LSE:TLW

Stock Analysis Report

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Market Cap

UK£640.8m

Last Updated

2021/07/31 04:02 UTC

Data Sources

Company Financials +

Executive Summary

Tullow Oil plc engages in the oil and gas exploration, development, and production activities primarily in Africa and South America. More Details


Snowflake Analysis

Reasonable growth potential with imperfect balance sheet.


Similar Companies

Share Price & News

How has Tullow Oil's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TLW is more volatile than 75% of UK stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: TLW's weekly volatility (7%) has been stable over the past year, but is still higher than 75% of UK stocks.


Market Performance


7 Day Return

-3.1%

TLW

2.7%

GB Oil and Gas

0.3%

GB Market


1 Year Return

78.5%

TLW

30.4%

GB Oil and Gas

22.4%

GB Market

Return vs Industry: TLW exceeded the UK Oil and Gas industry which returned 30.4% over the past year.

Return vs Market: TLW exceeded the UK Market which returned 22.4% over the past year.


Shareholder returns

TLWIndustryMarket
7 Day-3.1%2.7%0.3%
30 Day-25.6%-4.4%0.3%
90 Day-17.1%5.2%1.5%
1 Year78.5%78.5%35.2%30.4%27.9%22.4%
3 Year-79.1%-79.6%-7.0%-19.8%12.7%-0.1%
5 Year-73.4%-77.9%33.8%7.1%39.4%12.6%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Tullow Oil undervalued compared to its fair value and its price relative to the market?


Share Price vs. Fair Value

Below Fair Value: TLW (£0.45) is trading above our estimate of fair value (£0.2)

Significantly Below Fair Value: TLW is trading above our estimate of fair value.


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: TLW has negative assets, so we can't compare its PB Ratio to the GB Oil and Gas industry average.


Future Growth

How is Tullow Oil forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

113.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TLW is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.9%).

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

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

Revenue vs Market: TLW's revenue is expected to decline over the next 3 years (-2.8% per year).

High Growth Revenue: TLW's revenue is forecast to decline over the next 3 years (-2.8% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TLW's Return on Equity is forecast to be high in 3 years time (21.5%)


Past Performance

How has Tullow Oil performed over the past 5 years?

-23.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TLW is currently unprofitable.

Growing Profit Margin: TLW is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TLW is unprofitable, and losses have increased over the past 5 years at a rate of 23.5% per year.

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

Earnings vs Industry: TLW is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-23.1%).


Return on Equity

High ROE: TLW's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Financial Health

How is Tullow Oil's financial position?


Financial Position Analysis

Short Term Liabilities: TLW has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: TLW has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: TLW has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: TLW's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


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

Forecast Cash Runway: TLW is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 43.8% per year.


Dividend

What is Tullow Oil current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate TLW's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

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

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


Current Payout to Shareholders

Dividend Coverage: TLW is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TLW's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

4.0yrs

Average management tenure


CEO

Rahul Dhir (55 yo)

1

Tenure

US$1,335,398

Compensation

Mr. Rahul Dhir serves as Chief Executive Officer and an Executive Director at Tullow Oil plc since July 1, 2020. He is Venture Partner of GTI Group LLC. Mr. Dhir served as Chief Executive Officer and Manag...


CEO Compensation Analysis

Compensation vs Market: Rahul's total compensation ($USD1.34M) is above average for companies of similar size in the UK market ($USD976.57K).

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


Leadership Team

Experienced Management: TLW's management team is considered experienced (4 years average tenure).


Board Members

Experienced Board: TLW's board of directors are not considered experienced ( 2.2 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.


Ownership Breakdown

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


Top Shareholders

Company Information

Tullow Oil plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tullow Oil plc
  • Ticker: TLW
  • Exchange: LSE
  • Founded: 1985
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: UK£640.752m
  • Shares outstanding: 1.43b
  • Website: https://www.tullowoil.com

Number of Employees


Location

  • Tullow Oil plc
  • 9 Chiswick Park
  • 566 Chiswick High Road
  • London
  • Greater London
  • W4 5XT
  • United Kingdom

Listings


Biography

Tullow Oil plc engages in the oil and gas exploration, development, and production activities primarily in Africa and South America. As of December 31, 2020, its portfolio comprised 53 licenses in 11 count...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/31 04:02
End of Day Share Price2021/07/30 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.