DB:Q8Q

Stock Analysis Report

Executive Summary

QEP Resources, Inc. operates as a crude oil and natural gas exploration and production company in the United States.


Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

How has QEP Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: Q8Q's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-7.5%

Q8Q

-2.8%

DE Oil and Gas

-0.9%

DE Market


1 Year Return

-65.2%

Q8Q

74.7%

DE Oil and Gas

12.8%

DE Market

Return vs Industry: Q8Q underperformed the German Oil and Gas industry which returned 74.7% over the past year.

Return vs Market: Q8Q underperformed the German Market which returned 12.8% over the past year.


Shareholder returns

Q8QIndustryMarket
7 Day-7.5%-2.8%-0.9%
30 Day-11.5%-0.7%-0.4%
90 Day-16.3%25.0%2.3%
1 Year-64.8%-65.2%79.7%74.7%16.3%12.8%
3 Year-81.7%-81.9%13.1%3.8%15.8%5.7%
5 Year-86.8%-87.0%310.6%247.0%19.7%3.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is QEP Resources undervalued compared to its fair value and its price relative to the market?

37.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: Q8Q (€2.46) is trading below our estimate of fair value (€3.91)

Significantly Below Fair Value: Q8Q is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: Q8Q is unprofitable, so we can't compare its PE Ratio to the Oil and Gas industry average.

PE vs Market: Q8Q 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 Q8Q's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: Q8Q is good value based on its PB Ratio (0.2x) compared to the DE Oil and Gas industry average (1.4x).


Next Steps

Future Growth

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

28.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Q8Q is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.4%).

Earnings vs Market: Q8Q is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: Q8Q's is expected to become profitable in the next 3 years.

Revenue vs Market: Q8Q's revenue (4.8% per year) is forecast to grow slower than the German market (5.2% per year).

High Growth Revenue: Q8Q's revenue (4.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Q8Q's Return on Equity is forecast to be low in 3 years time (0.6%).


Next Steps

Past Performance

How has QEP Resources performed over the past 5 years?

-3.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: Q8Q is currently unprofitable.

Growing Profit Margin: Q8Q is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Q8Q is unprofitable, and losses have increased over the past 5 years at a rate of -3.6% per year.

Accelerating Growth: Unable to compare Q8Q's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: Q8Q is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-5.2%).


Return on Equity

High ROE: Q8Q has a negative Return on Equity (-22.25%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is QEP Resources's financial position?


Financial Position Analysis

Short Term Liabilities: Q8Q's short term assets ($350.1M) exceed its short term liabilities ($335.2M).

Long Term Liabilities: Q8Q's short term assets ($350.1M) do not cover its long term liabilities ($2.5B).


Debt to Equity History and Analysis

Debt Level: Q8Q's debt to equity ratio (75.1%) is considered high.

Reducing Debt: Q8Q's debt to equity ratio has reduced from 77.7% to 75.1% over the past 5 years.


Balance Sheet

Inventory Level: Q8Q has a high level of physical assets or inventory.

Debt Coverage by Assets: Q8Q's debt is not covered by short term assets (assets are 0.2x 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: Q8Q has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if Q8Q has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is QEP Resources's current dividend yield, its reliability and sustainability?

3.08%

Current Dividend Yield


Upcoming Dividend Payment

Purchase QEP Resources before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company3.1%marketbottom25%1.3%markettop25%3.6%industryaverage6.3%forecastin3Years3.1%

Current dividend yield vs market & industry

Notable Dividend: Q8Q's dividend (3.08%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: Q8Q's dividend (3.08%) is low compared to the top 25% of dividend payers in the German market (3.63%).


Stability and Growth of Payments

Stable Dividend: Q8Q's dividend payments have been volatile in the past 10 years.

Growing Dividend: Q8Q's dividend payments have not increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: Q8Q is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: Q8Q's dividends in 3 years are forecast to be thoroughly covered by earnings (10.9% payout ratio).


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Tim Cutt (59yo)

1.1yrs

Tenure

0

Mr. Timothy J. Cutt, also known as Tim, BS (Petroleum Engineering) has been the Chief Executive Officer, President and a Director at QEP Resources, Inc. since January 15, 2019. Mr. Cutt was the Chief Execu ...


Leadership Team

NamePositionTenureCompensationOwnership
Christopher Woosley
Executive VP8.1yrsUS$2.05m0.097% $554.6k
Timothy Cutt
CEO, President & Director1.1yrsno data0.096% $547.6k
William Buese
CFO & Treasurer0.08yrsno data0.048% $274.4k
Alice Ley
VP, Controller & Chief Accounting Officer5.9yrsno data0.045% $255.4k
Jamie Cutler
Chief Information Officer & VP9.1yrsno datano data
William Kent
Director of Investor Relations0yrsno datano data
R. Ruskauff
Vice President of Marketing0yrsno datano data
Lauren Baer
Vice President of Human Resources & Community Investments1.9yrsno datano data
Dane Allen
Corporate Secretary2.1yrsno datano data
Joseph Redman
Vice President of Energy0.5yrsno data0.094% $535.1k

2.0yrs

Average Tenure

47yo

Average Age

Experienced Management: Q8Q's management team is considered experienced (2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Timothy Cutt
CEO, President & Director1.1yrsno data0.096% $547.6k
Robert Heinemann
Independent Director6.1yrsUS$324.51k0.0030% $17.2k
David Trice
Independent Chairman of the Board1.1yrsUS$344.51k0.036% $203.5k
Joseph Jaggers
Independent Director0.3yrsno data0.0069% $39.3k
Phillips Baker
Independent Director9.7yrsUS$289.51k0.012% $69.2k
Barth Whitham
Independent Director0.3yrsno datano data
Myles Scoggins
Independent Director9.7yrsUS$303.01k0.0032% $18.4k
Julie Dill
Independent Director6.8yrsUS$289.51k0.0023% $13.2k
Michael Minarovic
Independent Director2.8yrsUS$289.51k0.025% $143.6k
Mary Shafer-Malicki
Independent Director2.6yrsUS$289.51kno data

2.7yrs

Average Tenure

60.5yo

Average Age

Experienced Board: Q8Q's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


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

QEP Resources, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: QEP Resources, Inc.
  • Ticker: Q8Q
  • Exchange: DB
  • Founded: 2010
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: US$618.259m
  • Listing Market Cap: US$569.169m
  • Shares outstanding: 237.79m
  • Website: https://www.qepres.com

Number of Employees


Location

  • QEP Resources, Inc.
  • 1050 17th Street
  • Suite 800
  • Denver
  • Colorado
  • 80265
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
QEPNYSE (New York Stock Exchange)YesCommon StockUSUSDJun 2010
Q8QDB (Deutsche Boerse AG)YesCommon StockDEEURJun 2010

Biography

QEP Resources, Inc. operates as a crude oil and natural gas exploration and production company in the United States. The company conducts exploration and production activities in the Permian Basin in Western Texas; and Williston Basin in North Dakota. As of December 31, 2018, it had estimated proved reserves of approximately 658.2 MMboe. The company sells its gas, oil, and natural gas liquids to various customers, including wholesale marketers, industrial users, local distribution companies, midstream service providers, and utility companies. QEP Resources, Inc. was incorporated in 2010 and is headquartered in Denver, Colorado. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 22:36
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.