LSE:HTG

Stock Analysis Report

Executive Summary

Hunting PLC, together with its subsidiaries, manufactures and distributes tools and equipment for the upstream energy industry worldwide.

Rewards

Trading at 18.3% below its fair value

Earnings are forecast to grow 1.99% per year

Earnings grew by 168.6% over the past year

Risk Analysis

Unstable dividend track record

Highly volatile share price over past 3 months

Significant insider selling over the past 3 months



Snowflake Analysis

Solid track record with excellent balance sheet.


Similar Companies

General Electric

NYSE:GE

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-10.7%

HTG

-7.1%

GB Energy Services

-3.0%

GB Market


1 Year Return

-40.7%

HTG

-26.1%

GB Energy Services

11.0%

GB Market

Return vs Industry: HTG underperformed the UK Energy Services industry which returned -25.8% over the past year.

Return vs Market: HTG underperformed the UK Market which returned 12.7% over the past year.


Shareholder returns

HTGIndustryMarket
7 Day-10.7%-7.1%-3.0%
30 Day-25.0%-7.1%-2.4%
90 Day-23.4%-2.9%3.9%
1 Year-39.8%-40.7%-22.6%-26.1%16.8%11.0%
3 Year-41.4%-42.5%-51.3%-56.7%20.0%4.7%
5 Year-19.3%-23.9%-29.6%-41.2%38.9%6.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

7.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HTG (£3.81) is trading below our estimate of fair value (£4.67)

Significantly Below Fair Value: HTG is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: HTG is good value based on its PE Ratio (9.4x) compared to the Energy Services industry average (10.3x).

PE vs Market: HTG is good value based on its PE Ratio (9.4x) compared to the UK market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: HTG is poor value based on its PEG Ratio (4.2x)


Price to Book Ratio

PB vs Industry: HTG is good value based on its PB Ratio (0.7x) compared to the GB Energy Services industry average (0.9x).


Next Steps

Future Growth

How is Hunting forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

2.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HTG's forecast earnings growth (2% per year) is above the savings rate (0.5%).

Earnings vs Market: HTG's earnings (2% per year) are forecast to grow slower than the UK market (12% per year).

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

Revenue vs Market: HTG's revenue (3.2% per year) is forecast to grow slower than the UK market (3.6% per year).

High Growth Revenue: HTG's revenue (3.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HTG's Return on Equity is forecast to be low in 3 years time (5.7%).


Next Steps

Past Performance

How has Hunting performed over the past 5 years?

23.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HTG has high quality earnings.

Growing Profit Margin: HTG's current net profit margins (8.8%) are higher than last year (3.8%).


Past Earnings Growth Analysis

Earnings Trend: HTG has become profitable over the past 5 years, growing earnings by 23.4% per year.

Accelerating Growth: HTG's earnings growth over the past year (168.6%) exceeds its 5-year average (23.4% per year).

Earnings vs Industry: HTG earnings growth over the past year (168.6%) exceeded the Energy Services industry 86.1%.


Return on Equity

High ROE: HTG's Return on Equity (7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Hunting's financial position?


Financial Position Analysis

Short Term Liabilities: HTG's short term assets ($687.5M) exceed its short term liabilities ($166.9M).

Long Term Liabilities: HTG's short term assets ($687.5M) exceed its long term liabilities ($52.5M).


Debt to Equity History and Analysis

Debt Level: HTG's debt to equity ratio (0.6%) is considered satisfactory.

Reducing Debt: HTG's debt to equity ratio has reduced from 22.4% to 0.6% over the past 5 years.

Debt Coverage: HTG's debt is well covered by operating cash flow (1520.3%).

Interest Coverage: Insufficient data to determine if HTG's interest payments on its debt are well covered by EBIT.


Balance Sheet

Inventory Level: HTG has a high level of physical assets or inventory.

Debt Coverage by Assets: HTG's debt is covered by short term assets (assets are 99.6x debt).


Next Steps

Dividend

What is Hunting's current dividend yield, its reliability and sustainability?

2.40%

Current Dividend Yield


Dividend Yield vs Market

company2.4%marketbottom25%1.9%markettop25%5.1%industryaverage6.5%forecastin3Years3.0%

Current dividend yield vs market & industry

Notable Dividend: HTG's dividend (2.02%) is higher than the bottom 25% of dividend payers in the UK market (1.83%).

High Dividend: HTG's dividend (2.02%) is low compared to the top 25% of dividend payers in the UK market (4.95%).


Stability and Growth of Payments

Stable Dividend: HTG's dividend payments have been volatile in the past 10 years.

Growing Dividend: HTG's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (19%), HTG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HTG's dividends in 3 years are forecast to be well covered by earnings (28.5% payout ratio).


Next Steps

Management

What is the CEO of Hunting's salary, the management and board of directors tenure and is there insider trading?

6.9yrs

Average management tenure


CEO

Jim Johnson 0

2.3yrs

Tenure

US$3,715,000

Compensation

Mr. Arthur James Johnson, also known as Jim, has been Chief Executive Officer and Director of Hunting plc since September 1, 2017. Mr. Johnson was the Group Chief Operating Officer of Hunting plc since 201 ...


CEO Compensation Analysis

Compensation vs Market: Jim's total compensation ($USD3.72M) is above average for companies of similar size in the UK market ($USD1.13M).

Compensation vs Earnings: Jim's compensation has increased by more than 20% in the past year.


Management Age and Tenure

6.9yrs

Average Tenure

Experienced Management: HTG's management team is seasoned and experienced (6.9 years average tenure).


Board Age and Tenure

2.3yrs

Average Tenure

62yo

Average Age

Experienced Board: HTG's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: HTG insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

BuyUK£70,53219 Dec 19
John Glick
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares18,373
Max PriceUK£3.84
SellUK£126,29321 Nov 19
Richard Hunting
EntityIndividual
Role
Member of the Board of Directors
Non-Independent & Non-Executive Director
Shares31,381
Max PriceUK£4.02
BuyUK£19,52016 Sep 19
Keith Lough
EntityIndividual
Role
Lead Director
Senior Independent Non-executive Director
Shares4,000
Max PriceUK£4.88
BuyUK£15,72006 Jun 19
Keith Lough
EntityIndividual
Role
Lead Director
Senior Independent Non-executive Director
Shares3,000
Max PriceUK£5.24
BuyUK£8,06006 Jun 19
Richard Hunting
EntityIndividual
Role
Member of the Board of Directors
Non-Independent & Non-Executive Director
Shares1,550
Max PriceUK£5.20
BuyUK£15,78006 Jun 19
Carol Chesney
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares3,000
Max PriceUK£5.26
BuyUK£160,04505 Mar 19
Arthur Johnson
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares29,232
Max PriceUK£5.48
BuyUK£64,69805 Mar 19
Peter Rose
EntityIndividual
Role
Member of the Board of Directors
Finance Director & Director
Shares11,817
Max PriceUK£5.48

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Peter Rose (61yo)

    Finance Director & Director

    • Tenure: 11.8yrs
    • Compensation: US$2.11m
  • Ben Willey

    Company Secretary

    • Tenure: 6.8yrs
  • Jim Johnson

    CEO & Director

    • Tenure: 2.3yrs
    • Compensation: US$3.72m
  • Rick Bradley

    Chief Operating Officer

    • Tenure: 3yrs
  • Sean O’Shea

    Managing Director of Middle East & Africa Operations

    • Tenure: 7yrs
  • Randy Walliser

    Managing Director of Canada Operations

    • Tenure: 0.9yrs
  • Jason Mai

    Managing Director of Hunting Titan

    • Tenure: 3yrs
  • Daniel Tan

    Managing Director of Asia Pacific Operations

    • Tenure: 9yrs
  • Scott George

    Managing Director of US Operations

    • Tenure: 9yrs
  • Bruce Ferguson

    Managing Director of Europe Operations

    • Tenure: 7yrs

Board Members

  • Jay Glick (66yo)

    Non-Executive Chairman

    • Tenure: 2.3yrs
    • Compensation: US$233.00k
  • Keith Lough (60yo)

    Senior Independent Non-executive Director

    • Tenure: 1.4yrs
    • Compensation: US$60.00k
  • Richard Hunting (71yo)

    Non-Independent & Non-Executive Director

    • Tenure: 31yrs
    • Compensation: US$80.00k
  • Carol Chesney (56yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: US$64.00k
  • Annell Bay (63yo)

    Independent Non-Executive Director

    • Tenure: 4.9yrs
    • Compensation: US$84.00k
  • Peter Rose (61yo)

    Finance Director & Director

    • Tenure: 11.8yrs
    • Compensation: US$2.11m
  • Jim Johnson

    CEO & Director

    • Tenure: 2.3yrs
    • Compensation: US$3.72m

Company Information

Hunting PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hunting PLC
  • Ticker: HTG
  • Exchange: LSE
  • Founded: 1874
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: UK£528.251m
  • Shares outstanding: 165.80m
  • Website: https://www.huntingplc.com

Number of Employees


Location

  • Hunting PLC
  • 5 Hanover Square
  • London
  • Greater London
  • W1S 1HQ
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HTGLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
HNTI.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
HTGLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992
0YTDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
HNTI.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDMar 2011

Biography

Hunting PLC, together with its subsidiaries, manufactures and distributes tools and equipment for the upstream energy industry worldwide. The company offers perforating guns and accessories; and connections, oil country tubular goods, drilling tools, subsea equipment, intervention tools, and electronics. It also provides deep hole drilling and precision machining services; and well intervention services. In addition, the company engages in the oil and gas exploration and production activities. Hunting PLC was founded in 1874 and 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 Analysis2020/01/27 20:45
End of Day Share Price2020/01/27 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.