PREMIER OIL PLC

Premier Oil Plc



Premier Oil Plc.

Ratio Analysis Industry and Sector Comparison

VALUATION RATIOS

 

Company

Industry

Sector

P/E Ratio (TTM)

11.75

27.28

10.27

P/E High - Last 5 Yrs.

29.50

74.91

34.39

P/E Low - Last 5 Yrs.

11.67

32.67

10.39

Beta

1.47

1.42

1.33

Price to Sales

2.06

2.61

1.70

Price to Book

1.49

0.84

4.82

Price to Tangible Book (MRQ)

2.76

1.08

2.08

Price to Cash Flow (TTM)

4.81

5.64

3.97

Price to Free Cash Flow (TTM)

--

11.41

25.03

% Owned Institutions

--

--

--

DIVIDENDS

Dividend Yield

1.38

1.29

5.17

Dividend Yield - 5 Year Avg.

0.19

1.41

2.35

Dividend 5 Year Growth Rate

--

0.33

3.43

Payout Ratio(TTM)

10.50

51.37

53.06

GROWTH RATES

Sales (MRQ) vs Qtr. 1 Yr. Ago

37.10

131.70

13.63

Sales (TTM) vs TTM 1 Yr. Ago

70.38

60.26

8.72

Sales - 5 Yr. Growth Rate

19.49

5.28

18.36

EPS (MRQ) vs Qtr. 1 Yr. Ago

39.90

644.10

27.09

EPS (TTM) vs TTM 1 Yr. Ago

47.19

--

--

EPS - 5 Yr. Growth Rate

37.38

6.52

35.36

Capital Spending - 5 Yr. Growth Rate

31.81

2.97

24.68

FINANCIAL STRENGTH

Quick Ratio (MRQ)

0.94

1.64

1.72

Current Ratio (MRQ)

0.99

1.74

1.91

LT Debt to Equity (MRQ)

65.73

72.23

408.40

Total Debt to Equity (MRQ)

65.73

91.88

480.53

Interest Coverage (TTM)

--

21.70

78.45

PROFITABILITY RATIOS

Gross Margin (TTM)

36.10

43.51

32.67

Gross Margin - 5 Yr. Avg.

35.35

41.24

39.76

EBITD Margin (TTM)

58.78

--

--

EBITD - 5 Yr. Avg

54.32

33.71

31.60

Operating Margin (TTM)

32.31

23.56

18.58

Operating Margin - 5 Yr. Avg.

27.83

21.13

23.05

Pre-Tax Margin (TTM)

25.55

16.35

13.47

Pre-Tax Margin - 5 Yr. Avg.

22.45

13.46

20.55

Net Profit Margin (TTM)

17.89

1.57

6.92

Net Profit Margin - 5 Yr. Avg.

17.88

0.75

12.10

Effective Tax Rate (TTM)

29.98

61.55

27.71

Effective Tax Rate - 5 Yr. Avg.

20.36

34.75

39.99

EFFICIENCY

Revenue/Employee (TTM)

1,272,372

3,842,957,723

3,898,723,259

Net Income/Employee (TTM)

227,612

203,760,544

312,314,064

Receivable Turnover (TTM)

3.80

6.76

9.11

Inventory Turnover (TTM)

28.90

11.47

16.39

Asset Turnover (TTM)

0.32

0.35

0.77

MANAGEMENT EFFECTIVENESS

Return on Assets (TTM)

5.77

2.81

8.94

Return on Assets - 5 Yr. Avg.

5.43

4.23

14.04

Return on Investment (TTM)

7.05

3.63

11.48

Return on Investment - 5 Yr. Avg.

6.69

5.49

18.60

Return on Equity (TTM)

15.38

4.39

-3.92

Return on Equity - 5 Yr. Avg.

14.48

7.68

23.55

(Source: Reuters, 2013)

The company has been performing exceptionally well throughout the tenure as compared to industry and sectors. In profitability it has shown exceptionally by outperforming the industry benchmarks showing a net margin of 17%. The gross margin has been low but operating and net margin have been above the industry levels. Management has been effective in terms of generating returns against the assets and investments of the company. ROE and ROA have been above the industry standards and ROE has outperformed the industry benchmarks by generating a return of 15%. Revenue generation per employee has been below the industry levels which prompt the company to invest more in efficiency measures in order to increase the revenue per employee. Inventory turnover is highest which shows that there are lower inventory costs and the demand for the services have been increasing. Debt has been declined but still it is not a good sign because the company's debt are at extremely high levels are increasing year by year. Highly leveraged companies are exposed to financial risks which affects the overall performance of the company and in return increases the chances of default. Overall performance of the company is excellent, but it should be considering on its soaring debt levels which are highly risky.

Ratios - based on IFRS

31-Dec-12

31-Dec-11

Continuing Operations

 

 

PE Ratio - Adjusted

10.6

15.0

PEG - Adjusted

0.3

n/a

Earnings per Share Growth - Adjusted

31%

-67%

Dividend Cover

5.89

n/a

Revenue per Share

267.61¢

176.89¢

Pre-Tax Profit per Share

68.37¢

30.27¢

Operating Margin

32.31%

21.24%

Return on Capital Employed

14.39%

7.41%

Continuing & Discontinued Operations

 

 

PE Ratio - Adjusted

10.6

15.0

PEG - Adjusted

0.3

n/a

Earnings per Share Growth - Adjusted

31%

-67%

Dividend Cover

5.89

n/a

 

 

 

Dividend Yield

1.6%

0.0%

Dividend per Share Growth

n/a

n/a

Operating Cash Flow per Share

153.53¢

103.96¢

Cash Incr/Decr per Share

(23.12¢)

2.01¢

Net Asset Value per Share (exc. Intangibles)

200.36¢

215.68¢

Net Gearing

56.14%

54.97%

Source: (MorningStar, 2013)

Financial Analysis

The financial performance of the company has been improved as compared to the year 2011. The net margins and operating margin has shown significant increase from 21% in 2011 to 32% in ...