WSE:SEN

Stock Analysis Report

Serinus Energy

Executive Summary

Serinus Energy plc, together with its subsidiaries, engages in the exploration and development of oil and gas properties.

Rewards

Trading at 91.4% below its fair value

Earnings are forecast to grow 43.43% per year

Earnings have grown 42.3% per year over the past 5 years

Risk Analysis

Shareholders have been diluted in the past year

Does not have a meaningful market cap (PLN121M)



Snowflake Analysis

Reasonable growth potential and slightly overvalued.


Similar Companies

Regal Petroleum

AIM:RPT

Share Price & News

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


Latest Share Price and Events

Stable Share Price: SEN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.4%

SEN

-0.04%

PL Oil and Gas

0.8%

PL Market


1 Year Return

-25.7%

SEN

-28.8%

PL Oil and Gas

-5.7%

PL Market

Return vs Industry: SEN exceeded the Polish Oil and Gas industry which returned -29.3% over the past year.

Return vs Market: SEN underperformed the Polish Market which returned -4.3% over the past year.


Shareholder returns

SENIndustryMarket
7 Day-2.4%-0.04%0.8%
30 Day16.9%2.6%3.6%
90 Day-16.3%-12.0%3.6%
1 Year-25.7%-25.7%-26.7%-28.8%-2.8%-5.7%
3 Year-63.9%-63.9%12.7%3.0%5.8%-1.9%
5 Year-83.9%-83.9%59.4%38.6%7.4%-6.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Serinus 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: SEN (PLN0.51) is trading below our estimate of fair value (PLN5.84)

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


Price To Earnings Ratio

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

PE vs Market: SEN is unprofitable, so we can't compare its PE Ratio to the Polish market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SEN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SEN is overvalued based on its PB Ratio (3.2x) compared to the PL Oil and Gas industry average (1x).


Next Steps

Future Growth

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

43.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SEN is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

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

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

Revenue vs Market: SEN's revenue (16.1% per year) is forecast to grow faster than the Polish market (5.1% per year).

High Growth Revenue: SEN's revenue (16.1% 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 SEN's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Serinus Energy performed over the past 5 years?

42.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SEN is currently unprofitable.

Growing Profit Margin: SEN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SEN is unprofitable, but has reduced losses over the past 5 years at a rate of 42.3% per year.

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

Earnings vs Industry: SEN is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-5.1%).


Return on Equity

High ROE: SEN has a negative Return on Equity (-83.01%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Serinus Energy's financial position?


Financial Position Analysis

Short Term Liabilities: SEN's short term assets ($13.6M) do not cover its short term liabilities ($33.4M).

Long Term Liabilities: SEN's short term assets ($13.6M) do not cover its long term liabilities ($73.5M).


Debt to Equity History and Analysis

Debt Level: SEN's debt to equity ratio (301.7%) is considered high.

Reducing Debt: SEN's debt to equity ratio has increased from 21.5% to 301.7% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: SEN's debt is not covered by short term assets (assets are 0.5x debt).


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 SEN has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: SEN is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -6.1% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%7.0%industryaverage5.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate SEN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate SEN's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SEN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SEN's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SEN's dividend in 3 years as they are not forecast to pay a notable one for the Polish market.


Next Steps

Management

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

2.7yrs

Average management tenure


CEO

Jeffrey Auld (52yo)

3.3yrs

Tenure

US$648,430

Compensation

Mr. Jeffrey David Auld, MBA, BA (Econ), has been the Chief Executive Officer and President of Serinus Energy Inc. since September 1, 2016. Mr. Auld served as General Director of Serinus Energy Inc. until O ...


CEO Compensation Analysis

Compensation vs Market: Jeffrey's total compensation ($USD648.43K) is above average for companies of similar size in the Polish market ($USD171.75K).

Compensation vs Earnings: Jeffrey's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

2.7yrs

Average Tenure

Experienced Management: SEN's management team is considered experienced (2.7 years average tenure).


Board Age and Tenure

2.3yrs

Average Tenure

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


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 30.2%.


Management Team

  • Jeffrey Auld (52yo)

    CEO, President & Non-Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$648.43k
  • Tim Elliott (57yo)

    • Tenure: 3.4yrs
    • Compensation: US$1.72m
  • Jock Graham

    • Tenure: 3.4yrs
    • Compensation: US$1.33m
  • Haithem Ben Hassen

    President of Serinus Energy Tunisia B.V.

    • Tenure: 2yrs
  • Alexandra Damascan

    President of Serinus Energy Romania SA

    • Tenure: 2yrs
  • Judicael Tinss

    Chief Operating Officer

    • Tenure: 0.6yrs

Board Members

  • Jeffrey Auld (52yo)

    CEO, President & Non-Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$648.43k
  • Jim Causgrove

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$31.90k
  • Eleanor Barker (65yo)

    Independent Director

    • Tenure: 2.7yrs
    • Compensation: US$37.97k
  • Dawid Jakubowicz

    Non-Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$13.95k
  • Lukasz Redziniak

    Chairman of the Board

    • Tenure: 1.8yrs
    • Compensation: US$23.25k

Company Information

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


Key Information

  • Name: Serinus Energy plc
  • Ticker: SEN
  • Exchange: WSE
  • Founded: 1987
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: zł118.963m
  • Shares outstanding: 238.88m
  • Website: https://www.serinusenergy.com

Number of Employees


Location

  • Serinus Energy plc
  • 28 Esplanade
  • St. Helier
  • JE1 8SB
  • Jersey

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SENWSE (Warsaw Stock Exchange)YesCommon SharesPLPLNMay 2010
SENXAIM (London Stock Exchange AIM Market)YesCommon SharesGBGBPMay 2010
SNUY.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDMay 2010

Biography

Serinus Energy plc, together with its subsidiaries, engages in the exploration and development of oil and gas properties. It owns a 100% deemed working interest in the Satu Mare concession covering an area of approximately 729,000 acres situated within the Pannonian Basin, Romania. The company also holds 45% working interest in the Sabria concession, which covers an area of approximately 26,195 gross acres; 100% working interest in the Chouech Es Saida concession covering an area of approximately 52,480 acres; 100% working interest in the Ech Chouech concession that covers an area of approximately 33,920 acres; 100% working interest in the Zinnia concession covering an area of approximately 17,920 acres; and 100% working interest in the Sanrhar concession, which covers an area of approximately 36,879 acres located in Tunisia. As of December 31, 2018, it had 10.8 million barrels of oil equivalent proved and probable reserves. The company was incorporated in 1987 and is headquartered in St. Helier, Jersey. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/18 21:16
End of Day Share Price2020/01/17 00:00
Earnings2019/09/30
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.