SGX:RE4

Stock Analysis Report

Geo Energy Resources

Executive Summary

Geo Energy Resources Limited, an investment holding company, engages in mining, producing, and trading coal in Indonesia.


Snowflake Analysis

Reasonable growth potential and slightly overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: RE4's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

6.7%

RE4

5.7%

SG Oil and Gas

-4.9%

SG Market


1 Year Return

-54.5%

RE4

-38.2%

SG Oil and Gas

-29.0%

SG Market

Return vs Industry: RE4 underperformed the SG Oil and Gas industry which returned -35% over the past year.

Return vs Market: RE4 underperformed the SG Market which returned -27.1% over the past year.


Shareholder returns

RE4IndustryMarket
7 Day6.7%5.7%-4.9%
30 Day-39.9%-16.0%-22.2%
90 Day-44.8%-27.3%-27.6%
1 Year-53.5%-54.5%-35.1%-38.2%-26.0%-29.0%
3 Year-73.4%-76.8%-62.9%-66.0%-21.3%-29.7%
5 Year-53.9%-59.8%-52.3%-58.6%-20.3%-33.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Geo Energy Resources 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: RE4 (SGD0.08) is trading below our estimate of fair value (SGD0.54)

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


Price To Earnings Ratio

PE vs Industry: RE4 is unprofitable, so we can't compare its PE Ratio to the Oil and Gas industry average.

PE vs Market: RE4 is unprofitable, so we can't compare its PE Ratio to the SG market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: RE4 is overvalued based on its PB Ratio (0.6x) compared to the SG Oil and Gas industry average (0.6x).


Next Steps

Future Growth

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

106.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RE4 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.8%).

Earnings vs Market: RE4 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: RE4's is expected to become profitable in the next 3 years.

Revenue vs Market: RE4's revenue (6.2% per year) is forecast to grow faster than the SG market (4% per year).

High Growth Revenue: RE4's revenue (6.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RE4's Return on Equity is forecast to be low in 3 years time (13.2%).


Next Steps

Past Performance

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

7.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RE4 is currently unprofitable.

Growing Profit Margin: RE4 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RE4 is unprofitable, but has reduced losses over the past 5 years at a rate of 7.7% per year.

Accelerating Growth: Unable to compare RE4's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: RE4 is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-1%).


Return on Equity

High ROE: RE4 has a negative Return on Equity (-28.33%), as it is currently unprofitable.


Next Steps

Financial Health

How is Geo Energy Resources's financial position?


Financial Position Analysis

Short Term Liabilities: RE4's short term assets ($235.2M) exceed its short term liabilities ($82.7M).

Long Term Liabilities: RE4's short term assets ($235.2M) do not cover its long term liabilities ($285.3M).


Debt to Equity History and Analysis

Debt Level: RE4's debt to equity ratio (208.1%) is considered high.

Reducing Debt: RE4's debt to equity ratio has increased from 67.6% to 208.1% over the past 5 years.


Balance Sheet

Inventory Level: RE4 has a high level of physical assets or inventory.

Debt Coverage by Assets: RE4's debt is not covered by short term assets (assets are 0.8x 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: RE4 has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: RE4 has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

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

6.49%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate RE4's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate RE4'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 RE4's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if RE4's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: RE4 is not paying a notable dividend for the SG market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RE4's dividend in 3 years as they are not forecast to pay a notable one for the SG market.


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Kum Tung (60yo)

4.42s

Tenure

Mr. Kum Hon Tung has been the Chief Executive Officer of Geo Energy Resources Limited since November 1, 2015 and has been Executive Director since December 1, 2015. Mr. Tung is responsible for the overall  ...


Leadership Team

NamePositionTenureCompensationOwnership
Kum Tung
CEO & Executive Director4.42yrsno data0.71% $800.0k
Dhamma Surya
Founder & Executive Director9.92yrsno data4.08% $4.6m
She Huang
Founder & Executive Director9.83yrsno data2.13% $2.4m
Seng Wee
Group Financial Controller0.25yrno datano data
Sheng Tan
Chief Financial Officerno datano datano data
. Karyono
Head of Operations1.83yrsno datano data
Andreas Junanto
Head of Marketing9.08yrsno datano data
See Ng
Group Head of Corporate & Human Resource8.25yrsno datano data
Wei Lee
Company Secretary3.75yrsno datano data
Yuliana Yuliana
Financial Controller3.67yrsno datano data

3.8yrs

Average Tenure

53.5yo

Average Age

Experienced Management: RE4's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kum Tung
CEO & Executive Director4.42yrsno data0.71% $800.0k
Dhamma Surya
Founder & Executive Director9.92yrsno data4.08% $4.6m
She Huang
Founder & Executive Director9.83yrsno data2.13% $2.4m
James Rogers
Independent Director7.33yrsno data0.24% $272.0k
Chun Bin Soh
Lead Independent Director7.58yrsno datano data
Beng-Chye Ong
Independent Director7.58yrsno data0.029% $32.0k
Charles Melati
Founder & Executive Chairman9.92yrsno data20.96% $23.5m
King Seng Lu
Independent Director7.58yrsno data0.021% $24.0k

7.6yrs

Average Tenure

50yo

Average Age

Experienced Board: RE4's board of directors are considered experienced (7.6 years average tenure).


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 been diluted in the past year, with total shares outstanding growing by 4.6%.


Top Shareholders

Company Information

Geo Energy Resources Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Geo Energy Resources Limited
  • Ticker: RE4
  • Exchange: SGX
  • Founded: 2008
  • Industry: Coal and Consumable Fuels
  • Sector: Energy
  • Market Cap: S$111.942m
  • Shares outstanding: 1.40b
  • Website: https://www.geocoal.com

Location

  • Geo Energy Resources Limited
  • Tower 3 No. 16-01
  • Marina Bay Financial Centre
  • Singapore
  • 18982
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RE4SGX (Singapore Exchange)YesOrdinary SharesSGSGDOct 2012
7GEDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2012

Biography

Geo Energy Resources Limited, an investment holding company, engages in mining, producing, and trading coal in Indonesia. The company operates through Coal Mining, Coal Trading, and Mining Services segments. The Coal Mining segment engages in the production and sale of coal. The Coal Trading segment is involved in the purchase and sale of coal from third parties. The Mining Services segment provides mining contracting and project management services for mining activities conducted at third party mines. The company owns and operates PT Bumi Enggang Khatulistiwa mining concession that covers approximately 4,570 hectares of land located in Kutai Barat, East Kalimantan; the PT Sungai Danau Jaya mining concession that covers 235.5 hectares of land located in Tanah Bumbu, South Kalimantan; PT Tanah Bumbu Resources mining concession covering an area of 489.1 hectares of land located in Tanah Bumbu, South Kalimantan; PT Angsana Jaya Energi mining concession that covers 489 hectares of land located in Tanah Bumbu, South Kalimantan; and PT Surya Tambang Tolindo mining concession covering an area of 4,600 hectares in Kutai Barat, East Kalimantan. It also engages in the power generation and general trading activities; and operates as a multimedia supplier, as well as offers business and management consultant services. Geo Energy Resources Limited was founded in 2008 and is based in Singapore. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/03 14:06
End of Day Share Price2020/04/03 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.