NasdaqCM:TRCH

Stock Analysis Report

Torchlight Energy Resources

Executive Summary

Torchlight Energy Resources, Inc., through its subsidiaries, engages in the acquisition, exploration, exploitation, and/or development of oil and natural gas properties in the United States.


Snowflake Analysis

Limited growth with worrying balance sheet.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.4%

TRCH

-4.8%

US Oil and Gas

-4.2%

US Market


1 Year Return

-66.0%

TRCH

-22.3%

US Oil and Gas

14.0%

US Market

Return vs Industry: TRCH underperformed the US Oil and Gas industry which returned -18.9% over the past year.

Return vs Market: TRCH underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

TRCHIndustryMarket
7 Day-0.4%-4.8%-4.2%
30 Day-5.5%-10.0%-1.8%
90 Day-20.4%-11.0%2.6%
1 Year-66.0%-66.0%-19.2%-22.3%16.3%14.0%
3 Year-59.1%-59.1%-16.6%-24.5%43.2%34.0%
5 Year23.1%23.1%-23.9%-35.3%65.9%47.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Torchlight Energy Resources undervalued compared to its fair value and its price relative to the market?

2.19x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate TRCH's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate TRCH's fair value to establish if it is undervalued.


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: TRCH is overvalued based on its PB Ratio (2.4x) compared to the US Oil and Gas industry average (0.8x).


Next Steps

Future Growth

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

6.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TRCH is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: TRCH is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: TRCH is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: TRCH's revenue (42.4% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: TRCH's revenue (42.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if TRCH's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

43.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TRCH is currently unprofitable.

Growing Profit Margin: TRCH is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TRCH is unprofitable, but has reduced losses over the past 5 years at a rate of 43.2% per year.

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

Earnings vs Industry: TRCH is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-13.3%).


Return on Equity

High ROE: TRCH has a negative Return on Equity (-26.87%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Torchlight Energy Resources's financial position?


Financial Position Analysis

Short Term Liabilities: TRCH's short term assets ($1.2M) do not cover its short term liabilities ($23.0M).

Long Term Liabilities: TRCH's short term assets ($1.2M) exceed its long term liabilities ($699.5K).


Debt to Equity History and Analysis

Debt Level: TRCH's debt to equity ratio (105.6%) is considered high.

Reducing Debt: TRCH's debt to equity ratio has increased from 48.7% to 105.6% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: TRCH's debt is not covered by short term assets (assets are 0.1x 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: TRCH has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: TRCH has less than a year of cash runway if free cash flow continues to grow at historical rates of 5.9% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage4.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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


Next Steps

Management

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

5.2yrs

Average management tenure


CEO

John Brda (54yo)

5.2yrs

Tenure

US$375,000

Compensation

Mr. John A. Brda has been the Chief Executive Officer of Torchlight Energy Resources, Inc. since December 30, 2014 and its President and Secretary of Torchlight Energy Resources, Inc. since January 24, 201 ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD375.00K) is about average for companies of similar size in the US market ($USD521.92K).

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


Leadership Team

NamePositionTenureCompensationOwnership
John Brda
President5.2yrsUS$375.00k2.98% $1.4m
Roger Wurtele
Chief Financial Officer6.4yrsUS$225.00k0.013% $5.9k
Rich Masterson
Consulting Geologist1.5yrsno datano data

5.2yrs

Average Tenure

Experienced Management: TRCH's management team is seasoned and experienced (5.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Brda
President5.2yrsUS$375.00k2.98% $1.4m
Alexandre Zyngier
Independent Director3.7yrsUS$100.00kno data
Gregory McCabe
Chairman of the Board3.3yrsno data13.19% $6.0m
Michael Graves
Independent Director2.5yrsUS$100.00k0.19% $84.8k
Robert Cook
Independent Director1yrsno datano data

3.3yrs

Average Tenure

54yo

Average Age

Experienced Board: TRCH's board of directors are considered experienced (3.3 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.


Ownership Breakdown

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


Top Shareholders

Company Information

Torchlight Energy Resources, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Torchlight Energy Resources, Inc.
  • Ticker: TRCH
  • Exchange: NasdaqCM
  • Founded: 2010
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: US$45.537m
  • Shares outstanding: 77.84m
  • Website: https://www.torchlightenergy.com

Number of Employees


Location

  • Torchlight Energy Resources, Inc.
  • 5700 West Plano Parkway
  • Suite 3600
  • Plano
  • Texas
  • 75093
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TRCHNasdaqCM (Nasdaq Capital Market)YesNew Common StockUSUSDNov 2010
1TODB (Deutsche Boerse AG)YesNew Common StockDEEURNov 2010

Biography

Torchlight Energy Resources, Inc., through its subsidiaries, engages in the acquisition, exploration, exploitation, and/or development of oil and natural gas properties in the United States. As of December 31, 2018, it had interests in four oil and gas projects, including the Orogrande project in Hudspeth County, Texas; Hazel project in Sterling, Tom Green, and Irion Counties, Texas; Winkler project in Winkler County, Texas; and Hunton wells in partnership with Husky Ventures in central Oklahoma. The company was founded in 2010 and is headquartered in Plano, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 01:45
End of Day Share Price2020/02/24 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.