TSX:GXE

Stock Analysis Report

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Market Cap

CA$193.3m

Last Updated

2021/06/19 03:51 UTC

Data Sources

Company Financials +

Executive Summary

Gear Energy Ltd., an exploration and production company, acquires, develops, and holds interests in petroleum and natural gas properties and assets in Canada. More Details


Snowflake Analysis

Good value with acceptable track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: GXE is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 12% a week.

Volatility Over Time: GXE's weekly volatility (12%) has been stable over the past year.


Market Performance


7 Day Return

-7.4%

GXE

-0.001%

CA Oil and Gas

-0.9%

CA Market


1 Year Return

248.8%

GXE

43.4%

CA Oil and Gas

34.7%

CA Market

Return vs Industry: GXE exceeded the Canadian Oil and Gas industry which returned 43.4% over the past year.

Return vs Market: GXE exceeded the Canadian Market which returned 34.7% over the past year.


Shareholder returns

GXEIndustryMarket
7 Day-7.4%-0.001%-0.9%
30 Day10.3%6.4%1.5%
90 Day47.1%14.9%4.8%
1 Year248.8%248.8%50.9%43.4%39.1%34.7%
3 Year-41.4%-41.4%3.8%-9.0%30.3%17.9%
5 Year25.0%25.0%8.1%-11.3%58.9%34.9%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Gear Energy undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GXE (CA$0.75) is trading below our estimate of fair value (CA$1.78)

Significantly Below Fair Value: GXE is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: GXE is good value based on its PE Ratio (5.6x) compared to the Canadian Oil and Gas industry average (11.5x).

PE vs Market: GXE is good value based on its PE Ratio (5.6x) compared to the Canadian market (14.7x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate GXE's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: GXE's PB Ratio (1.7x) is in line with the CA Oil and Gas industry average.


Future Growth

How is Gear Energy forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

29.4%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if GXE's forecast earnings growth is above the savings rate (1.5%).

Earnings vs Market: Insufficient data to determine if GXE's earnings are forecast to grow faster than the Canadian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: GXE's revenue (29.4% per year) is forecast to grow faster than the Canadian market (5.7% per year).

High Growth Revenue: GXE's revenue (29.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if GXE's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Gear Energy performed over the past 5 years?

-5.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GXE has a large one-off gain of CA$94.2M impacting its March 31 2021 financial results.

Growing Profit Margin: GXE became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: GXE has become profitable over the past 5 years, growing earnings by -5.1% per year.

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

Earnings vs Industry: GXE has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-33.9%).


Return on Equity

High ROE: GXE's Return on Equity (26.4%) is considered high.


Financial Health

How is Gear Energy's financial position?


Financial Position Analysis

Short Term Liabilities: GXE's short term assets (CA$19.6M) do not cover its short term liabilities (CA$21.9M).

Long Term Liabilities: GXE's short term assets (CA$19.6M) do not cover its long term liabilities (CA$123.7M).


Debt to Equity History and Analysis

Debt Level: GXE's debt to equity ratio (45.5%) is considered high.

Reducing Debt: GXE's debt to equity ratio has reduced from 69.2% to 45.5% over the past 5 years.

Debt Coverage: GXE's debt is well covered by operating cash flow (59.8%).

Interest Coverage: Insufficient data to determine if GXE's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

What is Gear Energy current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate GXE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate GXE's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if GXE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GXE's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GXE's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

10.0yrs

Average management tenure


CEO

Ingram Gillmore

11.08yrs

Tenure

CA$247,500

Compensation

Mr. Ingram B. Gillmore, P.Eng has been the Chief Executive Officer and President of Gear Energy Ltd. since May 15, 2010. Mr. Gillmore varied experience includes working on and directing multifunctional tea...


CEO Compensation Analysis

Compensation vs Market: Ingram's total compensation ($USD198.40K) is below average for companies of similar size in the Canadian market ($USD444.91K).

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


Leadership Team

Experienced Management: GXE's management team is seasoned and experienced (10 years average tenure).


Board Members

Experienced Board: GXE's board of directors are considered experienced (3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: GXE insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 19.1%.


Top Shareholders

Company Information

Gear Energy Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Gear Energy Ltd.
  • Ticker: GXE
  • Exchange: TSX
  • Founded: NaN
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: CA$193.303m
  • Shares outstanding: 257.74m
  • Website: https://www.gearenergy.com

Number of Employees


Location

  • Gear Energy Ltd.
  • 205 – 5th Avenue S.W.
  • Suite 800
  • Calgary
  • Alberta
  • T2P 2V7
  • Canada

Listings


Biography

Gear Energy Ltd., an exploration and production company, acquires, develops, and holds interests in petroleum and natural gas properties and assets in Canada. Its oil-focused operations are located in thre...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/19 03:51
End of Day Share Price2021/06/18 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.