OB:EPIC-ME

Stock Analysis Report

Executive Summary

Epic Gas Ltd, together with its subsidiaries, owns and operates a fleet of pressurized gas carriers in Singapore, Southeast Asia, Europe, West Africa, and the United States.

Rewards

Trading at 54.2% below its fair value

Earnings are forecast to grow 116.63% per year

Earnings have grown 11.3% per year over the past 5 years

Risk Analysis

Shareholders have been substantially diluted in the past year



Snowflake Analysis

Reasonable growth potential and fair value.

Share Price & News

How has Epic Gas's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: EPIC-ME has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

EPIC-ME

-0.7%

NO Oil and Gas

0.4%

NO Market


1 Year Return

57.8%

EPIC-ME

-3.5%

NO Oil and Gas

3.7%

NO Market

Return vs Industry: EPIC-ME exceeded the Norwegian Oil and Gas industry which returned -2.8% over the past year.

Return vs Market: EPIC-ME exceeded the Norwegian Market which returned 4.5% over the past year.


Shareholder returns

EPIC-MEIndustryMarket
7 Day0%-0.7%0.4%
30 Day0%2.7%2.1%
90 Day5.0%6.2%6.0%
1 Year57.8%57.8%1.6%-3.5%9.4%3.7%
3 Year2.1%2.1%35.2%18.7%32.8%16.3%
5 Year-47.9%-47.9%75.5%40.9%66.9%28.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Epic Gas 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: EPIC-ME (NOK14.6) is trading below our estimate of fair value (NOK31.89)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: EPIC-ME is good value based on its PB Ratio (0.6x) compared to the NO Oil and Gas industry average (1.1x).


Next Steps

Future Growth

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

116.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EPIC-ME is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.7%).

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

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

Revenue vs Market: EPIC-ME's revenue (6.9% per year) is forecast to grow faster than the Norwegian market (3.2% per year).

High Growth Revenue: EPIC-ME's revenue (6.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EPIC-ME's Return on Equity is forecast to be low in 3 years time (6.2%).


Next Steps

Past Performance

How has Epic Gas performed over the past 5 years?

11.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EPIC-ME is currently unprofitable.

Growing Profit Margin: EPIC-ME is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: EPIC-ME is unprofitable, but has reduced losses over the past 5 years at a rate of 11.3% per year.

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

Earnings vs Industry: EPIC-ME is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (49.1%).


Return on Equity

High ROE: EPIC-ME has a negative Return on Equity (-1.3%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Epic Gas's financial position?


Financial Position Analysis

Short Term Liabilities: EPIC-ME's short term assets ($45.6M) do not cover its short term liabilities ($83.1M).

Long Term Liabilities: EPIC-ME's short term assets ($45.6M) do not cover its long term liabilities ($297.4M).


Debt to Equity History and Analysis

Debt Level: EPIC-ME's debt to equity ratio (101.7%) is considered high.

Reducing Debt: EPIC-ME's debt to equity ratio has increased from 79.7% to 101.7% over the past 5 years.


Balance Sheet

Inventory Level: EPIC-ME has a high level of physical assets or inventory.

Debt Coverage by Assets: EPIC-ME's debt is not covered by short term assets (assets are 0.2x debt).


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 EPIC-ME has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: EPIC-ME is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 92.3% per year.


Next Steps

Dividend

What is Epic Gas's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%5.6%industryaverage5.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate EPIC-ME's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if EPIC-ME's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if EPIC-ME'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 EPIC-ME's dividend in 3 years as they are not forecast to pay a notable one for the Norwegian market.


Next Steps

Management

What is the CEO of Epic Gas's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average board tenure


CEO

Charles Maltby (47yo)

0yrs

Tenure

0

Mr. Charles Goodson Maltby serves as Chief Executive Officer at Epic Gas Ltd. and has been its Director since September 17, 2014. Previously, Mr. Maltby served as an Executive Chairman of the Board of Epic ...


Board Age and Tenure

1.8yrs

Average Tenure

60yo

Average Age

Experienced Board: EPIC-ME's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: EPIC-ME insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buykr29,20002 Jan 20
Christopher Buttery
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,000
Max Pricekr14.60
Buykr28,80017 Dec 19
Christopher Buttery
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,000
Max Pricekr14.40
Buykr36,34006 Dec 19
Christopher Buttery
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,500
Max Pricekr14.54
Buykr6,81025 Nov 19
Christopher Buttery
EntityIndividual
Role
Member of the Board of Directors
Director
Shares451
Max Pricekr15.10
Buykr57,95020 Nov 19
Christopher Buttery
EntityIndividual
Role
Member of the Board of Directors
Director
Shares4,000
Max Pricekr14.49
Buykr33,00005 Sep 19
Christopher Buttery
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,000
Max Pricekr16.50
Buykr22,37026 Jun 19
Christopher Buttery
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,549
Max Pricekr14.70

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 51.4%.


Management Team

  • Charles Maltby (47yo)

    CEO & Director

    • Uta Urbaniak-Sage

      Chief Financial Officer

      • Niraj Singh

        Technical Director

        • Tenure: 4yrs

      Board Members

      • Andreas Sohmen-Pao (48yo)

        Chairman of the Board

        • Tenure: 0.7yrs
      • Chris Buttery (68yo)

        Director

        • Charles Maltby (47yo)

          CEO & Director

          • Billy Chiu

            Director

            • Tenure: 0.8yrs
          • Ryoji Mochizuki

            Director

            • Tenure: 6.2yrs
          • Nick Lykiardopulo (60yo)

            Non-Executive Director

            • Tenure: 2.8yrs
          • Esben Søfren Poulsson (71yo)

            Independent Non-Executive Director

            • Tenure: 0.7yrs

          Company Information

          Epic Gas Ltd.'s company bio, employee growth, exchange listings and data sources


          Key Information

          • Name: Epic Gas Ltd.
          • Ticker: EPIC-ME
          • Exchange: OB
          • Founded: 2012
          • Industry: Oil and Gas Storage and Transportation
          • Sector: Energy
          • Market Cap: kr1.557b
          • Shares outstanding: 106.62m
          • Website: https://www.epic-gas.com

          Location

          • Epic Gas Ltd.
          • 8 Eu Tong Sen Street
          • No.22-89, The Central
          • Singapore
          • 59818
          • Singapore

          Listings

          TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
          EPIC-MEOB (Oslo Bors)YesCommon StockNONOKFeb 2014

          Biography

          Epic Gas Ltd, together with its subsidiaries, owns and operates a fleet of pressurized gas carriers in Singapore, Southeast Asia, Europe, West Africa, and the United States. As of December 31, 2018, it operated a fleet of 39 vessels that provide seaborne services for the transportation of liquefied petroleum gas and petrochemicals, which serve as a link in the international gas and petrochemical supply chains of various oil and commodity trading houses. The company also provides commercial and technical management services for various ship owners, as well as engages in vessel owning and chartering activities. Epic Gas Ltd was incorporated in 2012 and is headquartered in Singapore. Epic Gas Ltd is a subsidiary of BW Group Limited. 


          Company Analysis and Financial Data Status

          All financial data provided by Standard & Poor's Capital IQ.
          DataLast Updated (UTC time)
          Company Analysis2020/01/21 22:40
          End of Day Share Price2020/01/21 00:00
          Earnings2019/09/30
          Annual Earnings2018/12/31


          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.