NYSE:KEG

Stock Analysis Report

Key Energy Services

Executive Summary

Key Energy Services, Inc. operates as an onshore rig-based well servicing contractor in the United States.

Snowflake

Fundamentals

Worrying balance sheet with weak fundamentals.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

27.5%

KEG

4.3%

US Energy Services

3.4%

US Market


1 Year Return

-84.1%

KEG

-47.0%

US Energy Services

5.4%

US Market

Return vs Industry: KEG underperformed the US Energy Services industry which returned -47% over the past year.

Return vs Market: KEG underperformed the US Market which returned 5.4% over the past year.


Shareholder returns

KEGIndustryMarket
7 Day27.5%4.3%3.4%
30 Day-13.1%-12.2%-1.0%
90 Day-49.3%-14.1%-0.4%
1 Year-84.1%-84.1%-45.5%-47.0%7.7%5.4%
3 Yearn/a-53.7%-59.4%46.2%36.8%
5 Yearn/a-65.4%-70.5%65.6%47.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Key Energy Services undervalued compared to its fair value and its price relative to the market?

5.2x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: Insufficient data to calculate KEG's fair value to establish if it is undervalued.

Significantly Undervalued: Insufficient data to calculate KEG's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: KEG is unprofitable, so we can't compare its PE Ratio to the Energy Services industry average.

PE vs Market: KEG is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate KEG's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: KEG is overvalued based on its PB Ratio (5.2x) compared to the US Energy Services industry average (0.6x).


Next Steps

Future Growth

How is Key Energy Services forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

23.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KEG is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: KEG is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: KEG is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: KEG's revenue (2.1% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: KEG's revenue (2.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if KEG's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Key Energy Services performed over the past 5 years?

28.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: KEG is unprofitable, but has reduced losses over the past 5 years at a rate of 28.7% per year.

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

Earnings vs Industry: KEG is unprofitable, making it difficult to compare its past year earnings growth to the Energy Services industry (-13.1%).


Return on Equity

High ROE: KEG has a negative Return on Equity (-1477.54%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: KEG is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: KEG is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Key Energy Services's financial position?


Financial Position Analysis

Short Term Liabilities: KEG's short term assets ($136.5M) exceeds its short term liabilities ($98.9M)

Long Term Liabilities: KEG's short term assets (136.5M) do not cover its long term liabilities (298.7M)


Debt to Equity History and Analysis

Debt Level: KEG's debt to equity ratio (4027.7%) is considered high

Reducing Debt: KEG's debt to equity ratio has increased from 60.5% to 4027.7% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: KEG's debt is not covered by short term assets (assets are 0.6x 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: KEG has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: KEG has less than a year of cash runway if free cash flow continues to grow at historical rates of 44.5% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage4.4%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

Growing Dividend: Insufficient data to determine if KEG'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 KEG'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 Key Energy Services's salary, the management and board of directors tenure and is there insider trading?

2.1yrs

Average management tenure


CEO

Rob Saltiel (56yo)

1.2yrs

Tenure

US$3,788,395

Compensation

Mr. Robert J. Saltiel, also known as Rob, has been the President, Chief Executive Officer and Director of Key Energy Services, Inc. since August 20, 2018. Mr. Saltiel served as the Chief Executive Officer  ...


CEO Compensation Analysis

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

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


Management Age and Tenure

2.1yrs

Average Tenure

54.5yo

Average Age

Experienced Management: KEG's management team is considered experienced (2.1 years average tenure).


Board Age and Tenure

2.8yrs

Average Tenure

57yo

Average Age

Experienced Board: KEG's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


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

BuyUS$2,265,54915 Aug 19
Goldman Sachs Group, Investment Banking and Securities Investments
EntityCompany
Shares680,345
Max PriceUS$3.33
SellUS$2,787,96315 Aug 19
Goldman Sachs Group, Investment Banking and Securities Investments
EntityCompany
Shares837,226
Max PriceUS$3.33
BuyUS$9,083,87619 Apr 19
Goldman Sachs Group, Investment Banking and Securities Investments
EntityCompany
Shares1,477,053
Max PriceUS$6.15
SellUS$9,247,71619 Apr 19
Goldman Sachs Group, Investment Banking and Securities Investments
EntityCompany
Shares1,477,271
Max PriceUS$6.26
BuyUS$499,70018 Mar 19
Platinum Equity, LLC
EntityCompany
Shares105,000
Max PriceUS$5.14
BuyUS$510,04514 Mar 19
Platinum Equity, LLC
EntityCompany
Shares128,113
Max PriceUS$4.03
BuyUS$63,91206 Mar 19
Platinum Equity, LLC
EntityCompany
Shares22,347
Max PriceUS$2.86
BuyUS$530,07328 Feb 19
Platinum Equity, LLC
EntityCompany
Shares253,519
Max PriceUS$2.28
BuyUS$37,20027 Feb 19
Robert Saltiel
EntityIndividual
Role
Chief Executive Officer
President
Shares20,000
Max PriceUS$1.86
BuyUS$54,01026 Feb 19
Steven Pruett
EntityIndividual
Role
Lead Director
Lead Director
Shares28,000
Max PriceUS$1.93
BuyUS$37,20025 Feb 19
Robert Saltiel
EntityIndividual
Role
Chief Executive Officer
President
Shares20,000
Max PriceUS$1.86
BuyUS$99,00025 Feb 19
Scott Vogel
EntityIndividual
Shares50,000
Max PriceUS$1.98
SellUS$16,94823 Jan 19
Scott Miller
EntityIndividual
Shares7,185
Max PriceUS$2.36

Ownership Breakdown


Management Team

  • J. Dodson (48yo)

    Senior VP

    • Tenure: 6.6yrs
    • Compensation: US$596.63k
  • Rob Saltiel (56yo)

    President

    • Tenure: 1.2yrs
    • Compensation: US$3.79m
  • D. Norwood (64yo)

    Vice President of Finance

    • Tenure: 1yrs
  • William Moss (66yo)

    Senior Vice President of Fluid Management Services

    • Tenure: 6.8yrs
  • Katherine Hargis (48yo)

    Senior VP

    • Tenure: 2.1yrs
    • Compensation: US$436.71k
  • James Ussery

    Vice President of U.S. Eastern Region

    • Tenure: 4.3yrs
  • Louis Coale (53yo)

    VP & Controller

    • Tenure: 1yrs
    • Compensation: US$529.69k

Board Members

  • Bryan Kelln (53yo)

    Soter Director

    • Tenure: 2.8yrs
  • Tripp Wommack (63yo)

    Independent Soter Director

    • Tenure: 2.8yrs
    • Compensation: US$270.00k
  • Phil Norment (59yo)

    Chairman of the Board

    • Tenure: 2.8yrs
  • Steve Pruett (57yo)

    Lead Director

    • Tenure: 0.8yrs
    • Compensation: US$260.00k
  • Paul Bader

    Director

    • Tenure: 0.4yrs
  • Jacob Kotzubei (50yo)

    Soter Director

    • Tenure: 2.8yrs
  • Rob Saltiel (56yo)

    President

    • Tenure: 1.2yrs
    • Compensation: US$3.79m
  • Sherman Edmiston (57yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$260.00k
  • Mary Sigler (64yo)

    Soter Director

    • Tenure: 2.8yrs

Company Information

Key Energy Services, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Key Energy Services, Inc.
  • Ticker: KEG
  • Exchange: NYSE
  • Founded: 1977
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: US$31.234m
  • Shares outstanding: 20.41m
  • Website: https://www.keyenergy.com

Number of Employees


Location

  • Key Energy Services, Inc.
  • 1301 McKinney Street
  • Suite 1800
  • Houston
  • Texas
  • 77010
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KEGNYSE (New York Stock Exchange)YesCommon StockUSUSDDec 2016

Biography

Key Energy Services, Inc. operates as an onshore rig-based well servicing contractor in the United States. It operates through Rig Services, Fishing and Rental Services, Coiled Tubing Services, and Fluid M ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 00:20
End of Day Share Price2019/10/15 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.