OM:MAHA A

Stock Analysis Report

Executive Summary

Maha Energy AB (publ), an independent and international oil and gas company, engages in the exploration, development, and production of crude oil and natural gas in the United States, Brazil, and Sweden.


Snowflake Analysis

Very undervalued with exceptional growth potential.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: MAHA A's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

5.3%

MAHA A

9.5%

SE Oil and Gas

5.3%

SE Market


1 Year Return

-66.8%

MAHA A

-38.8%

SE Oil and Gas

-10.3%

SE Market

Return vs Industry: MAHA A underperformed the Swedish Oil and Gas industry which returned -38.8% over the past year.

Return vs Market: MAHA A underperformed the Swedish Market which returned -10.3% over the past year.


Shareholder returns

MAHA AIndustryMarket
7 Day5.3%9.5%5.3%
30 Day-52.8%-28.7%-18.2%
90 Day-72.2%-51.4%-22.8%
1 Year-66.8%-66.8%-38.7%-38.8%-7.8%-10.3%
3 Year0.5%0%-24.1%-30.3%-0.6%-15.4%
5 Yearn/a-0.7%-23.5%8.0%-14.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Maha 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: MAHA A (SEK6.9) is trading below our estimate of fair value (SEK92.9)

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


Price To Earnings Ratio

PE vs Industry: MAHA A is good value based on its PE Ratio (3.5x) compared to the Oil and Gas industry average (5.7x).

PE vs Market: MAHA A is good value based on its PE Ratio (3.5x) compared to the Swedish market (14.1x).


Price to Earnings Growth Ratio

PEG Ratio: MAHA A is good value based on its PEG Ratio (0.1x)


Price to Book Ratio

PB vs Industry: MAHA A is good value based on its PB Ratio (0.8x) compared to the SE Oil and Gas industry average (1.3x).


Next Steps

Future Growth

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

48.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MAHA A's forecast earnings growth (48% per year) is above the savings rate (-0.4%).

Earnings vs Market: MAHA A's earnings (48% per year) are forecast to grow faster than the Swedish market (7.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MAHA A's revenue (30.4% per year) is forecast to grow faster than the Swedish market (4.1% per year).

High Growth Revenue: MAHA A's revenue (30.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MAHA A's Return on Equity is forecast to be high in 3 years time (35.9%)


Next Steps

Past Performance

How has Maha Energy performed over the past 5 years?

76.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MAHA A has a high level of non-cash earnings.

Growing Profit Margin: MAHA A's current net profit margins (40.8%) are lower than last year (76.9%).


Past Earnings Growth Analysis

Earnings Trend: MAHA A has become profitable over the past 5 years, growing earnings by 76.1% per year.

Accelerating Growth: MAHA A's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MAHA A had negative earnings growth (-23.4%) over the past year, making it difficult to compare to the Oil and Gas industry average (-4.1%).


Return on Equity

High ROE: MAHA A's Return on Equity (22.4%) is considered high.


Next Steps

Financial Health

How is Maha Energy's financial position?


Financial Position Analysis

Short Term Liabilities: MAHA A's short term assets ($30.4M) exceed its short term liabilities ($7.2M).

Long Term Liabilities: MAHA A's short term assets ($30.4M) do not cover its long term liabilities ($41.0M).


Debt to Equity History and Analysis

Debt Level: MAHA A's debt to equity ratio (34.9%) is considered satisfactory.

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

Debt Coverage: MAHA A's debt is well covered by operating cash flow (94.1%).

Interest Coverage: MAHA A's interest payments on its debt are well covered by EBIT (6.7x coverage).


Balance Sheet

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

Debt Coverage by Assets: MAHA A's debt is not covered by short term assets (assets are 1x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if MAHA A'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 MAHA A's dividend in 3 years as they are not forecast to pay a notable one for the Swedish market.


Next Steps

Management

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

1.9yrs

Average management tenure


CEO

Karl Lindvall (52yo)

4.17s

Tenure

Mr. Karl Jonas Lindvall, B. Sc P. Eng, MEB serves as Chief Executive Officer of Maha Energy AB (publ) since 2016 and has been its Managing Director since 2016. Mr. Lindvall served as President at Maha Ener ...


CEO Compensation Analysis

Compensation vs Market: Karl's total compensation ($USD0.00) is below average for companies of similar size in the Swedish market ($USD215.18K).

Compensation vs Earnings: Karl's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Karl Lindvall
CEO, MD & Director4.17yrsno data4.74% $32.9m
Andrés Modarelli
Chief Financial Officer2.67yrsUS$1.35mno data
Alan Johnson
Vice President of Operations1.17yrsno datano data
Luciana Borges
Finance & Administration Director2.67yrsno datano data
Victoria Berg
Manager of Investor Relations & Interim Deputy MD0.50yrno datano data
Ronald Panchuk
Consultant0.17yrUS$2.30m2.92% $20.2m
Jamie McKeown
Vice President of Exploration & Productionno datano datano data

1.9yrs

Average Tenure

48yo

Average Age

Experienced Management: MAHA A's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Karl Lindvall
CEO, MD & Director4.17yrsno data4.74% $32.9m
Anders Ehrenblad
Chairman of the Board0.83yrUS$22.000.78% $5.4m
Harald Pousette
Director2.75yrsUS$24.000.87% $6.0m
Nicholas Walker
Independent Director0.83yrno datano data

1.8yrs

Average Tenure

54yo

Average Age

Experienced Board: MAHA A's board of directors are not considered experienced ( 1.8 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Maha Energy AB (publ)'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Maha Energy AB (publ)
  • Ticker: MAHA A
  • Exchange: OM
  • Founded: 2013
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: kr692.876m
  • Shares outstanding: 100.42m
  • Website: https://www.mahaenergy.ca

Number of Employees


Location

  • Maha Energy AB (publ)
  • Strandvägen 5A
  • Stockholm
  • Stockholm County
  • 114 51
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MAHA AOM (OMX Nordic Exchange Stockholm)YesSeries A SharesSESEKJul 2016
0GEALSE (London Stock Exchange)YesSeries A SharesGBSEKJul 2016
7M7DB (Deutsche Boerse AG)YesSeries A SharesDEEURJul 2016

Biography

Maha Energy AB (publ), an independent and international oil and gas company, engages in the exploration, development, and production of crude oil and natural gas in the United States, Brazil, and Sweden. The company owns a 75% working interest in the Tartaruga Block that covers 13,201 acres located in the Sergipe Alagoas Basin of Brazil; 99% interest in LAK Ranch heavy oil field, which covers 6,475 acres situated on the eastern edge of the prolific Powder River Basin in Wyoming, the United States; and 100% working interests in six onshore concession agreements, including the oil producing Tie field covering an area of 1,514 acres located in the Reconcavo Basin of Brazil. As of December 31, 2018, it had proven and probable reserves of 31.692 million barrels of oil. The company was founded in 2013 and is headquartered in Stockholm, Sweden. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/29 23:27
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
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.