Electromagnetic Geoservices ASA, together with its subsidiaries, provides electromagnetic (EM) surveying services to the offshore oil and gas exploration industry worldwide.
The last earnings update was 39 days ago.
Discounted Cash Flow Calculation for OTCPK:ELRM.F using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
OTCPK:ELRM.F DCF 1st Stage: Next 10 year cash flow forecast
Amount off the current price
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
Electromagnetic Geoservices's share price is below the future cash flow value, but not at a moderate discount (< 20%).
Electromagnetic Geoservices's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
Electromagnetic Geoservices's earnings available for a low price, and how does
this compare to other companies in the same industry?
Electromagnetic Geoservices's earnings are expected to grow significantly at over 20% yearly.
Electromagnetic Geoservices's revenue is expected to grow significantly at over 20% yearly.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Electromagnetic Geoservices's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
0/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
Electromagnetic Geoservices's finances.
The net worth of a company is the difference between its assets and liabilities.
Electromagnetic Geoservices is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Electromagnetic Geoservices's long term commitments exceed its cash and other short term assets.
This treemap shows a more detailed breakdown of
Electromagnetic Geoservices's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
High level of physical assets or inventory.
Debt is not covered by short term assets, assets are 0.9x debt.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Mr. Bjørn Petter Lindhom has been Interim Chief Executive Officer at Electromagnetic Geoservices ASA since December 1, 2018 and has been President of EMGS NSA at Electromagnetic Geoservices ASA since July 2016. Mr. Lindhom has 11 years of oil and gas industry experience. Mr Lindhom started his career at Telenor , joined EMGS in 2003 working as a field geophysicist offshore. In 2005, he was transferred to Houston where he held various technical- and sales positions. He was responsible for the EMGS' activities in Mexico and subsequently all of Latin America where EMGS secured two of its largest contracts to date (PEMEX and Petrobras). In 2011, he was transferred to Rio de Janeiro and in 2012 he returned to Oslo. He has an MSc in physics from University of Oslo (2001).
Insufficient data for Bjørn to compare compensation growth.
Insufficient data for Bjørn to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Management Team Tenure
Average tenure of the
management team in years:
The tenure for the Electromagnetic Geoservices management team is about average.
Chief Financial Officer
Interim CEO & President of EMGS NSA
Chief Legal Counsel
Vice President of Human Resources
Global Exploration Advisor
President of EMGS NSA
Atle Johan Lund
President of Asia & Pacific
Vice President of Imaging & Interpretation Services
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Electromagnetic Geoservices board of directors is about average.
Electromagnetic Geoservices ASA, together with its subsidiaries, provides electromagnetic (EM) surveying services to the offshore oil and gas exploration industry worldwide. It is involved in the planning, acquisition, processing, modelling, interpretation, and integration of EM data. The company uses its patented EM survey method to detect hydrocarbons in offshore reservoirs. Its products and services include integrated interpretation consultancy, magnetotelluric survey, workflow integration, training, and controlled-source electromagnetic services. The company was founded in 2002 and is headquartered in Trondheim, Norway.
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