Latest news with #PeninsulaEnergy
Business Insider
01-05-2025
- Business
- Business Insider
Shaw and Partners Sticks to Their Hold Rating for Peninsula Energy (PENMF)
Shaw and Partners analyst Andrew Hines maintained a Hold rating on Peninsula Energy (PENMF – Research Report) today and set a price target of A$1.00. Protect Your Portfolio Against Market Uncertainty Discover companies with rock-solid fundamentals in TipRanks' Smart Value Newsletter. Receive undervalued stocks, resilient to market uncertainty, delivered straight to your inbox. According to TipRanks, Hines is an analyst with an average return of -11.3% and a 31.82% success rate. The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Peninsula Energy with a $1.02 average price target. PENMF market cap is currently $63.62M and has a P/E ratio of -5.37.
Yahoo
14-04-2025
- Business
- Yahoo
Here's Why We're A Bit Worried About Peninsula Energy's (ASX:PEN) Cash Burn Situation
Even when a business is losing money, it's possible for shareholders to make money if they buy a good business at the right price. For example, although made losses for many years after listing, if you had bought and held the shares since 1999, you would have made a fortune. Having said that, unprofitable companies are risky because they could potentially burn through all their cash and become distressed. So, the natural question for Peninsula Energy (ASX:PEN) shareholders is whether they should be concerned by its rate of cash burn. For the purposes of this article, cash burn is the annual rate at which an unprofitable company spends cash to fund its growth; its negative free cash flow. The first step is to compare its cash burn with its cash reserves, to give us its 'cash runway'. Our free stock report includes 4 warning signs investors should be aware of before investing in Peninsula Energy. Read for free now. A company's cash runway is calculated by dividing its cash hoard by its cash burn. When Peninsula Energy last reported its December 2024 balance sheet in March 2025, it had zero debt and cash worth US$45m. Looking at the last year, the company burnt through US$79m. That means it had a cash runway of around 7 months as of December 2024. Importantly, analysts think that Peninsula Energy will reach cashflow breakeven in around 20 months. That means unless the company reduces its cash burn quickly, it may well look to raise more cash. Depicted below, you can see how its cash holdings have changed over time. View our latest analysis for Peninsula Energy Peninsula Energy didn't record any revenue over the last year, indicating that it's an early stage company still developing its business. Nonetheless, we can still examine its cash burn trajectory as part of our assessment of its cash burn situation. Its cash burn positively exploded in the last year, up 1,012%. Given that sharp increase in spending, the company's cash runway will shrink rapidly as it depletes its cash reserves. Clearly, however, the crucial factor is whether the company will grow its business going forward. For that reason, it makes a lot of sense to take a look at our analyst forecasts for the company. Since its cash burn is moving in the wrong direction, Peninsula Energy shareholders may wish to think ahead to when the company may need to raise more cash. Companies can raise capital through either debt or equity. Commonly, a business will sell new shares in itself to raise cash and drive growth. By comparing a company's annual cash burn to its total market capitalisation, we can estimate roughly how many shares it would have to issue in order to run the company for another year (at the same burn rate). Peninsula Energy has a market capitalisation of US$67m and burnt through US$79m last year, which is 118% of the company's market value. Given just how high that expenditure is, relative to the company's market value, we think there's an elevated risk of funding distress, and we would be very nervous about holding the stock. Peninsula Energy is not in a great position when it comes to its cash burn situation. While its cash runway wasn't too bad, its cash burn relative to its market cap does leave us rather nervous. It's clearly very positive to see that analysts are forecasting the company will break even fairly soon. Once we consider the metrics mentioned in this article together, we're left with very little confidence in the company's ability to manage its cash burn, and we think it will probably need more money. Separately, we looked at different risks affecting the company and spotted 4 warning signs for Peninsula Energy (of which 3 make us uncomfortable!) you should know about. Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies, and this list of stocks growth stocks (according to analyst forecasts) Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
04-03-2025
- Business
- Yahoo
Peninsula Energy (ASX:PEN investor three-year losses grow to 78% as the stock sheds AU$25m this past week
It's not possible to invest over long periods without making some bad investments. But really bad investments should be rare. So take a moment to sympathize with the long term shareholders of Peninsula Energy Limited (ASX:PEN), who have seen the share price tank a massive 79% over a three year period. That'd be enough to cause even the strongest minds some disquiet. And the ride hasn't got any smoother in recent times over the last year, with the price 63% lower in that time. Furthermore, it's down 31% in about a quarter. That's not much fun for holders. Since Peninsula Energy has shed AU$25m from its value in the past 7 days, let's see if the longer term decline has been driven by the business' economics. See our latest analysis for Peninsula Energy Because Peninsula Energy made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. When a company doesn't make profits, we'd generally hope to see good revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one would hope for good top-line growth to make up for the lack of earnings. In the last three years, Peninsula Energy saw its revenue grow by 28% per year, compound. That is faster than most pre-profit companies. So why has the share priced crashed 21% per year, in the same time? You'd want to take a close look at the balance sheet, as well as the losses. Sometimes fast revenue growth doesn't lead to profits. Unless the balance sheet is strong, the company might have to raise capital. You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image). We consider it positive that insiders have made significant purchases in the last year. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. This free report showing analyst forecasts should help you form a view on Peninsula Energy While the broader market gained around 9.0% in the last year, Peninsula Energy shareholders lost 62%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 10% per year over five years. We realise that Baron Rothschild has said investors should "buy when there is blood on the streets", but we caution that investors should first be sure they are buying a high quality business. It's always interesting to track share price performance over the longer term. But to understand Peninsula Energy better, we need to consider many other factors. For instance, we've identified 3 warning signs for Peninsula Energy (1 is potentially serious) that you should be aware of. There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Australian exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
