Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
In this section, we usually try to help investors determine whether Pennpetro Energy is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Pennpetro Energy has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.
This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis. You can see them here.
Show me the analysis anyway
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
It is not possible to calculate the future cash flow value for
Pennpetro Energy. This is due to cash flow or dividend data being
unavailable. The share price is
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
Pennpetro Energy's earnings available for a low price, and how does
this compare to other companies in the same industry?
Pennpetro Energy has negative assets, we can't compare the value of its assets to the GB Oil and Gas industry average.
When valuing a company like this, investors focus more on how they perceive the potential returns from the core activities, the size of each contract's opportunity, and the capacity of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through Pennpetro Energy's regulatory filings and announcements.
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 Pennpetro 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 Simply Wall St do have past financial data. You can see them here.
Show me the analysis anyway
The future performance of a company is measured in the same way as past
performance, by looking at estimated
and how much profit it is expected to make.
Future estimates come from
professional analysts. Just like forecasting the weather, they don’t always get
Expected Oil and Gas industry annual growth in earnings.
Earnings growth vs Low Risk Savings
expected to grow at an
Unable to compare Pennpetro Energy's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Pennpetro Energy's earnings growth to the United Kingdom of Great Britain and Northern Ireland market average as no estimate data is available.
Unable to compare Pennpetro Energy's revenue growth to the United Kingdom of Great Britain and Northern Ireland market average as no estimate data is available.
Unable to determine if Pennpetro Energy is high growth as no earnings estimate data is available.
Unable to determine if Pennpetro Energy is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Pennpetro Energy's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
Oil and Gas
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
0/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
Pennpetro Energy's finances.
The net worth of a company is the difference between its assets and liabilities.
Pennpetro Energy is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Pennpetro Energy's long term commitments exceed its cash and other short term assets.
This treemap shows a more detailed breakdown of
Pennpetro Energy's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
High level of physical assets or inventory.
Pennpetro Energy has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
Who Are The Major Shareholders In Pennpetro Energy PLC (LON:PPP)?
Insider Ownership Another important group of shareholders are company insiders. … Private Company Ownership Another important group of owners for potential investors in PPP are private companies that hold a stake of 70.80% in PPP. … Thus, investors should dig deeper into PPP's business relations with these companies and how it can affect shareholder returns in the long-term.Next Steps: Institutional ownership in PPP is not at a level that would concern investors.
Is Pennpetro Energy PLC's (LON:PPP) Balance Sheet A Threat To Its Future?
How does PPP’s operating cash flow stack up against its debt? … Looking at PPP’s most recent US$210.11K liabilities, the company has been able to meet these obligations given the level of current assets of US$3.63M, with a current ratio of 17.29x. … Maintaining a high level of debt, while revenues are still below costs, can be dangerous as liquidity tends to dry up in unexpected downturns.Next Steps: At its current level of cash flow coverage, PPP has room for improvement to better cushion for events which may require debt repayment.
Is Pennpetro Energy PLC (LON:PPP) Still A Cheap Oil & Gas Stock?
Below, I will examine the sector growth prospects, and also determine whether Pennpetro Energy is a laggard or leader relative to its energy sector peers. … View our latest analysis for Pennpetro Energy What’s the catalyst for Pennpetro Energy's sector growth? … Given the lack of analyst consensus in Pennpetro Energy’s outlook, we could potentially assume the stock’s growth rate broadly follows its energy industry peers.
Pennpetro Energy Plc engages in the onshore oil and gas exploration and production in the United States. Its principal property is the central undrilled portion of the Gonzales oil field that consists of leasehold petroleum mineral interests with approximately 1,000 leases on 2,500 acres of land and proven oil condensates located in the City of Gonzales, Texas. The company is based in London, the United Kingdom.
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