Southern Energy (TSXV:SOU) - Share price, News & Analysis

SOU fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	0/6
Past Performance	3/6
Financial Health	5/6
Dividends	0/6

SOU Stock Overview

Southern Energy Corp. operates as an oil and natural gas exploration and production company in Canada.

Rewards

Trading at 4.8% below our estimate of its fair value

Became profitable this year

Risk Analysis

Earnings are forecast to decline by an average of 85.2% per year for the next 3 years

Highly volatile share price over the past 3 months

High level of non-cash earnings

Shareholders have been substantially diluted in the past year

+ 1 more risk

Southern Energy Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Southern Energy
Historical stock prices
Current Share Price	CA$1.09
52 Week High	CA$1.22
52 Week Low	CA$0.24
Beta	0.99
1 Month Change	49.32%
3 Month Change	153.49%
1 Year Change	70.31%
3 Year Change	36.25%
5 Year Change	81.67%
Change since IPO	-81.83%

Recent News & Updates

Apr 28

We Think Shareholders Should Be Aware Of Some Factors Beyond Southern Energy's (CVE:SOU) Profit

Southern Energy Corp. ( CVE:SOU ) recently released a strong earnings report, and the market responded by raising the...

Shareholder Returns

	SOU	CA Oil and Gas	CA Market
7D	-5.2%	0.9%	0.2%
1Y	70.3%	60.3%	4.8%

Return vs Industry: SOU exceeded the Canadian Oil and Gas industry which returned 60.3% over the past year.

Return vs Market: SOU exceeded the Canadian Market which returned 4.8% over the past year.

Price Volatility

Is SOU's price volatile compared to industry and market?
SOU volatility
SOU Average Weekly Movement	17.1%
Oil and Gas Industry Average Movement	10.3%
Market Average Movement	9.8%
10% most volatile stocks in CA Market	17.0%
10% least volatile stocks in CA Market	4.3%

Stable Share Price: SOU is more volatile than 90% of Canadian stocks over the past 3 months, typically moving +/- 17% a week.

Volatility Over Time: SOU's weekly volatility (17%) has been stable over the past year, but is still higher than 75% of Canadian stocks.

About the Company

Founded	Employees	CEO	Website
2008	18	Ian Atkinson	https://southernenergycorp.com

Southern Energy Corp. operates as an oil and natural gas exploration and production company in Canada. Its principal properties are the Central Mississippi Assets that covers an area of approximately 30,500 acres containing oil and gas production at Gwinville, Mechanicsburg, Williamsburg, and Mount Olive, Mississippi. The company was formerly known as Standard Exploration Ltd.

Southern Energy Fundamentals Summary

How do Southern Energy's earnings and revenue compare to its market cap?
SOU fundamental statistics
Market Cap	US$67.00m
Earnings (TTM)	US$10.09m
Revenue (TTM)	US$15.88m

6.6x

P/E Ratio

4.2x

P/S Ratio

Is SOU overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SOU income statement (TTM)
Revenue	US$15.88m
Cost of Revenue	US$5.17m
Gross Profit	US$10.71m
Other Expenses	US$612.00k
Earnings	US$10.09m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.13
Gross Margin	67.42%
Net Profit Margin	63.57%
Debt/Equity Ratio	41.1%

How did SOU perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

4.8%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: SOU (CA$1.09) is trading below our estimate of fair value (CA$1.14)

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

Price To Earnings Ratio

PE vs Industry: SOU is good value based on its PE Ratio (6.6x) compared to the Canadian Oil and Gas industry average (8.7x).

PE vs Market: SOU is good value based on its PE Ratio (6.6x) compared to the Canadian market (11.4x).

Price to Earnings Growth Ratio

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

Price to Book Ratio

PB vs Industry: SOU is overvalued based on its PB Ratio (2.8x) compared to the CA Oil and Gas industry average (2.1x).

Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-85.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: SOU's earnings are forecast to decline over the next 3 years (-85.2% per year).

Earnings vs Market: SOU's earnings are forecast to decline over the next 3 years (-85.2% per year).

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

Revenue vs Market: SOU's revenue is expected to decline over the next 3 years (-8.2% per year).

High Growth Revenue: SOU's revenue is forecast to decline over the next 3 years (-8.2% per year).

Earnings per Share Growth Forecasts

Future Return on Equity

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

Past Performance

How has Southern Energy performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

3.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SOU has a high level of non-cash earnings.

Growing Profit Margin: SOU became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: SOU has become profitable over the past 5 years, growing earnings by 3.6% per year.

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

Earnings vs Industry: SOU has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (185%).

Return on Equity

High ROE: SOU's Return on Equity (42.4%) is considered outstanding.

Financial Health

How is Southern Energy's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: SOU's short term assets ($12.6M) exceed its short term liabilities ($9.8M).

Long Term Liabilities: SOU's short term assets ($12.6M) exceed its long term liabilities ($12.6M).

Debt to Equity History and Analysis

Debt Level: SOU's net debt to equity ratio (0.7%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if SOU's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: SOU's debt is well covered by operating cash flow (29.7%).

Interest Coverage: SOU's interest payments on its debt are well covered by EBIT (8.6x coverage).

Balance Sheet

Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

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

High Dividend: Unable to evaluate SOU'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 SOU's dividends per share have been stable in the past.

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

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as SOU has not reported any payouts.

Discover strong dividend paying companies

Management

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

3.4yrs

Average management tenure

CEO

Ian Atkinson

3.42yrs

Tenure

US$146,188

Compensation

Mr. Ian Kenneth Atkinson, MSc, P.Eng., has been President, Chief Executive Officer and Director at Southern Energy Corp. (formerly, Standard Exploration Ltd.) since December 11, 2018. He has been the Chief...

CEO Compensation Analysis

Compensation vs Market: Ian's total compensation ($USD146.19K) is about average for companies of similar size in the Canadian market ($USD168.83K).

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

Leadership Team

Experienced Management: SOU's management team is considered experienced (3.4 years average tenure).

Board Members

Experienced Board: SOU's board of directors are considered experienced (3.4 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: SOU 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 substantially diluted in the past year, with total shares outstanding growing by 75.7%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/23 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31