TSX:SRX

Stock Analysis Report

Storm Resources

Executive Summary

Storm Resources Ltd. operates as a crude oil and natural gas exploration and development company in Canada.

Snowflake

Fundamentals

Undervalued with proven track record.


Similar Companies

Share Price & News

How has Storm Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-7.7%

SRX

0.4%

CA Oil and Gas

0.2%

CA Market


1 Year Return

-45.6%

SRX

-9.1%

CA Oil and Gas

3.5%

CA Market

Return vs Industry: SRX underperformed the Canadian Oil and Gas industry which returned -9.1% over the past year.

Return vs Market: SRX underperformed the Canadian Market which returned 3.5% over the past year.


Shareholder returns

SRXIndustryMarket
7 Day-7.7%0.4%0.2%
30 Day4.8%-5.5%-3.3%
90 Day-23.4%-2.0%-1.9%
1 Year-45.6%-45.6%-5.0%-9.1%7.3%3.5%
3 Year-73.5%-73.5%-15.3%-23.9%14.7%4.4%
5 Year-73.6%-73.6%-21.7%-33.6%26.2%7.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Storm Resources 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: SRX (CA$1.31) is trading below our estimate of fair value (CA$16.08)

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


Price To Earnings Ratio

PE vs Industry: SRX is good value based on its PE Ratio (3.8x) compared to the Oil and Gas industry average (8.4x).

PE vs Market: SRX is good value based on its PE Ratio (3.8x) compared to the Canadian market (13.7x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SRX is good value based on its PB Ratio (0.4x) compared to the CA Oil and Gas industry average (0.6x).


Next Steps

Future Growth

How is Storm Resources forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

18.6%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if SRX's forecast earnings growth is above the savings rate (1.9%).

Earnings vs Market: Insufficient data to determine if SRX'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: SRX's revenue (18.6% per year) is forecast to grow faster than the Canadian market (5.5% per year).

High Growth Revenue: SRX's revenue (18.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Storm Resources performed over the past 5 years?

54.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SRX has become profitable over the past 5 years, growing earnings by 54.9% per year.

Accelerating Growth: SRX's earnings growth over the past year (176%) exceeds its 5-year average (54.9% per year).

Earnings vs Industry: SRX earnings growth over the past year (176%) exceeded the Oil and Gas industry 62.2%.


Return on Equity

High ROE: SRX's Return on Equity (10.2%) is considered low.


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is Storm Resources's financial position?


Financial Position Analysis

Short Term Liabilities: SRX's short term assets (CA$14.5M) do not cover its short term liabilities (CA$29.1M)

Long Term Liabilities: SRX's short term assets (14.5M) do not cover its long term liabilities (126.6M)


Debt to Equity History and Analysis

Debt Level: SRX's debt to equity ratio (20.3%) is considered satisfactory

Reducing Debt: SRX's debt to equity ratio has increased from 5.9% to 20.3% over the past 5 years.

Debt Coverage: SRX's debt is well covered by operating cash flow (103.8%).

Interest Coverage: SRX's interest payments on its debt are well covered by EBIT (7.9x coverage).


Balance Sheet

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

Debt Coverage by Assets: SRX's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

What is Storm Resources's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.9%industryaverage4.8%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

Growing Dividend: Insufficient data to determine if SRX'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 SRX's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

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

4.4yrs

Average management tenure


CEO

Brian Lavergne (53yo)

9.3yrs

Tenure

CA$628,500

Compensation

Mr. Brian Lavergne has been the President and Chief Executive Officer of Storm Resources Ltd. since June 8, 2010. Mr. Lavergne served as President and Chief Executive Officer of Storm Exploration Inc.(SEI) ...


CEO Compensation Analysis

Compensation vs. Market: Brian's total compensation ($USD480.30K) is about average for companies of similar size in the Canadian market ($USD135.83K).

Compensation vs Earnings: Brian's compensation has increased by more than 20% in the past year.


Management Age and Tenure

4.4yrs

Average Tenure

Experienced Management: SRX's management team is considered experienced (4.4 years average tenure).


Board Age and Tenure

9.3yrs

Average Tenure

63yo

Average Age

Experienced Board: SRX's board of directors are considered experienced (9.3 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyCA$17,78024 Sep 19
Brian Lavergne
EntityIndividual
Role
Chief Executive Officer
President
Shares14,000
Max PriceCA$1.27
BuyCA$7,45019 Sep 19
Brian Lavergne
EntityIndividual
Role
Chief Executive Officer
President
Shares5,000
Max PriceCA$1.49
SellCA$26,00009 Sep 19
Hayden Evans
EntityIndividual
Role
Senior Key Executive
Vice President of Exploitation
Shares20,000
Max PriceCA$1.30
SellCA$25,30304 Sep 19
Jamie Conboy
EntityIndividual
Role
Senior Key Executive
Vice President of Geology
Shares20,000
Max PriceCA$1.27
BuyCA$6,25003 Sep 19
Brian Lavergne
EntityIndividual
Role
Chief Executive Officer
President
Shares5,000
Max PriceCA$1.25
BuyCA$13,00028 Aug 19
Brian Lavergne
EntityIndividual
Role
Chief Executive Officer
President
Shares10,000
Max PriceCA$1.30
BuyCA$3,73627 Aug 19
Michael Hearn
EntityIndividual
Role
Chief Financial Officer
CFO & Corporate Secretary
Shares2,800
Max PriceCA$1.34
SellCA$86427 Aug 19
Jamie Conboy
EntityIndividual
Role
Senior Key Executive
Vice President of Geology
Shares600
Max PriceCA$1.44
SellCA$66,61322 Jul 19
Jamie Conboy
EntityIndividual
Role
Senior Key Executive
Vice President of Geology
Shares33,000
Max PriceCA$2.34
BuyCA$4,07806 Dec 18
Michael Hearn
EntityIndividual
Role
Chief Financial Officer
CFO & Corporate Secretary
Shares2,200
Max PriceCA$1.86
BuyCA$510,88329 Nov 18
Stuart Clark
EntityIndividual
Role
Chairman of the Board
Independent Chairman
Shares250,000
Max PriceCA$2.05
SellCA$39,84228 Nov 18
Jamie Conboy
EntityIndividual
Role
Senior Key Executive
Vice President of Geology
Shares20,000
Max PriceCA$1.99
SellCA$132,81718 Nov 18
P. Wierzba
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares60,098
Max PriceCA$2.21
BuyCA$4,40018 Nov 18
Brian Lavergne
EntityIndividual
Role
Chief Executive Officer
President
Shares2,000
Max PriceCA$2.20
BuyCA$11,00015 Nov 18
Michael Hearn
EntityIndividual
Role
Chief Financial Officer
CFO & Corporate Secretary
Shares5,000
Max PriceCA$2.20

Ownership Breakdown


Management Team

  • Brian Lavergne (53yo)

    President

    • Tenure: 9.3yrs
    • Compensation: CA$628.50k
  • Robert Tiberio (54yo)

    Chief Operating Officer

    • Tenure: 9.2yrs
    • Compensation: CA$711.60k
  • Mike Hearn

    CFO & Corporate Secretary

    • Tenure: 2.4yrs
    • Compensation: CA$513.50k
  • Jamie Conboy

    Vice President of Geology

    • Tenure: 4.4yrs
    • Compensation: CA$596.30k
  • Hayden Evans

    Vice President of Exploitation

    • Tenure: 4.4yrs
    • Compensation: CA$657.20k

Board Members

  • Jim Wilson (66yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: CA$137.40k
  • John Brussa (62yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: CA$118.55k
  • Matt Brister (61yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: CA$120.00k
  • Greg Turnbull (64yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: CA$118.55k
  • P. Wierzba (69yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: CA$123.63k
  • Brian Lavergne (53yo)

    President

    • Tenure: 9.3yrs
    • Compensation: CA$628.50k
  • Stu Clark (64yo)

    Independent Chairman

    • Tenure: 9.2yrs
    • Compensation: CA$137.40k
  • Mark Butler (58yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: CA$127.98k
  • Sheila Leggett

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: CA$102.27k

Company Information

Storm Resources Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Storm Resources Ltd.
  • Ticker: SRX
  • Exchange: TSX
  • Founded: 2010
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: CA$159.239m
  • Shares outstanding: 121.56m
  • Website: https://www.stormresourcesltd.com

Number of Employees


Location

  • Storm Resources Ltd.
  • 215 – 2nd Street S.W.
  • Suite 600
  • Calgary
  • Alberta
  • T2P 1M4
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SRXTSX (The Toronto Stock Exchange)YesCommon SharesCACADAug 2010
SRML.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDAug 2010
64TDB (Deutsche Boerse AG)YesCommon SharesDEEURAug 2010

Biography

Storm Resources Ltd. operates as a crude oil and natural gas exploration and development company in Canada. The company primarily owns interest in lands covering an area of 121,000 net acres in 172 net sec ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 00:09
End of Day Share Price2019/10/22 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.