OTCPK:DMMO.Y

Stock Analysis Report

Executive Summary

Dommo Energia S.A. engages in the exploration and production of oil and natural gas in Brazil.

Rewards

Trading at 92.1% below its fair value

Risk Analysis

Earnings have declined by -61.95% per year over past 5 years

Currently unprofitable and not forecast to become profitable over the next 3 years

Shareholders have been diluted in the past year



Snowflake Analysis

Mediocre balance sheet and slightly overvalued.

Share Price & News

How has Dommo Energia's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DMMO.Y has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-34.6%

DMMO.Y

-1.3%

US Oil and Gas

0.06%

US Market


1 Year Return

-88.5%

DMMO.Y

-19.5%

US Oil and Gas

19.4%

US Market

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

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


Shareholder returns

DMMO.YIndustryMarket
7 Day-34.6%-1.3%0.06%
30 Dayn/a-10.1%1.1%
90 Day-85.1%-7.0%8.9%
1 Year-88.5%-88.5%-16.3%-19.5%21.9%19.4%
3 Year-93.2%-93.3%-13.3%-21.4%48.9%39.3%
5 Yearn/a-22.4%-33.8%71.9%53.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Dommo Energia 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: DMMO.Y ($4.45) is trading below our estimate of fair value ($56.63)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: DMMO.Y has negative assets, so we can't compare its PB Ratio to the US Oil and Gas industry average.


Next Steps

Future Growth

How is Dommo Energia 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 Dommo Energia 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 DMMO.Y’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 Dommo Energia's filings and announcements here.
  • Explore growth companies in the Energy industry.

Past Performance

How has Dommo Energia performed over the past 5 years?

-62.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DMMO.Y is currently unprofitable.

Growing Profit Margin: DMMO.Y is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: DMMO.Y is unprofitable, and losses have increased over the past 5 years at a rate of -62% per year.

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

Earnings vs Industry: DMMO.Y is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-10.9%).


Return on Equity

High ROE: DMMO.Y's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Dommo Energia's financial position?


Financial Position Analysis

Short Term Liabilities: DMMO.Y has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: DMMO.Y has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: DMMO.Y is debt free.

Reducing Debt: DMMO.Y's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if DMMO.Y's debt is covered by short term assets.


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: Whilst unprofitable DMMO.Y has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: DMMO.Y is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 16.7% per year.


Next Steps

Dividend

What is Dommo Energia'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 DMMO.Y's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

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

Growing Dividend: Insufficient data to determine if DMMO.Y'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 DMMO.Y'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?

2.1yrs

Average board tenure


CEO

Paulo Figueiredo 0

2.1yrs

Tenure

0

Mr. Paulo Souza Queiroz Figueiredo serves as Chief Executive and Investor Relations Officer of Óleo e Gás Participações S.A. Mr. Figueiredo serves as Chief Executive Officer at Dommo Energia S.A., since 20 ...


Board Members

NamePositionTenureCompensationOwnership
Marko Jovovic
Chairman1.1yrsno datano data
Daniel Arippol
Member of Fiscal Council2.1yrsno datano data
João de Saint Brisson de Carvalho
Member of Fiscal Council2.1yrsno datano data
Conrado Pacheco
Director2.3yrsno datano data
Cícero Dungas
Member of Fiscal Council2.1yrsno datano data
Nicolas Piacentino
Director1.1yrsno datano data

2.1yrs

Average Tenure

Experienced Board: DMMO.Y's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


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 diluted in the past year, with total shares outstanding growing by 18.2%.


Top Shareholders

Company Information

Dommo Energia S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Dommo Energia S.A.
  • Ticker: DMMO.Y
  • Exchange: OTCPK
  • Founded: 2007
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: US$78.582m
  • Shares outstanding: 27.00m
  • Website: https://www.dommoenergia.com.br

Location

  • Dommo Energia S.A.
  • Rua Lauro Muller, 116
  • 38º andar (salas 3802 a 3804)
  • Rio de Janeiro
  • Rio de Janeiro
  • 22290-160
  • Brazil

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DMMO3BOVESPA (Bolsa de Valores de Sao Paulo)COM NPVBRBRLDec 2014
DMMO.YOTCPK (Pink Sheets LLC)YesSPONSORED ADR NEUSUSDJan 2015

Biography

Dommo Energia S.A. engages in the exploration and production of oil and natural gas in Brazil. The company holds interests in various exploratory blocks, including BM-C-39, BM-C-40, and BM-C-41 located in the Campos basin. It also owns interests in the BS-4 block located in the Santos basin. The company was formerly known as OGX Petróleo e Gás S.A. Dommo Energia S.A. was founded in 2007 and is based in Rio de Janeiro, Brazil. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 02:03
End of Day Share Price2020/02/18 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.