DB:2JA

Stock Analysis Report

Jagged Peak Energy

Executive Summary

Jagged Peak Energy Inc. operates as an independent oil and natural gas company.

Rewards

Trading at 73.3% below its fair value

Earnings are forecast to grow 38.79% per year

Became profitable this year

Risk Analysis

High level of non-cash earnings

Has a high level of debt



Snowflake Analysis

Undervalued with reasonable growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 2JA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

5.7%

2JA

3.3%

DE Oil and Gas

-0.3%

DE Market


1 Year Return

-32.7%

2JA

72.4%

DE Oil and Gas

14.9%

DE Market

Return vs Industry: 2JA underperformed the German Oil and Gas industry which returned 72.4% over the past year.

Return vs Market: 2JA underperformed the German Market which returned 14.9% over the past year.


Shareholder returns

2JAIndustryMarket
7 Day5.7%3.3%-0.3%
30 Day-7.2%12.4%-0.1%
90 Day-8.2%30.6%7.1%
1 Year-32.7%-32.7%78.4%72.4%18.5%14.9%
3 Yearn/a67.2%51.2%20.0%9.5%
5 Yearn/a282.5%218.5%38.0%19.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Jagged Peak 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

Below Fair Value: 2JA (€6.45) is trading below our estimate of fair value (€24.2)

Significantly Below Fair Value: 2JA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 2JA is good value based on its PE Ratio (9.5x) compared to the Oil and Gas industry average (10.4x).

PE vs Market: 2JA is good value based on its PE Ratio (9.5x) compared to the German market (20.4x).


Price to Earnings Growth Ratio

PEG Ratio: 2JA is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: 2JA is overvalued based on its PB Ratio (1.7x) compared to the DE Oil and Gas industry average (1.1x).


Next Steps

Future Growth

How is Jagged Peak Energy forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

38.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2JA's forecast earnings growth (38.8% per year) is above the savings rate (-0.4%).

Earnings vs Market: 2JA's earnings (38.8% per year) are forecast to grow faster than the German market (13% per year).

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

Revenue vs Market: 2JA's revenue (16.6% per year) is forecast to grow faster than the German market (4.9% per year).

High Growth Revenue: 2JA's revenue (16.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 2JA's Return on Equity is forecast to be low in 3 years time (13.1%).


Next Steps

Past Performance

How has Jagged Peak Energy performed over the past 5 years?

56.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2JA has a high level of non-cash earnings.

Growing Profit Margin: 2JA became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 2JA's earnings have grown significantly by 56.5% per year over the past 5 years.

Accelerating Growth: 2JA has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 2JA has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-2.9%).


Return on Equity

High ROE: 2JA's Return on Equity (17.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Jagged Peak Energy's financial position?


Financial Position Analysis

Short Term Liabilities: 2JA's short term assets ($123.8M) do not cover its short term liabilities ($224.4M).

Long Term Liabilities: 2JA's short term assets ($123.8M) do not cover its long term liabilities ($846.5M).


Debt to Equity History and Analysis

Debt Level: 2JA's debt to equity ratio (75.4%) is considered high.

Reducing Debt: Insufficient data to determine if 2JA's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 2JA's debt is well covered by operating cash flow (54.3%).

Interest Coverage: 2JA's interest payments on its debt are well covered by EBIT (7x coverage).


Balance Sheet

Inventory Level: 2JA has a high level of physical assets or inventory.

Debt Coverage by Assets: 2JA's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.6%industryaverage5.9%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 2JA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 2JA'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 2JA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 2JA'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 2JA's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Jim Kleckner (61yo)

1.8yrs

Tenure

US$8,527,052

Compensation

Mr. James J. Kleckner, also known as Jim, serves as President and Chief Executive Officer of Jagged Peak Energy Inc. since March 31, 2018 and has been its Director since January 2017. He served as an Execu ...


CEO Compensation Analysis

Compensation vs Market: Jim's total compensation ($USD8.53M) is above average for companies of similar size in the German market ($USD1.50M).

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


Management Age and Tenure

1.8yrs

Average Tenure

61yo

Average Age

Experienced Management: 2JA's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

2.9yrs

Average Tenure

59.5yo

Average Age

Experienced Board: 2JA's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


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

  • Bob Howard (64yo)

    Executive VP & CFO

    • Tenure: 3.3yrs
    • Compensation: US$3.16m
  • Mark Petry (64yo)

    Executive Vice President of Land & Acquisitions

    • Tenure: 3.1yrs
    • Compensation: US$1.56m
  • Jim Kleckner (61yo)

    President

    • Tenure: 1.8yrs
    • Compensation: US$8.53m
  • Christopher Humber (46yo)

    Executive VP

    • Tenure: 3.1yrs
    • Compensation: US$1.98m
  • Craig Walters (47yo)

    Executive VP & COO

    • Tenure: 1.8yrs
    • Compensation: US$4.27m
  • James Edwards

    Director of Investor Relations

    • Tenure: 0yrs
  • Shonn Stahlecker

    Controller

    • Tenure: 0yrs
  • David Eckelberger

    Vice President of Land

    • Tenure: 1.7yrs
  • Megan Morris

    Vice President of Human Resources

    • Tenure: 0.8yrs

Board Members

  • Roger Jarvis (65yo)

    Independent Director

    • Tenure: 2.9yrs
    • Compensation: US$233.50k
  • Chuck Davidson (69yo)

    Chairman of the Board

    • Tenure: 1.8yrs
  • S. Wil VanLoh (48yo)

    Director

    • Tenure: 3.3yrs
  • Mike Linn (67yo)

    Independent Director

    • Tenure: 2.9yrs
    • Compensation: US$216.00k
  • J.R. Sult (60yo)

    Independent Director

    • Tenure: 2.9yrs
    • Compensation: US$236.00k
  • Adrianna Ma (45yo)

    Director

    • Tenure: 0.4yrs
  • Blake Webster (42yo)

    Director

    • Tenure: 3.3yrs
  • D Verma (41yo)

    Director

    • Tenure: 2.9yrs
  • Jim Kleckner (61yo)

    President

    • Tenure: 1.8yrs
    • Compensation: US$8.53m
  • Janeen Judah (59yo)

    Director

    • Tenure: 0.7yrs

Company Information

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


Key Information

  • Name: Jagged Peak Energy Inc.
  • Ticker: 2JA
  • Exchange: DB
  • Founded: 2013
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: US$1.432b
  • Listing Market Cap: US$1.291b
  • Shares outstanding: 213.42m
  • Website: https://www.jaggedpeakenergy.com

Number of Employees


Location

  • Jagged Peak Energy Inc.
  • 1401 Lawrence Street
  • Suite 1800
  • Denver
  • Colorado
  • 80202
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
JAGNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 2017
2JADB (Deutsche Boerse AG)YesCommon StockDEEURJan 2017

Biography

Jagged Peak Energy Inc. operates as an independent oil and natural gas company. The company focuses on the acquisition and development of unconventional oil and associated liquids-rich natural gas reserves ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/08 22:09
End of Day Share Price2019/12/06 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.