LSE:GENL

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Genel Energy plc, through its subsidiaries, engages in the oil and gas exploration and production activities.


Snowflake Analysis

Very undervalued with excellent balance sheet and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

6.5%

GENL

-2.0%

GB Oil and Gas

-0.8%

GB Market


1 Year Return

-27.8%

GENL

-37.7%

GB Oil and Gas

-15.5%

GB Market

Return vs Industry: GENL exceeded the UK Oil and Gas industry which returned -37.8% over the past year.

Return vs Market: GENL underperformed the UK Market which returned -15.4% over the past year.


Shareholder returns

GENLIndustryMarket
7 Day6.5%-2.0%-0.8%
30 Day20.5%-7.3%0.3%
90 Day18.5%-4.2%5.6%
1 Year-21.2%-27.8%-33.9%-37.7%-11.5%-15.5%
3 Year79.4%58.1%-4.3%-17.5%-4.6%-16.3%
5 Year-62.9%-67.3%6.6%-15.3%12.5%-12.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GENL (£1.47) is trading below our estimate of fair value (£4.28)

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


Price To Earnings Ratio

PE vs Industry: GENL is good value based on its PE Ratio (4.9x) compared to the GB Oil and Gas industry average (6.4x).

PE vs Market: GENL is good value based on its PE Ratio (4.9x) compared to the UK market (15.2x).


Price to Earnings Growth Ratio

PEG Ratio: GENL is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: GENL is good value based on its PB Ratio (0.4x) compared to the GB Oil and Gas industry average (0.5x).


Next Steps

Future Growth

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

9.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GENL's forecast earnings growth (9% per year) is above the savings rate (1.2%).

Earnings vs Market: GENL's earnings (9% per year) are forecast to grow slower than the UK market (21.5% per year).

High Growth Earnings: GENL's earnings are forecast to grow, but not significantly.

Revenue vs Market: GENL's revenue is expected to decline over the next 3 years (-3.7% per year).

High Growth Revenue: GENL's revenue is forecast to decline over the next 3 years (-3.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GENL's Return on Equity is forecast to be low in 3 years time (8.4%).


Next Steps

Past Performance

How has Genel Energy performed over the past 5 years?

31.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GENL has high quality earnings.

Growing Profit Margin: GENL became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: GENL has become profitable over the past 5 years, growing earnings by 31.3% per year.

Accelerating Growth: GENL has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: GENL has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-7.6%).


Return on Equity

High ROE: GENL's Return on Equity (7.5%) is considered low.


Next Steps

Financial Health

How is Genel Energy's financial position?


Financial Position Analysis

Short Term Liabilities: GENL's short term assets ($551.1M) exceed its short term liabilities ($96.7M).

Long Term Liabilities: GENL's short term assets ($551.1M) exceed its long term liabilities ($480.8M).


Debt to Equity History and Analysis

Debt Level: GENL's debt to equity ratio (21.5%) is considered satisfactory.

Reducing Debt: GENL's debt to equity ratio has increased from 13.2% to 21.5% over the past 5 years.

Debt Coverage: GENL's debt is well covered by operating cash flow (91.6%).

Interest Coverage: GENL's interest payments on its debt are well covered by EBIT (5.5x coverage).


Balance Sheet


Next Steps

Dividend

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

10.76%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GENL's dividend (10.76%) is higher than the bottom 25% of dividend payers in the UK market (1.96%).

High Dividend: GENL's dividend (10.76%) is in the top 25% of dividend payers in the UK market (5.5%)


Stability and Growth of Payments

Stable Dividend: Too early to tell whether GENL's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if GENL's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (39.7%), GENL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GENL's dividends in 3 years are forecast to be well covered by earnings (31.2% payout ratio).


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Bill Higgs (55yo)

1.25yrs

Tenure

US$1,034,000

Compensation

Dr. William George Higgs, also known as Bill, has been the Chief Executive Officer and Director of Genel Energy plc since April 7, 2019. He had been a Non-Executive Director at San Leon Energy Plc since Ma ...


CEO Compensation Analysis

Compensation vs Market: Bill's total compensation ($USD1.31M) is above average for companies of similar size in the UK market ($USD917.95K).

Compensation vs Earnings: Insufficient data to compare Bill's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
William Higgs
CEO & Director1.25yrsUS$1.03mno data
Esa Ikaheimonen
CFO & Director1.25yrsUS$755.00kno data
Murat Özgül
Special Adviser to the Board1.25yrsUS$264.00k0.22% $893.9k
Paul Weir
Chief Operating Officer0.50yrno datano data
Mike Adams
Technical Director & PDMR1.08yrsno datano data
Phil Corbett
Head of Investor Relationsno datano datano data
Stephen Mitchell
General Counsel & Company Secretaryno datano datano data
Andrew Benbow
Head of Communicationsno datano datano data
Gozde Tutanc
Head of Human Resources4.42yrsno datano data
Pars Kutay
Head of Government & Public Affairs9.58yrsno datano data

1.3yrs

Average Tenure

55.5yo

Average Age

Experienced Management: GENL's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
William Higgs
CEO & Director1.25yrsUS$1.03mno data
Esa Ikaheimonen
CFO & Director1.25yrsUS$755.00kno data
George Rose
Independent Non-Executive Director9.08yrsUS$93.00kno data
David McManus
Chairman0.42yrno datano data
Martin Gudgeon
Independent Non-Executive Director2.83yrsUS$81.00kno data
Timothy Bushell
Independent Non-Executive Director2.83yrsUS$91.00kno data
Gulsun Nazli Williams
Non-Executive Director8.67yrsUS$56.00kno data
Ümit Bilgin
Non-Executive Director3.33yrsUS$13.00kno data
Michael Fallon
Senior Independent Non-Executive Director & Deputy Chairman0.42yrno datano data
Hassan Gozal
Non-Executive Director0.42yrno datano data

2.0yrs

Average Tenure

55.5yo

Average Age

Experienced Board: GENL's board of directors are not considered experienced ( 2 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

Genel Energy plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Genel Energy plc
  • Ticker: GENL
  • Exchange: LSE
  • Founded:
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: UK£408.176m
  • Shares outstanding: 277.67m
  • Website: https://www.genelenergy.com

Number of Employees


Location

  • Genel Energy plc
  • 36 Broadway
  • Fifth Floor
  • London
  • Greater London
  • SW1H 0BH
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GENLLSE (London Stock Exchange)YesVoting Ordinary SharesGBGBPNov 2011
GEGY.FOTCPK (Pink Sheets LLC)YesVoting Ordinary SharesUSUSDNov 2011
GENLLBATS-CHIXE (BATS 'Chi-X Europe')YesVoting Ordinary SharesGBGBPNov 2011
4VLDB (Deutsche Boerse AG)YesVoting Ordinary SharesDEEURNov 2011
GEGY.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDApr 2014

Biography

Genel Energy plc, through its subsidiaries, engages in the oil and gas exploration and production activities. It operates through three segments: Oil Producing Assets, Miran and Bina Bawi Assets, and Exploration Assets. The company holds interests in the Taq Taq and Tawke oil producing fields, as well as Miran and Bina Bawi oil and gas assets in the Kurdistan Region of Iraq; and exploration assets in Somaliland and Morocco. It has proven and proven plus probable net working interest reserves of 99 and 150 million barrels of oil equivalent. Genel Energy plc is headquartered in London, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/11 20:57
End of Day Share Price2020/07/10 00:00
Earnings2019/12/31
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.