AMEX:GBR

Stock Analysis Report

Executive Summary

New Concept Energy, Inc., through its subsidiaries, owns and operates oil and gas wells, and mineral leases primarily in the United States.

Risk Analysis

Earnings have declined by -7.17% per year over past 5 years

Has less than 1 year of cash runway

Shareholders have been substantially diluted in the past year

Makes less than USD$1m in revenue ($609K)

+ 3 more risks


Snowflake Analysis

Adequate balance sheet with weak fundamentals.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

1.8%

GBR

0.4%

US Oil and Gas

1.5%

US Market


1 Year Return

-34.9%

GBR

-18.7%

US Oil and Gas

20.1%

US Market

Return vs Industry: GBR underperformed the US Oil and Gas industry which returned -18.7% over the past year.

Return vs Market: GBR underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

GBRIndustryMarket
7 Day1.8%0.4%1.5%
30 Day-10.9%-9.4%1.4%
90 Day-16.8%-5.9%8.7%
1 Year-34.9%-34.9%-15.5%-18.7%22.7%20.1%
3 Year-31.3%-31.3%-13.0%-21.2%50.1%40.5%
5 Year-20.3%-20.3%-21.9%-33.4%73.1%54.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is New Concept Energy undervalued compared to its fair value and its price relative to the market?

2.41x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

PE vs Market: GBR 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 GBR's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: GBR 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 New Concept Energy forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

16.7%

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 New Concept Energy 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.


Next Steps

Past Performance

How has New Concept Energy performed over the past 5 years?

-7.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GBR is currently unprofitable.

Growing Profit Margin: GBR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GBR is unprofitable, and losses have increased over the past 5 years at a rate of -7.2% per year.

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

Earnings vs Industry: GBR is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-9%).


Return on Equity

High ROE: GBR has a negative Return on Equity (-98.52%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is New Concept Energy's financial position?


Financial Position Analysis

Short Term Liabilities: GBR's short term assets ($4.3M) exceed its short term liabilities ($599.0K).

Long Term Liabilities: GBR's short term assets ($4.3M) exceed its long term liabilities ($3.0M).


Debt to Equity History and Analysis

Debt Level: GBR's debt to equity ratio (9.6%) is considered satisfactory.

Reducing Debt: GBR's debt to equity ratio has reduced from 34.8% to 9.6% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: GBR's debt is covered by short term assets (assets are 18.5x 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: GBR has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: GBR has less than a year of cash runway if free cash flow continues to reduce at historical rates of -50.9% each year


Next Steps

Dividend

What is New Concept Energy's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage4.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if GBR'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 GBR'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?

13.2yrs

Average board tenure


CEO

Gene Bertcher (70yo)

13.2yrs

Tenure

US$56,500

Compensation

Mr. Gene S. Bertcher served as the Chief Financial Officer of Pillar Income Asset Management, Inc. and has been its Executive Vice President since April 30, 2011. He serves as Chief Accounting Officer at P ...


CEO Compensation Analysis

Compensation vs Market: Gene's total compensation ($USD56.50K) is below average for companies of similar size in the US market ($USD521.92K).

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


Board Members

NamePositionTenureCompensationOwnership
Gene Bertcher
Chairman13.2yrsUS$56.50kno data
Dan Locklear
Independent Director 16.2yrsUS$10.50kno data
Victor Lund
Independent Director23.9yrsUS$10.50kno data
Raymond Roberts
Independent Director4.7yrsUS$10.50kno data
Cecelia Maynard
Director1.1yrsUS$10.50kno data

13.2yrs

Average Tenure

70yo

Average Age

Experienced Board: GBR's board of directors are seasoned and experienced ( 13.2 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 been substantially diluted in the past year, with total shares outstanding growing by 111.4%.


Top Shareholders

Company Information

New Concept Energy, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: New Concept Energy, Inc.
  • Ticker: GBR
  • Exchange: AMEX
  • Founded: 1978
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: US$5.850m
  • Shares outstanding: 5.13m
  • Website: https://www.newconceptenergy.com

Number of Employees


Location

  • New Concept Energy, Inc.
  • 1603 Lyndon B Johnson Freeway
  • Suite 300
  • Dallas
  • Texas
  • 75234
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GBRAMEX (NYSE MKT LLC)YesCommon StockUSUSDJan 1991

Biography

New Concept Energy, Inc., through its subsidiaries, owns and operates oil and gas wells, and mineral leases primarily in the United States. Its oil and gas wells, and mineral leases are located in Athens and Meigs counties in Ohio; and Calhoun, Jackson, and Roane counties in West Virginia. As of December 31, 2018, the Company had 153 producing gas wells; 44 non-producing wells and related equipment; and mineral leases covering approximately 20,000 acres. The company was formerly known as CabelTel International Corporation and changed its name to New Concept Energy, Inc. in May 2008. The company was founded in 1978 and is based in Dallas, Texas. New Concept Energy, Inc. is a subsidiary of Realty Advisors, Inc. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 00:34
End of Day Share Price2020/02/14 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.