NYSE:GEL

Stock Analysis Report

Executive Summary

Genesis Energy, L.P. operates in the midstream segment of the crude oil and natural gas industry.

Rewards


Snowflake Analysis


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: GEL's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-29.3%

GEL

-12.7%

US Oil and Gas

-7.6%

US Market


1 Year Return

-49.9%

GEL

-27.5%

US Oil and Gas

10.2%

US Market

Return vs Industry: GEL underperformed the US Oil and Gas industry which returned -25.7% over the past year.

Return vs Market: GEL underperformed the US Market which returned 10.5% over the past year.


Shareholder returns

GELIndustryMarket
7 Day-29.3%-12.7%-7.6%
30 Day-44.1%-14.6%-4.5%
90 Day-43.2%-16.7%-0.6%
1 Year-44.4%-49.9%-24.7%-27.5%12.5%10.2%
3 Year-57.4%-68.2%-23.7%-30.9%37.1%28.3%
5 Year-63.7%-76.5%-27.1%-38.2%60.8%43.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Genesis Energy 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: GEL ($11.98) is trading below our estimate of fair value ($26.54)

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


Price To Earnings Ratio

PE vs Industry: GEL is poor value based on its PE Ratio (68.2x) compared to the Oil and Gas industry average (8.9x).

PE vs Market: GEL is poor value based on its PE Ratio (68.2x) compared to the US market (17.2x).


Price to Earnings Growth Ratio

PEG Ratio: GEL is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: GEL is overvalued based on its PB Ratio (1x) compared to the US Oil and Gas industry average (0.8x).

Future Growth

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

57.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GEL's forecast earnings growth (57.9% per year) is above the savings rate (1.7%).

Earnings vs Market: GEL's earnings (57.9% per year) are forecast to grow faster than the US market (13.2% per year).

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

Revenue vs Market: GEL's revenue (7.3% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: GEL's revenue (7.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GEL's Return on Equity is forecast to be low in 3 years time (7.8%).

Past Performance

How has Genesis Energy performed over the past 5 years?

-52.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GEL has high quality earnings.

Growing Profit Margin: GEL became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: GEL's earnings have declined by -52.3% per year over the past 5 years.

Accelerating Growth: GEL has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: GEL has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-13.3%).


Return on Equity

High ROE: GEL's Return on Equity (4%) is considered low.


Return on Assets


Return on Capital Employed

Financial Health

How is Genesis Energy's financial position?


Financial Position Analysis

Short Term Liabilities: GEL's short term assets ($593.1M) exceed its short term liabilities ($415.5M).

Long Term Liabilities: GEL's short term assets ($593.1M) do not cover its long term liabilities ($3.8B).


Debt to Equity History and Analysis

Debt Level: GEL's debt to equity ratio (138.4%) is considered high.

Reducing Debt: GEL's debt to equity ratio has increased from 128.8% to 138.4% over the past 5 years.

Debt Coverage: GEL's debt is not well covered by operating cash flow (12.8%).

Interest Coverage: GEL's interest payments on its debt are not well covered by EBIT (1.2x coverage).


Balance Sheet

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

Debt Coverage by Assets: GEL's debt is not covered by short term assets (assets are 0.2x debt).

Dividend

What is Genesis Energy's current dividend yield, its reliability and sustainability?

20.37%

Current Dividend Yield


Dividend Yield vs Market

company20.4%marketbottom25%1.5%markettop25%4.0%industryaverage5.2%forecastin3Years20.6%

Current dividend yield vs market & industry

Notable Dividend: GEL's dividend (18.36%) is higher than the bottom 25% of dividend payers in the US market (1.52%).

High Dividend: GEL's dividend (18.36%) is in the top 25% of dividend payers in the US market (3.9%)


Stability and Growth of Payments

Stable Dividend: GEL's dividend payments have been volatile in the past 10 years.

Growing Dividend: GEL's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (1252.4%), GEL's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GEL's dividends in 3 years are not forecast to be well covered by earnings (151.4% payout ratio).

Management

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

6.3yrs

Average management tenure


CEO

Grant Sims (63yo)

13.5yrs

Tenure

US$843,201

Compensation

Dr. Grant E. Sims has been the Chief Executive Officer of Genesis Energy LLC, the General Partner of Genesis Energy, L.P. since August 2006. Dr. Sims serves as the Chief Executive Officer of Genesis Marin ...


CEO Compensation Analysis

Compensation vs Market: Grant's total compensation ($USD843.20K) is below average for companies of similar size in the US market ($USD3.92M).

Compensation vs Earnings: Grant's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Grant Sims
Chairman & CEO of Genesis Energy LLC13.5yrsUS$843.20k2.45% $32.4m
Robert Deere
Chief Financial Officer of Genesis Energy LLC11.3yrsUS$587.86k0.68% $9.0m
Edward Flynn
Executive Vice President of Genesis Energy LLC0yrsUS$1.45m0.049% $642.6k
Richard Alexander
Vice President of Genesis Energy LLC5.3yrsUS$721.31k0.013% $167.3k
Chad Landry
Vice President of Genesis Energy LLC6.3yrsUS$549.86k0.016% $216.1k
Dwayne Morley
Vice President of Business Development & Investor Relations - Genesis Energy LLC0.9yrsno datano data
Kristen Jesulaitis
Executive Officer & General Counsel of Genesis Energy LLC8.6yrsno data0.0041% $54.0k
Ryan Sims
Senior Vice President of Finance & Corporate Development - Genesis Energy LLC3.1yrsno data0.012% $154.5k
Garland Gaspard
Senior Vice President of Genesis Energy LLC3.1yrsno data0.0010% $13.5k
Karen Pape
Senior VP & Controller of Genesis Energy LLC23.2yrsUS$578.92k0.12% $1.6m

6.3yrs

Average Tenure

58yo

Average Age

Experienced Management: GEL's management team is seasoned and experienced (6.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Grant Sims
Chairman & CEO of Genesis Energy LLC13.5yrsUS$843.20k2.45% $32.4m
Conrad Albert
Director of Genesis Energy LLC6.6yrsUS$215.99k0.0041% $54.0k
Kenneth Jastrow
Lead Independent Director of Genesis Energy LLC7.3yrsUS$228.03k0.12% $1.6m
Sharilyn Gasaway
Director of Genesis Energy LLC9.9yrsUS$238.03k0.23% $3.0m
James Davison
Director of Genesis Energy LLC12.6yrsUS$200.47k2.01% $26.6m
James Davison
Director of Genesis Energy LLC12.6yrsUS$200.47k4.34% $57.5m
Jack Taylor
Director of Genesis Energy LLC6.6yrsUS$215.99k0.011% $139.0k

7.3yrs

Average Tenure

67yo

Average Age

Experienced Board: GEL's board of directors are considered experienced (7.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: GEL 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

Genesis Energy, L.P.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Genesis Energy, L.P.
  • Ticker: GEL
  • Exchange: NYSE
  • Founded: 1996
  • Industry: Oil and Gas Storage and Transportation
  • Sector: Energy
  • Market Cap: US$1.324b
  • Shares outstanding: 122.58m
  • Website: https://www.genesisenergy.com

Number of Employees


Location

  • Genesis Energy, L.P.
  • 919 Milam
  • Suite 2100
  • Houston
  • Texas
  • 77002
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GELNYSE (New York Stock Exchange)YesClass A Common UnitsUSUSDNov 1996
GE3DB (Deutsche Boerse AG)YesClass A Common UnitsDEEURNov 1996

Biography

Genesis Energy, L.P. operates in the midstream segment of the crude oil and natural gas industry. The company’s Offshore Pipeline Transportation segment engages in offshore crude oil and natural gas pipeline transportation and handling operations; and in the deep water pipeline servicing in the southern Keathley Canyon area of the Gulf of Mexico. This segment owns interests in approximately 1,422 miles of crude oil pipelines located offshore in the Gulf of Mexico. Its Sodium Minerals and Sulfur Services segment provides sulfur-extraction services to refining operations; and operates storage and transportation assets. This segment provides services to 10 refining operations; and sells sodium hydrosulfide and caustic soda to industrial and commercial companies engages in the mining of base metals. The company’s Onshore Facilities and Transportation segment provides onshore facilities and transportation services to Gulf Coast crude oil refineries and producers by purchasing, transporting, storing, blending, and marketing crude oil and refined products. It operates a suite of approximately 200 trucks, 300 trailers, 404 railcars, and terminals and tankage with 4.6 million barrels of storage capacity in various locations along the Gulf Coast. This segment also transports crude oil and carbon dioxide (CO2). It owns 5 onshore crude oil pipeline systems with approximately 450 miles of pipe located primarily in Alabama, Florida, Louisiana, Mississippi, and Texas; and 2 CO2 pipelines with approximately 270 miles of pipe. Its Marine Transportation segment offers waterborne transportation of petroleum products and crude oil in North America. This segment owns a fleet of 91 barges with a combined transportation capacity of 3.2 million barrels; and 42 push/tow boats. In addition, the company produces natural soda ash. Genesis Energy, LLC serves as a general partner of the company. Genesis Energy, L.P. was founded in 1996 and is headquartered in Houston, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 00:54
End of Day Share Price2020/02/26 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.