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SQZ

Serica EnergyAIM:SQZ Stock Report

Last Price

UK£2.40

Market Cap

UK£645.3m

7D

-1.4%

1Y

89.0%

Updated

19 Jan, 2022

Data

Company Financials +
SQZ fundamental analysis
Snowflake Score
Valuation1/6
Future Growth2/6
Past Performance0/6
Financial Health4/6
Dividends2/6

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

Energean

LSE:ENOG

UK£1.7b

Capricorn Energy

LSE:CNE

UK£933.6m

Tullow Oil

LSE:TLW

UK£859.2m

Seplat Energy

LSE:SEPL

UK£547.2m

Price History & Performance

Summary of all time highs, changes and price drops for Serica Energy
Historical stock prices
Current Share PriceUK£2.40
52 Week HighUK£2.69
52 Week LowUK£1.11
Beta0.84
1 Month Change-4.00%
3 Month Change3.23%
1 Year Change88.98%
3 Year Change77.12%
5 Year Change1,130.77%
Change since IPO134.15%

Recent News & Updates

Dec 09
Serica Energy plc (LON:SQZ) Shares Could Be 24% Below Their Intrinsic Value Estimate

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

SQZGB Oil and GasGB Market
7D-1.4%-5.0%-1.0%
1Y89.0%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

Is SQZ's price volatile compared to industry and market?
SQZ volatility
SQZ Average Weekly Movement7.2%
Oil and Gas Industry Average Movement7.5%
Market Average Movement5.0%
10% most volatile stocks in GB Market10.6%
10% least volatile stocks in GB Market2.5%

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

FoundedEmployeesCEOWebsite
2004153Mitch Flegghttps://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

How do Serica Energy's earnings and revenue compare to its market cap?
SQZ fundamental statistics
Market CapUK£645.34m
Earnings (TTM)-UK£3.29m
Revenue (TTM)UK£180.52m

3.6x

P/S Ratio

-196.4x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SQZ income statement (TTM)
RevenueUK£180.52m
Cost of RevenueUK£117.70m
Gross ProfitUK£62.82m
ExpensesUK£66.11m
Earnings-UK£3.29m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.012
Gross Margin34.80%
Net Profit Margin-1.82%
Debt/Equity Ratio0.0%

How did SQZ perform over the long term?

See historical performance and comparison

Dividends

1.5%

Current Dividend Yield

-286%

Payout Ratio

Valuation

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/19 21:12
End of Day Share Price2022/01/19 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.