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.

Rewards

Trading at 71.9% below its fair value

Earnings are forecast to grow 103.67% per year

Risk Analysis

Debt is not well covered by operating cash flow

Shareholders have been diluted in the past year



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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.7%

RE4

-5.1%

SG Oil and Gas

-1.2%

SG Market


1 Year Return

-25.9%

RE4

-9.7%

SG Oil and Gas

1.0%

SG Market

Return vs Industry: RE4 underperformed the SG Oil and Gas industry which returned -5.4% over the past year.

Return vs Market: RE4 underperformed the SG Market which returned 2.1% over the past year.


Shareholder returns

RE4IndustryMarket
7 Day0.7%-5.1%-1.2%
30 Day0.7%0.8%0.6%
90 Day0.7%5.1%1.9%
1 Year-24.2%-25.9%-5.3%-9.7%5.1%1.0%
3 Year-27.3%-36.5%-34.1%-40.1%14.1%2.0%
5 Year-18.4%-28.8%-16.9%-28.4%10.8%-7.7%

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 (SGD0.14) is trading below our estimate of fair value (SGD0.51)

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 (1x) compared to the SG Oil and Gas industry average (0.8x).


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?

103.7%

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 (7.9% per year) is forecast to grow faster than the SG market (5.6% per year).

High Growth Revenue: RE4's revenue (7.9% 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 (13.5%).


Next Steps

Past Performance

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

26.7%

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 26.7% 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 (-16.12%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Geo Energy Resources's financial position?


Financial Position Analysis

Short Term Liabilities: RE4's short term assets ($278.1M) exceed its short term liabilities ($100.8M).

Long Term Liabilities: RE4's short term assets ($278.1M) do not cover its long term liabilities ($299.0M).


Debt to Equity History and Analysis

Debt Level: RE4's debt to equity ratio (193.2%) is considered high.

Reducing Debt: RE4's debt to equity ratio has increased from 67.6% to 193.2% over the past 5 years.

Debt Coverage: RE4's debt is not well covered by operating cash flow (5.8%).

Interest Coverage: Insufficient data to determine if RE4's interest payments on its debt are well covered by EBIT.


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 1x debt).


Next Steps

Dividend

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

3.36%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%2.5%markettop25%5.5%industryaverage4.9%forecastin3Years3.4%

Current dividend yield vs market & industry

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

What is the CEO of Geo Energy Resources's salary, the management and board of directors tenure and is there insider trading?

3.5yrs

Average management tenure


CEO

Kum Tung (60yo)

4.2yrs

Tenure

0

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  ...


Management Age and Tenure

3.5yrs

Average Tenure

53.5yo

Average Age

Experienced Management: RE4's management team is considered experienced (3.5 years average tenure).


Board Age and Tenure

7.3yrs

Average Tenure

50yo

Average Age

Experienced Board: RE4's board of directors are considered experienced (7.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyS$305,99825 Jun 19
Theare Haw Heah
EntityIndividual
Shares2,000,000
Max PriceS$0.15

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.6%.


Management Team

  • Kum Tung (60yo)

    CEO & Executive Director

    • Tenure: 4.2yrs
  • Dhamma Surya (54yo)

    Founder & Executive Director

    • Tenure: 9.7yrs
  • She Huang (42yo)

    Founder & Executive Director

    • Tenure: 9.6yrs
  • . Karyono (53yo)

    Head of Operations

    • Tenure: 1.6yrs
  • See Ng (41yo)

    Group Head of Corporate & Human Resource

    • Tenure: 8yrs
  • Andreas Junanto (54yo)

    Head of Marketing

    • Tenure: 8.8yrs
  • Wei Lee

    Company Secretary

    • Tenure: 3.5yrs
  • Yuliana Yuliana

    Financial Controller

    • Tenure: 3.4yrs
  • Adeline Wang

    Company Secretary

    • Tenure: 1.1yrs
  • Kenneth Wee

    Group Financial Controller


    Board Members

    • Jim Rogers (77yo)

      Independent Director

      • Tenure: 7.1yrs
    • Kum Tung (60yo)

      CEO & Executive Director

      • Tenure: 4.2yrs
    • Chun Bin Soh (45yo)

      Lead Independent Director

      • Tenure: 7.3yrs
    • Beng-Chye Ong (51yo)

      Independent Director

      • Tenure: 7.3yrs
    • Dhamma Surya (54yo)

      Founder & Executive Director

      • Tenure: 9.7yrs
    • Charles Melati (48yo)

      Founder & Executive Chairman

      • Tenure: 9.7yrs
    • She Huang (42yo)

      Founder & Executive Director

      • Tenure: 9.6yrs
    • King Seng Lu (49yo)

      Independent Director

      • Tenure: 7.3yrs

    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$204.294m
    • 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 Analysis2020/01/24 13:07
    End of Day Share Price2020/01/23 00:00
    Earnings2019/09/30
    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.