OB:BWE

Stock Analysis Report

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Executive Summary

BW Energy Limited engages in the acquisition, exploration, development, and production of oil and natural gas in Africa. More Details

Rewards

Trading at 94.6% below our estimate of its fair value

Earnings are forecast to grow 80.63% per year

Risk Analysis

No risks detected for BWE from our risk checks.


Snowflake Analysis

Exceptional growth potential with excellent balance sheet.

Share Price & News

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


Latest Share Price and Events

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

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


Market Performance


7 Day Return

5.8%

BWE

5.7%

NO Oil and Gas

3.4%

NO Market


1 Year Return

n/a

BWE

-18.6%

NO Oil and Gas

-1.8%

NO Market

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

Return vs Market: Insufficient data to determine how BWE performed against the Norwegian Market.


Shareholder returns

BWEIndustryMarket
7 Day5.8%5.7%3.4%
30 Day46.8%18.5%12.5%
90 Day11.9%3.7%7.4%
1 Yearn/a-14.5%-18.6%1.8%-1.8%
3 Yearn/a0.1%-12.4%8.8%-3.4%
5 Yearn/a40.7%12.3%54.8%24.2%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is BW 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: BWE (NOK21.5) is trading below our estimate of fair value (NOK399.62)

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


Price To Earnings Ratio

PE vs Industry: BWE is unprofitable, so we can't compare its PE Ratio to the NO Oil and Gas industry average.

PE vs Market: BWE is unprofitable, so we can't compare its PE Ratio to the Norwegian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate BWE's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: BWE is overvalued based on its PB Ratio (1.3x) compared to the NO Oil and Gas industry average (0.7x).


Next Steps

Future Growth

How is BW Energy forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

80.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BWE is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.6%).

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

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

Revenue vs Market: BWE's revenue (30% per year) is forecast to grow faster than the Norwegian market (6.1% per year).

High Growth Revenue: BWE's revenue (30% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BWE's Return on Equity is forecast to be high in 3 years time (25.3%)


Next Steps

Past Performance

How has BW Energy performed over the past 5 years?

-128.9%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: BWE is currently unprofitable.

Growing Profit Margin: BWE is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Unable to establish if BWE's year-on-year earnings growth rate was positive over the past 5 years as it has been trading publicly for less than 3 years.

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

Earnings vs Industry: BWE is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (264%).


Return on Equity

High ROE: BWE has a negative Return on Equity (-2.19%), as it is currently unprofitable.


Next Steps

Financial Health

How is BW Energy's financial position?


Financial Position Analysis

Short Term Liabilities: BWE's short term assets ($179.9M) exceed its short term liabilities ($58.5M).

Long Term Liabilities: BWE's short term assets ($179.9M) do not cover its long term liabilities ($250.4M).


Debt to Equity History and Analysis

Debt Level: BWE is debt free.

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

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

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


Balance Sheet


Next Steps

Dividend

What is BW Energy current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

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


Next Steps

Management

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

1.0yrs

Average board tenure


CEO

Carl Arnet (64 yo)

1.33yrs

Tenure

Mr. Carl Krogh Arnet has been the Chief Executive Officer at BW Energy Limited since July 1, 2019. Mr. Arnet has also been the Managing Director of APL since 1996. Prior to joining APL, Mr. Arnet had vario...


Board Members

NamePositionTenureCompensationOwnership
Andreas Sohmen-Pao
Chairmanno datano datano data
Hilde Drønen
Independent Directorno datano datano data
Marco Beenen
Director1yrno datano data
William Scheirman
Independent Director1yrno datano data
Tormod Vold
Independent Director1yrno datano data

1.0yrs

Average Tenure

50yo

Average Age

Experienced Board: BWE's board of directors are not considered experienced ( 1 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: BWE only recently listed within the past 12 months.


Top Shareholders

Company Information

BW Energy Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: BW Energy Limited
  • Ticker: BWE
  • Exchange: OB
  • Founded: 2016
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: kr5.155b
  • Shares outstanding: 234.30m
  • Website: https://www.bwenergy.no

Number of Employees


Location

  • BW Energy Limited
  • Drammensveien 151
  • Oslo
  • Oslo
  • 277
  • Norway

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6BWDB (Deutsche Boerse AG)YesShare CapitalDEEURFeb 2020
BWEOB (Oslo Bors)YesShare CapitalNONOKFeb 2020

Biography

BW Energy Limited engages in the acquisition, exploration, development, and production of oil and natural gas in Africa. It primarily holds interests in three hydrocarbon licenses in Gabon, Brazil, and Nam...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/26 17:20
End of Day Share Price2020/11/26 00:00
Earnings2020/09/30
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.