OB:PLCS

Stock Analysis Report

Executive Summary

Polarcus Limited, a marine geophysical service company, provides marine seismic data acquisition and processing services to oil and gas companies in the Asia Pacific, Europe, Africa, the Middle East, and North and South America.

Snowflake

Fundamentals

Mediocre balance sheet and overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

5.0%

PLCS

4.7%

NO Energy Services

1.9%

NO Market


1 Year Return

-32.2%

PLCS

-28.7%

NO Energy Services

-6.3%

NO Market

Return vs Industry: PLCS matched the Norwegian Energy Services industry which returned -28.7% over the past year.

Return vs Market: PLCS underperformed the Norwegian Market which returned -6.3% over the past year.


Shareholder returns

PLCSIndustryMarket
7 Day5.0%4.7%1.9%
30 Day-1.0%-2.4%-1.9%
90 Day11.6%-4.5%1.4%
1 Year-32.2%-32.2%-27.2%-28.7%-1.4%-6.3%
3 Year-69.3%-69.3%3.0%-4.2%40.8%22.4%
5 Year-98.8%-98.8%-29.9%-51.5%61.2%24.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

39.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PLCS (NOK1.23) is trading below our estimate of fair value (NOK2.02)

Significantly Below Fair Value: PLCS is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: PLCS is unprofitable, so we can't compare its PE Ratio to the Energy Services industry average.

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


Price to Book Ratio

PB vs Industry: PLCS is overvalued based on its PB Ratio (0.9x) compared to the NO Energy Services industry average (0.6x).


Next Steps

Future Growth

How is Polarcus forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

94.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: PLCS's revenue (3.7% per year) is forecast to grow slower than the Norwegian market (4.7% per year).

High Growth Revenue: PLCS's revenue (3.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PLCS's Return on Equity is forecast to be high in 3 years time (20.2%)


Next Steps

Past Performance

How has Polarcus performed over the past 5 years?

3.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: PLCS is unprofitable, but has reduced losses over the past 5 years at a rate of 3% per year.

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

Earnings vs Industry: PLCS is unprofitable, making it difficult to compare its past year earnings growth to the Energy Services industry (5%).


Return on Equity

High ROE: PLCS has a negative Return on Equity (-42.3%), as it is currently unprofitable.


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is Polarcus's financial position?


Financial Position Analysis

Short Term Liabilities: PLCS's short term assets ($102.6M) exceeds its short term liabilities ($69.1M)

Long Term Liabilities: PLCS's short term assets (102.6M) do not cover its long term liabilities (327.7M)


Debt to Equity History and Analysis

Debt Level: PLCS's debt to equity ratio (458%) is considered high

Reducing Debt: PLCS's debt to equity ratio has increased from 101.5% to 458% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: PLCS's debt is not covered by short term assets (assets are 0.3x 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 PLCS has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: PLCS is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -59.7% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.6%markettop25%6.2%industryaverage4.5%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

3.3yrs

Average management tenure


CEO

Duncan Eley (47yo)

2.6yrs

Tenure

US$919,000

Compensation

Mr. Duncan Eley has been the Chief Executive Officer of Polarcus Limited since March 17, 2017. Mr. Eley served as the Chief Operating Officer of Polarcus Limited since May 1, 2013 until March 24, 2017. Mr ...


CEO Compensation Analysis

Compensation vs. Market: Duncan's total compensation ($USD919.00K) is about average for companies of similar size in the Norwegian market ($USD340.03K).

Compensation vs Earnings: Duncan's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

3.3yrs

Average Tenure

47yo

Average Age

Experienced Management: PLCS's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

3.4yrs

Average Tenure

56yo

Average Age

Experienced Board: PLCS's board of directors are considered experienced (3.4 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$86,85029 Aug 19
Lars Østergaard
EntityIndividual
Role
Chief Operating Officer
Chief Operating Officer
Shares75,000
Max PriceUS$1.16
BuyUS$171,30021 Aug 19
Michael E. Mannering
EntityIndividual
Role
Chairman of the Board
Chairman
Shares150,000
Max PriceUS$1.14
BuyUS$140,41215 Aug 19
Monish Sahni
EntityIndividual
Role
Member of the Board of Directors
Director
Shares125,000
Max PriceUS$1.12
BuyUS$326,24129 Jul 19
Hans-Peter Burlid
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares270,000
Max PriceUS$1.21
BuyUS$453,11329 Jul 19
Duncan Eley
EntityIndividual
Role
Chief Executive Officer
Chief Executive Officer
Shares375,000
Max PriceUS$1.21
BuyUS$163,87625 Jul 19
James Smith
EntityIndividual
Role
Member of the Board of Directors
Director
Shares135,000
Max PriceUS$1.21
BuyUS$92,25005 Mar 19
Hans-Peter Burlid
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares75,000
Max PriceUS$1.23
BuyUS$91,50005 Mar 19
Lars Østergaard
EntityIndividual
Role
Chief Operating Officer
Chief Operating Officer
Shares75,000
Max PriceUS$1.22
BuyUS$92,25005 Mar 19
Caleb Raywood
EntityIndividual
Role
Chief Legal Officer
General Counsel & Company Secretary
Shares75,000
Max PriceUS$1.23
BuyUS$92,25005 Mar 19
Tamzin Steel
EntityIndividual
Role
Head of Human Resources
Senior Vice President of People & Business Services
Shares75,000
Max PriceUS$1.23
BuyUS$184,50005 Mar 19
Duncan Eley
EntityIndividual
Role
Chief Executive Officer
Chief Executive Officer
Shares150,000
Max PriceUS$1.23

Ownership Breakdown


Management Team

  • Magnus Öberg (49yo)

    Vice President of Informantion Technology

    • Tenure: 11.5yrs
    • Compensation: US$224.92k
  • Christopher Griffin (58yo)

    Vice President of Environment Health Safety & Quality

    • Tenure: 11.5yrs
    • Compensation: US$260.42k
  • Hans-Peter Burlid (39yo)

    Chief Financial Officer

    • Tenure: 3.6yrs
    • Compensation: US$832.00k
  • Duncan Eley (47yo)

    Chief Executive Officer

    • Tenure: 2.6yrs
    • Compensation: US$919.00k
  • Phil Fontana (67yo)

    Chief Geophysicist

    • Tenure: 0yrs
  • Jai Pandya (47yo)

    Vice President of APAC

    • Tenure: 2yrs
  • Tamzin Steel (42yo)

    Senior Vice President of People & Business Services

    • Tenure: 3.3yrs
  • Caleb Raywood (49yo)

    General Counsel & Company Secretary

    • Tenure: 3.3yrs
  • Lars Østergaard (46yo)

    Chief Operating Officer

    • Tenure: 1.3yrs
    • Compensation: US$447.72k
  • Andy Lambert

    Vice President of Global Sales

    • Tenure: 0.3yrs

Board Members

  • Karen El-Tawil (58yo)

    Non-Executive Independent Director

    • Tenure: 5.7yrs
  • James Smith (68yo)

    Director

    • Tenure: 2.6yrs
  • Erik Mathiesen (49yo)

    Director

    • Tenure: 3.4yrs
  • Peter Zickerman (49yo)

    Founder & Director

    • Tenure: 3.4yrs
  • Mike Mannering (67yo)

    Chairman

    • Tenure: 1.4yrs
  • Tom Slethei (45yo)

    Director

    • Tenure: 3.4yrs
  • Monish Sahni (56yo)

    Director

    • Tenure: 0.5yrs

Company Information

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


Key Information

  • Name: Polarcus Limited
  • Ticker: PLCS
  • Exchange: OB
  • Founded: 2007
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: kr630.930m
  • Shares outstanding: 513.79m
  • Website: https://www.polarcus.com

Number of Employees


Location

  • Polarcus Limited
  • Reef Tower
  • Level 20
  • Dubai
  • United Arab Emirates

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PLCSOB (Oslo Bors)YesOrdinary SharesNONOKApr 2009
PLCSOBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBNOKApr 2009
29PMUN (Boerse Muenchen)YesOrdinary SharesDEEURApr 2009

Biography

Polarcus Limited, a marine geophysical service company, provides marine seismic data acquisition and processing services to oil and gas companies in the Asia Pacific, Europe, Africa, the Middle East, and N ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 21:07
End of Day Share Price2019/10/21 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.