NYSE:FRAC

Stock Analysis Report

Executive Summary

Keane Group, Inc. provides integrated well completion services primarily in the United States.

Snowflake

Fundamentals

Fair value with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-2.4%

FRAC

-2.3%

US Energy Services

0.5%

US Market


1 Year Return

-59.2%

FRAC

-45.9%

US Energy Services

6.8%

US Market

Return vs Industry: FRAC underperformed the US Energy Services industry which returned -45.9% over the past year.

Return vs Market: FRAC underperformed the US Market which returned 6.8% over the past year.


Shareholder returns

FRACIndustryMarket
7 Day-2.4%-2.3%0.5%
30 Day-22.1%-12.0%-0.8%
90 Day-19.1%-19.1%-0.9%
1 Year-59.2%-59.2%-44.4%-45.9%9.2%6.8%
3 Yearn/a-54.7%-60.2%45.6%36.2%
5 Yearn/a-65.8%-70.8%63.2%45.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Keane Group 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: FRAC ($4.83) is trading below our estimate of fair value ($21.4)

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


Price To Earnings Ratio

PE vs Industry: FRAC is poor value based on its PE Ratio (50.5x) compared to the Energy Services industry average (13.7x).

PE vs Market: FRAC is poor value based on its PE Ratio (50.5x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: FRAC is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: FRAC is overvalued based on its PB Ratio (1.1x) compared to the US Energy Services industry average (0.6x).


Next Steps

Future Growth

How is Keane Group forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

130.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FRAC's forecast earnings growth (130.7% per year) is above the savings rate (2.7%).

Earnings vs Market: FRAC's earnings (130.7% per year) are forecast to grow faster than the US market (14.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: FRAC's revenue is expected to decline over the next 3 years (-1.2% per year).

High Growth Revenue: FRAC's revenue is forecast to decline over the next 3 years (-1.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FRAC is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Keane Group performed over the past 5 years?

38.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: FRAC's earnings have grown significantly by 38% per year over the past 5 years.

Accelerating Growth: FRAC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: FRAC had negative earnings growth (-83.8%) over the past year, making it difficult to compare to the Energy Services industry average (-13.1%).


Return on Equity

High ROE: FRAC's Return on Equity (2.2%) is considered low.


Return on Assets

ROA vs Industry: FRAC's Return on Assets is below or equal to the Energy Services industry average last year.


Return on Capital Employed

ROCE Improving: FRAC's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Keane Group's financial position?


Financial Position Analysis

Short Term Liabilities: FRAC's short term assets ($349.3M) exceeds its short term liabilities ($223.5M)

Long Term Liabilities: FRAC's short term assets (349.3M) do not cover its long term liabilities (376.1M)


Debt to Equity History and Analysis

Debt Level: FRAC's debt to equity ratio (74.3%) is considered high

Reducing Debt: Insufficient data to determine if FRAC's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: FRAC's debt is well covered by operating cash flow (100.9%).

Interest Coverage: FRAC's interest payments on its debt are not well covered by EBIT (2.1x coverage).


Balance Sheet

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

Debt Coverage by Assets: FRAC's debt is covered by short term assets (assets are 1.010500x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage4.5%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Robert Drummond (58yo)

1.2yrs

Tenure

US$7,764,703

Compensation

Mr. Robert Wayne Drummond, Jr. has been the Chief Executive Officer and Director of Keane Group, Inc. since August 6, 2018. Mr. Drummond served as a Director of Key Energy Services, Inc. since November 23, ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Robert's total compensation is reasonable compared to companies of similar size in the US market.

Compensation vs Earnings: Insufficient data to compare Robert's compensation with company performance.


Management Age and Tenure

1.3yrs

Average Tenure

54.5yo

Average Age

Experienced Management: FRAC's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Age and Tenure

7.0yrs

Average Tenure

58yo

Average Age

Experienced Board: FRAC's board of directors are considered experienced (7 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$56,555,95210 Dec 18
Keane Investor Holdings LLC
EntityCompany
Shares5,251,249
Max PriceUS$10.77

Ownership Breakdown


Management Team

  • Phung Ngo-Burns (53yo)

    Chief Accounting Officer

    • Tenure: 2.6yrs
  • Paul DeBonis (59yo)

    Advisor to Chairman

    • Tenure: 1.1yrs
    • Compensation: US$1.89m
  • Kevin McDonald (52yo)

    Executive VP

    • Tenure: 2.9yrs
    • Compensation: US$2.08m
  • John Lewis

    Vice President of Health

    • Tenure: 0.7yrs
  • James Stewart (56yo)

    Executive Chairman

    • Tenure: 8.6yrs
    • Compensation: US$6.37m
  • Ted Lafferty

    Chief Technology & Transformation Officer

    • Tenure: 0.4yrs
  • Robert Drummond (58yo)

    CEO & Director

    • Tenure: 1.2yrs
    • Compensation: US$7.76m
  • Greg Powell (44yo)

    President & CFO

    • Tenure: 4.3yrs
    • Compensation: US$4.93m
  • Louis Wilpitz

    Vice President of Sales & Marketing

    • Tenure: 3.8yrs
  • Chuck Heaton

    Vice President of Human Resources

    • Tenure: 1.3yrs

Board Members

  • Lenard Tessler (66yo)

    Director

    • Tenure: 7yrs
    • Compensation: US$87.50k
  • Dale Dusterhoft (58yo)

    Director

    • Tenure: 3.6yrs
    • Compensation: US$87.50k
  • James Stewart (56yo)

    Executive Chairman

    • Tenure: 8.6yrs
    • Compensation: US$6.37m
  • Gary Halverson (60yo)

    Independent Director

    • Tenure: 3.1yrs
    • Compensation: US$239.60k
  • Robert Drummond (58yo)

    CEO & Director

    • Tenure: 1.2yrs
    • Compensation: US$7.76m
  • Lisa Gray (64yo)

    Director

    • Tenure: 8.6yrs
    • Compensation: US$87.50k
  • Marc G. Edwards (58yo)

    Lead Director

    • Tenure: 0yrs
    • Compensation: US$264.60k
  • Lucas Batzer (36yo)

    Director

    • Tenure: 3.6yrs
    • Compensation: US$87.50k
  • Shawn Keane (53yo)

    Director

    • Tenure: 8.6yrs
    • Compensation: US$87.50k
  • Elmer Reed (70yo)

    Independent Director

    • Tenure: 8.5yrs
    • Compensation: US$239.60k

Company Information

Keane Group, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Keane Group, Inc.
  • Ticker: FRAC
  • Exchange: NYSE
  • Founded: 1973
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: US$507.223m
  • Shares outstanding: 105.02m
  • Website: https://www.keanegrp.com

Number of Employees


Location

  • Keane Group, Inc.
  • 1800 Post Oak Boulevard
  • Suite 450
  • Houston
  • Texas
  • 77056
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FRACNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 2017
9KGDB (Deutsche Boerse AG)YesCommon StockDEEURJan 2017

Biography

Keane Group, Inc. provides integrated well completion services primarily in the United States. Its principal service offerings include horizontal and vertical fracturing, wireline perforation and logging,  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 00:37
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.