TSX:HSE

Stock Analysis Report

Executive Summary

Husky Energy Inc., together with its subsidiaries, operates as an integrated energy company.

Snowflake

Fundamentals

Undervalued with adequate balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

4.1%

HSE

0.6%

CA Oil and Gas

0.2%

CA Market


1 Year Return

-54.1%

HSE

-12.0%

CA Oil and Gas

1.2%

CA Market

Return vs Industry: HSE underperformed the Canadian Oil and Gas industry which returned -12% over the past year.

Return vs Market: HSE underperformed the Canadian Market which returned 1.2% over the past year.


Shareholder returns

HSEIndustryMarket
7 Day4.1%0.6%0.2%
30 Day-9.6%-6.4%-2.5%
90 Day-19.8%-3.9%-1.5%
1 Year-52.2%-54.1%-8.1%-12.0%4.7%1.2%
3 Year-39.5%-42.7%-16.3%-24.9%14.0%3.8%
5 Year-62.4%-66.7%-21.8%-33.6%26.4%8.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Husky 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

Undervalued: HSE (CA$9.1) is trading below our estimate of fair value (CA$30.59)

Significantly Undervalued: HSE is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: HSE is good value based on its PE Ratio (6.4x) compared to the Oil and Gas industry average (8.2x).

PE vs Market: HSE is good value based on its PE Ratio (6.4x) compared to the Canadian market (13.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: HSE's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: HSE is good value based on its PB Ratio (0.5x) compared to the CA Oil and Gas industry average (0.6x).


Next Steps

Future Growth

How is Husky Energy forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

-4.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HSE's earnings are forecast to decline over the next 3 years (-4.5% per year).

Earnings vs Market: HSE's earnings are forecast to decline over the next 3 years (-4.5% per year).

High Growth Earnings: HSE's earnings are forecast to decline over the next 3 years.

Revenue vs Market: HSE's revenue (2.2% per year) is forecast to grow slower than the Canadian market (5.7% per year).

High Growth Revenue: HSE's revenue (2.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: HSE's Return on Equity is forecast to be low in 3 years time (4.5%).


Next Steps

Past Performance

How has Husky Energy performed over the past 5 years?

22.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: HSE's earnings have grown significantly by 22.8% per year over the past 5 years.

Accelerating Growth: HSE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: HSE had negative earnings growth (-3.1%) over the past year, making it difficult to compare to the Oil and Gas industry average (62.2%).


Return on Equity

High ROE: HSE's Return on Equity (7.4%) is considered low.


Return on Assets

ROA vs Industry: HSE's Return on Assets is below or equal to the Oil and Gas industry average last year.


Return on Capital Employed

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


Next Steps

Financial Health

How is Husky Energy's financial position?


Financial Position Analysis

Short Term Liabilities: HSE's short term assets (CA$5.5B) exceeds its short term liabilities (CA$4.9B)

Long Term Liabilities: HSE's short term assets (5.5B) do not cover its long term liabilities (11.6B)


Debt to Equity History and Analysis

Debt Level: HSE's debt to equity ratio (31.4%) is considered satisfactory

Reducing Debt: HSE's debt to equity ratio has increased from 19% to 31.4% over the past 5 years.

Debt Coverage: HSE's debt is well covered by operating cash flow (63.1%).

Interest Coverage: HSE's interest payments on its debt are well covered by EBIT (7x coverage).


Balance Sheet

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

Debt Coverage by Assets: HSE's debt is not covered by short term assets (assets are 0.9x debt).


Next Steps

Dividend

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

5.49%

Current Dividend Yield


Dividend Yield vs Market

company5.5%marketbottom25%2.0%markettop25%5.9%industryaverage4.9%forecastin3Years5.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: HSE's dividend (5.49%) is higher than the bottom 25% of dividend payers in the Canadian market (2%).

High Dividend: HSE's dividend (5.49%) is low compared to the top 25% of dividend payers in the Canadian market (5.94%).

Stable Dividend: HSE's dividend payments have been volatile in the past 10 years.

Growing Dividend: HSE's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (35.3%), HSE's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HSE's dividends in 3 years are forecast to be well covered by earnings (48.5% payout ratio).


Next Steps

Management

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

2.6yrs

Average management tenure


CEO

Rob Peabody (62yo)

2.8yrs

Tenure

CA$7,884,276

Compensation

Mr. Robert J. Peabody, also known as Rob, has been the Chief Executive Officer and President at Husky Energy Inc. since December 5, 2016 and served as its Chief Operating Officer since April, 2006 until De ...


CEO Compensation Analysis

Compensation vs. Market: Rob's total compensation ($USD5.98M) is about average for companies of similar size in the Canadian market ($USD3.99M).

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


Management Age and Tenure

2.6yrs

Average Tenure

Experienced Management: HSE's management team is considered experienced (2.6 years average tenure).


Board Age and Tenure

19.2yrs

Average Tenure

68yo

Average Age

Experienced Board: HSE's board of directors are seasoned and experienced ( 19.2 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyCA$2,93726 Aug 19
Robert W. Symonds
EntityIndividual
Role
Chief Operating Officer
Chief Operating Officer
Shares330
Max PriceCA$8.91
BuyCA$49,83215 Aug 19
Darren Andruko
EntityIndividual
Role
Senior Key Executive
Chief Financial Officer of Asia Pacific
Shares5,500
Max PriceCA$9.06
BuyCA$1,37606 Aug 19
Jeffrey Hart
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares140
Max PriceCA$9.83
BuyCA$325,17101 Aug 19
Robert Hinkel
EntityIndividual
Role
Senior Key Executive
Chief Operating Officer of Asia Pacific
Shares32,912
Max PriceCA$9.88
BuyCA$100,10029 Jul 19
Robert Peabody
EntityIndividual
Role
Chief Executive Officer
President
Shares10,000
Max PriceCA$10.01
BuyCA$111,72030 Apr 19
Jeffrey Hart
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares7,600
Max PriceCA$14.70
BuyCA$7,04928 Mar 19
Robert W. Symonds
EntityIndividual
Role
Chief Operating Officer
Chief Operating Officer
Shares530
Max PriceCA$13.30
BuyCA$13,82008 Mar 19
Janet Annesley
EntityIndividual
Role
Head of Human Resources
Senior Vice President of Corporate Affairs & Human Resources
Shares1,000
Max PriceCA$13.82
BuyCA$493,96507 Mar 19
Robert Peabody
EntityIndividual
Role
Chief Executive Officer
President
Shares35,000
Max PriceCA$14.14
BuyCA$31,73104 Mar 19
Janet Annesley
EntityIndividual
Role
Head of Human Resources
Senior Vice President of Corporate Affairs & Human Resources
Shares2,150
Max PriceCA$14.93
BuyCA$442,14828 Feb 19
Robert Peabody
EntityIndividual
Role
Chief Executive Officer
President
Shares30,000
Max PriceCA$14.74

Ownership Breakdown


Management Team

  • James Girgulis

    Senior VP

    • Tenure: 19.2yrs
  • Rob Symonds

    Chief Operating Officer

    • Tenure: 2.6yrs
    • Compensation: CA$3.43m
  • Rob Peabody (62yo)

    President

    • Tenure: 2.8yrs
    • Compensation: CA$7.88m
  • Jeffrey Rinker

    Senior Vice President of Downstream

    • Tenure: 1.4yrs
    • Compensation: CA$1.70m
  • Brad Allison

    Senior Vice President of Exploration

    • Tenure: 0yrs
  • Robert Hinkel

    Chief Operating Officer of Asia Pacific

    • Tenure: 8.8yrs
    • Compensation: CA$2.20m
  • Darren Andruko

    Chief Financial Officer of Asia Pacific

    • Tenure: 0yrs
    • Compensation: CA$860.71k
  • Janet Annesley

    Senior Vice President of Corporate Affairs & Human Resources

    • Tenure: 0.8yrs
  • Dan Cuthbertson

    Director of Communications & Investor Relations

    • Tenure: 0yrs
  • Jeff Hart

    Chief Financial Officer

    • Tenure: 1.5yrs
    • Compensation: CA$2.00m

Board Members

  • Stanley Kwok (92yo)

    Independent Director

    • Tenure: 19.2yrs
    • Compensation: CA$130.00k
  • Eva Kwok (76yo)

    Independent Director

    • Tenure: 19.2yrs
    • Compensation: CA$130.00k
  • Frank Sixt (67yo)

    Non-Independent Director

    • Tenure: 19.2yrs
    • Compensation: CA$125.00k
  • Martin John Glynn (67yo)

    Independent Director

    • Tenure: 19.2yrs
    • Compensation: CA$135.00k
  • Victor Li (55yo)

    Co-Chair of the Board

    • Tenure: 0yrs
    • Compensation: CA$120.00k
  • William Shurniak (87yo)

    Deputy Chair of the Board

    • Tenure: 19.2yrs
    • Compensation: CA$140.00k
  • Poh Chan Koh (70yo)

    Non-Independent Director

    • Tenure: 19.2yrs
    • Compensation: CA$120.00k
  • Neil McGee (68yo)

    Non-Independent Director

    • Tenure: 6.9yrs
    • Compensation: CA$125.00k
  • Canning Fok (68yo)

    Co-Chair of the Board

    • Tenure: 19.2yrs
    • Compensation: CA$130.00k
  • Rob Peabody (62yo)

    President

    • Tenure: 2.8yrs
    • Compensation: CA$7.88m

Company Information

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


Key Information

  • Name: Husky Energy Inc.
  • Ticker: HSE
  • Exchange: TSX
  • Founded: 1938
  • Industry: Integrated Oil and Gas
  • Sector: Energy
  • Market Cap: CA$9.147b
  • Shares outstanding: 1.01b
  • Website: https://www.huskyenergy.com

Number of Employees


Location

  • Husky Energy Inc.
  • 707-8th Avenue SW
  • Calgary
  • Alberta
  • T2P 1H5
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HSETSX (The Toronto Stock Exchange)YesCommon SharesCACADAug 2000
HKEDB (Deutsche Boerse AG)YesCommon SharesDEEURAug 2000
HUSK.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDAug 2000
HKEMUN (Boerse Muenchen)YesCommon SharesDEEURAug 2000
HSE.PRATSX (The Toronto Stock Exchange)CUM PFD SHS 1CACADMar 2011
HSE.PRCTSX (The Toronto Stock Exchange)RSET PFD-3 4.5CACADDec 2014
HSE.PRETSX (The Toronto Stock Exchange)PFD-5CACADMar 2015
HSE.PRGTSX (The Toronto Stock Exchange)PFD SER 7CACADJun 2015
HSE.PRBTSX (The Toronto Stock Exchange)CUM RED PFD SH 2CACADApr 2016

Biography

Husky Energy Inc., together with its subsidiaries, operates as an integrated energy company. It operates through two segments, Upstream and Downstream. The Upstream segment engages in the exploration for,  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 23:36
End of Day Share Price2019/10/16 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.