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U.S. Energy Sector Analysis

UpdatedSep 28, 2022
DataAggregated Company Financials
Companies502
  • 7D-10.2%
  • 3M-3.6%
  • 1Y27.2%
  • YTD19.6%

Over the last 7 days, the Energy industry has dropped 10%, driven by pullbacks in Chevron and Exxon Mobil of 9.8% and 7.2%, respectively. On the other hand PBF Energy is actually up 8.9%. Over the past 12 months, the industry was up 27%. As for the next few years, earnings are forecast to decline by 5.9% per annum.

Sector Valuation and Performance

Has the U.S. Energy Sector valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 28 Sep 2022US$1.9tUS$2.1tUS$190.8b9.2x9.9x0.9x
Fri, 26 Aug 2022US$2.2tUS$2.1tUS$190.6b10.9x11.8x1.1x
Sun, 24 Jul 2022US$1.9tUS$1.8tUS$111.5b12.9x17.2x1.1x
Tue, 21 Jun 2022US$1.9tUS$1.8tUS$110.4b13.1x17.6x1.1x
Thu, 19 May 2022US$2.2tUS$1.8tUS$109.6b14.9x20x1.2x
Sat, 16 Apr 2022US$2.2tUS$1.6tUS$90.1b15.5x23.9x1.4x
Mon, 14 Mar 2022US$2.0tUS$1.6tUS$91.2b15.8x22.3x1.3x
Wed, 09 Feb 2022US$1.8tUS$1.5tUS$67.8b17.6x26.7x1.2x
Fri, 07 Jan 2022US$1.7tUS$1.4tUS$22.1b18.5x74.8x1.2x
Sun, 05 Dec 2021US$1.5tUS$1.4tUS$23.3b15.8x63.9x1.1x
Tue, 02 Nov 2021US$1.6tUS$1.3tUS$1.6b22.3x1001.5x1.3x
Thu, 30 Sep 2021US$1.5tUS$1.2t-US$15,279,058,586.0020.3x-96.2x1.2x
Sat, 28 Aug 2021US$1.3tUS$1.2t-US$16,086,788,527.1415.2x-83.3x1.1x
Sun, 04 Jul 2021US$1.5tUS$1.2t-US$16,112,384,260.1415.9x-91.1x1.2x
Wed, 07 Apr 2021US$1.3tUS$1.0t-US$62,470,884,964.5412.9x-20.7x1.3x
Sat, 09 Jan 2021US$974.5bUS$989.7b-US$153,942,789,407.278.8x-6.3x1x
Fri, 02 Oct 2020US$751.0bUS$1.1t-US$130,985,681,432.166.1x-5.7x0.7x
Mon, 06 Jul 2020US$933.6bUS$1.2t-US$116,404,913,800.038.2x-8x0.8x
Thu, 09 Apr 2020US$710.0bUS$1.4t-US$67,363,047,529.165.7x-10.5x0.5x
Wed, 01 Jan 2020US$1.5tUS$1.5tUS$19.0b12.7x80.4x1x
Sat, 05 Oct 2019US$1.5tUS$1.5tUS$55.3b10.1x26.8x1x
Price to Earnings Ratio

26.8x


Total Market Cap: US$1.5tTotal Earnings: US$55.3bTotal Revenue: US$1.5tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Energy Sector Price to Earnings3Y Average 5.9x202020212022
Current Industry PE
  • Investors are optimistic on the American Energy industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 9.9x which is higher than its 3-year average PE of 5.9x.
  • The 3-year average PS ratio of 1.0x is higher than the industry's current PS ratio of 0.91x.
Past Earnings Growth
  • The earnings for companies in the Energy industry have grown 51% per year over the last three years.
  • Revenues for these companies have grown 12% per year.
  • This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Trends

Which industries have driven the changes within the U.S. Energy sector?

US Market-5.79%
Energy-10.16%
Oil and Gas-10.04%
Energy Services-11.62%
Industry PE
  • Investors are most optimistic about the Energy Services industry which is trading above its 3-year average PE ratio.
    • Analysts are expecting annual earnings growth of 53.7%, which is higher than its past year's earnings growth of 44.1% per year.
  • Investors are most pessimistic about the Oil and Gas industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average.
Forecasted Growth
  • Analysts are most optimistic on the Energy Services industry, expecting annual earnings growth of 54% over the next 5 years.
  • This is better than its past earnings growth rate of 44% per year.
  • In contrast, the Oil and Gas industry is expected to see its earnings decline by 11% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
PBF PBF EnergyUS$32.338.9%
+US$321.9m
144.6%PE2.8x
BROG Brooge EnergyUS$8.459.5%
+US$80.0m
-0.7%PE76.7x
BTU Peabody EnergyUS$22.260.9%
+US$27.3m
60.0%PE4.4x
EP Empire PetroleumUS$13.015.9%
+US$15.6m
77.7%PS6x
SLNG Stabilis SolutionsUS$5.9015.9%
+US$14.8m
-15.6%PS1.2x
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Latest News

HES

US$101.09

Hess

7D

-15.3%

1Y

28.5%
Sep 26

Exxon Mobil: On The Move, But Maybe Not In The Direction You Think

Summary Let’s look at the fundamentals of the underlying commodity driving XOM, crude oil. Next, we zoom into the specifics of XOM’s current valuation. What's the technical viewpoint and where might XOM find an important swing low in price? By Levi at StockWaves, Produced with Avi Gilburt Crude oil is a market where fundamentals certainly matter. However, it's also in the commodity family. Commodities are famously driven quite strongly by sentiment. There are times, especially at important turns in price, where the fundamentals do not seem to make sense. At Stock Waves we use both fundamentals and technicals to help us identify high probability setups across the markets. One such setup is now developing in Exxon Mobil (XOM). But, first, please allow me to briefly review what our view has been in energy producers and then we'll dive into where we see the oil majors heading in the next few months. Back on May 27 of this year our senior analyst, Zac Mannes, put out an important and timely update to members. In part, this was the main message: We have now started to raise awareness for our subscribers that we are heading into thick resistance as the confluence of Fibonacci price levels for the targets for most of those moves. There is still room for extensions, but the risk 'skew' is no longer very favorable." In addition, Zac posted a chart of XLE which showed a likely top at the $92.25 area. XLE did indeed find an important swing high at $93.31 on June 8th. MotiveWave So, it has been our stance that energy producers would find themselves in a corrective pattern for some time ahead, through the summer months and into the fall period. What's the current fundamental view for crude oil and energy producers? Our lead fundamental analyst, Lyn Alden, recently published this note regarding both. A Fundamental Note on Oil: This is an environment for the price of oil where managing timeframes is important. In the tactical sense, there are plenty of bearish variables. In the structural sense, there are plenty of bullish variables. The US Strategic Petroleum Reserve is actively selling oil into the market, and will do so up until the election." YCharts Meanwhile, the Fed is aggressively tightening monetary policy into an economic slowdown, and spiking dollar relative to other currencies in the process. The price of oil in yen, euro, and pound sterling for example is not as weak as the price of oil in dollars." Lyn Alden Lastly, the biggest oil importer in the world, China, has been using a zero-COVID policy that results in rolling lockdowns and reduced oil demand. Those are among the key tactically bearish fundamental variables. The structural undersupply issue is the longer-run bullish variable. There aren't many long-lifetime new projects coming online. Big emerging market sources of demand like India continue to grind higher over the long run." When Treasury market illiquidity or other issues cause the Fed to re-liquefy the global financial system, and/or the next period of economic acceleration comes, and/or technical signals show a clear reversal, I will be tactically bullish on oil again, in line with my structural bullish oil view." And, specifically regarding XOM, here are Lyn's comments: Many oil stocks, like XOM, are trading at reasonable valuations compared to the current and likely future price of oil. And many of them, XOM included, pay higher dividend yields than the broad market. However, it's the rate of change that matters, and they tend to trade directionally similar to the price of the underlying commodity. My view on most oil producers is therefore similar to my view on oil: tactically unclear until we get past the SPR drawdown and other macro factors, but long-term bullish." How Does XOM range vs. its peers? Note the profitability chart from here on Seeking Alpha: Seeking Alpha