OTCPK:ARET

Stock Analysis Report

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Executive Summary

Arête Industries, Inc., an independent oil and gas company, engages in the acquisition and development of oil and natural gas reserves in the United States.


Snowflake Analysis

Mediocre balance sheet with weak fundamentals.

Share Price & News

How has Arête Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

ARET

1.5%

US Oil and Gas

1.0%

US Market


1 Year Return

81.8%

ARET

-35.9%

US Oil and Gas

4.1%

US Market

Return vs Industry: ARET exceeded the US Oil and Gas industry which returned -36.3% over the past year.

Return vs Market: ARET exceeded the US Market which returned 3.7% over the past year.


Shareholder returns

ARETIndustryMarket
7 Day0%1.5%1.0%
30 Day0%9.0%5.4%
90 Day0.5%-19.8%-5.7%
1 Year81.8%81.8%-32.9%-35.9%6.5%4.1%
3 Year11.1%11.1%-31.4%-38.6%28.3%19.8%
5 Year-12.4%-12.4%-39.1%-48.8%52.2%35.0%

Price Volatility Vs. Market

How volatile is Arête Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Arête Industries undervalued compared to its fair value and its price relative to the market?


In this section, we usually try to help investors determine whether Arête Industries is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Arête Industries has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of ARET’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the potential returns from the core activities, the size of each contract's opportunity, and the capacity of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through Arête Industries regulatory filings and announcements here.
  • Explore potentially undervalued companies in the Energy industry.

Future Growth

How is Arête Industries forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

51.7%

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 Arête Industries 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

  • Take a look at our analysis of ARET’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on the OTC Markets Website. If you are looking for more of a qualitative research into the company, you can access Arête Industries's filings and announcements here.
  • Explore growth companies in the Energy industry.

Past Performance

How has Arête Industries performed over the past 5 years?

26.2%

Historical Energy annual earnings growth


Earnings and Revenue History

Quality Earnings: Insufficient data to determine if ARET has high quality earnings.

Growing Profit Margin: Insufficient data to determine if ARET's profit margins have improved over the past year.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if ARET's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Insufficient data to compare ARET's past year earnings growth to its 5-year average.

Earnings vs Industry: Insufficient data to determine if ARET's earnings growth over the past year exceeded the Oil and Gas industry average.


Return on Equity

High ROE: ARET has a negative Return on Equity (0%), as it is currently unprofitable.


Next Steps

Financial Health

How is Arête Industries's financial position?


In this section we usually analyse Arête Industries's finance health to determine how well-positioned it is against times of financial distress, in particular, its ability to manage its cash and debt levels. Arête Industries has not provided adequate balance sheet data, its financial health cannot be properly assessed as it.

This is quite a rare situation as 97% of companies covered by Simply Wall St do have financial information.


Next Steps

  • Take a look at our analysis of ARET’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • Investors tend to look at the financial health of a company this size in order to assess the sustainability of its current operations. While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on the OTC Markets Website.
  • Financial health is measured at one point in time, so the latest financial report is the best representation of the company’s current financial status. Check when Arête Industries's financial data was last updated here.
  • Explore more healthy companies in the Energy industry.

Dividend

What is Arête Industries's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate ARET's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ARET's dividends per share have been stable in the past.

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

9.7yrs

Average board tenure


CEO

Nicholas Scheidt (59yo)

7yrs

Tenure

US$4,000

Compensation

Mr. Nicholas L. Scheidt has been the Chairman and President of Apex Financial Services Corp. since 1983. Mr. Scheidt has been the Chief Executive Officer of Arete Industries, Inc. since May 2013 and Truck  ...


Board Members

NamePositionTenureCompensationOwnership
Nicholas Scheidt
Chairman & CEO7yrsUS$4.00kno data
Charles Davis
COO & Director14.33yrsUS$156.00kno data
William Stewart
Assistant Corporate Secretary & Director18.42yrsUS$36.28kno data
Robert McGraw
Director5.08yrsUS$8.00kno data
Randall Arnold
Director4.92yrsUS$8.00kno data

9.7yrs

Average Tenure

63yo

Average Age

Experienced Board: ARET's board of directors are considered experienced (9.7 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

Arête Industries, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Arête Industries, Inc.
  • Ticker: ARET
  • Exchange: OTCPK
  • Founded: 1987
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: US$1.662m
  • Shares outstanding: 16.62m
  • Website: https://www.areteindustries.com

Location

  • Arête Industries, Inc.
  • 7260 Osceola Street
  • Westminster
  • Colorado
  • 80030
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ARETOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1996

Biography

Arête Industries, Inc., an independent oil and gas company, engages in the acquisition and development of oil and natural gas reserves in the United States. It has oil and natural gas properties in Wyoming, Kansas, Colorado, and Montana. The company was incorporated in 1987 and is based in Westminster, Colorado. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/25 01:57
End of Day Share Price2020/05/22 00:00
Earnings2017/09/30
Annual Earnings2016/12/31


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.