TSX:GEI

Stock Analysis Report

Executive Summary

Gibson Energy Inc. engages in the gathering, storage, optimization, processing, and marketing of crude oil and refined products in North America.

Snowflake

Fundamentals

Mediocre balance sheet with questionable track record.


Similar Companies

Share Price & News

How has Gibson Energy's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.9%

GEI

-0.5%

CA Oil and Gas

-0.3%

CA Market


1 Year Return

6.6%

GEI

-12.2%

CA Oil and Gas

0.9%

CA Market

Return vs Industry: GEI exceeded the Canadian Oil and Gas industry which returned -12.2% over the past year.

Return vs Market: GEI exceeded the Canadian Market which returned 0.9% over the past year.


Share holder returns

GEIIndustryMarket
7 Day-1.9%-0.5%-0.3%
30 Day-5.4%-2.7%-2.1%
90 Day-7.3%-4.7%-1.5%
1 Year13.3%6.6%-8.2%-12.2%4.4%0.9%
3 Year51.9%23.5%-14.4%-23.1%15.7%5.4%
5 Year-1.4%-30.2%-21.6%-33.5%26.1%7.9%

Price Volatility Vs. Market

How volatile is Gibson Energy's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Gibson Energy undervalued based on future cash flows and its price relative to the stock market?

22%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: GEI (CA$22.23) is trading below our estimate of fair value (CA$28.5)

Significantly Undervalued: GEI is trading below fair value, but not by a significant amount.


Price Based on Earnings

PE vs Industry: GEI is poor value based on its PE Ratio (21.8x) compared to the Oil and Gas industry average (8.3x).

PE vs Market: GEI is poor value based on its PE Ratio (21.8x) compared to the Canadian market (13.7x).


Price Based on Expected Growth

Low PEG Ratio: GEI is poor value based on its PEG Ratio (27.4x)


Price Based on Value of Assets

PB vs Industry: GEI is overvalued based on its PB Ratio (4.2x) compared to the CA Oil and Gas industry average (0.7x).


Next Steps

Future Growth

How is Gibson Energy expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

0.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: GEI's forecast earnings growth (0.8% per year) is below the savings rate (1.9%).

Earnings vs Market: GEI's earnings (0.8% per year) are forecast to grow slower than the Canadian market (13.3% per year).

High Growth Earnings: GEI's earnings are forecast to grow, but not significantly.

Revenue vs Market: GEI's revenue is expected to decline over the next 3 years (-1.4% per year).

High Growth Revenue: GEI's revenue is forecast to decline over the next 3 years (-1.4%).


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: GEI's Return on Equity is forecast to be low in 3 years time (19.7%).


Next Steps

Past Performance

How has Gibson Energy performed over the past 5 years?

7.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: GEI's earnings have grown by 7.8% per year over the past 5 years.

Accelerating Growth: GEI has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: GEI has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (62.2%).


Return on Equity

High ROE: GEI's Return on Equity (19.2%) is considered low.


Return on Assets

ROA vs Industry: GEI has a higher Return on Assets than the Oil and Gas industry average last year.


Return on Capital Employed

ROCE Improving: GEI's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Gibson Energy's financial position?


Financial Position Analysis

Short Term Liabilities: GEI's short term assets (CA$882.2M) exceeds its short term liabilities (CA$680.6M)

Long Term Liabilities: GEI's short term assets (882.2M) do not cover its long term liabilities (1.7B)


Debt to Equity History and Analysis

Debt Level: GEI's debt to equity ratio (165.1%) is considered high

Reducing Debt: GEI's debt to equity ratio has increased from 79.8% to 165.1% over the past 5 years.

Debt Coverage: GEI's debt is well covered by operating cash flow (34%).

Interest Coverage: GEI's interest payments on its debt are well covered by EBIT (3.9x coverage).


Balance Sheet

Inventory Level: GEI has a high level of physical assets or inventory.

Debt Coverage by Assets: GEI's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

What is Gibson Energy's current dividend yield, its reliability and sustainability?

5.98%

Expected Dividend Yield


Dividend Yield vs Market

company5.9%marketbottom25%2.0%markettop25%6.0%industryaverage5.3%forecastin3Years6.0%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: GEI's dividend (5.94%) is higher than the bottom 25% of dividend payers in the Canadian market (2.03%).

High Dividend: GEI's dividend (5.94%) is low compared to the top 25% of dividend payers in the Canadian market (5.98%).

Stable Dividend: Whilst dividend payments have been stable, GEI has been paying a dividend for less than 10 years.

Growing Dividend: GEI's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (129.5%), GEI's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GEI's dividends in 3 years are not forecast to be well covered by earnings (133.5% payout ratio).


Next Steps

Management

What is the CEO of Gibson Energy's salary, the management and board of directors tenure and is there insider trading?

2.2yrs

Average management tenure


CEO

Steve Spaulding (53yo)

2.3yrs

Tenure

CA$5,056,302

Compensation

Mr. Steven R. Spaulding, also known as Steve, has been President, Chief Executive Officer and Director at Gibson Energy Inc. since June 19, 2017. Mr. Spaulding served as Senior Vice President of Processing ...


CEO Compensation Analysis

Compensation vs. Market: Steve has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Canadian market.

Compensation vs Earnings: Steve's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.2yrs

Average Tenure

Experienced Management: GEI's management team is considered experienced (2.2 years average tenure).


Board Age and Tenure

4.5yrs

Average Tenure

61.5yo

Average Age

Experienced Board: GEI's board of directors are considered experienced (4.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$149,65531 May 19
Susan Jones
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares6,818
Max PriceCA$21.95
BuyCA$149,52008 Mar 19
Susan Jones
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares6,720
Max PriceCA$22.25
BuyCA$303,28027 Dec 18
Steven Spaulding
EntityIndividual
Role
Chief Executive Officer
President
Shares17,000
Max PriceCA$17.84
BuyCA$50,00227 Dec 18
Sean Wilson
EntityIndividual
Role
Chief Administrative Officer
Senior VP
Shares2,817
Max PriceCA$17.75

Ownership Breakdown


Management Team

  • Rod Bantle (62yo)

    Senior Vice President of Truck Transportation

    • Tenure: 10.5yrs
  • Warren Osatiuk

    Senior Vice President of Refining

    • Tenure: 5.8yrs
  • Steve Spaulding (53yo)

    President

    • Tenure: 2.3yrs
    • Compensation: CA$5.06m
  • Sean Duffee

    Senior VP & Chief Commercial Officer

    • Tenure: 1.9yrs
    • Compensation: CA$1.13m
  • Tammi Price

    Vice President of Finance and Corporate Affairs

    • Tenure: 0yrs
  • Sean Wilson

    Senior VP

    • Tenure: 2yrs
    • Compensation: CA$1.52m
  • Mike Lindsay

    Senior Vice President of Operations & Engineering

    • Tenure: 2yrs
  • Sean Brown

    Senior VP & CFO

    • Tenure: 3.6yrs
    • Compensation: CA$1.98m
  • Mark Chyc-Cies

    Vice President of Strategy

    • Tenure: 0yrs
  • Orin Atkins

    Vice President of U.S. Business Development

    • Tenure: 1.8yrs
    • Compensation: CA$1.91m

Board Members

  • Doug Bloom (61yo)

    Independent Director

    • Tenure: 3.4yrs
    • Compensation: CA$150.00k
  • Marshall McRae (62yo)

    Independent Director

    • Tenure: 8.3yrs
    • Compensation: CA$160.00k
  • Jim Cleary (64yo)

    Independent Director

    • Tenure: 6.5yrs
    • Compensation: CA$201.31k
  • John Festival (58yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: CA$58.93k
  • Mary Peters (62yo)

    Independent Director

    • Tenure: 5.7yrs
    • Compensation: CA$195.16k
  • Jim Estey (66yo)

    Independent Chairman

    • Tenure: 6.5yrs
    • Compensation: CA$225.00k
  • Steve Spaulding (53yo)

    President

    • Tenure: 2.3yrs
    • Compensation: CA$5.06m
  • Susan Jones (49yo)

    Independent Director

    • Tenure: 0.8yrs
    • Compensation: CA$5.83k

Company Information

Gibson Energy Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Gibson Energy Inc.
  • Ticker: GEI
  • Exchange: TSX
  • Founded: 1950
  • Industry: Oil and Gas Storage and Transportation
  • Sector: Energy
  • Market Cap: CA$3.231b
  • Shares outstanding: 145.36m
  • Website: https://www.gibsonenergy.com

Number of Employees


Location

  • Gibson Energy Inc.
  • 440-2nd Avenue SW
  • Suite 1700
  • Calgary
  • Alberta
  • T2P 5E9
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GEITSX (The Toronto Stock Exchange)YesCommon SharesCACADJun 2011
8GBDB (Deutsche Boerse AG)YesCommon SharesDEEURJun 2011
GBNX.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJun 2011

Biography

Gibson Energy Inc. engages in the gathering, storage, optimization, processing, and marketing of crude oil and refined products in North America. It operates through Infrastructure and Wholesale segments.  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 02:43
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

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