Company Overview
Indonesia Energy Corporation Limited operates as an oil and gas exploration and production company primarily focused on the Indonesian market, with its principal assets including the Kruh Block located in the Pali area of South Sumatra. The company functions within the broader Energy sector and specifically the Oil & Gas E&P industry, engaging in the upstream activities necessary to extract hydrocarbon resources from the ground. This entity maintains a relatively lean organizational structure with a workforce comprising 31 employees, reflecting a capital-intensive business model that relies heavily on asset ownership rather than a large administrative overhead. With a market capitalization of $60.70M and reported annual revenue of $2.29M, the company's financial scale indicates a small-cap status where valuation is often driven by asset book value and resource potential rather than earnings multiples. The significant disparity between its modest revenue and substantial market cap suggests that the market is pricing the company based on underlying asset reserves or future production expectations rather than current profitability.
Financial Health
The company reported revenue of $2.29M over the trailing twelve months, yet it recorded a net income of -$7,069,169, revealing a cost structure where operating expenses significantly exceed gross revenue. This substantial gap between the $2.29M revenue and the negative net income highlights severe cost pressures, potentially including exploration expenses, drilling costs, or asset impairment charges that are common in the upstream oil and gas sector. Free cash flow stands at -$1,592,103, indicating that the company is currently consuming cash rather than generating it, which limits its financial flexibility to fund operations without external capital injections. Despite the negative income, the balance sheet shows a cash position of $8.57M against total debt of $711,702, suggesting that while the company is leveraged, it currently holds sufficient liquid assets to cover its immediate debt obligations. The debt-to-equity ratio is recorded at 3.25, which classifies the capital structure as highly leveraged and sensitive to fluctuations in interest rates or commodity prices. Liquidity is supported by a current ratio of 6.36, a metric that indicates a robust ability to meet short-term liabilities with its current assets, providing a buffer against immediate cash flow shortages. Furthermore, the Return on Equity is -40.4% and the Return on Assets is -18.9%, metrics that reveal management has not yet generated positive returns on the capital invested or the assets held, signaling a period of operational loss rather than efficient capital deployment.
Valuation Assessment
The valuation metrics present a complex picture, with a P/E Ratio (TTM) listed as N/A due to the negative earnings, while the Forward P/E is reported as -5.87. The negative forward P/E implies that the market is not expecting an immediate turnaround in earnings to positive territory in the near future, or that future earnings are projected to remain negative. The Price to Book ratio stands at 2.77, indicating that the company is trading at a premium of 177% above its book value, which suggests the market assigns significant value to the company's underlying oil and gas assets despite current losses. The Price to Sales ratio is 26.46, an exceptionally high multiple for a company with negative earnings, suggesting the market is pricing in substantial future growth or asset value that is not reflected in current financial statements. The EV/EBITDA stands at -9.16, reinforcing the view that the company is currently an unprofitable entity where valuation is detached from traditional earnings-based metrics. The stock's price has ranged between a 52-week low of $2.10 and a 52-week high of $8.50, meaning the current trading price exists within a wide volatility band that reflects the high risk associated with the exploration sector. The Beta is recorded as -0.96, a negative coefficient that indicates the stock price tends to move in the opposite direction of the broader market, displaying an inverse correlation that is unusual for equities and suggests specific idiosyncratic risks or hedging positions.
Growth & Income
Revenue growth (YoY) is reported at -25.9%, while Earnings Growth (YoY) is listed as N/A due to the lack of positive earnings history. The decline in revenue indicates a contraction in sales or production volume, and since the company is already unprofitable, the absence of earnings growth data precludes any comparison of earnings expansion relative to revenue contraction. The company does not pay dividends, as evidenced by a Dividend Yield of N/A and a Payout Ratio of 0.0%, meaning the company retains all its cash, including the free cash flow it generates, to fund operations and potentially finance exploration activities. Consequently, the company reinvests its earnings—or rather, its remaining capital—into growth initiatives rather than distributing income to shareholders, a strategy typical of small-cap exploration firms seeking to expand reserves. The overall growth and income profile is characterized by negative revenue momentum and a complete absence of dividend income, positioning the investment strictly as a speculative play on future asset discovery or operational efficiency improvements.