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Pledge Petroleum

OTCPK:PROP
Snowflake Description

Excellent balance sheet with weak fundamentals.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
PROP
OTCPK
$18M
Market Cap
  1. Home
  2. US
  3. Energy
Company description

Pledge Petroleum Corp. intends to produce renewable diesel fuel and biochar. The last earnings update was 93 days ago. More info.


Add to Portfolio Compare Print
  • Pledge Petroleum has significant price volatility in the past 3 months.
PROP Share Price and Events
7 Day Returns
8.7%
OTCPK:PROP
-0.7%
US Oil and Gas
0.6%
US Market
1 Year Returns
-
OTCPK:PROP
-16.4%
US Oil and Gas
4.1%
US Market
PROP Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Pledge Petroleum (PROP) 8.7% -10.7% -6.3% - - -
US Oil and Gas -0.7% 3.5% -6.9% -16.4% -6.3% -37.7%
US Market 0.6% 3.8% 2.8% 4.1% 37.3% 42.5%
1 Year Return vs Industry and Market
  • No trading data on PROP.
  • No trading data on PROP.
Price Volatility
Industry
5yr Volatility vs Market

Value

 Is Pledge Petroleum undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
  • It is not possible to calculate the future cash flow value for Pledge Petroleum. This is due to cash flow or dividend data being unavailable. The share price is $0.0375.
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 Pledge Petroleum's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Pledge Petroleum's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
OTCPK:PROP PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD Not available
OTCPK:PROP Share Price ** OTCPK (2019-07-15) in USD $0.04
United States of America Oil and Gas Industry PE Ratio Median Figure of 101 Publicly-Listed Oil and Gas Companies 12.93x
United States of America Market PE Ratio Median Figure of 3,082 Publicly-Listed Companies 17.98x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Pledge Petroleum.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to compare the PE ratio to the industry average as no data exists.
  • Unable to calculate PE ratio for Pledge Petroleum, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does Pledge Petroleum's expected growth come at a high price?
Raw Data
OTCPK:PROP PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 0x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
Not available
United States of America Oil and Gas Industry PEG Ratio Median Figure of 79 Publicly-Listed Oil and Gas Companies 0.41x
United States of America Market PEG Ratio Median Figure of 2,122 Publicly-Listed Companies 1.59x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Pledge Petroleum, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Pledge Petroleum's assets?
Raw Data
OTCPK:PROP PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD Not available
OTCPK:PROP Share Price * OTCPK (2019-07-15) in USD $0.04
United States of America Oil and Gas Industry PB Ratio Median Figure of 196 Publicly-Listed Oil and Gas Companies 1.06x
United States of America Market PB Ratio Median Figure of 5,241 Publicly-Listed Companies 1.81x
OTCPK:PROP PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= OTCPK:PROP Share Price ÷ Book Value per Share (both in USD)

= 0.04 ÷ 0.00

267.86x

* Primary Listing of Pledge Petroleum.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Pledge Petroleum is overvalued based on assets compared to the US Oil and Gas industry average.
X
Value checks
We assess Pledge Petroleum's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Oil and Gas industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Oil and Gas industry average (and greater than 0)? (1 check)
  5. Pledge Petroleum has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Pledge Petroleum expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

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 Pledge Petroleum 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 Simply Wall St do have past financial data. You can see them here.

Show me the analysis anyway

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
11.9%
Expected Oil and Gas industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Pledge Petroleum expected to grow at an attractive rate?
  • Unable to compare Pledge Petroleum's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare Pledge Petroleum's earnings growth to the United States of America market average as no estimate data is available.
  • Unable to compare Pledge Petroleum's revenue growth to the United States of America market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
OTCPK:PROP Future Growth Rates Data Sources
Data Point Source Value (per year)
United States of America Oil and Gas Industry Earnings Growth Rate Market Cap Weighted Average 11.9%
United States of America Oil and Gas Industry Revenue Growth Rate Market Cap Weighted Average 4.4%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.1%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
OTCPK:PROP Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
OTCPK:PROP Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 0 0

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if Pledge Petroleum is high growth as no earnings estimate data is available.
  • Unable to determine if Pledge Petroleum is high growth as no revenue estimate data is available.
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.
Raw Data
OTCPK:PROP Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Pledge Petroleum Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OTCPK:PROP Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Pledge Petroleum will efficiently use shareholders’ funds in the future without estimates of Return on Equity.

Next steps:

  1. Examine Pledge Petroleum's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
  2. Pledge Petroleum's future outlook can be gauged by looking at industry trends and market size, and determining how well-positioned the company is compared to its competitors. Take a look at other high-growth Energy companies here
  3. 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 Pledge Petroleum's filings and announcements here.
  4. Use fundamentals to screen for another stock to analyse from our database of over 75,000 companies worldwide
X
Future performance checks
We assess Pledge Petroleum's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Pledge Petroleum has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Pledge Petroleum performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Pledge Petroleum's growth in the last year to its industry (Oil and Gas).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Pledge Petroleum does not make a profit and there is insufficient past data to establish if their 5 year on year earnings growth rate was positive.
  • Unable to compare Pledge Petroleum's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Pledge Petroleum's 1-year growth to the US Oil and Gas industry average as it is not currently profitable.
Earnings and Revenue History
Pledge Petroleum's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Pledge Petroleum Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OTCPK:PROP Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 -0.10 0.10

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Pledge Petroleum has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Pledge Petroleum has efficiently used its assets last year compared to the US Oil and Gas industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Pledge Petroleum improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Pledge Petroleum's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Oil and Gas industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. 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.
Pledge Petroleum 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.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Pledge Petroleum's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Pledge Petroleum's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Pledge Petroleum is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Pledge Petroleum has no long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Pledge Petroleum'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 checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 33.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, 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.
Raw Data

All data from Pledge Petroleum Company Filings, last reported 6 months ago.

OTCPK:PROP Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 0.07 0.01 0.02
  • Pledge Petroleum's level of debt (7.4%) compared to net worth is satisfactory (less than 40%).
  • Unable to establish if Pledge Petroleum's debt level has increased without past 5-year debt data.
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.

  • Whilst loss making Pledge Petroleum has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
  • Whilst loss making Pledge Petroleum has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by % per year.
X
Financial health checks
We assess Pledge Petroleum's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Pledge Petroleum has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Pledge Petroleum's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Pledge Petroleum dividends.
If you bought $2,000 of Pledge Petroleum shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Pledge Petroleum's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Pledge Petroleum's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
OTCPK:PROP Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
United States of America Oil and Gas Industry Average Dividend Yield Market Cap Weighted Average of 67 Stocks 3.7%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2017 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Pledge Petroleum has not reported any payouts.
  • Unable to verify if Pledge Petroleum's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Pledge Petroleum's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Pledge Petroleum has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Pledge Petroleum's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Pledge Petroleum afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Pledge Petroleum has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Pledge Petroleum's salary, the management and board of directors tenure and is there insider trading?

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.
CEO
Chris Headrick
AGE 55
TENURE AS CEO 0.6 years
CEO Bio

Mr. Christopher L. Headrick, also known as Chris, founded Americas Energy Company (formerly Trend Technology Corporation) in May 2008 and served as its Chief Executive Officer and President until January 2012 and also served as its Chief Financial Officer. He serves as Director at Americas Energy Company. Mr. Headrick has been serving as the Chief Executive Officer of Wyoming Energy Corp., a company engaged in the oil and gas business, since May 2012. Mr. Headrick is also the principal of Christopher Headrick LLC, an energy consulting firm he founded in June 2015. He also has served since February 2017 as the Chief Executive Officer of H2 Energy Group, a company engaged in the hydrogen energy production business. He is a general contractor and real estate developer operating primarily in the southeastern United States. Since 1984, he has been involved in all aspects of real estate development, construction and marketing of privately developed properties across the United States. He has been a Director of Pledge Petroleum Corp. since May 2, 2018 and serves as its Chief Executive Officer since December 20, 2018. He studied BA in Political Science at University of Tennessee from 1980 to 1984.

CEO Compensation
  • Insufficient data for Chris to compare compensation growth.
  • Insufficient data for Chris to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Management Team

Chris Headrick

TITLE
CEO & Director
AGE
55
TENURE
0.6 yrs

John Zotos

TITLE
Interim CFO
AGE
62
TENURE
1.2 yrs
Board of Directors Tenure

Average tenure and age of the Pledge Petroleum board of directors in years:

1.3
Average Tenure
62
Average Age
  • The average tenure for the Pledge Petroleum board of directors is less than 3 years, this suggests a new board.
Board of Directors

John Huemoeller

TITLE
Chairman
AGE
63
TENURE
1.3 yrs

Chris Headrick

TITLE
CEO & Director
AGE
55
TENURE
1.2 yrs

John Zotos

TITLE
Interim CFO
AGE
62
TENURE
6.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Pledge Petroleum's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Pledge Petroleum has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Pledge Petroleum Corp. intends to produce renewable diesel fuel and biochar. The company is based in Maryville, Tennessee.

Details
Name: Pledge Petroleum Corp.
PROP
Exchange: OTCPK
Founded:
$18,159,617
484,256,464
Website: http://www.pledgepcorp.com
Address: Pledge Petroleum Corp.
576 South Foothills Plaza Drive,
Suite 163,
Maryville,
Tennessee, 37801,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
OTCPK PROP Common Stock Pink Sheets LLC US USD 20. Dec 2018
Number of employees
Current staff
Staff numbers
1
Pledge Petroleum employees.
Industry
Oil and Gas Refining and Marketing
Energy
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/18 01:26
End of day share price update: 2019/07/15 00:00
Last earnings filing: 2019/04/16
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.