Q: Would appreciate an analysis of this Oil company after their earnings this week. The price seems stagnant at the $.77-79 range. I own a 3% position and like the dividend.
Look forward to your view.
Thanx Gary
Look forward to your view.
Thanx Gary
5i Research Answer:
TAL is a small-cap energy name that is now trading at 4.6x times' Forward P/E. In the 4Q, TAL’s revenue grew 28% to $74M, compared to last year of $58M. Over the last few years, production grew significantly. The balance sheet is strong, with net cash of $62M. The company has started returning capital to shareholder in FY2023, and forecasted to return an estimate amount of $66M (combination of dividends and buyback). TAL expects to spend around $135M in Capex in FY2024. Performance going forward will depend on energy prices and production. It is a very cheap energy company that has a strong balance sheet and favourable capital return policies, and we would be comfortable owning it for small cap sector investors.