Arrow Exploration Corp., a junior oil and natural gas exploration and development company, engages in the acquisition, exploration, development, and production of oil and gas properties in Colombia and Western Canada.
The last earnings update was 124 days ago.
Discounted Cash Flow Calculation for DB:C1JT 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.
Note: Free cash flow to equity valuations ignore the company's cash or debt.
DB:C1JT 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.
Arrow Exploration's share price is below the future cash flow value, and at a moderate discount (> 20%).
Arrow Exploration's share price is below the future cash flow value, and 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
Arrow Exploration's earnings available for a low price, and how does
this compare to other companies in the same industry?
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 Arrow Exploration 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
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
Expected Oil and Gas industry annual growth in earnings.
Earnings growth vs Low Risk Savings
expected to grow at an
Unable to compare Arrow Exploration's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Arrow Exploration's earnings growth to the Germany market average as no estimate data is available.
Unable to compare Arrow Exploration's revenue growth to the Germany market average as no estimate data is available.
Unable to determine if Arrow Exploration is high growth as no earnings estimate data is available.
Unable to determine if Arrow Exploration 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.
Arrow Exploration'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
Oil and Gas
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
Arrow Exploration's finances.
The net worth of a company is the difference between its assets and liabilities.
Arrow Exploration's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
Arrow Exploration's long term commitments exceed its cash and other short term assets.
This treemap shows a more detailed breakdown of
Arrow Exploration'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 covered by short term assets, assets are 1.8x 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. Felix Betancourt has been Interim Chief Executive Officer of Arrow Exploration Corp. since December 17, 2019. Mr. Betancourt served as a Colombia Country Manager of Canacol Energy Ltd. until September 28, 2016. Mr. Betancourt served as New Business Director at Canacol Energy Ltd. Mr. Betancourt served as Vice President of Finance and Planning for Colombian business unit of Canacol Energy Ltd since November 2010. Mr. Betancourt worked with Canacol since its inception in 2008 in several roles including: General Manager of Colombia, VP of Finance & New Business, and President of Mid-Stream prior to retiring in May of 2018. Mr. Betancourt was employed with Ecopetrol from 1993 – 1998 in the roles of Director of Corporate Planning and Vice President of Finance (CFO). Mr. Betancourt has also been a consultant and advisor to several organizations and companies including: The Ministry of Mines and Energy of Colombia, UPME, Colombia’s National Department of Planning (DNP), The World Bank, National Association of Sugar Cane Growers (ASOCAÑA), BASF, BAYER, Latin American Energy Organization, Inter-American Development Bank (IDB), Colombia’s National Energy Regulatory Commission (CREG), Economic Commission for Latin America and the Caribbean (ECLAC), United Nations Developing Program (UNDP) as well as to the governments and energy authorities of: Panama, Costa Rica, El Salvador, Honduras, Nicaragua, Guatemala, Dominican Republic, Ecuador, Bolivia and Venezuela. Mr. Betancourt holds a degree in Business Administration from the Escuela de Administración y Finanzas (EAFIT) in Medellín, Colombia as well as a Master of Science in Operations Research from Stanford University.
Insufficient data for Felix to compare compensation growth.
Felix's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure
Average tenure of the
management team in years:
The average tenure for the Arrow Exploration management team is less than 2 years, this suggests a new team.
Interim Chief Executive Officer
Chief Financial Officer
Chief Operating Officer
Senior Vice President of Exploration
Board of Directors Tenure
Average tenure of the
board of directors in years:
The average tenure for the Arrow Exploration board of directors is less than 3 years, this suggests a new board.
Board of Directors
Tim de Freitas
Gustavo Dajer Barguil
Who owns this company?
Recent Insider Trading
No 3 month open market individual insider trading information.
Arrow Exploration Corp., a junior oil and natural gas exploration and development company, engages in the acquisition, exploration, development, and production of oil and gas properties in Colombia and Western Canada. Its assets are located in Alberta, Canada; and in the Llanos, Magdalena, and Caguan/Putumayo regions, Colombia. The company is headquartered in Calgary, Canada.
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