TSXV:KUB

Stock Analysis Report

Executive Summary

Cub Energy Inc. explores for, develops, and produces oil and gas.

Rewards

Trading at 5.8% below its fair value

Became profitable this year

Risk Analysis

Has a high level of debt

Highly volatile share price over past 3 months

Does not have a meaningful market cap (CA$19M)



Snowflake Analysis

Acceptable track record with imperfect balance sheet.


Similar Companies

Serinus Energy

WSE:SEN

Share Price & News

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


Latest Share Price and Events

Stable Share Price: KUB's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

8.3%

KUB

2.2%

CA Oil and Gas

-0.3%

CA Market


1 Year Return

116.7%

KUB

4.3%

CA Oil and Gas

10.7%

CA Market

Return vs Industry: KUB exceeded the Canadian Oil and Gas industry which returned 4.3% over the past year.

Return vs Market: KUB exceeded the Canadian Market which returned 10.7% over the past year.


Shareholder returns

KUBIndustryMarket
7 Day8.3%2.2%-0.3%
30 Day8.3%0.6%0.1%
90 Day-35.0%3.9%1.7%
1 Year116.7%116.7%9.1%4.3%14.4%10.7%
3 Year44.4%44.4%-11.8%-20.9%16.0%5.6%
5 Year62.5%62.5%1.8%-14.4%41.5%20.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

5.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KUB (CA$0.07) is trading below our estimate of fair value (CA$0.07)

Significantly Below Fair Value: KUB is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: KUB is poor value based on its PE Ratio (18.6x) compared to the Oil and Gas industry average (10.8x).

PE vs Market: KUB is poor value based on its PE Ratio (18.6x) compared to the Canadian market (15.3x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: KUB is overvalued based on its PB Ratio (1.3x) compared to the CA Oil and Gas industry average (0.6x).


Next Steps

Future Growth

How is Cub Energy forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

-6.6%

Forecasted Energy industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Cub Energy has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Cub Energy performed over the past 5 years?

40.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KUB has high quality earnings.

Growing Profit Margin: KUB became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: KUB has become profitable over the past 5 years, growing earnings by 40.7% per year.

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

Earnings vs Industry: KUB has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (16.5%).


Return on Equity

High ROE: KUB's Return on Equity (7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Cub Energy's financial position?


Financial Position Analysis

Short Term Liabilities: KUB's short term assets ($8.8M) do not cover its short term liabilities ($9.9M).

Long Term Liabilities: KUB's short term assets ($8.8M) exceed its long term liabilities ($2.6M).


Debt to Equity History and Analysis

Debt Level: KUB's debt to equity ratio (66.5%) is considered high.

Reducing Debt: KUB's debt to equity ratio has increased from 5.5% to 66.5% over the past 5 years.

Debt Coverage: KUB's debt is well covered by operating cash flow (34.1%).

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


Balance Sheet

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

Debt Coverage by Assets: KUB's debt is covered by short term assets (assets are 1.1x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.7%industryaverage4.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if KUB'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 KUB'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 Cub Energy's salary, the management and board of directors tenure and is there insider trading?

6.3yrs

Average management tenure


CEO

Mikhail Afendikov (53yo)

8yrs

Tenure

US$330,000

Compensation

Mr. Mikhail Afendikov has been Chief Executive Officer of CUB Energy Inc. since March 20, 2012 and its Executive Chairman since March 2012. Mr. Afendikov has been the Chief Executive Officer of Gastek LLC  ...


CEO Compensation Analysis

Compensation vs Market: Mikhail's total compensation ($USD330.00K) is above average for companies of similar size in the Canadian market ($USD136.16K).

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


Management Age and Tenure

6.3yrs

Average Tenure

52yo

Average Age

Experienced Management: KUB's management team is seasoned and experienced (6.3 years average tenure).


Board Age and Tenure

7.0yrs

Average Tenure

58yo

Average Age

Experienced Board: KUB's board of directors are considered experienced (7 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Rob Bensh (52yo)

    Consultant

    • Tenure: 0yrs
    • Compensation: US$801.36k
  • Patrick McGrath (48yo)

    Chief Financial Officer

    • Tenure: 6.3yrs
    • Compensation: US$199.78k
  • Kerry Kendrick

    Senior Advisor

    • Tenure: 0.3yrs
    • Compensation: US$240.00k
  • Rebecca Gottsegen

    Chief Compliance Officer

    • Tenure: 6.3yrs
    • Compensation: US$252.64k
  • Mikhail Afendikov (53yo)

    Executive Chairman & CEO

    • Tenure: 8yrs
    • Compensation: US$330.00k
  • Sergey Panchuk

    Chief Operating Officer

    • Tenure: 0.3yrs

Board Members

  • Jules Mermoud (63yo)

    Independent Director

    • Tenure: 7.4yrs
    • Compensation: US$77.18k
  • John Booth (53yo)

    Independent Director

    • Tenure: 2.6yrs
    • Compensation: US$77.18k
  • Tim Marchant (68yo)

    Independent Director

    • Tenure: 6.6yrs
    • Compensation: US$77.18k
  • Mikhail Afendikov (53yo)

    Executive Chairman & CEO

    • Tenure: 8yrs
    • Compensation: US$330.00k

Company Information

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


Key Information

  • Name: Cub Energy Inc.
  • Ticker: KUB
  • Exchange: TSXV
  • Founded: 2008
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: CA$18.853m
  • Shares outstanding: 314.22m
  • Website: https://www.cubenergyinc.com

Number of Employees


Location

  • Cub Energy Inc.
  • 5120 Woodway Drive
  • Suite 10010
  • Houston
  • Texas
  • 77056
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KUBTSXV (TSX Venture Exchange)YesCommon SharesCACADMar 2012
TPNE.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDMar 2012
P36DB (Deutsche Boerse AG)YesCommon SharesDEEURMar 2012
0URGLSE (London Stock Exchange)YesCommon SharesGBCADMar 2012

Biography

Cub Energy Inc. explores for, develops, and produces oil and gas. As of December 31, 2018, the company had 9 licenses with approximately 142,000 net acres in Transcarpathian and Dnieper-Donets basins in Uk ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/09 00:32
End of Day Share Price2019/12/04 00:00
Earnings2019/09/30
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.