NasdaqCM:USEG

Stock Analysis Report

Executive Summary

U.S. Energy Corp., an independent energy company, focuses on the acquisition and development of oil and gas producing properties in the continental United States.


Snowflake Analysis

Excellent balance sheet and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

20.7%

USEG

11.2%

US Oil and Gas

9.9%

US Market


1 Year Return

-61.2%

USEG

-56.7%

US Oil and Gas

-11.9%

US Market

Return vs Industry: USEG underperformed the US Oil and Gas industry which returned -56.7% over the past year.

Return vs Market: USEG underperformed the US Market which returned -11.9% over the past year.


Shareholder returns

USEGIndustryMarket
7 Day20.7%11.2%9.9%
30 Day-30.7%-36.3%-15.0%
90 Day-10.9%-51.8%-21.5%
1 Year-61.2%-61.2%-54.9%-56.7%-10.0%-11.9%
3 Year-66.0%-66.0%-52.2%-56.9%12.3%5.1%
5 Year-95.3%-95.3%-55.2%-62.1%32.5%18.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is U.S. Energy undervalued compared to its fair value and its price relative to the market?

38.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: USEG ($3.03) is trading below our estimate of fair value ($4.89)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: USEG is good value based on its PB Ratio (0.4x) compared to the US Oil and Gas industry average (0.5x).


Next Steps

Future Growth

How is U.S. Energy forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

20.3%

Forecasted Energy 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 U.S. Energy 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.


Next Steps

Past Performance

How has U.S. Energy performed over the past 5 years?

46.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: USEG is currently unprofitable.

Growing Profit Margin: USEG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: USEG is unprofitable, but has reduced losses over the past 5 years at a rate of 46% per year.

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

Earnings vs Industry: USEG is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-11.4%).


Return on Equity

High ROE: USEG has a negative Return on Equity (-2.92%), as it is currently unprofitable.


Next Steps

Financial Health

How is U.S. Energy's financial position?


Financial Position Analysis

Short Term Liabilities: USEG's short term assets ($3.0M) exceed its short term liabilities ($1.3M).

Long Term Liabilities: USEG's short term assets ($3.0M) exceed its long term liabilities ($1.3M).


Debt to Equity History and Analysis

Debt Level: USEG's debt to equity ratio (0.3%) is considered satisfactory.

Reducing Debt: USEG's debt to equity ratio has reduced from 7.3% to 0.3% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: USEG's debt is covered by short term assets (assets are 85.8x 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: USEG has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if USEG has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is U.S. Energy's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate USEG'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 USEG's dividends per share have been stable in the past.

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


Next Steps

Management

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

0.3yrs

Average board tenure


CEO

Ryan Smith (36yo)

0.25

Tenure

US$626,827

Compensation

Mr. Ryan Lewis Smith has been a Chief Financial Officer at U.S. Energy Corp. since May 23, 2017 and has been its Chief Executive Officer since December 10, 2019. He served as consulted at U.S. Energy Corp. ...


CEO Compensation Analysis

Compensation vs Market: Ryan's total compensation ($USD626.83K) is about average for companies of similar size in the US market ($USD602.37K).

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


Board Members

NamePositionTenureCompensationOwnership
James Denny
Independent Director0.25yrno data0.37% $15.1k
Randall Keys
Independent Director0.25yrno data0.37% $15.1k
D. Slack
Independent Chairman of the Board0.25yrno data0.37% $15.1k
Patrick Duke
Director0.25yrno datano data
Javier Pico
Independent Director2.83yrsUS$11.25k0.60% $24.2k

0.3yrs

Average Tenure

60yo

Average Age

Experienced Board: USEG's board of directors are not considered experienced ( 0.3 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 21.5%.


Top Shareholders

Company Information

U.S. Energy Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: U.S. Energy Corp.
  • Ticker: USEG
  • Exchange: NasdaqCM
  • Founded: 1966
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: US$4.062m
  • Shares outstanding: 1.34m
  • Website: https://www.usnrg.com

Number of Employees


Location

  • U.S. Energy Corp.
  • 675 Bering Drive
  • Suite 100
  • Houston
  • Texas
  • 80246
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
USEGNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDJan 1980
UE21DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1980

Biography

U.S. Energy Corp., an independent energy company, focuses on the acquisition and development of oil and gas producing properties in the continental United States. It holds interests in various oil and gas projects in Williston Basin of North Dakota; Dimmit County of Texas; and Coastal Louisiana. As of December 31, 2018, the company had estimated proved reserves of 874,260 barrels of oil equivalent. It has interests in oil and gas leases covering 4,744 net acres; and 13.76 net producing wells. The company was founded in 1966 and is based in Houston, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 23:59
End of Day Share Price2020/03/27 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.