LSE:RRE

Stock Analysis Report

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Executive Summary

RockRose Energy plc operates as an independent oil and gas production company.


Snowflake Analysis

Outstanding track record and undervalued.

Share Price & News

How has RockRose Energy's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

7.3%

RRE

-0.6%

GB Oil and Gas

2.0%

GB Market


1 Year Return

n/a

RRE

-35.8%

GB Oil and Gas

-12.8%

GB Market

Return vs Industry: Insufficient data to determine how RRE performed against the UK Oil and Gas industry.

Return vs Market: Insufficient data to determine how RRE performed against the UK Market.


Shareholder returns

RREIndustryMarket
7 Day7.3%-0.6%2.0%
30 Day20.5%8.1%5.7%
90 Day-28.7%-17.2%-8.2%
1 Yearn/a-32.0%-35.8%-8.6%-12.8%
3 Yearn/a-4.5%-17.2%-6.2%-17.6%
5 Yearn/a5.2%-16.4%12.7%-12.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is RockRose Energy 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: RRE (£10.34) is trading below our estimate of fair value (£68.88)

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


Price To Earnings Ratio

PE vs Industry: RRE is good value based on its PE Ratio (2x) compared to the Oil and Gas industry average (4.9x).

PE vs Market: RRE is good value based on its PE Ratio (2x) compared to the UK market (14.7x).


Price to Earnings Growth Ratio

PEG Ratio: RRE is good value based on its PEG Ratio (0.1x)


Price to Book Ratio

PB vs Industry: RRE is overvalued based on its PB Ratio (1x) compared to the GB Oil and Gas industry average (0.4x).


Next Steps

Future Growth

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

26.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RRE's forecast earnings growth (26.3% per year) is above the savings rate (1.2%).

Earnings vs Market: RRE's earnings (26.3% per year) are forecast to grow faster than the UK market (20.3% per year).

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

Revenue vs Market: RRE's revenue (18.1% per year) is forecast to grow faster than the UK market (3.6% per year).

High Growth Revenue: RRE's revenue (18.1% 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 RRE's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has RockRose Energy performed over the past 5 years?

47.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RRE has high quality earnings.

Growing Profit Margin: RRE's current net profit margins (33.5%) are higher than last year (25.4%).


Past Earnings Growth Analysis

Earnings Trend: RRE's earnings have grown significantly by 47.6% per year over the past 5 years.

Accelerating Growth: RRE's earnings growth over the past year (116.4%) exceeds its 5-year average (47.6% per year).

Earnings vs Industry: RRE earnings growth over the past year (116.4%) exceeded the Oil and Gas industry -2.2%.


Return on Equity

High ROE: RRE's Return on Equity (54.6%) is considered outstanding.


Next Steps

Financial Health

How is RockRose Energy's financial position?


Financial Position Analysis

Short Term Liabilities: RRE's short term assets ($477.7M) exceed its short term liabilities ($162.1M).

Long Term Liabilities: RRE's short term assets ($477.7M) do not cover its long term liabilities ($1.2B).


Debt to Equity History and Analysis

Debt Level: RRE is debt free.

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

Debt Coverage: RRE has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: RRE has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is RockRose Energy's current dividend yield, its reliability and sustainability?

8.07%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RRE's dividend (8.07%) is higher than the bottom 25% of dividend payers in the UK market (2.03%).

High Dividend: RRE's dividend (8.07%) is in the top 25% of dividend payers in the UK market (5.68%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (17.2%), RRE's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

4.4yrs

Average board tenure


CEO

Peter Mann

no data

Tenure

Mr. Peter Mann serves as Managing Director at RockRose Energy PLC. He joined IGas Energy plc (“IGas”) in 2013 to assist in the implementation of the company’s core strategic aims. During his time at IGas h ...


Board Members

NamePositionTenureCompensationOwnership
Andrew Austin
Executive Chairman4.83yrsUS$1.61m27.25% $36.8m
John Andrew Morrow
Independent Non-Executive Director4.42yrsUS$63.83k1.68% $2.3m
Richard Benmore
Independent Non-Executive Director4.42yrsUS$1.29m2.46% $3.3m

4.4yrs

Average Tenure

61yo

Average Age

Experienced Board: RRE's board of directors are considered experienced (4.4 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 4%.


Top Shareholders

Company Information

RockRose Energy PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: RockRose Energy PLC
  • Ticker: RRE
  • Exchange: LSE
  • Founded: 2015
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: UK£135.224m
  • Shares outstanding: 13.08m
  • Website: https://www.rockroseenergy.com

Number of Employees


Location

  • RockRose Energy PLC
  • 107 Cheapside
  • 9th Floor
  • London
  • Greater London
  • EC2V 6DN
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RRELSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 2016
RRELBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 2016

Biography

RockRose Energy plc operates as an independent oil and gas production company. The company operates through three segments: Oil, Gas, and Infrastructure. It offers crude oil and gas products, and pipeline services. The company holds interests in the oil producing assets, including Brae Complex, Foinaven, Nelson and Howe, Ross and Blake, Balmoral, Stirling, Beauly, and Burghley assets; and gas producing assets, such as A&B blocks, K4b/K5a, Hanze, P15/ P18-Rijn, P/Q Area, Markham and J3C, and onshore Bergen assets, as well as Tors, Grove, Galahad, Mordred, and Seven Seas fields located in the United Kingdom and the Netherlands. As of December 31, 2019, it had proved and probable reserves of 60.8 million barrel of oil equivalent (MMboe) with an additional contingent resources of 21.2 MMboe. The company was founded in 2015 and is headquartered in London, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/01 00:26
End of Day Share Price2020/05/29 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.