Q: I continue to hold this and would like your thoughts. It appears very inexpensive. Is this a case of being out of favour with investors or are there red flags that I am missing? If you have the estimated cash flow per share for 2025 that would helpful.
Thanks folks!
Thanks folks!
5i Research Answer:
BNE has declined 47% over the last year. It is a traditional oil and gas producer which as a whole have seen sentiment decline amongst investors. While this is part of the reason, it's fundamentals have been a contributing factor as well with revenues declining, margins thinning, and EPS declining. It does appear very cheap at 4x trailing earnings and 0.3x book value. For 2025, estimates call for FCF of $45.8M, almost doubling from 2024 estimate levels. We would consider the declining fundamental trends a red flag for investors.