Adams Natural Resources Fund (NYSE:PEO) - Share price, News & Analysis

PEO fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	3/6
Financial Health	5/6
Dividends	3/6

PEO Stock Overview

Adams Natural Resources Fund, Inc. is a publicly owned investment manager.

Rewards

Price-To-Earnings ratio (3.5x) is below the US market (14.9x)

Became profitable this year

Risk Analysis

Unstable dividend track record

Large one-off items impacting financial results

Shareholders have been diluted in the past year

Adams Natural Resources Fund Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Adams Natural Resources Fund
Historical stock prices
Current Share Price	US$22.37
52 Week High	US$22.60
52 Week Low	US$14.07
Beta	1.32
1 Month Change	7.65%
3 Month Change	19.69%
1 Year Change	41.67%
3 Year Change	44.05%
5 Year Change	19.24%
Change since IPO	22.02%

Recent News & Updates

Feb 25

PEO: A Good Choice For Energy Bulls And Income Investors

PEO is a non-leveraged long-only equity CEF that invests across energy and materials sector stocks. The fund is benefiting from strong momentum in energy prices with a portfolio tilt towards leading oil producers. The fund maintains a distribution policy targeting a 6% yield. We are bullish on PEO which captures several of the positive high-level tailwinds for natural resource stocks.

Shareholder Returns

	PEO	US Capital Markets	US Market
7D	4.1%	-0.9%	-4.0%
1Y	41.7%	-14.0%	-13.2%

Return vs Industry: PEO exceeded the US Capital Markets industry which returned -14% over the past year.

Return vs Market: PEO exceeded the US Market which returned -13.2% over the past year.

Price Volatility

Is PEO's price volatile compared to industry and market?
PEO volatility
PEO Average Weekly Movement	4.6%
Capital Markets Industry Average Movement	0.5%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

Stable Share Price: PEO is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: PEO's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1929	n/a	Mark Stoeckle	https://www.adamsfunds.com

Adams Natural Resources Fund, Inc. is a publicly owned investment manager. The firm invests in the public equity markets across the globe. It invests in stocks of companies of all market capitalizations operating in the energy and natural resources sector including oil companies, exploration and production, utilities, services, and basic materials sectors.

Adams Natural Resources Fund Fundamentals Summary

How do Adams Natural Resources Fund's earnings and revenue compare to its market cap?
PEO fundamental statistics
Market Cap	US$547.72m
Earnings (TTM)	US$154.35m
Revenue (TTM)	US$16.84m

3.5x

P/E Ratio

32.5x

P/S Ratio

Is PEO overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
PEO income statement (TTM)
Revenue	US$16.84m
Cost of Revenue	US$0
Gross Profit	US$16.84m
Other Expenses	-US$137.51m
Earnings	US$154.35m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	6.30
Gross Margin	100.00%
Net Profit Margin	916.36%
Debt/Equity Ratio	0.0%

How did PEO perform over the long term?

See historical performance and comparison

Dividends

4.1%

Current Dividend Yield

14%

Payout Ratio

Valuation

Is Adams Natural Resources Fund undervalued compared to its fair value and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

3.55x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate PEO's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate PEO's fair value for valuation analysis.

Price To Earnings Ratio

PE vs Industry: PEO is good value based on its Price-To-Earnings Ratio (3.5x) compared to the US Capital Markets industry average (29.6x).

PE vs Market: PEO is good value based on its Price-To-Earnings Ratio (3.5x) compared to the US market (14.9x).

Price to Earnings Growth Ratio

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

Price to Book Ratio

PB vs Industry: PEO is overvalued based on its Price-To-Book Ratio (1.2x) compared to the US Capital Markets industry average (-18.8x).

Future Growth

How is Adams Natural Resources Fund forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

9.7%

Forecasted Diversified Financials industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Adams Natural Resources Fund has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Past Performance

How has Adams Natural Resources Fund performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-3.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PEO has a large one-off gain of $141.1M impacting its December 31 2021 financial results.

Growing Profit Margin: PEO became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: PEO has become profitable over the past 5 years, growing earnings by -3.1% per year.

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

Earnings vs Industry: PEO has become profitable in the last year, making it difficult to compare its past year earnings growth to the Capital Markets industry (96.7%).

Return on Equity

High ROE: PEO's Return on Equity (32.8%) is considered high.

Financial Health

How is Adams Natural Resources Fund's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: PEO's short term assets ($2.2M) do not cover its short term liabilities ($4.8M).

Long Term Liabilities: PEO's short term assets ($2.2M) exceed its long term liabilities ($1.2M).

Debt to Equity History and Analysis

Debt Level: PEO is debt free.

Reducing Debt: PEO has no debt compared to 5 years ago when its debt to equity ratio was 0%.

Debt Coverage: PEO has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: PEO has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

Dividend

What is Adams Natural Resources Fund current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

4.07%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: PEO's dividend (4.07%) is higher than the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: PEO's dividend (4.07%) is in the top 25% of dividend payers in the US market (4.06%)

Stability and Growth of Payments

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

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

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (14.4%), PEO's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Insufficient data to calculate cash payout ratio to determine if its dividend payments are covered by cash flows.

Discover strong dividend paying companies

Management

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

8.2yrs

Average management tenure

CEO

Mark Stoeckle (64 yo)

9.25yrs

Tenure

US$368,140

Compensation

Mr. Mark E. Stoeckle has been the President, Chief Executive Officer and Director of Adams Diversified Equity Fund, Inc. since January 21, 2015, February 11, 2013 and February 14, 2013 respectively and ser...

CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD368.14K) is below average for companies of similar size in the US market ($USD2.69M).

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

Leadership Team

Experienced Management: PEO's management team is seasoned and experienced (8.2 years average tenure).

Board Members

Experienced Board: PEO's board of directors are considered experienced (9.3 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 been diluted in the past year, with total shares outstanding growing by 2.8%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/25 00:00
End of Day Share Price	2022/05/25 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31