DB:8GB

Stock Analysis Report

Executive Summary

Gibson Energy Inc. engages in the gathering, storage, optimization, processing, and marketing of crude oil and refined products in North America.


Snowflake Analysis

Acceptable track record with mediocre balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 8GB has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.6%

8GB

-2.8%

DE Oil and Gas

-0.9%

DE Market


1 Year Return

37.8%

8GB

74.7%

DE Oil and Gas

12.8%

DE Market

Return vs Industry: 8GB underperformed the German Oil and Gas industry which returned 74.7% over the past year.

Return vs Market: 8GB exceeded the German Market which returned 12.8% over the past year.


Shareholder returns

8GBIndustryMarket
7 Day1.6%-2.8%-0.9%
30 Day4.8%-0.7%-0.4%
90 Day15.3%25.0%2.3%
1 Year45.7%37.8%79.7%74.7%16.3%12.8%
3 Year79.2%46.2%13.1%3.8%15.8%5.7%
5 Year48.3%4.5%310.6%247.0%19.7%3.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

37.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 8GB (€19.6) is trading below our estimate of fair value (€31.45)

Significantly Below Fair Value: 8GB is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 8GB is poor value based on its PE Ratio (21.9x) compared to the Oil and Gas industry average (11x).

PE vs Market: 8GB is poor value based on its PE Ratio (21.9x) compared to the German market (21x).


Price to Earnings Growth Ratio

PEG Ratio: 8GB is poor value based on its PEG Ratio (58.2x)


Price to Book Ratio

PB vs Industry: 8GB is overvalued based on its PB Ratio (5.3x) compared to the DE Oil and Gas industry average (1.4x).


Next Steps

Future Growth

How is Gibson Energy forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

0.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 8GB's forecast earnings growth (0.4% per year) is above the savings rate (-0.4%).

Earnings vs Market: 8GB's earnings (0.4% per year) are forecast to grow slower than the German market (13% per year).

High Growth Earnings: 8GB's earnings are forecast to grow, but not significantly.

Revenue vs Market: 8GB's revenue is expected to decline over the next 3 years (-2.5% per year).

High Growth Revenue: 8GB's revenue is forecast to decline over the next 3 years (-2.5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 8GB's Return on Equity is forecast to be low in 3 years time (19.6%).


Next Steps

Past Performance

How has Gibson Energy performed over the past 5 years?

25.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8GB has high quality earnings.

Growing Profit Margin: 8GB became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 8GB has become profitable over the past 5 years, growing earnings by 25.9% per year.

Accelerating Growth: 8GB has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 8GB has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-5.2%).


Return on Equity

High ROE: Whilst 8GB's Return on Equity (24.11%) is high, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Gibson Energy's financial position?


Financial Position Analysis

Short Term Liabilities: 8GB's short term assets (CA$1.0B) exceed its short term liabilities (CA$955.8M).

Long Term Liabilities: 8GB's short term assets (CA$1.0B) do not cover its long term liabilities (CA$1.6B).


Debt to Equity History and Analysis

Debt Level: 8GB's debt to equity ratio (192%) is considered high.

Reducing Debt: 8GB's debt to equity ratio has increased from 80.8% to 192% over the past 5 years.


Balance Sheet

Inventory Level: 8GB has a high level of physical assets or inventory.

Debt Coverage by Assets: 8GB's debt is not covered by short term assets (assets are 0.7x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 8GB is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: 8GB is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

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

4.69%

Current Dividend Yield


Dividend Yield vs Market

company4.7%marketbottom25%1.3%markettop25%3.6%industryaverage6.3%forecastin3Years4.8%

Current dividend yield vs market & industry

Notable Dividend: 8GB's dividend (4.69%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: 8GB's dividend (4.69%) is in the top 25% of dividend payers in the German market (3.63%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 8GB has been paying a dividend for less than 10 years.

Growing Dividend: 8GB's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (102.8%), 8GB's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 8GB's dividends in 3 years are not forecast to be well covered by earnings (136.5% payout ratio).


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

Steve Spaulding (53yo)

2.7yrs

Tenure

CA$5,056,302

Compensation

Mr. Steven R. Spaulding, also known as Steve, has been President, Chief Executive Officer and Director at Gibson Energy Inc. since June 19, 2017. Mr. Spaulding served as Senior Vice President of Processing ...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD3.83M) is above average for companies of similar size in the German market ($USD2.28M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Steven Spaulding
President2.7yrsCA$5.06m0.069% CA$2.0m
Sean Brown
Senior VP & CFO3.9yrsCA$1.98m0.041% CA$1.2m
Sean Wilson
Senior VP2.3yrsCA$1.52m0.048% CA$1.4m
Orin Atkins
Vice President of U.S. Business Development2.1yrsCA$1.91m0.013% CA$363.7k
Michael Lindsay
Senior Vice President of Operations & Engineering2.3yrsno data0.024% CA$691.1k
Mark Chyc-Cies
Vice President of Strategy0yrsno datano data
Tammi Price
Vice President of Finance and Corporate Affairs0yrsno datano data
Rodney Bantle
Senior Vice President of Truck Transportation10.8yrsno datano data
Warren Osatiuk
Senior Vice President of Refining6.1yrsno datano data
Sean Duffee
Senior VP & Chief Commercial Officer2.3yrsCA$1.13mno data

2.5yrs

Average Tenure

Experienced Management: 8GB's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Steven Spaulding
President2.7yrsCA$5.06m0.069% CA$2.0m
Douglas Bloom
Independent Director3.8yrsCA$150.00k0.027% CA$784.5k
Marshall McRae
Independent Director8.7yrsCA$160.00k0.0096% CA$274.3k
James Cleary
Independent Director6.8yrsCA$201.31k0.0044% CA$124.9k
John Festival
Independent Director1.8yrsCA$58.93k0.042% CA$1.2m
Mary Peters
Independent Director6yrsCA$195.16k0.00082% CA$23.4k
James Estey
Independent Chairman6.8yrsCA$225.00k0.13% CA$3.7m
Susan Jones
Independent Director1.2yrsCA$5.83k0.014% CA$393.7k

4.9yrs

Average Tenure

61.5yo

Average Age

Experienced Board: 8GB's board of directors are considered experienced (4.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Gibson Energy Inc.
  • Ticker: 8GB
  • Exchange: DB
  • Founded: 1950
  • Industry: Oil and Gas Storage and Transportation
  • Sector: Energy
  • Market Cap: CA$4.101b
  • Listing Market Cap: CA$2.857b
  • Shares outstanding: 145.68m
  • Website: https://www.gibsonenergy.com

Number of Employees


Location

  • Gibson Energy Inc.
  • 440-2nd Avenue SW
  • Suite 1700
  • Calgary
  • Alberta
  • T2P 5E9
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GEITSX (The Toronto Stock Exchange)YesCommon SharesCACADJun 2011
8GBDB (Deutsche Boerse AG)YesCommon SharesDEEURJun 2011
GBNX.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJun 2011

Biography

Gibson Energy Inc. engages in the gathering, storage, optimization, processing, and marketing of crude oil and refined products in North America. It operates through Infrastructure and Wholesale segments. The Infrastructure segment operates a network of infrastructure assets that include oil terminals, rail loading and unloading facilities, injection stations, gathering pipelines, and a crude oil processing facility, as well as procession, recovery, and disposal terminals. The Wholesale segment purchases, sells, stores, and optimizes hydrocarbon products, including crude oil, natural gas liquids, road asphalt, roofing flux, frac oils, light and heavy straight run distillates, combined vacuum gas oil, and an oil-based mud product. The company was formerly known as Gibson Energy Holdings ULC and changed its name to Gibson Energy Inc. in April 2011. Gibson Energy Inc. was founded in 1950 and is headquartered in Calgary, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 22:46
End of Day Share Price2020/02/21 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.