DB:HKE

Stock Analysis Report

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Executive Summary

Husky Energy Inc., together with its subsidiaries, operates as an integrated energy company in the United States, Western and Atlantic Canada, and the Asia Pacific. More Details


Snowflake Analysis

Reasonable growth potential unattractive dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-8.5%

HKE

3.3%

DE Oil and Gas

-1.6%

DE Market


1 Year Return

-68.6%

HKE

93.2%

DE Oil and Gas

2.6%

DE Market

Return vs Industry: HKE underperformed the German Oil and Gas industry which returned 92.4% over the past year.

Return vs Market: HKE underperformed the German Market which returned 3.9% over the past year.


Shareholder returns

HKEIndustryMarket
7 Day-8.5%3.3%-1.6%
30 Day-11.5%2.4%-0.9%
90 Day-35.3%46.1%-1.1%
1 Year-66.7%-68.6%98.1%93.2%5.8%2.6%
3 Year-79.3%-81.5%103.1%83.9%2.8%-6.2%
5 Year-84.3%-86.2%241.6%191.6%23.8%6.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

0.21x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: HKE (€2.06) is trading above our estimate of fair value (€1.16)

Significantly Below Fair Value: HKE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: HKE is unprofitable, so we can't compare its PE Ratio to the XE Oil and Gas industry average.

PE vs Market: HKE is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: HKE is good value based on its PB Ratio (0.2x) compared to the DE Oil and Gas industry average (2.2x).


Next Steps

Future Growth

How is Husky Energy forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

98.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HKE is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.2%).

Earnings vs Market: HKE is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: HKE's is expected to become profitable in the next 3 years.

Revenue vs Market: HKE's revenue (8.9% per year) is forecast to grow faster than the German market (6.1% per year).

High Growth Revenue: HKE's revenue (8.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HKE's Return on Equity is forecast to be low in 3 years time (3.2%).


Next Steps

Past Performance

How has Husky Energy performed over the past 5 years?

18.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HKE is currently unprofitable.

Growing Profit Margin: HKE is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: HKE is unprofitable, but has reduced losses over the past 5 years at a rate of 18.3% per year.

Accelerating Growth: Unable to compare HKE's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: HKE is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-18%).


Return on Equity

High ROE: HKE has a negative Return on Equity (-26.29%), as it is currently unprofitable.


Next Steps

Financial Health

How is Husky Energy's financial position?


Financial Position Analysis

Short Term Liabilities: HKE's short term assets (CA$2.6B) do not cover its short term liabilities (CA$2.8B).

Long Term Liabilities: HKE's short term assets (CA$2.6B) do not cover its long term liabilities (CA$11.2B).


Debt to Equity History and Analysis

Debt Level: HKE's debt to equity ratio (37%) is considered satisfactory.

Reducing Debt: HKE's debt to equity ratio has increased from 28.5% to 37% over the past 5 years.


Balance Sheet


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: Insufficient data to determine if HKE has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if HKE has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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

1.61%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HKE's dividend (1.6%) is higher than the bottom 25% of dividend payers in the German market (1.18%).

High Dividend: HKE's dividend (1.6%) is low compared to the top 25% of dividend payers in the German market (3.71%).


Stability and Growth of Payments

Stable Dividend: HKE's dividend payments have been volatile in the past 10 years.

Growing Dividend: HKE's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: HKE is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: HKE's dividends in 3 years are forecast to be covered by earnings (56.4% payout ratio).


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Rob Peabody (63 yo)

3.83yrs

Tenure

CA$7,436,069

Compensation

Mr. Robert J. Peabody, also known as Rob, has been the Chief Executive Officer and President at Husky Energy Inc. since December 5, 2016 and served as its Chief Operating Officer since April, 2006 until De ...


CEO Compensation Analysis

Compensation vs Market: Rob's total compensation ($USD5.65M) is above average for companies of similar size in the German market ($USD1.54M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Robert Peabody
CEO, President & Director3.83yrsCA$7.44m0.031%
CA$ 612.9k
Jeffrey Hart
Chief Financial Officer2.5yrsCA$2.49m0.00077%
CA$ 15.5k
Robert Hinkel
Chief Operating Officer of Offshore9.83yrsCA$2.01m0.0043%
CA$ 85.7k
Jeffrey Rinker
Executive Vice President of Downstream & Midstream2.42yrsCA$1.38m0.00046%
CA$ 9.2k
Dan Cuthbertson
Director of Communications & Investor Relationsno datano datano data
James Girgulis
Senior VP20.17yrsno datano data
Janet Annesley
Senior Vice President of Corporate Affairs & Human Resources1.75yrsno data0.00040%
CA$ 8.0k
Darren Andruko
Chief Financial Officer of Asia Pacificno dataCA$860.71k0.00055%
CA$ 11.0k
David Gardner
Senior Vice President of Business Development5.83yrsno datano data
Gerald Alexander
Senior Vice President of Western Canada Operations1.75yrsno data0.00014%
CA$ 2.8k
P. Dahlin
Executive Vice President of Western Canada Upstream3.75yrsno datano data
Peter Ostenfeld-Rosenthal
Senior Vice President of Safetyno datano datano data

3.8yrs

Average Tenure

Experienced Management: HKE's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Peabody
CEO, President & Director3.83yrsCA$7.44m0.031%
CA$ 612.9k
Tun-Li Kwok
Independent Director20.17yrsCA$158.47k0.0021%
CA$ 41.1k
Eva Kwok
Independent Director20.17yrsCA$161.88k0.0010%
CA$ 20.5k
Frank Sixt
Non-Independent Director20.17yrsCA$156.88k0.0070%
CA$ 140.1k
Martin John Glynn
Independent Director20.17yrsCA$175.39k0.000050%
CA$ 1.0k
Tzar Kuoi Li
Co-Chair of the Board20.17yrsCA$151.88kno data
Poh Chan Koh
Non-Independent Director20.17yrsCA$151.88kno data
Neil McGee
Non-Independent Director7.92yrsCA$156.88k0.0074%
CA$ 147.9k
Wayne Shaw
Independent Director20.17yrsCA$172.78k0.0016%
CA$ 32.7k
Kin Ning Fok
Co-Chair of the Board20.17yrsCA$161.88k0.025%
CA$ 510.0k
Asim Ghosh
Independent Director11.42yrsCA$155.28k0.020%
CA$ 397.0k
Colin Russel
Independent Director12.67yrsCA$172.78kno data

20.2yrs

Average Tenure

70yo

Average Age

Experienced Board: HKE's board of directors are seasoned and experienced ( 20.2 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

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


Key Information

  • Name: Husky Energy Inc.
  • Ticker: HKE
  • Exchange: DB
  • Founded: 1938
  • Industry: Integrated Oil and Gas
  • Sector: Energy
  • Market Cap: CA$3.116b
  • Listing Market Cap: CA$2.007b
  • Shares outstanding: 1.01b
  • Website: https://www.huskyenergy.com

Number of Employees


Location

  • Husky Energy Inc.
  • 707 – 8th Avenue Southwest
  • Box 6525
  • Calgary
  • Alberta
  • T2P 3G7
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HSETSX (The Toronto Stock Exchange)YesCommon SharesCACADAug 2000
HKEDB (Deutsche Boerse AG)YesCommon SharesDEEURAug 2000
HUSK.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDAug 2000
HKEMUN (Boerse Muenchen)YesCommon SharesDEEURAug 2000
HSE.PRATSX (The Toronto Stock Exchange)CUM PFD SHS 1CACADMar 2011
HSE.PRCTSX (The Toronto Stock Exchange)RSET PFD-3 4.5CACADDec 2014
HSE.PRETSX (The Toronto Stock Exchange)PFD-5CACADMar 2015
HSE.PRGTSX (The Toronto Stock Exchange)PFD SER 7CACADJun 2015
HSE.PRBTSX (The Toronto Stock Exchange)CUM RED PFD SH 2CACADApr 2016

Biography

Husky Energy Inc., together with its subsidiaries, operates as an integrated energy company in the United States, Western and Atlantic Canada, and the Asia Pacific. It operates through two segments, Integr ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 22:04
End of Day Share Price2020/10/20 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.