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SOU

Southern Energy TSXV:SOU Stock Report

Last Price

CA$0.83

Market Cap

CA$112.8m

7D

2.5%

1Y

48.2%

Updated

14 Aug, 2022

Data

Company Financials +
SOU fundamental analysis
Snowflake Score
Valuation4/6
Future Growth5/6
Past Performance3/6
Financial Health3/6
Dividends0/6

SOU Stock Overview

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

Southern Energy Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Southern Energy
Historical stock prices
Current Share PriceCA$0.83
52 Week HighCA$1.49
52 Week LowCA$0.24
Beta1.24
1 Month Change10.67%
3 Month Change-27.83%
1 Year Change48.21%
3 Year Change88.64%
5 Year Change107.50%
Change since IPO-86.17%

Recent News & Updates

Shareholder Returns

SOUCA Oil and GasCA Market
7D2.5%4.7%3.0%
1Y48.2%48.4%0.7%

Return vs Industry: SOU matched the Canadian Oil and Gas industry which returned 48.4% over the past year.

Return vs Market: SOU exceeded the Canadian Market which returned 0.7% over the past year.

Price Volatility

Is SOU's price volatile compared to industry and market?
SOU volatility
SOU Average Weekly Movement15.3%
Oil and Gas Industry Average Movement11.1%
Market Average Movement10.6%
10% most volatile stocks in CA Market18.9%
10% least volatile stocks in CA Market4.3%

Stable Share Price: SOU is more volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 15% a week.

Volatility Over Time: SOU's weekly volatility (15%) has been stable over the past year, but is still higher than 75% of Canadian stocks.

About the Company

FoundedEmployeesCEOWebsite
200818Ian Atkinsonhttps://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 CapUS$88.16m
Earnings (TTM)US$8.87m
Revenue (TTM)US$17.53m

9.9x

P/E Ratio

5.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SOU income statement (TTM)
RevenueUS$17.53m
Cost of RevenueUS$5.39m
Gross ProfitUS$12.14m
Other ExpensesUS$3.27m
EarningsUS$8.87m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.065
Gross Margin69.26%
Net Profit Margin50.60%
Debt/Equity Ratio42.9%

How did SOU perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is SOU undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SOU?

Other financial metrics that can be useful for relative valuation.

SOU key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue5.2x
Enterprise Value/EBITDA4.5x
PEG Ratio0.3x

Price to Earnings Ratio vs Peers

How does SOU's PE Ratio compare to its peers?

SOU PE Ratio vs Peers
The above table shows the PE ratio for SOU vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average13.9x
FORZ Forza Petroleum
2.2xn/aCA$108.2m
HME Hemisphere Energy
18.3xn/aCA$160.7m
QEC Questerre Energy
31.1xn/aCA$105.0m
SNM ShaMaran Petroleum
4.1x-6.7%CA$210.0m
SOU Southern Energy
9.9x37.3%CA$112.8m

Price-To-Earnings vs Peers: SOU is good value based on its Price-To-Earnings Ratio (9.9x) compared to the peer average (13.9x).


Price to Earnings Ratio vs Industry

How does SOU's PE Ratio compare vs other companies in the CA Oil and Gas Industry?

Price-To-Earnings vs Industry: SOU is expensive based on its Price-To-Earnings Ratio (9.9x) compared to the Canadian Oil and Gas industry average (5.8x)


Price to Earnings Ratio vs Fair Ratio

What is SOU's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SOU PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9.9x
Fair PE Ratio17.9x

Price-To-Earnings vs Fair Ratio: SOU is good value based on its Price-To-Earnings Ratio (9.9x) compared to the estimated Fair Price-To-Earnings Ratio (17.9x).


Share Price vs Fair Value

What is the Fair Price of SOU when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SOU (CA$0.83) is trading below our estimate of fair value (CA$48.78)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.


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Future Growth

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

Future Growth Score

5/6

Future Growth Score 5/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


37.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SOU's forecast earnings growth (37.3% per year) is above the savings rate (1.6%).

Earnings vs Market: SOU's earnings (37.3% per year) are forecast to grow faster than the Canadian market (7.9% per year).

High Growth Earnings: SOU's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SOU's revenue (30.3% per year) is forecast to grow faster than the Canadian market (6.4% per year).

High Growth Revenue: SOU's revenue (30.3% 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 SOU's Return on Equity is forecast to be high in 3 years time


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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


16.2%

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 16.2% 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 (158.3%).


Return on Equity

High ROE: SOU's Return on Equity (40.4%) is considered outstanding.


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Financial Health

How is Southern Energy's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • 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 ($9.7M) do not cover its short term liabilities ($14.8M).

Long Term Liabilities: SOU's short term assets ($9.7M) do not cover its long term liabilities ($11.8M).


Debt to Equity History and Analysis

Debt Level: SOU's net debt to equity ratio (13.1%) 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 (38.6%).

Interest Coverage: SOU's interest payments on its debt are well covered by EBIT (8.2x coverage).


Balance Sheet


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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

  • Cash Flow 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.


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Management

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

3.7yrs

Average management tenure


CEO

Ian Atkinson

3.67yrs

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 ($USD146.19K) is about average for companies of similar size in the Canadian market ($USD186.79K).

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 (3.7 years average tenure).


Board Members

Experienced Board: SOU's board of directors are considered experienced (3.7 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 200.9%.


Top Shareholders

Company Information

Southern Energy Corp.'s employee growth, exchange listings and data sources


Key Information

  • Name: Southern Energy Corp.
  • Ticker: SOU
  • Exchange: TSXV
  • Founded: 2008
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Implied Market Cap: CA$112.804m
  • Shares outstanding: 135.91m
  • Website: https://southernenergycorp.com

Number of Employees


Location

  • Southern Energy Corp.
  • 333 – 7th Avenue SW
  • Suite 2400
  • Calgary
  • Alberta
  • T2P 2Z1
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/14 00:00
End of Day Share Price2022/08/12 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.