OM:TETY

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Tethys Oil AB (publ) focuses on the exploration and production of oil and natural gas properties. More Details


Snowflake Analysis

Very undervalued with flawless balance sheet and pays a dividend.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-6.5%

TETY

-5.7%

SE Oil and Gas

-0.5%

SE Market


1 Year Return

-45.1%

TETY

-42.1%

SE Oil and Gas

13.9%

SE Market

Return vs Industry: TETY underperformed the Swedish Oil and Gas industry which returned -40.2% over the past year.

Return vs Market: TETY underperformed the Swedish Market which returned 15.2% over the past year.


Shareholder returns

TETYIndustryMarket
7 Day-6.5%-5.7%-0.5%
30 Day-8.6%-8.8%2.4%
90 Day-15.3%-13.3%6.6%
1 Year-42.1%-45.1%-42.1%-42.1%15.9%13.9%
3 Year-23.7%-30.2%-23.3%-28.0%31.6%17.5%
5 Year-17.3%-26.7%0.9%-22.9%60.3%28.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

31.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TETY (SEK40.3) is trading below our estimate of fair value (SEK59.12)

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


Price To Earnings Ratio

PE vs Industry: TETY is good value based on its PE Ratio (6.8x) compared to the XE Oil and Gas industry average (9.9x).

PE vs Market: TETY is good value based on its PE Ratio (6.8x) compared to the Swedish market (22.4x).


Price to Earnings Growth Ratio

PEG Ratio: TETY is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: TETY is good value based on its PB Ratio (0.6x) compared to the SE Oil and Gas industry average (1.2x).


Next Steps

Future Growth

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

37.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TETY's forecast earnings growth (37.9% per year) is above the savings rate (0.5%).

Earnings vs Market: TETY's earnings (37.9% per year) are forecast to grow faster than the Swedish market (12.9% per year).

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

Revenue vs Market: TETY's revenue (4.2% per year) is forecast to grow faster than the Swedish market (3.1% per year).

High Growth Revenue: TETY's revenue (4.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TETY's Return on Equity is forecast to be low in 3 years time (10.8%).


Next Steps

Past Performance

How has Tethys Oil performed over the past 5 years?

25.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TETY has high quality earnings.

Growing Profit Margin: TETY's current net profit margins (16.9%) are lower than last year (38.5%).


Past Earnings Growth Analysis

Earnings Trend: TETY's earnings have grown significantly by 25.2% per year over the past 5 years.

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

Earnings vs Industry: TETY had negative earnings growth (-63.1%) over the past year, making it difficult to compare to the Oil and Gas industry average (-18%).


Return on Equity

High ROE: TETY's Return on Equity (8.7%) is considered low.


Next Steps

Financial Health

How is Tethys Oil's financial position?


Financial Position Analysis

Short Term Liabilities: TETY's short term assets ($65.9M) exceed its short term liabilities ($9.1M).

Long Term Liabilities: TETY's short term assets ($65.9M) exceed its long term liabilities ($10.7M).


Debt to Equity History and Analysis

Debt Level: TETY is debt free.

Reducing Debt: TETY has no debt compared to 5 years ago when its debt to equity ratio was 0.09%.

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

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


Balance Sheet


Next Steps

Dividend

What is Tethys Oil current dividend yield, its reliability and sustainability?

10.74%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TETY's dividend (10.74%) is higher than the bottom 25% of dividend payers in the Swedish market (1.19%).

High Dividend: TETY's dividend (10.74%) is in the top 25% of dividend payers in the Swedish market (4.3%)


Stability and Growth of Payments

Stable Dividend: TETY has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: TETY's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (31.9%), TETY's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TETY's dividends in 3 years are forecast to be well covered by earnings (45.4% payout ratio).


Next Steps

Management

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

4.1yrs

Average management tenure


CEO

Magnus Nordin (64 yo)

16.75yrs

Tenure

Mr. Magnus Nordin founded Tethys Oil AB (publ) in 2001 and has been its Chief Executive Officer and Managing Director since 2001 and 2004 respectively. Mr. Nordin served as a Vice President of Software Dev ...


CEO Compensation Analysis

Compensation vs Market: Magnus's total compensation ($USD0.00) is below average for companies of similar size in the Swedish market ($USD391.05K).

Compensation vs Earnings: Magnus's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Magnus Nordin
Founder16.75yrsno data4.69%
$ 62.5m
Petter Hjertstedt
Acting Chief Financial Officer0.75yrno data0.015%
$ 197.4k
Fredrik Robelius
Chief Technical Officer4.08yrsno data0.037%
$ 497.0k

4.1yrs

Average Tenure

47yo

Average Age

Experienced Management: TETY's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Magnus Nordin
Founder16.75yrsno data4.69%
$ 62.5m
Geoffrey Turbott
Independent Chairman2.42yrsUS$765.00k0.11%
$ 1.4m
Klas Brand
Director0.42yrno datano data
Alexandra Herger
Independent Director3.42yrsUS$400.00kno data
Robert Anderson
Independent Director3.42yrsUS$395.00kno data
Per Seime
Independent Director3.42yrsUS$430.00k0.015%
$ 201.6k

3.4yrs

Average Tenure

64yo

Average Age

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


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: TETY 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

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


Key Information

  • Name: Tethys Oil AB (publ)
  • Ticker: TETY
  • Exchange: OM
  • Founded: 2001
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: kr1.332b
  • Shares outstanding: 33.06m
  • Website: https://www.tethysoil.com

Number of Employees


Location

  • Tethys Oil AB (publ)
  • Hovslagargatan 5B
  • Stockholm
  • Stockholm County
  • 111 48
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TETYOM (OMX Nordic Exchange Stockholm)YesCommon StockSESEKApr 2004
TZB5DB (Deutsche Boerse AG)YesCommon StockDEEURApr 2004
0A1VLSE (London Stock Exchange)YesCommon StockGBSEKApr 2004
TETYSBATS-CHIXE (BATS 'Chi-X Europe')YesCommon StockGBSEKApr 2004

Biography

Tethys Oil AB (publ) focuses on the exploration and production of oil and natural gas properties. It holds 100% interests in the Block 49 covering approximately 15,439 square kilometers; 30% interest in th ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/22 20:38
End of Day Share Price2020/10/22 00:00
Earnings2020/06/30
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.