OB:OKEA

Stock Analysis Report

Executive Summary

OKEA ASA, an oil company, engages in the development and production of oil and gas in Norwegian continental shelf.

Snowflake

Fundamentals

Mediocre balance sheet and slightly overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-4.1%

OKEA

1.0%

NO Oil and Gas

1.6%

NO Market


1 Year Return

n/a

OKEA

-18.0%

NO Oil and Gas

-4.1%

NO Market

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

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


Shareholder returns

OKEAIndustryMarket
7 Day-4.1%1.0%1.6%
30 Day-11.8%-5.6%-1.8%
90 Day-19.0%1.7%1.8%
1 Yearn/a-14.0%-18.0%0.9%-4.1%
3 Yearn/a48.4%30.0%40.1%21.8%
5 Yearn/a49.2%18.0%59.6%22.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is OKEA 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: OKEA (NOK18.22) is trading below our estimate of fair value (NOK298.24)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: OKEA is overvalued based on its PB Ratio (1.1x) compared to the NO Oil and Gas industry average (1x).


Next Steps

Future Growth

How is OKEA forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

51.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OKEA is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: OKEA is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: OKEA is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: OKEA's revenue (14.3% per year) is forecast to grow faster than the Norwegian market (4.6% per year).

High Growth Revenue: OKEA's revenue (14.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: OKEA's Return on Equity is forecast to be low in 3 years time (9.7%).


Next Steps

Past Performance

How has OKEA performed over the past 5 years?

-62.7%

Last years earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: OKEA is unprofitable, and there is insufficient past data to establish if their past 5-year earnings growth rate was positive.

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

Earnings vs Industry: OKEA is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (29.3%).


Return on Equity

High ROE: OKEA has a negative Return on Equity (-6.14%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: OKEA is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: OKEA is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is OKEA's financial position?


Financial Position Analysis

Short Term Liabilities: OKEA's short term assets (NOK2.2B) exceeds its short term liabilities (NOK1.6B)

Long Term Liabilities: OKEA's short term assets (2.2B) do not cover its long term liabilities (7.2B)


Debt to Equity History and Analysis

Debt Level: OKEA's debt to equity ratio (141.7%) is considered high

Reducing Debt: Insufficient data to determine if OKEA's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: OKEA has a high level of physical assets or inventory.

Debt Coverage by Assets: OKEA's debt is not covered by short term assets (assets are 0.9x 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 OKEA has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: OKEA is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 118.8% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.6%markettop25%6.3%industryaverage5.8%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

Growing Dividend: Insufficient data to determine if OKEA'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 OKEA'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 OKEA's salary, the management and board of directors tenure and is there insider trading?

0.5yrs

Average board tenure


CEO

Erik Haugane (66yo)

0yrs

Tenure

0

Mr. Erik Haugane serves as Chief Executive Officer and Founder at OKEA AS. He served as the Chief Executive Officer and President of Det Norske Oljeselskap ASA until May 1, 2013. Mr. Haugane served as an A ...


Board Age and Tenure

0.5yrs

Average Tenure

59yo

Average Age

Experienced Board: OKEA's board of directors are not considered experienced ( 0.5 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buykr480,53914 Aug 19
Kørven AS
EntityCompany
Shares22,944
Max Pricekr20.94

Ownership Breakdown


Management Team

  • Erik Haugane (66yo)

    Founder & CEO

    • Tenure: 0yrs
  • Dag Eggan (46yo)

    Senior Vice President of Business Performance

    • Tenure: 0yrs
  • Anton Tronstad (62yo)

    Senior Vice President of Projects & Technology

    • Tenure: 0yrs
  • Knut Evensen

    Senior Vice President of Finance

    • Tenure: 0yrs
  • Ola Moe

    Senior Vice President of Business Development

    • Tenure: 0yrs
  • Tor Bjerkestrand

    Senior Vice President Operations

    • Tenure: 0yrs
  • Kjersti Hovdal

    Senior Vice President Accounting & Controlling

    • Tenure: 0yrs
  • Andrew McCann

    Senior Vice President of Subsurface

    • Tenure: 0yrs
  • Marit Vik-Langlie

    Vice President of Legal

    • Tenure: 0yrs

Board Members

  • Finn Haugan (66yo)

    Director

    • Tenure: 0.5yrs
  • Liv Monica Stubholt (58yo)

    Director

    • Tenure: 0.5yrs
  • Henrik Schröder

    Director

    • Tenure: 0yrs
  • Rune Pedersen (49yo)

    Director

    • Tenure: 0.5yrs
  • Prisana Praharnkhasuk (65yo)

    Director

    • Tenure: 0.8yrs
  • Chaiwat Kovavisarach (52yo)

    Chairman

    • Tenure: 0yrs
  • Nicola Gordon

    Director

    • Tenure: 0.5yrs
  • Michael Fischer (60yo)

    Director

    • Tenure: 0.9yrs
  • Anne Rømuld

    Director

    • Tenure: 0.5yrs
  • Ida Lundh

    Director

    • Tenure: 0.5yrs

Company Information

OKEA ASA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: OKEA ASA
  • Ticker: OKEA
  • Exchange: OB
  • Founded: 2015
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: kr1.860b
  • Shares outstanding: 102.06m
  • Website: https://okea.no

Number of Employees


Location

  • OKEA ASA
  • Ferjemannsveien 10
  • Trondheim
  • Sør-Trøndelag
  • 7042
  • Norway

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OKEAOB (Oslo Bors)YesOrdinary SharesNONOKJun 2019
3SXDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2019

Biography

OKEA ASA, an oil company, engages in the development and production of oil and gas in Norwegian continental shelf. The company holds interest 44.56% in Draugen, 12% in Gjøa, and 0.55% in Ivar Aasen license ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 22:06
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
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.