Serica Energy
Market Cap
UK£322.6m
Last Updated
2021/03/03 20:14 UTC
Data Sources
Company Financials +
Executive Summary
Serica Energy plc, an upstream oil and gas company, engages in the identification, acquisition, exploration, and exploitation of oil and gas reserves. More Details
Rewards
Risk Analysis
Snowflake Analysis
Undervalued with excellent balance sheet.
Similar Companies
Share Price & News
How has Serica Energy's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: SQZ is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: SQZ's weekly volatility (5%) has been stable over the past year.
Market Performance
7 Day Return
0.8%
SQZ
2.1%
GB Oil and Gas
0.3%
GB Market
1 Year Return
22.9%
SQZ
-6.7%
GB Oil and Gas
0.8%
GB Market
Return vs Industry: SQZ exceeded the UK Oil and Gas industry which returned -6.8% over the past year.
Return vs Market: SQZ exceeded the UK Market which returned 1.1% over the past year.
Shareholder returns
| SQZ | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.8% | 2.1% | 0.3% |
| 30 Day | 2.9% | 12.3% | 3.2% |
| 90 Day | 7.9% | 16.5% | 4.5% |
| 1 Year | 26.1%22.9% | -1.6%-6.7% | 6.7%0.8% |
| 3 Year | 64.8%60.5% | 3.9%-10.3% | 11.5%-1.9% |
| 5 Year | 1,243.3%1,208.7% | 49.0%17.8% | 41.8%14.5% |
Long-Term Price Volatility Vs. Market
How volatile is Serica Energy's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
How Many Serica Energy plc (LON:SQZ) Shares Have Insiders Sold, In The Last Year?3 weeks ago | Simply Wall St
Is There More Growth In Store For Serica Energy's (LON:SQZ) Returns On Capital?1 month ago | Simply Wall St
An Intrinsic Calculation For Serica Energy plc (LON:SQZ) Suggests It's 40% UndervaluedValuation
Is Serica Energy undervalued compared to its fair value and its price relative to the market?
33.0%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: SQZ (£1.2) is trading below our estimate of fair value (£1.8)
Significantly Below Fair Value: SQZ is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: SQZ is good value based on its PE Ratio (6.6x) compared to the GB Oil and Gas industry average (15.1x).
PE vs Market: SQZ is good value based on its PE Ratio (6.6x) compared to the UK market (24.3x).
Price to Earnings Growth Ratio
PEG Ratio: SQZ is good value based on its PEG Ratio (0.3x)
Price to Book Ratio
PB vs Industry: SQZ is overvalued based on its PB Ratio (1.6x) compared to the GB Oil and Gas industry average (1x).
Next Steps
Future Growth
How is Serica Energy forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
23.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SQZ's forecast earnings growth (23.2% per year) is above the savings rate (1%).
Earnings vs Market: SQZ's earnings (23.2% per year) are forecast to grow faster than the UK market (22.9% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: SQZ's revenue (4.9% per year) is forecast to grow slower than the UK market (7.3% per year).
High Growth Revenue: SQZ's revenue (4.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if SQZ's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has Serica Energy performed over the past 5 years?
58.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SQZ has a large one-off gain of £54.8M impacting its June 30 2020 financial results.
Growing Profit Margin: SQZ's current net profit margins (30.9%) are lower than last year (48.8%).
Past Earnings Growth Analysis
Earnings Trend: SQZ has become profitable over the past 5 years, growing earnings by 58.5% per year.
Accelerating Growth: SQZ's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: SQZ had negative earnings growth (-47%) over the past year, making it difficult to compare to the Oil and Gas industry average (-47%).
Return on Equity
High ROE: SQZ's Return on Equity (22.8%) is considered high.
Next Steps
Financial Health
How is Serica Energy's financial position?
Financial Position Analysis
Short Term Liabilities: SQZ's short term assets (£133.6M) exceed its short term liabilities (£73.1M).
Long Term Liabilities: SQZ's short term assets (£133.6M) do not cover its long term liabilities (£174.6M).
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
Next Steps
Dividend
What is Serica Energy current dividend yield, its reliability and sustainability?
2.49%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: SQZ's dividend (2.49%) is higher than the bottom 25% of dividend payers in the UK market (1.47%).
High Dividend: SQZ's dividend (2.49%) is low compared to the top 25% of dividend payers in the UK market (4.48%).
Stability and Growth of Payments
Stable Dividend: Too early to tell whether SQZ's dividend payments have been stable as they only just started paying a dividend.
Growing Dividend: Too early to tell if SQZ's dividend payments are increasing as they only just started paying a dividend.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (16.4%), SQZ's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: SQZ's dividends in 3 years are forecast to be well covered by earnings (17.7% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.8yrs
Average management tenure
CEO
Mitch Flegg (60 yo)
3.33yrs
Tenure
UK£564,000
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 ($USD786.68K) is about average for companies of similar size in the UK market ($USD765.56K).
Compensation vs Earnings: Mitch's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 16.58yrs | UK£419.19k | 2.75% £ 8.9m | |
| CEO & Director | 3.33yrs | UK£564.00k | 0.069% £ 222.1k | |
| Vice President of Operations | 3.17yrs | no data | no data | |
| Group Treasurer | 5.75yrs | no data | no data | |
| Company Secretary | 5.75yrs | no data | no data | |
| Vice President of ESG & Business Innovation | no data | no data | no data | |
| Exploration Consultant of Indonesia | no data | no data | no data |
5.8yrs
Average Tenure
Experienced Management: SQZ's management team is seasoned and experienced (5.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 16.58yrs | UK£419.19k | 2.75% £ 8.9m | |
| CEO & Director | 3.33yrs | UK£564.00k | 0.069% £ 222.1k | |
| Independent Non-Executive Director | 0.92yr | no data | no data | |
| Senior Independent Director | no data | UK£50.00k | 0.12% £ 385.3k | |
| Independent Non-Executive Director | 13.67yrs | UK£50.00k | 0.10% £ 322.6k | |
| Independent Non-Executive Director | 2.33yrs | UK£50.00k | no data | |
| Independent Non-Executive Director | 2.33yrs | UK£50.00k | 0.024% £ 77.7k |
2.8yrs
Average Tenure
70.5yo
Average Age
Experienced Board: SQZ's board of directors are not considered experienced ( 2.8 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
Serica Energy plc's company bio, 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
- Market Cap: UK£322.611m
- Shares outstanding: 267.95m
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| SQZ | AIM (London Stock Exchange AIM Market) | Yes | Ordinary Shares | GB | GBP | Jan 2004 |
| A3P | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jan 2004 |
| SQZZ.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jan 2004 |
Biography
Serica Energy plc, an upstream oil and gas company, engages in the identification, acquisition, exploration, and exploitation of oil and gas reserves. Its primary focus is on the production and development...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/03/03 20:14 |
| End of Day Share Price | 2021/03/03 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2019/12/31 |
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.