable.

Leadership Team

Experienced Management: PHAR's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.

Board Members

Experienced Board: PHAR's board of directors are considered experienced (3.2 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: PHAR 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/23 00:00
End of Day Share Price	2022/05/23 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31