LSE:GENL

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Adequate balance sheet with reasonable growth potential.


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 is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: GENL's weekly volatility has decreased from 13% to 7% over the past year.


Market Performance


7 Day Return

2.8%

GENL

2.5%

GB Oil and Gas

-0.8%

GB Market


1 Year Return

2.8%

GENL

-12.4%

GB Oil and Gas

-3.7%

GB Market

Return vs Industry: GENL exceeded the UK Oil and Gas industry which returned -15% over the past year.

Return vs Market: GENL exceeded the UK Market which returned -2% over the past year.


Shareholder returns

GENLIndustryMarket
7 Day2.8%2.5%-0.8%
30 Day11.3%5.0%0.9%
90 Day22.0%12.1%6.6%
1 Year13.1%2.8%-7.7%-12.4%2.1%-3.7%
3 Year47.8%26.5%-0.5%-14.1%9.6%-3.5%
5 Year156.6%119.7%50.6%18.6%41.7%14.3%

Long-Term 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?

0.66x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: GENL (£1.71) is trading above our estimate of fair value (£1.24)

Significantly Below Fair Value: GENL is trading above our estimate of fair value.


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: GENL is good value based on its PB Ratio (0.7x) compared to the GB Oil and Gas industry average (1x).


Next Steps

Future Growth

How is Genel Energy forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

75.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GENL is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1%).

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

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

Revenue vs Market: GENL's revenue (17.8% per year) is forecast to grow faster than the UK market (7% per year).

High Growth Revenue: GENL's revenue (17.8% per year) is forecast to grow slower than 20% 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 (6.9%).


Next Steps

Past Performance

How has Genel Energy performed over the past 5 years?

40.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GENL is currently unprofitable.

Growing Profit Margin: GENL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GENL is unprofitable, but has reduced losses over the past 5 years at a rate of 40.2% per year.

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

Earnings vs Industry: GENL is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-55.7%).


Return on Equity

High ROE: GENL has a negative Return on Equity (-32.49%), as it is currently unprofitable.


Next Steps

Financial Health

How is Genel Energy's financial position?


Financial Position Analysis

Short Term Liabilities: GENL's short term assets ($456.7M) exceed its short term liabilities ($69.9M).

Long Term Liabilities: GENL's short term assets ($456.7M) do not cover its long term liabilities ($488.6M).


Debt to Equity History and Analysis

Debt Level: GENL's debt to equity ratio (29.3%) is considered satisfactory.

Reducing Debt: GENL's debt to equity ratio has increased from 18.4% to 29.3% over the past 5 years.


Balance Sheet


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: Whilst unprofitable GENL has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: GENL is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 57.9% per year.


Next Steps

Dividend

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

8.31%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GENL's dividend (8.31%) is higher than the bottom 25% of dividend payers in the UK market (1.49%).

High Dividend: GENL's dividend (8.31%) is in the top 25% of dividend payers in the UK market (4.52%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, GENL has been paying a dividend for less than 10 years.

Growing Dividend: GENL's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: GENL's dividends in 3 years are forecast to be well covered by earnings (49.3% payout ratio).


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

Bill Higgs (55 yo)

1.83yrs

Tenure

US$1,369,446

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 ($USD1.37M) is above average for companies of similar size in the UK market ($USD1.03M).

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


Leadership Team

NamePositionTenureCompensationOwnership
William Higgs
CEO & Director1.83yrsUS$1.37mno data
Esa Ikaheimonen
CFO & Director1.83yrsUS$999.93kno data
Paul Weir
Chief Operating Officer1.08yrsno datano data
Mike Adams
Technical Director & PDMR1.67yrsno 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
Berna Öztinaz
Chief Human Resources Officer0.67yrno datano data
Pars Kutay
Head of Government & Public Affairs10.17yrsno datano data
Luke Clements
Head of Finance & Planning1.25yrsno datano data
Vrijesh Gupta
Head of HSE & Risk Management1.67yrsno datano data

1.7yrs

Average Tenure

56yo

Average Age

Experienced Management: GENL's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
William Higgs
CEO & Director1.83yrsUS$1.37mno data
Esa Ikaheimonen
CFO & Director1.83yrsUS$999.93kno data
George Rose
Independent Non-Executive Director9.67yrsUS$123.17kno data
David McManus
Chairman1yrno datano data
Martin Gudgeon
Independent Non-Executive Director3.42yrsUS$107.28kno data
Timothy Bushell
Independent Non-Executive Director3.42yrsUS$120.52kno data
Gulsun Nazli Williams
Non-Executive Director9.25yrsUS$74.17kno data
Ümit Bilgin
Non-Executive Director3.92yrsUS$17.57kno data
Michael Fallon
Senior Independent Non-Executive Director & Deputy Chairman1yrno datano data
Hassan Gozal
Non-Executive Director1yrno datano data
Canan Ediboglu
Independent Non-Executive Director0.67yrno datano data

1.8yrs

Average Tenure

55.5yo

Average Age

Experienced Board: GENL's board of directors are not considered experienced ( 1.8 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

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


Key Information

  • Name: Genel Energy plc
  • Ticker: GENL
  • Exchange: LSE
  • Founded: NaN
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: UK£472.040m
  • 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 Explo...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/02/24 19:36
End of Day Share Price2021/02/24 00:00
Earnings2020/06/30
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.