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

-1.1%

FRAC

-0.5%

US Energy Services

-0.6%

US Market


1 Year Return

-50.6%

FRAC

-43.0%

US Energy Services

0.7%

US Market

FRAC underperformed the Energy Services industry which returned -43% over the past year.

FRAC underperformed the Market in United States of America which returned 0.6% over the past year.


Share holder returns

FRACIndustryMarket
7 Day-1.1%-0.5%-0.6%
30 Day24.7%10.7%2.9%
90 Day-14.2%-8.3%1.3%
1 Year-50.6%-50.6%-41.4%-43.0%2.9%0.7%
3 Yearn/a-43.4%-50.4%44.6%35.2%
5 Yearn/a-65.6%-70.8%61.9%44.2%

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

2 months ago | Simply Wall St

Did You Manage To Avoid Keane Group's (NYSE:FRAC) 47% Share Price Drop?

Valuation

Is Keane Group undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Keane Group's share price is below the future cash flow value, and at a moderate discount (> 20%).

Keane Group's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Keane Group is overvalued based on earnings compared to the US Energy Services industry average.

Keane Group is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Keane Group is good value based on expected growth next year.


Price Based on Value of Assets

Keane Group is overvalued based on assets compared to the US Energy Services industry average.


Next Steps

Future Growth

How is Keane Group expected to perform in the next 1 to 3 years based on estimates from 13 analysts?

129.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Keane Group's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

Keane Group's earnings are expected to grow significantly at over 20% yearly.

Keane Group's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Keane Group's earnings growth is expected to exceed the United States of America market average.

Keane Group's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Keane Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

Keane Group has delivered over 20% year on year earnings growth in the past 5 years.

Keane Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Keane Group's 1-year earnings growth is negative, it can't be compared to the US Energy Services industry average.


Return on Equity

Keane Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Keane Group used its assets less efficiently than the US Energy Services industry average last year based on Return on Assets.


Return on Capital Employed

Keane Group has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).


Next Steps

Financial Health

How is Keane Group's financial position?


Financial Position Analysis

Keane Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Keane Group's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Keane Group's level of debt (74.3%) compared to net worth is high (greater than 40%).

Unable to establish if Keane Group's debt level has increased without past 5-year debt data.

Debt is well covered by operating cash flow (100.9%, greater than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 2.1x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Keane Group's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Keane Group's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Keane Group has not reported any payouts.

Unable to verify if Keane Group's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Keane Group has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Keane Group's dividends in 3 years as they are not expected to pay a notable one for United States of America.


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)

1.1yrs

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

Robert's remuneration is higher than average for companies of similar size in United States of America.

Insufficient data for Robert to compare compensation growth.


Management Age and Tenure

1.3yrs

Average Tenure

54.5yo

Average Age

The average tenure for the Keane Group management team is less than 2 years, this suggests a new team.


Board Age and Tenure

3.5yrs

Average Tenure

58yo

Average Age

The tenure for the Keane Group board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


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: 2.5yrs
  • Paul DeBonis (59yo)

    Advisor to Chairman

    • Tenure: 1yrs
    • Compensation: US$1.89m
  • Kevin McDonald (52yo)

    Executive VP

    • Tenure: 2.8yrs
    • Compensation: US$2.08m
  • John Lewis

    Vice President of Health

    • Tenure: 0.6yrs
  • James Stewart (56yo)

    Executive Chairman

    • Tenure: 8.5yrs
    • Compensation: US$6.37m
  • Ted Lafferty

    Chief Technology & Transformation Officer

    • Tenure: 0.3yrs
  • Robert Drummond (58yo)

    CEO & Director

    • Tenure: 1.1yrs
    • Compensation: US$7.76m
  • Gregory Powell (44yo)

    President & CFO

    • Tenure: 4.2yrs
    • Compensation: US$4.93m
  • Louis Wilpitz

    Vice President of Sales & Marketing

    • Tenure: 3.7yrs
  • Chuck Heaton

    Vice President of Human Resources

    • Tenure: 1.3yrs

Board Members

  • Dale Dusterhoft (58yo)

    Director

    • Tenure: 3.5yrs
    • Compensation: US$87.50k
  • Christian Garcia (55yo)

    Director

    • Tenure: 2.3yrs
    • Compensation: US$257.10k
  • James Stewart (56yo)

    Executive Chairman

    • Tenure: 8.5yrs
    • Compensation: US$6.37m
  • Gary Halverson (60yo)

    Independent Director

    • Tenure: 3yrs
    • Compensation: US$239.60k
  • Robert Drummond (58yo)

    CEO & Director

    • Tenure: 1.1yrs
    • Compensation: US$7.76m
  • Lisa Gray (64yo)

    Director

    • Tenure: 8.5yrs
    • Compensation: US$87.50k
  • Marc G. Edwards (58yo)

    Lead Director

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

    Director

    • Tenure: 3.5yrs
    • Compensation: US$87.50k
  • Shawn Keane (53yo)

    Director

    • Tenure: 8.5yrs
    • Compensation: US$87.50k
  • Elmer Reed (70yo)

    Independent Director

    • Tenure: 8.4yrs
    • 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$651.094m
  • 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 Analysis2019/09/22 00:32
End of Day Share Price2019/09/20 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.