LSE:HTG

Stock Analysis Report

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Executive Summary

Hunting PLC, together with its subsidiaries, manufactures and distributes tools and components for the upstream oil and gas industry worldwide. More Details

Rewards

Trading at 17.8% below our estimate of its fair value

Earnings are forecast to grow 95.9% per year

Risk Analysis

No risks detected for HTG from our risk checks.


Snowflake Analysis

Flawless balance sheet with moderate growth potential.


Similar Companies

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

Volatility Over Time: HTG's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

6.4%

HTG

-0.7%

GB Energy Services

0.3%

GB Market


1 Year Return

-10.8%

HTG

-20.9%

GB Energy Services

0.8%

GB Market

Return vs Industry: HTG exceeded the UK Energy Services industry which returned -20.1% over the past year.

Return vs Market: HTG underperformed the UK Market which returned 1.1% over the past year.


Shareholder returns

HTGIndustryMarket
7 Day6.4%-0.7%0.3%
30 Day35.4%8.4%3.2%
90 Day36.8%2.2%4.5%
1 Year-8.4%-10.8%-20.7%-20.9%6.7%0.8%
3 Year-59.6%-61.4%-49.9%-53.9%11.5%-1.9%
5 Year-26.7%-30.5%-55.5%-62.5%41.8%14.5%

Long-Term 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?

17.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HTG (£2.7) is trading below our estimate of fair value (£3.29)

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 unprofitable, so we can't compare its PE Ratio to the XE Energy Services industry average.

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


Price to Book Ratio

PB vs Industry: HTG is good value based on its PB Ratio (0.6x) 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 8 analysts?

95.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: HTG's revenue (5% per year) is forecast to grow slower than the UK market (7.3% per year).

High Growth Revenue: HTG's revenue (5% 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 (1%).


Next Steps

Past Performance

How has Hunting performed over the past 5 years?

41.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HTG is currently unprofitable.

Growing Profit Margin: HTG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: HTG is unprofitable, but has reduced losses over the past 5 years at a rate of 41.9% per year.

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

Earnings vs Industry: HTG is unprofitable, making it difficult to compare its past year earnings growth to the Energy Services industry (-25.6%).


Return on Equity

High ROE: HTG has a negative Return on Equity (-19.75%), as it is currently unprofitable.


Next Steps

Financial Health

How is Hunting's financial position?


Financial Position Analysis

Short Term Liabilities: HTG's short term assets ($558.9M) exceed its short term liabilities ($91.5M).

Long Term Liabilities: HTG's short term assets ($558.9M) exceed its long term liabilities ($47.6M).


Debt to Equity History and Analysis

Debt Level: HTG's debt to equity ratio (0.5%) is considered satisfactory.

Reducing Debt: HTG's debt to equity ratio has reduced from 17.8% to 0.5% 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 HTG has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: HTG is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 14.3% per year.


Next Steps

Dividend

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

1.33%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HTG's dividend (1.33%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.47%).

High Dividend: HTG's dividend (1.33%) is low compared to the top 25% of dividend payers in the UK market (4.48%).


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: HTG is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: HTG's dividends in 3 years are forecast to be well covered by earnings (27.1% payout ratio).


Next Steps

Management

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

6.0yrs

Average management tenure


CEO

Jim Johnson (59 yo)

3.5yrs

Tenure

US$2,229,000

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 ($USD2.23M) is above average for companies of similar size in the UK market ($USD1.02M).

Compensation vs Earnings: Jim's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Arthur Johnson
CEO & Director3.5yrsUS$2.23m0.22%
$ 993.3k
Bruce Ferguson
Group Finance Director & Director0.92yrno data0.062%
$ 275.2k
Rick Bradley
Chief Operating Officer4.17yrsno datano data
Tarryn Riley
Head of Investor Relationsno datano datano data
Sean O'Shea
Managing Director of Middle East & Africa Operations8.17yrsno datano data
Randy Walliser
Managing Director of Canada Operations2.08yrsno datano data
Jason Mai
Managing Director of Hunting Titan4.17yrsno datano data
Daniel Tan
Managing Director of Asia Pacific Operations10.17yrsno datano data
Scott George
Managing Director of US Operations10.17yrsno datano data
Ben Willey
Company Secretary7.92yrsno datano data
Christopher Berris
Group Treasurer10.75yrsno datano data

6.0yrs

Average Tenure

54yo

Average Age

Experienced Management: HTG's management team is seasoned and experienced (6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Arthur Johnson
CEO & Director3.5yrsUS$2.23m0.22%
$ 993.3k
Bruce Ferguson
Group Finance Director & Director0.92yrno data0.062%
$ 275.2k
John Glick
Independent Non-Executive Chairman3.5yrsUS$235.00k0.046%
$ 205.1k
Keith Lough
Senior Independent Non-executive Director2.58yrsUS$89.00k0.012%
$ 51.3k
Richard Hunting
Non-Independent & Non-Executive Director32.17yrsUS$77.00k4.8%
$ 21.2m
Carol Chesney
Independent Non-Executive Director2.92yrsUS$89.00k0.0055%
$ 24.3k
Annell Bay
Independent Non-Executive Director6.08yrsUS$89.00k0.0082%
$ 36.3k

3.5yrs

Average Tenure

61yo

Average Age

Experienced Board: HTG's board of directors are considered experienced (3.5 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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£441.827m
  • Shares outstanding: 163.52m
  • 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 components for the upstream oil and gas industry worldwide. The company offers perforating guns and hardware, energetics ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/03 19:55
End of Day Share Price2021/03/03 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.