| Snowflake Score | |
|---|---|
| Valuation | 1/6 |
| Future Growth | 2/6 |
| Past Performance | 0/6 |
| Financial Health | 4/6 |
| Dividends | 2/6 |
SQZ Stock Overview
Serica Energy plc, an upstream oil and gas company, engages in the identification, acquisition, exploration, and exploitation of oil and gas reserves.
Serica Energy Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | UK£2.40 |
| 52 Week High | UK£2.69 |
| 52 Week Low | UK£1.11 |
| Beta | 0.84 |
| 1 Month Change | -4.00% |
| 3 Month Change | 3.23% |
| 1 Year Change | 88.98% |
| 3 Year Change | 77.12% |
| 5 Year Change | 1,130.77% |
| Change since IPO | 134.15% |
Recent News & Updates
Serica Energy plc (LON:SQZ) Shares Could Be 24% Below Their Intrinsic Value Estimate
Today we will run through one way of estimating the intrinsic value of Serica Energy plc ( LON:SQZ ) by projecting its...
Shareholder Returns
| SQZ | GB Oil and Gas | GB Market | |
|---|---|---|---|
| 7D | -1.4% | -5.0% | -1.0% |
| 1Y | 89.0% | 16.1% | 8.3% |
Return vs Industry: SQZ exceeded the UK Oil and Gas industry which returned 16.1% over the past year.
Return vs Market: SQZ exceeded the UK Market which returned 8.3% over the past year.
Price Volatility
| SQZ volatility | |
|---|---|
| SQZ Average Weekly Movement | 7.2% |
| Oil and Gas Industry Average Movement | 7.5% |
| Market Average Movement | 5.0% |
| 10% most volatile stocks in GB Market | 10.6% |
| 10% least volatile stocks in GB Market | 2.5% |
Stable Share Price: SQZ is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: SQZ's weekly volatility (7%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 2004 | 153 | Mitch Flegg | https://www.serica-energy.com |
Serica Energy plc, an upstream oil and gas company, engages in the identification, acquisition, exploration, and exploitation of oil and gas reserves. The company holds 100% interest in the Keith oil fields; 98% interest in the Bruce gas fields; and 50% interest in the Rhum gas fields located in the Northern North Sea, as well as 18% non-operating interest in the Erskine field located in Central North Sea. It also operates the Columbus development, and Skerryvore and Ruvaal prospects located in Central North Sea; and North and South Eigg exploration prospects located in the Northern North Sea.
Serica Energy Fundamentals Summary
| SQZ fundamental statistics | |
|---|---|
| Market Cap | UK£645.34m |
| Earnings (TTM) | -UK£3.29m |
| Revenue (TTM) | UK£180.52m |
3.6x
P/S Ratio-196.4x
P/E RatioIs SQZ overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| SQZ income statement (TTM) | |
|---|---|
| Revenue | UK£180.52m |
| Cost of Revenue | UK£117.70m |
| Gross Profit | UK£62.82m |
| Expenses | UK£66.11m |
| Earnings | -UK£3.29m |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | -0.012 |
| Gross Margin | 34.80% |
| Net Profit Margin | -1.82% |
| Debt/Equity Ratio | 0.0% |
How did SQZ perform over the long term?
See historical performance and comparisonDividends
1.5%
Current Dividend Yield-286%
Payout RatioValuation
Is Serica Energy undervalued compared to its fair value and its price relative to the market?
19.7%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: SQZ (£2.4) is trading below our estimate of fair value (£2.99)
Significantly Below Fair Value: SQZ is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: SQZ is unprofitable, so we can't compare its PE Ratio to the UK Oil and Gas industry average.
PE vs Market: SQZ is unprofitable, so we can't compare its PE Ratio to the UK market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate SQZ's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: SQZ is overvalued based on its PB Ratio (3.3x) compared to the GB Oil and Gas industry average (1x).
Future Growth
How is Serica Energy forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
-13.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SQZ's earnings are forecast to decline over the next 3 years (-13% per year).
Earnings vs Market: SQZ is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: SQZ's is expected to become profitable in the next 3 years.
Revenue vs Market: SQZ's revenue is expected to decline over the next 3 years (-9.2% per year).
High Growth Revenue: SQZ's revenue is forecast to decline over the next 3 years (-9.2% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: SQZ's Return on Equity is forecast to be low in 3 years time (15.5%).
Past Performance
How has Serica Energy performed over the past 5 years?
17.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SQZ is currently unprofitable.
Growing Profit Margin: SQZ is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: SQZ is unprofitable, but has reduced losses over the past 5 years at a rate of 17.9% per year.
Accelerating Growth: Unable to compare SQZ's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: SQZ is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (63.2%).
Return on Equity
High ROE: SQZ has a negative Return on Equity (-1.7%), as it is currently unprofitable.
Financial Health
How is Serica Energy's financial position?
Financial Position Analysis
Short Term Liabilities: SQZ's short term assets (£139.5M) do not cover its short term liabilities (£141.9M).
Long Term Liabilities: SQZ's short term assets (£139.5M) do not cover its long term liabilities (£144.4M).
Debt to Equity History and Analysis
Debt Level: SQZ is debt free.
Reducing Debt: SQZ had no debt 5 years ago.
Debt Coverage: SQZ has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: SQZ has no debt, therefore coverage of interest payments is not a concern.
Balance Sheet
Dividend
What is Serica Energy current dividend yield, its reliability and sustainability?
1.46%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: SQZ's dividend (1.46%) is higher than the bottom 25% of dividend payers in the UK market (1.41%).
High Dividend: SQZ's dividend (1.46%) is low compared to the top 25% of dividend payers in the UK market (4.06%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, SQZ has been paying a dividend for less than 10 years.
Growing Dividend: SQZ's dividend payments have increased, but the company has only paid a dividend for 2 years.
Current Payout to Shareholders
Dividend Coverage: SQZ is paying a dividend but the company is unprofitable.
Future Payout to Shareholders
Future Dividend Coverage: SQZ's dividends in 3 years are forecast to be thoroughly covered by earnings (13.7% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.2yrs
Average management tenure
CEO
Mitch Flegg (61 yo)
4.17yrs
Tenure
UK£521,000
Compensation
Mr. Mitchell Robert Flegg, also known as Mitch, has been the Chief Executive Officer and Director of Serica Energy PLC since November 21, 2017. Mr Flegg has been the Chief Executive Officer and Executive D...
CEO Compensation Analysis
Compensation vs Market: Mitch's total compensation ($USD710.11K) is below average for companies of similar size in the UK market ($USD1.06M).
Compensation vs Earnings: Mitch's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: SQZ's management team is considered experienced (4.2 years average tenure).
Board Members
Experienced Board: SQZ's board of directors are considered experienced (3.2 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.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Serica Energy plc's employee growth, exchange listings and data sources
Key Information
- Name: Serica Energy plc
- Ticker: SQZ
- Exchange: AIM
- Founded: 2004
- Industry: Oil and Gas Exploration and Production
- Sector: Energy
- Implied Market Cap: UK£645.339m
- Shares outstanding: 268.89m
- Website: https://www.serica-energy.com
Number of Employees
Location
- Serica Energy plc
- H1 Building
- Hill of Rubislaw
- Aberdeen
- Aberdeenshire
- AB15 6BY
- United Kingdom
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/19 21:12 |
| End of Day Share Price | 2022/01/19 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
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.