U.S. Energy Corp.

NasdaqCM:USEG Stock Report

Market Cap: US$48.9m

U.S. Energy Valuation

Is USEG undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of USEG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: USEG ($1.7) is trading below our estimate of fair value ($4.52)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for USEG?

Key metric: As USEG is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for USEG. This is calculated by dividing USEG's market cap by their current revenue.
What is USEG's PS Ratio?
PS Ratio2.1x
SalesUS$22.26m
Market CapUS$48.94m

Price to Sales Ratio vs Peers

How does USEG's PS Ratio compare to its peers?

The above table shows the PS ratio for USEG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average8.6x
NRT North European Oil Royalty Trust
7.3xn/aUS$38.1m
PED PEDEVCO
2.1x21.4%US$76.8m
PVL Permianville Royalty Trust
16.5xn/aUS$51.2m
CRT Cross Timbers Royalty Trust
8.4xn/aUS$64.7m
USEG U.S. Energy
2.1x20.8%US$48.9m

Price-To-Sales vs Peers: USEG is good value based on its Price-To-Sales Ratio (2.1x) compared to the peer average (8.6x).

Price to Sales Ratio vs Industry

How does USEG's PS Ratio compare vs other companies in the US Oil and Gas Industry?

38 CompaniesPrice / SalesEstimated GrowthMarket Cap
PSX Phillips 66
0.4x-5.4%US$55.04b
MPC Marathon Petroleum
0.4x-3.6%US$50.30b
VLO Valero Energy
0.3x-2.7%US$44.26b
PAA Plains All American Pipeline
0.2x-2.1%US$12.36b
USEG 2.1xIndustry Avg. 1.8xNo. of Companies38PS01.63.24.86.48+
38 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: USEG is expensive based on its Price-To-Sales Ratio (2.1x) compared to the US Oil and Gas industry average (1.8x).

Price to Sales Ratio vs Fair Ratio

What is USEG's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

USEG PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio2.1x
Fair PS Ratio0.8x

Price-To-Sales vs Fair Ratio: USEG is expensive based on its Price-To-Sales Ratio (2.1x) compared to the estimated Fair Price-To-Sales Ratio (0.8x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst USEG forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$1.70
US$2.50
+47.1%
16.3%US$3.00US$2.00n/a3
Nov ’25US$1.32
US$1.75
+32.6%
14.3%US$2.00US$1.50n/a2
Oct ’25US$1.30
US$1.75
+34.6%
14.3%US$2.00US$1.50n/a2
Sep ’25US$0.94
US$1.75
+85.6%
14.3%US$2.00US$1.50n/a2
Aug ’25US$1.06
US$1.75
+65.1%
14.3%US$2.00US$1.50n/a2
Jul ’25US$1.02
US$1.75
+71.6%
14.3%US$2.00US$1.50n/a2
Jun ’25US$1.11
US$1.75
+57.7%
14.3%US$2.00US$1.50n/a2
May ’25US$1.16
US$1.75
+50.9%
14.3%US$2.00US$1.50n/a2
Apr ’25US$1.15
US$1.75
+52.2%
14.3%US$2.00US$1.50n/a2
Mar ’25US$1.03
US$2.00
+94.2%
25.0%US$2.50US$1.50n/a2
Feb ’25US$1.05
US$2.00
+90.5%
25.0%US$2.50US$1.50n/a2
Jan ’25US$1.00
US$2.00
+100.0%
25.0%US$2.50US$1.50n/a2
Dec ’24US$1.15
US$2.63
+129.3%
4.8%US$2.75US$2.50n/a2
Aug ’24US$1.57
US$3.10
+97.5%
3.2%US$3.20US$3.00US$1.062
Jul ’24US$1.42
US$3.10
+118.3%
3.2%US$3.20US$3.00US$1.022
Jun ’24US$1.46
US$3.10
+112.3%
3.2%US$3.20US$3.00US$1.112
May ’24US$1.42
US$3.25
+128.9%
7.7%US$3.50US$3.00US$1.162
Feb ’24US$2.44
US$3.75
+53.7%
6.7%US$4.00US$3.50US$1.052
Jan ’24US$2.30
US$3.88
+68.5%
3.2%US$4.00US$3.75US$1.002
Dec ’23US$2.62
US$3.88
+47.9%
3.2%US$4.00US$3.75US$1.152
Nov ’23US$3.00
US$5.38
+79.2%
30.2%US$7.00US$3.75US$1.442

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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