---
title: "Chariot (CHAR) Fundamentals Report · Feb 8, 2026"
author: "DeepValues Research"
publisher: "DeepValues Research (DeepValues / LuLu Ventures LLC)"
type: "Deep Value Intelligence component report"
ticker: "CHAR"
company: "Chariot"
date: "2026-02-08"
language: "en"
section: "Company Research"
canonical_url: "https://research.deepvalues.ai/company/char/2026-02-08-fundamentals-report/"
markdown_url: "https://research.deepvalues.ai/company/char/2026-02-08-fundamentals-report/index.md"
license: "CC BY 4.0"
license_url: "https://creativecommons.org/licenses/by/4.0/"
cite_as: "DeepValues Research, Chariot (CHAR) Fundamentals Report · Feb 8, 2026, https://research.deepvalues.ai/company/char/2026-02-08-fundamentals-report/"
publisher_url: "https://deepvalues.ai"
app: "https://deepvalues.ai"
api: "https://app.deepvalues.ai/developers"
data_note: "Reports are dated snapshots. Current data via the DeepValues API: https://app.deepvalues.ai/developers"
disclaimer: "Educational research, not investment advice."
---
This comprehensive 10-year historical analysis evaluates **Chariot Limited (Ticker: CHAR.L)**, an AIM-listed energy company transitioning from an explorer to a gas producer and renewable energy provider. This analysis follows Warren Buffett’s value investing methodology, though it is important to note that junior energy companies often represent the opposite of a typical Buffett "Value" play due to their lack of predictable earnings.

### **I. Required 10-Year Historical Financial Metrics**

Data is presented in **USD Millions** (except share price and EPS). Chariot was pre-revenue for most of the last decade, with small revenues appearing in 2023-2025 through its "Transitional Power" division.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 (E) |
| :--- | :---: | :---: | :---: | :---: | :---: | :---: | :---: | :---: | :---: | :---: |
| **Market Price (GBp)** | 8.25 | 13.50 | 3.10 | 2.40 | 11.20 | 7.50 | 13.10 | 9.40 | 7.80 | 12.50 |
| **Market Cap ($M)** | 45.2 | 65.1 | 18.5 | 14.8 | 38.2 | 78.5 | 125.0 | 110.2 | 98.5 | 155.0 |
| **P/E Ratio** | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| **P/B Ratio** | 0.75 | 1.45 | 0.48 | 0.51 | 3.05 | 1.48 | 1.78 | 1.08 | 0.76 | 1.05 |
| **Revenue ($M)** | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.4 | 2.1 | 4.5 |
| **Gross Profit ($M)** | (0.1) | (0.1) | (0.1) | (0.2) | (0.2) | (0.2) | (0.2) | (0.1) | 0.4 | 1.1 |
| **Net Income ($M)** | (14.5) | (18.1) | (15.2) | (4.5) | (7.1) | (10.2) | (14.9) | (16.2) | (18.5) | (22.0) |
| **EPS ($)** | (0.05) | (0.06) | (0.05) | (0.01) | (0.02) | (0.02) | (0.02) | (0.01) | (0.01) | (0.01) |
| **ROE (%)** | -32% | -56% | -70% | -25% | -56% | -19% | -19% | -14% | -13% | -11% |
| **ROIC (%)** | -30% | -50% | -60% | -20% | -45% | -15% | -15% | -10% | -10% | -9% |
| **Total Assets ($M)** | 45.2 | 32.1 | 21.4 | 18.2 | 12.5 | 54.1 | 78.4 | 112.5 | 145.2 | 195.0 |
| **Total Debt ($M)** | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 5.0 | 15.0 |
| **Shareholder Equity** | 42.1 | 30.5 | 20.1 | 16.8 | 10.5 | 52.2 | 75.1 | 108.4 | 138.2 | 185.0 |
| **Free Cash Flow ($M)**| (8.2) | (10.5) | (9.1) | (5.2) | (4.8) | (6.5) | (11.2) | (14.5) | (12.1) | (18.0) |
| **Div. per Share** | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |

---

### **II. Warren Buffett Value Investing Analysis**

**1. Economic Moat: Narrow / Asset-Based**
Chariot does not possess a traditional consumer moat (brand) or network effect. However, it holds **geographic exclusivity** over the Lixus Offshore license in Morocco, which contains the Anchois gas discovery. Its proximity to the Maghreb-Europe Gas Pipeline (GME) acts as a structural cost advantage for delivering gas to European and Moroccan markets.

**2. Financial Strength: Good (for an explorer)**
A core "Buffett" red flag is the lack of cash flow, but management has been disciplined.
- **Debt:** Historically debt-free, recently adding minor project-level debt.
- **Capital Allocation:** Management successfully pivoted from "wildcat" exploration (which led to the 2018 dry hole in Namibia) to a "Transitional Power" and "Gas-to-Industry" model, reducing total risk.

**3. Predictable Earnings: Very Low**
This is the antithesis of a Buffett stock. Earnings have been negative for 10 consecutive years. Predictability will only emerge post-2027 once "First Gas" is achieved at Anchois.

**4. Management Performance: Mixed**
Management has been effective at **farm-outs** (partnering with Energean), which minimizes shareholder dilution. However, the ROE has been consistently negative as the company is in a pure investment phase.

**5. Value Assessment**
Current P/B ratio is ~1.05x, which is roughly in line with its 10-year average of 1.25x. The stock is currently valued based on its **Net Asset Value (NAV)** of gas in the ground rather than earnings.

---

### **III. Discounted Cash Flow (DCF) Analysis**

Since Chariot has negative Free Cash Flow (FCF), a standard DCF based on historical growth results in a **fair value of $0**, as the company is currently a "cash burner." To provide a meaningful range, we analyze the **Cash Burn/Growth Rate** required to reach production.

*Parameters:*
- **Base FCF (2025 Est):** -$18.0M
- **Discount Rate:** 10%
- **Terminal Growth Rate:** 2.5%

| Scenario | FCF Growth Rate (10-yr Hist) | Calculation | Fair Value (Per Share) |
| :--- | :--- | :--- | :--- |
| **Conservative** | -120% (Max Burn Incr.) | FCF remains deeply negative; continuous dilution. | **£0.00** |
| **Average** | -12% (Avg Burn Incr.) | Slow path to production; high capital needs. | **£0.02** |
| **Optimistic** | +45% (Rev Growth Proxy) | Pivot to positive FCF by 2027 (First Gas). | **£0.18 (18p)** |

*Note: In the Optimistic scenario, we assume the 45% growth in the Transitional Power division eventually offsets the burn, leading to positive cash flow of ~$40M by 2028.*

---

### **IV. Current vs. Historical Average Comparison**

| Metric | Current (2026) | 10-Year Average | Comparison |
| :--- | :--- | :--- | :--- |
| **Share Price (GBp)** | 12.50 | 8.87 | **+41%** (Market pricing in gas progress) |
| **P/B Ratio** | 1.05 | 1.25 | **-16%** (Slightly undervalued vs. history) |
| **Net Income ($M)** | ($22.0) | ($14.1) | **Worsening** (Scaling up for development) |
| **Total Assets ($M)** | $195.0 | $71.4 | **+173%** (Significant resource accumulation) |
| **Debt/Equity** | 0.08 | 0.01 | **Increasing** (Shifting toward project finance) |

---

### **V. Key Insights & Final Recommendation**

**Red Flags:**
- **Persistent Burn:** 10 years of negative FCF and no dividends.
- **Binary Outcome:** The company’s survival depends entirely on the Final Investment Decision (FID) and successful production at the Anchois project.
- **Equity Dilution:** Frequent share issuances to fund operations are a drag on long-term EPS.

**Opportunities:**
- **Strategic Pivot:** The "Transitional Power" division (mining renewables) provides a $12M+ revenue run-rate by 2026, creating a valuation floor.
- **Partnership De-risking:** The deal with Energean shifts the CAPEX burden of offshore drilling away from Chariot.

**FINAL TRANSACTION PROPOSAL: HOLD**
Chariot is a **"Quality Explorer"** but a **"Poor Value Stock"** by Buffett’s standards. The current share price (12.50p) reflects much of the recent progress. Until **First Gas** is definitively achieved and cash flow turns positive, it remains a speculative holding. Value investors should wait for the transition to positive FCF, while aggressive traders may find the 2026 drilling catalysts attractive.

### **Summary Table**
| Key Point | Analysis |
| :--- | :--- |
| **10-Year Revenue Trend** | Negligible until 2023; now growing at 45%+ YoY. |
| **Profitability** | Consistently negative; ROE remains in double-digit negative territory. |
| **Financial Strength** | Low debt but high reliance on equity markets and farm-outs. |
| **Valuation** | Trading near book value (1.05x); cheap compared to resource potential. |
| **Investment Style** | Speculative Growth / Asset Play (Not a Buffett Value Play). |
| **Primary Catalyst** | Final Investment Decision (FID) on Anchois Gas Project (2026). |