NYSE:SBOW

Stock Analysis Report

Executive Summary

SilverBow Resources, Inc., an energy company, engages in the exploration, development, and production of oil and gas from the Eagle Ford Shale in South Texas.

Rewards

PE ratio (0.3x) is below the US market (18.3x)

Earnings grew by 284% over the past year

Risk Analysis

Earnings are forecast to decline by an average of -36.9% per year for the next 3 years

High level of non-cash earnings

Has a high level of debt

Highly volatile share price over past 3 months

+ 1 more risk


Snowflake Analysis

Proven track record and fair value.


Similar Companies

Share Price & News

How has SilverBow Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-9.8%

SBOW

-1.3%

US Oil and Gas

0.06%

US Market


1 Year Return

-83.1%

SBOW

-19.5%

US Oil and Gas

19.4%

US Market

Return vs Industry: SBOW underperformed the US Oil and Gas industry which returned -19.5% over the past year.

Return vs Market: SBOW underperformed the US Market which returned 19.4% over the past year.


Shareholder returns

SBOWIndustryMarket
7 Day-9.8%-1.3%0.06%
30 Day-54.7%-10.1%1.1%
90 Day-55.8%-7.0%8.9%
1 Year-83.1%-83.1%-16.3%-19.5%21.9%19.4%
3 Year-87.3%-87.3%-13.3%-21.4%48.9%39.3%
5 Yearn/a-22.4%-33.8%71.9%53.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is SilverBow Resources undervalued compared to its fair value and its price relative to the market?

0.27x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate SBOW's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate SBOW's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: SBOW is good value based on its PE Ratio (0.3x) compared to the Oil and Gas industry average (8.9x).

PE vs Market: SBOW is good value based on its PE Ratio (0.3x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: SBOW's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: SBOW is good value based on its PB Ratio (0.1x) compared to the US Oil and Gas industry average (0.8x).


Next Steps

Future Growth

How is SilverBow Resources forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

-36.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SBOW's earnings are forecast to decline over the next 3 years (-36.9% per year).

Earnings vs Market: SBOW's earnings are forecast to decline over the next 3 years (-36.9% per year).

High Growth Earnings: SBOW's earnings are forecast to decline over the next 3 years.

Revenue vs Market: SBOW's revenue (0.4% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: SBOW's revenue (0.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has SilverBow Resources performed over the past 5 years?

56.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SBOW has a high level of non-cash earnings.

Growing Profit Margin: SBOW's current net profit margins (53.8%) are higher than last year (18.9%).


Past Earnings Growth Analysis

Earnings Trend: SBOW has become profitable over the past 5 years, growing earnings by 56.8% per year.

Accelerating Growth: SBOW's earnings growth over the past year (284%) exceeds its 5-year average (56.8% per year).

Earnings vs Industry: SBOW earnings growth over the past year (284%) exceeded the Oil and Gas industry -10.9%.


Return on Equity

High ROE: Whilst SBOW's Return on Equity (42.52%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is SilverBow Resources's financial position?


Financial Position Analysis

Short Term Liabilities: SBOW's short term assets ($60.8M) do not cover its short term liabilities ($67.0M).

Long Term Liabilities: SBOW's short term assets ($60.8M) do not cover its long term liabilities ($485.9M).


Debt to Equity History and Analysis

Debt Level: SBOW's debt to equity ratio (122.5%) is considered high.

Reducing Debt: SBOW's debt to equity ratio has increased from 99.3% to 122.5% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: SBOW's debt is not covered by short term assets (assets are 0.1x 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: SBOW is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: SBOW is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is SilverBow Resources's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage4.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SBOW's dividends per share have been stable in the past.

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


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Sean Woolverton (49yo)

2.9yrs

Tenure

US$4,019,626

Compensation

Mr. Sean C. Woolverton has been Chief Executive Officer of SilverBow Resources, Inc. since March 1, 2017. Mr. Woolverton served as Chief Operating Officer and Executive Vice President of Samson Resources C ...


CEO Compensation Analysis

Compensation vs Market: Sean's total compensation ($USD4.02M) is above average for companies of similar size in the US market ($USD519.76K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Sean Woolverton
CEO & Director2.9yrsUS$4.02m0.12% $55.1k
Christopher Abundis
Senior VP0.3yrsUS$1.90m0.16% $75.1k
Steven Adam
Executive VP & COO2.3yrsUS$1.99m0.067% $30.6k
Gary Buchta
Controller & Principal Accounting Officer0.08yrsno datano data
Jeff Magids
Senior Manager of Finance & Investor Relations0yrsno datano data

1.3yrs

Average Tenure

49yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
Sean Woolverton
CEO & Director2.9yrsUS$4.02m0.12% $55.1k
Marcus Rowland
Chairman of the Board3.4yrsno data0.22% $99.9k
Michael Duginski
Independent Director3.8yrsUS$75.00k0.17% $76.5k
Charles Wampler
Independent Director3.8yrsUS$70.00k0.17% $76.5k
Raymond Loen
Director Emeritus0yrsno datano data
Gabriel Ellisor
Independent Director3.8yrsUS$90.00k0.17% $76.5k
David Geenberg
Independent Director3.8yrsno datano data
Christoph Majeske
Independent Director3.4yrsno datano data

3.8yrs

Average Tenure

49yo

Average Age

Experienced Board: SBOW's board of directors are considered experienced (3.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: SBOW insiders have only sold shares 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

SilverBow Resources, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SilverBow Resources, Inc.
  • Ticker: SBOW
  • Exchange: NYSE
  • Founded: 1979
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: US$45.603m
  • Shares outstanding: 11.78m
  • Website: https://www.sbow.com

Number of Employees


Location

  • SilverBow Resources, Inc.
  • 575 North Dairy Ashford Road
  • Suite 1200
  • Houston
  • Texas
  • 77079
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SBOWNYSE (New York Stock Exchange)YesCommon StockUSUSDMay 2016
19WMUN (Boerse Muenchen)YesCommon StockDEEURMay 2016

Biography

SilverBow Resources, Inc., an energy company, engages in the exploration, development, and production of oil and gas from the Eagle Ford Shale in South Texas. As of December 31, 2018, it had proved reserves of 1,345 MMcfe. The company was formerly known as Swift Energy Company and changed its name to SilverBow Resources, Inc. in May 2017. SilverBow Resources, Inc. was founded in 1979 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 Analysis2020/02/19 01:37
End of Day Share Price2020/02/18 00:00
Earnings2019/09/30
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.