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
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
It is not possible to calculate the future cash flow value for
Providence Resources. 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
Providence Resources's earnings available for a low price, and how does
this compare to other companies in the same industry?
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 Providence Resources 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 Providence Resources's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Providence Resources's earnings growth to the Ireland market average as no estimate data is available.
Unable to compare Providence Resources's revenue growth to the Ireland market average as no estimate data is available.
Unable to determine if Providence Resources is high growth as no earnings estimate data is available.
Unable to determine if Providence Resources 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.
Providence Resources'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
Providence Resources's finances.
The net worth of a company is the difference between its assets and liabilities.
Providence Resources is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Providence Resources's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Providence Resources'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.
Providence Resources has no debt, it does not need to be 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.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Mr. Anthony O’Reilly, also known as Tony, Jr., BA, has been Chief Executive Officer at Providence Resources Plc since September 1, 2005. Mr. O'Reilly joined Wedgwood as Deputy Chief Executive in 2001. He is Owner of Fitzwilton Limited. He served as Chief Executive Officer of Wedgwood, a division of Waterford Wedgwood plc. from November 7, 2001 to September 1, 2005. Mr. O'Reilly served as Chief Executive Officer at Lundin Mining Exploration Limited from October 1996 to December 2000. Mr. O'Reilly worked in mergers & acquisitions at Dillon Read, the investment bank and in corporate finance at Coopers & Lybrand, advising natural resource companies. He is the Non-Executive Chairman and Chairman of Remuneration Committee at Lundin Mining Exploration Limited. He serves as Deputy Chairman of Providence Resources Plc and has been its Director since 1997. He has been a Director of Providence since its foundation on demerger from ARCON in 1997. He serves as a Director of Lundin Mining Exploration Limited. He serves as Non-Executive Director of Independent News and Media Plc., and a number of other companies. His other non-executive Directorships include Lockwood Financial Group Inc., Fitzwilton Limited Resources plc and E-Mat Inc. He served as a Director of Waterford Wedgwood plc from December 16, 1998 to September 1, 2005. Mr. O'Reilly is a graduate of Brown University in Rhode Island.
Tony's compensation has been consistent with company performance over the past year.
Tony's remuneration is about average for companies of similar size in Ireland.
Management Team Tenure
Average tenure of the
management team in years:
The average tenure for the Providence Resources management team is over 5 years, this suggests they are a seasoned and experienced team.
CEO & Director
Technical Director & Director
Chief Financial Officer
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Providence Resources board of directors is over 10 years, this suggests they are a seasoned and experienced board.
How Providence Resources Plc (ISE:PZQA) Can Impact Your Portfolio Volatility
If you are a shareholder in Providence Resources Plc’s (ISE:PZQA), or are thinking about investing in the company, knowing how it contributes to the risk and reward profile of your portfolio is important. … Generally, an investor should consider two types of risk that impact the market value of PZQA. … The second risk is market-wide, which arises from investing in the stock market.
Who Owns Most Of Providence Resources Plc (ISE:PZQA)?
Insider Ownership Another important group of shareholders are company insiders. … This size of ownership gives retail investors collective power in deciding on major policy decisions such as executive compensation, appointment of directors and acquisitions of businesses. … Thus, investors should dig deeper into PZQA's business relations with these companies and how it can affect shareholder returns in the long-term.Next Steps: PZQA's considerably high level of institutional ownership calls for further analysis into its margin of safety.
Providence Resources Plc (ISE:PZQA): How Does It Impact Your Portfolio?
An asset-heavy company tends to have a higher beta because the risk associated with running fixed assets during a downturn is highly expensive. … I test PZQA’s ratio of fixed assets to total assets in order to determine how high the risk is associated with this type of constraint. … As a result, this aspect of PZQA indicates a higher beta than a similar size company with a lower portion of fixed assets on their balance sheet.
Providence Resources P.l.c. operates as an oil and gas exploration company. The company operates through two segments, UK Exploration Assets and Republic of Ireland Exploration Assets. Its exploration assets are located in the Celtic Sea Basin, Kish Bank Basin, Northern Porcupine Basin, Southern Porcupine Basin, Goban Spur Basin, and St. George’s Basin. The company was founded in 1981 and is headquartered in Dublin, Ireland.
Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.