Geo Energy Resources (SGX:RE4) - Share price, News & Analysis

RE4 fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	5/6
Financial Health	6/6
Dividends	4/6

RE4 Stock Overview

Geo Energy Resources Limited, an investment holding company, engages in the mining, production, and trading of coal.

Rewards

Trading at 92.2% below our estimate of its fair value

Earnings have grown 38.3% per year over the past 5 years

Risk Analysis

Unstable dividend track record

Volatile share price over the past 3 months

Significant insider selling over the past 3 months

Geo Energy Resources Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Geo Energy Resources
Historical stock prices
Current Share Price	S$0.37
52 Week High	S$0.60
52 Week Low	S$0.21
Beta	1.58
1 Month Change	-10.84%
3 Month Change	-20.43%
1 Year Change	64.44%
3 Year Change	141.83%
5 Year Change	48.00%
Change since IPO	-14.94%

Recent News & Updates

Apr 29

Here's Why We Think Geo Energy Resources (SGX:RE4) Is Well Worth Watching

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Shareholder Returns

	RE4	SG Oil and Gas	SG Market
7D	1.4%	-5.2%	0.2%
1Y	64.4%	18.8%	-3.4%

Return vs Industry: RE4 exceeded the SG Oil and Gas industry which returned 18.8% over the past year.

Return vs Market: RE4 exceeded the SG Market which returned -3.4% over the past year.

Price Volatility

Is RE4's price volatile compared to industry and market?
RE4 volatility
RE4 Average Weekly Movement	8.1%
Oil and Gas Industry Average Movement	8.5%
Market Average Movement	4.8%
10% most volatile stocks in SG Market	11.3%
10% least volatile stocks in SG Market	2.2%

Stable Share Price: RE4 is more volatile than 75% of SG stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: RE4's weekly volatility (8%) has been stable over the past year, but is still higher than 75% of SG stocks.

About the Company

Founded	Employees	CEO	Website
2008	197	Kum Hon Tung	https://www.geocoal.com

Geo Energy Resources Limited, an investment holding company, engages in the mining, production, and trading of coal. The company operates through Coal Mining, Coal Trading, and Mining Services segments. The Coal Mining segment engages in the production and sale of coal.

Geo Energy Resources Fundamentals Summary

How do Geo Energy Resources's earnings and revenue compare to its market cap?
RE4 fundamental statistics
Market Cap	US$376.09m
Earnings (TTM)	US$189.89m
Revenue (TTM)	US$679.43m

2.0x

P/E Ratio

0.6x

P/S Ratio

Is RE4 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
RE4 income statement (TTM)
Revenue	US$679.43m
Cost of Revenue	US$401.64m
Gross Profit	US$277.78m
Other Expenses	US$87.89m
Earnings	US$189.89m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.13
Gross Margin	40.89%
Net Profit Margin	27.95%
Debt/Equity Ratio	0.9%

How did RE4 perform over the long term?

See historical performance and comparison

Dividends

24.2%

Current Dividend Yield

58%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is RE4 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for RE4?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for RE4. This is calculated by dividing RE4's market cap by their current preferred multiple.
What is RE4's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$376.09m

RE4 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.2x
Enterprise Value/EBITDA	0.5x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does RE4's PE Ratio compare to its peers?

RE4 PE Ratio vs Peers

The above table shows the PE ratio for RE4 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	7.6x

Forward PE

Price-To-Earnings vs Peers: RE4 is good value based on its Price-To-Earnings Ratio (2x) compared to the peer average (7.6x).

Price to Earnings Ratio vs Industry

How does RE4's PE Ratio compare vs other companies in the Oil and Gas Industry?

Price-To-Earnings vs Industry: RE4 is good value based on its Price-To-Earnings Ratio (2x) compared to the SG Oil and Gas industry average (5.8x)

Price to Earnings Ratio vs Fair Ratio

What is RE4's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

RE4 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	2x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate RE4's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of RE4 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: RE4 (SGD0.37) is trading below our estimate of fair value (SGD4.72)

Significantly Below Fair Value: RE4 is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate RE4's PEG Ratio to determine if it is good value.

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Future Growth

How is Geo Energy Resources forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-3.0%

Forecasted Energy industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Geo Energy Resources has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

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Examine whether Geo Energy Resources is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
Geo Energy Resources competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Geo Energy Resources performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

38.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: RE4 has high quality earnings.

Growing Profit Margin: RE4's current net profit margins (27.9%) are higher than last year (27.6%).

Past Earnings Growth Analysis

Earnings Trend: RE4's earnings have grown significantly by 38.3% per year over the past 5 years.

Accelerating Growth: RE4's earnings growth over the past year (106.1%) exceeds its 5-year average (38.3% per year).

Earnings vs Industry: RE4 earnings growth over the past year (106.1%) underperformed the Oil and Gas industry 159.2%.

Return on Equity

High ROE: RE4's Return on Equity (49.3%) is considered outstanding.

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Financial Health

How is Geo Energy Resources's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: RE4's short term assets ($362.5M) exceed its short term liabilities ($161.1M).

Long Term Liabilities: RE4's short term assets ($362.5M) exceed its long term liabilities ($20.4M).

Debt to Equity History and Analysis

Debt Level: RE4 has more cash than its total debt.

Reducing Debt: RE4's debt to equity ratio has reduced from 51.9% to 0.9% over the past 5 years.

Debt Coverage: RE4's debt is well covered by operating cash flow (7516.3%).

Interest Coverage: RE4's interest payments on its debt are well covered by EBIT (113.9x coverage).

Balance Sheet

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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

24.18%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: RE4's dividend (24.18%) is higher than the bottom 25% of dividend payers in the SG market (2.34%).

High Dividend: RE4's dividend (24.18%) is in the top 25% of dividend payers in the SG market (6.16%)

Stability and Growth of Payments

Stable Dividend: RE4 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: RE4's dividend payments have increased, but the company has only paid a dividend for 5 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (57.6%), RE4's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (34.1%), RE4's dividend payments are well covered by cash flows.

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Management

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

4.4yrs

Average management tenure

CEO

Kum Hon Tung (62 yo)

6.58yrs

Tenure

Mr. Kum Hon Tung serves as a Independent Non-Executive Director at Puncak Niaga Holdings Berhad since August 1, 2017. He has been the Chief Executive Officer of Geo Energy Resources Limited since November...

Leadership Team

Experienced Management: RE4's management team is considered experienced (4.4 years average tenure).

Board Members

Experienced Board: RE4's board of directors are considered experienced (9.8 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: RE4 insiders have only sold shares in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/06/25 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31