NasdaqGS:BRY

Stock Analysis Report

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Market Cap

US$433.7m

Last Updated

2021/07/28 01:47 UTC

Data Sources

Company Financials +

Executive Summary

Berry Corporation, an independent upstream energy company, engages in the development and production of conventional oil reserves located in the western United States. More Details


Snowflake Analysis

Reasonable growth potential and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: BRY is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

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


Market Performance


7 Day Return

-3.4%

BRY

2.6%

US Oil and Gas

0.9%

US Market


1 Year Return

9.3%

BRY

38.5%

US Oil and Gas

37.8%

US Market

Return vs Industry: BRY underperformed the US Oil and Gas industry which returned 38.7% over the past year.

Return vs Market: BRY underperformed the US Market which returned 37.8% over the past year.


Shareholder returns

BRYIndustryMarket
7 Day-3.4%2.6%0.9%
30 Day-21.0%-10.4%0.3%
90 Day-16.6%-0.3%2.1%
1 Year10.7%9.3%47.2%38.5%40.0%37.8%
3 Year-56.1%-60.8%-20.5%-31.7%63.8%53.5%
5 Yearn/a-2.0%-21.5%124.6%99.7%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Berry 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: BRY ($5.39) is trading below our estimate of fair value ($41.17)

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


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: BRY is good value based on its PB Ratio (0.6x) compared to the US Oil and Gas industry average (1.7x).


Future Growth

How is Berry forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

94.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: BRY's revenue (18.5% per year) is forecast to grow faster than the US market (9.3% per year).

High Growth Revenue: BRY's revenue (18.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BRY's Return on Equity is forecast to be low in 3 years time (8.7%).


Past Performance

How has Berry performed over the past 5 years?

68.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BRY is currently unprofitable.

Growing Profit Margin: BRY is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: BRY is unprofitable, but has reduced losses over the past 5 years at a rate of 68.3% per year.

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

Earnings vs Industry: BRY is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-42.9%).


Return on Equity

High ROE: BRY has a negative Return on Equity (-24.42%), as it is currently unprofitable.


Financial Health

How is Berry's financial position?


Financial Position Analysis

Short Term Liabilities: BRY's short term assets ($178.0M) do not cover its short term liabilities ($212.6M).

Long Term Liabilities: BRY's short term assets ($178.0M) do not cover its long term liabilities ($532.5M).


Debt to Equity History and Analysis

Debt Level: BRY's debt to equity ratio (56.9%) is considered high.

Reducing Debt: BRY's debt to equity ratio has reduced from 259.7% to 56.9% 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 BRY has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: BRY is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 0.9% per year.


Dividend

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

2.97%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BRY's dividend (2.97%) is higher than the bottom 25% of dividend payers in the US market (1.32%).

High Dividend: BRY's dividend (2.97%) is low compared to the top 25% of dividend payers in the US market (3.53%).


Stability and Growth of Payments

Stable Dividend: BRY has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: BRY has only been paying a dividend for 3 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: BRY is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: BRY's dividends in 3 years are forecast to be thoroughly covered by earnings (12.5% payout ratio).


Next Steps

Management

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

3.7yrs

Average management tenure


CEO

Trem Smith (65 yo)

4.33yrs

Tenure

US$9,591,787

Compensation

Mr. Arthur T. Smith, also known as Trem, has been the President, Chief Executive Officer and Director at Berry Petroleum Company, LLC and Berry Corporation since March 2017. Mr. Smith serves as Chairman of...


CEO Compensation Analysis

Compensation vs Market: Trem's total compensation ($USD9.59M) is above average for companies of similar size in the US market ($USD1.74M).

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


Leadership Team

Experienced Management: BRY's management team is considered experienced (3.7 years average tenure).


Board Members

Experienced Board: BRY's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


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

Berry Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Berry Corporation
  • Ticker: BRY
  • Exchange: NasdaqGS
  • Founded: 1909
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: US$433.739m
  • Shares outstanding: 80.47m
  • Website: https://www.bry.com

Number of Employees


Location

  • Berry Corporation
  • 16000 North Dallas Parkway
  • Suite 500
  • Dallas
  • Texas
  • 75248
  • United States

Listings


Biography

Berry Corporation, an independent upstream energy company, engages in the development and production of conventional oil reserves located in the western United States. The company’s properties are located ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/28 01:47
End of Day Share Price2021/07/27 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.