Cue Energy Resources Limited (CUE) AI Stock Analysis

• Market Cap: AU$83.89M
• Dividend Yield: 16.67%
• Average Volume (3M): 233.94K
• Price to Earnings (P/E): 8.9
• Beta (1Y): 0.71
• Revenue Growth: -16.65%
• EPS Growth: -46.22%
• Country: AU
• Employees: 14
• Sector: Utilities
• Sector Strength: 79
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.01
• Shares Outstanding: 699,092,650
• 10 Day Avg. Volume: 88,383
• 30 Day Avg. Volume: 233,935
• PEG Ratio: -0.27
• Price to Book (P/B): 1.31
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.06
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 70 Outperform
• Price Target: AU$0.00 ▼(-100.00%Downside)

Cue Energy Resources' overall stock score is driven by strong financial performance and attractive valuation. The company showcases robust profitability and solid cash flow generation, underpinned by minimal debt. While technical analysis indicates a bullish trend, the elevated RSI suggests potential overbought conditions. The stock's high dividend yield and low P/E ratio further enhance its attractiveness.

Cue Energy Resources Limited Business Overview & Revenue Model

Company Description

Cue Energy Resources Limited, an oil and gas exploration and production company, explores for, develops, and produces petroleum. It has petroleum assets in Australia, New Zealand, and Indonesia. The company was founded in 1981 and is headquartered in Melbourne, Australia.

How the Company Makes Money

Cue Energy Resources Limited generates revenue primarily through the sale of oil and gas produced from its exploration and production activities. The company holds interests in a range of production and exploration permits, and profits from the extraction and sale of hydrocarbons from these assets. Revenue streams are bolstered by partnerships and joint ventures with other energy companies, which allow for shared investment, risk, and expertise in developing energy projects. Additionally, Cue Energy may generate income through the sale or farm-out of its exploration assets, as well as through any service agreements tied to its operational capabilities. The company's financial performance is influenced by global oil and gas prices, production volume, and exploration success.

Cue Energy Resources Limited Financial Statement Overview

Summary

Cue Energy Resources demonstrates a stable financial position with efficient operations and strong cash flow generation. Despite a slight decline in revenue, the company maintains robust profitability margins and a strong balance sheet with minimal debt, which positions it well for future growth. The significant free cash flow growth is a positive indicator, suggesting effective management of capital expenditures and cash resources.

Income Statement

Cue Energy Resources shows a mixed performance in its income statement. While the gross profit margin has improved over the years, reaching 60.45% in the most recent year, the net profit margin has slightly decreased to 28.57% from 29.49% the previous year. Revenue has declined by 3.77% year-over-year, which is a concern. However, the EBIT margin is strong at 50.91%, and the EBITDA margin stands at 65.25%, indicating efficient operations and cost control.

Balance Sheet

The balance sheet of Cue Energy Resources is solid with a very low debt-to-equity ratio of 0.0033, reflecting minimal financial leverage. The return on equity is healthy at 21.86%, though slightly decreased from the previous year, indicating effective use of equity to generate profits. The equity ratio is robust at 57.31%, showcasing stability with a significant portion of the company's assets financed by equity.

Cash Flow

Cash flow generation is strong, with free cash flow showing significant growth of 1300% year-over-year. The operating cash flow to net income ratio is high at 1.90, reflecting strong cash generation relative to reported profits. The free cash flow to net income ratio is also impressive at 1.37, indicating that the company is converting a large portion of its profits into cash.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	49.66M	51.60M	44.44M	22.45M	23.92M
Gross Profit	36.34M	23.48M	24.45M	-1.14M	9.46M
EBITDA	32.41M	27.19M	26.97M	-4.34M	11.13M
Net Income	14.19M	15.21M	16.07M	-12.74M	1.31M
Balance Sheet
Total Assets	113.28M	118.00M	106.91M	56.10M	69.16M
Cash, Cash Equivalents and Short-Term Investments	16.26M	15.24M	23.22M	17.64M	31.94M
Total Debt	217.00K	4.08M	7.10M	197.00K	96.00K
Total Liabilities	48.37M	53.81M	58.97M	26.18M	25.59M
Stockholders Equity	64.91M	64.19M	47.94M	29.92M	43.56M
Cash Flow
Free Cash Flow	19.43M	1.39M	11.07M	-11.55M	5.73M
Operating Cash Flow	26.94M	12.65M	17.66M	-8.03M	7.40M
Investing Cash Flow	-7.74M	-17.63M	-19.11M	-3.52M	-1.67M
Financing Cash Flow	-18.05M	-3.08M	6.85M	-84.00K	-85.00K

Cue Energy Resources Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.12
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:CUE, the sentiment is Positive. The current price of 0.12 is below the 20-day moving average (MA) of 0.12, above the 50-day MA of 0.11, and above the 200-day MA of 0.10, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 65.15 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:CUE.

Cue Energy Resources Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CUE	70 Outperform	AU$83.89M	8.89	13.84%	16.67%	-16.65%	-46.22%
Sector *	67 Neutral	$17.02B	17.19	4.47%	3.85%	4.76%	6.06%
MEOAF	―	$50.52M	30.00	3.72%	―	―	―
NZEOF	―	$54.37M	―		10.46%	―	―
PCOGF	―	$56.15M	―	-22.55%	―	―	―
KKO	42 Neutral	AU$103.59M	―	-9.01%	―	―	32.31%
IVZ	31 Underperform	AU$86.59M	―	-3.38%	―	―	53.23%

Cue Energy Resources Limited Corporate Events

Cue Energy Resources Limited Announces Cessation of Securities

Cue Energy Resources Limited announced the cessation of 3,204,237 securities due to the lapse of conditional rights, as the conditions were not met or became incapable of being satisfied. This development may affect the company’s capital structure and could have implications for its stakeholders, reflecting a potential shift in its operational or financial strategies.

Cue Energy Reports Strong Quarter with Increased Production and Shareholder Returns

Cue Energy Resources Limited reported a strong quarter with significant financial and operational achievements. The company returned $7 million to shareholders through dividends, contributing to a total of $28 million over 18 months. Cue achieved a production rate of 1,700 boe/d and increased cash receipts by 17% to $15.3 million. The successful drilling of Mereenie field wells boosted gas production, while ongoing development activities at Mahato PSC and progress towards a Final Investment Decision on the Paus Biru project highlight Cue’s commitment to growth. The company maintains a robust balance sheet with $11.1 million in cash and no debt, positioning itself well for future development and shareholder value.