OM:ENQ

Stock Analysis Report

Executive Summary

EnQuest PLC operates as an oil and gas development and production company, explores for, extracts, and produces hydrocarbons in the United Kingdom, North Sea, and Malaysia.

Snowflake

Fundamentals

Very undervalued with acceptable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-0.3%

ENQ

-1.8%

SE Oil and Gas

2.1%

SE Market


1 Year Return

-37.2%

ENQ

7.3%

SE Oil and Gas

12.1%

SE Market

Return vs Industry: ENQ underperformed the Swedish Oil and Gas industry which returned 7.3% over the past year.

Return vs Market: ENQ underperformed the Swedish Market which returned 12.1% over the past year.


Shareholder returns

ENQIndustryMarket
7 Day-0.3%-1.8%2.1%
30 Day-5.1%-8.1%1.6%
90 Day-14.0%-9.8%3.8%
1 Year-37.2%-37.2%8.7%7.3%16.8%12.1%
3 Year-13.1%-25.7%5.1%-3.3%32.3%12.4%
5 Year-69.3%-73.8%-42.1%-61.1%62.9%28.4%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: ENQ (SEK2.3) is trading below our estimate of fair value (SEK6.97)

Significantly Undervalued: ENQ is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ENQ is good value based on its PE Ratio (2.7x) compared to the Oil and Gas industry average (9.4x).

PE vs Market: ENQ is good value based on its PE Ratio (2.7x) compared to the Swedish market (16.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: ENQ is good value based on its PB Ratio (0.4x) compared to the SE Oil and Gas industry average (1.2x).


Next Steps

Future Growth

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

5.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ENQ's forecast earnings growth (5% per year) is above the savings rate (0.4%).

Earnings vs Market: ENQ's earnings (5% per year) are forecast to grow slower than the Swedish market (9.3% per year).

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

Revenue vs Market: ENQ's revenue is expected to decline over the next 3 years (-8.5% per year).

High Growth Revenue: ENQ's revenue is forecast to decline over the next 3 years (-8.5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: ENQ's Return on Equity is forecast to be low in 3 years time (11.5%).


Next Steps

Past Performance

How has EnQuest performed over the past 5 years?

34.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ENQ's earnings have grown significantly by 34.4% per year over the past 5 years.

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

Earnings vs Industry: ENQ has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (10%).


Return on Equity

High ROE: ENQ's Return on Equity (12.2%) is considered low.


Return on Assets

ROA vs Industry: ENQ has a higher Return on Assets than the Oil and Gas industry average last year.


Return on Capital Employed

ROCE Improving: ENQ has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is EnQuest's financial position?


Financial Position Analysis

Short Term Liabilities: ENQ's short term assets ($617.6M) do not cover its short term liabilities ($909.8M)

Long Term Liabilities: ENQ's short term assets (617.6M) do not cover its long term liabilities (3.6B)


Debt to Equity History and Analysis

Debt Level: ENQ's debt to equity ratio (172.4%) is considered high

Reducing Debt: ENQ's debt to equity ratio has increased from 61% to 172.4% over the past 5 years.

Debt Coverage: ENQ's debt is well covered by operating cash flow (47.8%).

Interest Coverage: ENQ's interest payments on its debt are not well covered by EBIT (2.3x coverage).


Balance Sheet

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

Debt Coverage by Assets: ENQ's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.8%markettop25%4.6%industryaverage6.0%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

Growing Dividend: Insufficient data to determine if ENQ'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 ENQ's dividend in 3 years as they are not forecast to pay a notable one for the Swedish market.


Next Steps

Management

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

3.4yrs

Average management tenure


CEO

Amjad Bseisu (55yo)

9.7yrs

Tenure

US$1,352,000

Compensation

Mr. Amjad Bseisu formed EnQuest PLC and has been its Chief Executive Officer since 2010. Mr. Bseisu served as the Chief Executive Officer of Petrofac Energy Developments International Limited. He served as ...


CEO Compensation Analysis

Compensation vs. Market: Amjad's total compensation ($USD1.74M) is about average for companies of similar size in the Swedish market ($USD516.69K).

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


Management Age and Tenure

3.4yrs

Average Tenure

55yo

Average Age

Experienced Management: ENQ's management team is considered experienced (3.4 years average tenure).


Board Age and Tenure

3.5yrs

Average Tenure

63yo

Average Age

Experienced Board: ENQ's board of directors are considered experienced (3.5 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$1,690,70211 Oct 19
Double A Ltd
EntityCompany
Shares763,835
Max PriceUS$2.21
BuyUS$887,50202 Oct 19
Double A Ltd
EntityCompany
Shares387,638
Max PriceUS$2.29
BuyUS$887,50202 Oct 19
Amjad Bseisu
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares387,638
Max PriceUS$2.29
BuyUS$2,069,86516 Sep 19
Amjad Bseisu
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares896,793
Max PriceUS$2.31
BuyUS$473,13509 Sep 19
Helmut Langanger
EntityIndividual
Role
Lead Director
Senior Independent Non-Executive Director
Shares200,000
Max PriceUS$2.37
BuyUS$2,355,94812 Jul 19
Amjad Bseisu
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares1,037,334
Max PriceUS$2.27
BuyUS$1,178,43009 Jul 19
Amjad Bseisu
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares519,793
Max PriceUS$2.27
BuyUS$2,057,07401 Jul 19
Amjad Bseisu
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares885,067
Max PriceUS$2.32
BuyUS$2,789,55818 Jun 19
Amjad Bseisu
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares1,222,575
Max PriceUS$2.28
BuyUS$954,29910 Jun 19
Amjad Bseisu
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares417,577
Max PriceUS$2.29
BuyUS$758,52003 Jun 19
Amjad Bseisu
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares320,686
Max PriceUS$2.37
BuyUS$1,203,42628 May 19
Amjad Bseisu
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares489,320
Max PriceUS$2.46
BuyUS$1,193,69713 May 19
Amjad Bseisu
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares483,688
Max PriceUS$2.47
BuyUS$218,60608 May 19
Helmut Langanger
EntityIndividual
Role
Lead Director
Senior Independent Non-Executive Director
Shares87,302
Max PriceUS$2.50
BuyUS$650,19408 Apr 19
Amjad Bseisu
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares274,317
Max PriceUS$2.37
BuyUS$65,50227 Mar 19
John Lennox
EntityIndividual
Shares28,732
Max PriceUS$2.28
BuyUS$3,415,48826 Nov 18
Double A Ltd
EntityCompany
Shares1,259,493
Max PriceUS$2.71
BuyUS$213,74401 Nov 18
Laurie Fitch
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares70,000
Max PriceUS$3.05
BuyUS$12,267,31024 Oct 18
Double A Ltd
EntityCompany
Shares5,000,000
Max PriceUS$2.45

Ownership Breakdown


Management Team

  • Amjad Bseisu (55yo)

    CEO & Executive Director

    • Tenure: 9.7yrs
    • Compensation: US$1.35m
  • Stefan Ricketts (52yo)

    General Counsel & Company Secretary

    • Tenure: 0yrs
  • Faysal Hamza (55yo)

    Managing Director of Corporate Development

    • Tenure: 3.4yrs
  • Jonathan Swinney

    CFO & Executive Director

    • Tenure: 9.6yrs
    • Compensation: US$974.00k
  • Bob Davenport

    Managing Director of North Sea

    • Tenure: 3.3yrs
  • Martin Mentiply

    Chief Petroleum Engineer

    • Tenure: 0yrs
  • John Penrose

    Managing Director of Malaysia

    • Tenure: 0yrs
  • Andy Duncanson

    Head of Major Projects & Kraken Area Manager

    • Tenure: 1.6yrs
  • Ian Wood

    Head of Communications & Investor Relations

    • Tenure: 0yrs
  • Michael Easton

    Human Resources Director

    • Tenure: 0yrs

Board Members

  • Martin Houston (62yo)

    Chairman

    • Tenure: 0yrs
  • Amjad Bseisu (55yo)

    CEO & Executive Director

    • Tenure: 9.7yrs
    • Compensation: US$1.35m
  • Helmut Langanger (69yo)

    Senior Independent Non-Executive Director

    • Tenure: 9.6yrs
    • Compensation: US$70.00k
  • Howard Paver (68yo)

    Non-Executive Director

    • Tenure: 0.4yrs
  • Jonathan Swinney

    CFO & Executive Director

    • Tenure: 9.6yrs
    • Compensation: US$974.00k
  • John Winterman

    Non-Executive Director

    • Tenure: 2.1yrs
    • Compensation: US$50.00k
  • Phil Holland (63yo)

    Non-Executive Director

    • Tenure: 4.2yrs
    • Compensation: US$60.00k
  • Carl Hughes

    Non-Executive Director

    • Tenure: 2.8yrs
    • Compensation: US$60.00k
  • Laurie Fitch

    Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: US$50.00k

Company Information

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


Key Information

  • Name: EnQuest PLC
  • Ticker: ENQ
  • Exchange: OM
  • Founded: 2010
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: UK£298.218m
  • Listing Market Cap: UK£3.715b
  • Shares outstanding: 1.62b
  • Website: https://www.enquest.com

Number of Employees


Location

  • EnQuest PLC
  • Cunard House
  • 5th Floor
  • London
  • Greater London
  • SW1Y 4LR
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ENQLSE (London Stock Exchange)YesOrdinary SharesGBGBPApr 2010
ENQOM (OMX Nordic Exchange Stockholm)YesOrdinary SharesSESEKApr 2010
3EQDB (Deutsche Boerse AG)YesOrdinary SharesDEEURApr 2010
ENQU.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDApr 2010
ENQSBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBSEKApr 2010
ENQLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPApr 2010

Biography

EnQuest PLC operates as an oil and gas development and production company, explores for, extracts, and produces hydrocarbons in the United Kingdom, North Sea, and Malaysia. The company operates through two ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 21:09
End of Day Share Price2019/10/18 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.