NYSE:SEMG

Stock Analysis Report

Executive Summary

SemGroup Corporation provides gathering, transportation, storage, distribution, marketing, and other midstream services for producers, refiners of petroleum products, and other market participants.


Snowflake Analysis

Slightly overvalued unattractive dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.3%

SEMG

4.2%

US Oil and Gas

5.3%

US Market


1 Year Return

-2.5%

SEMG

-56.1%

US Oil and Gas

-10.7%

US Market

Return vs Industry: SEMG exceeded the US Oil and Gas industry which returned -4.2% over the past year.

Return vs Market: SEMG underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

SEMGIndustryMarket
7 Day-1.3%4.2%5.3%
30 Day-6.5%-35.5%-13.6%
90 Day56.3%-51.4%-19.8%
1 Year13.1%-2.5%-54.3%-56.1%-8.9%-10.7%
3 Year-48.1%-61.6%-51.6%-56.3%15.5%8.0%
5 Year-63.4%-75.4%-54.7%-61.7%35.2%20.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

5.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SEMG ($15.02) is trading below our estimate of fair value ($15.83)

Significantly Below Fair Value: SEMG is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: SEMG is unprofitable, so we can't compare its PE Ratio to the Oil and Gas industry average.

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SEMG is good value based on its PB Ratio (1x) compared to the US Oil and Gas industry average (1x).


Next Steps

Future Growth

How is SemGroup forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

32.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: SEMG's revenue (2.1% per year) is forecast to grow slower than the US market (7.5% per year).

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


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has SemGroup performed over the past 5 years?

-74.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SEMG is currently unprofitable.

Growing Profit Margin: SEMG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SEMG is unprofitable, and losses have increased over the past 5 years at a rate of -74% per year.

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

Earnings vs Industry: SEMG is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-13.3%).


Return on Equity

High ROE: SEMG has a negative Return on Equity (-0.92%), as it is currently unprofitable.


Next Steps

Financial Health

How is SemGroup's financial position?


Financial Position Analysis

Short Term Liabilities: SEMG's short term assets ($877.6M) exceed its short term liabilities ($649.3M).

Long Term Liabilities: SEMG's short term assets ($877.6M) do not cover its long term liabilities ($2.8B).


Debt to Equity History and Analysis

Debt Level: SEMG's debt to equity ratio (92%) is considered high.

Reducing Debt: SEMG's debt to equity ratio has increased from 67.7% to 92% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: SEMG's debt is not covered by short term assets (assets are 0.4x 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: SEMG has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: SEMG has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

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

12.58%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SEMG's dividend (12.58%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: SEMG's dividend (12.58%) is in the top 25% of dividend payers in the US market (3.66%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, SEMG has been paying a dividend for less than 10 years.

Growing Dividend: SEMG's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: SEMG is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: SEMG's dividends in 3 years are not forecast to be well covered by earnings (376.8% payout ratio).


Next Steps

Management

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

3.1yrs

Average management tenure


CEO

Carlin Conner (51yo)

5.67s

Tenure

US$3,106,369

Compensation

Mr. Carlin G. Conner is President, Chief Executive Officer and Director of SemGroup Corporation since April 1, 2014. He serves as the Chief Executive Officer of SemOperating G.P., L.L.C. Mr. Conner is Pres ...


CEO Compensation Analysis

Compensation vs Market: Carlin's total compensation ($USD3.11M) is about average for companies of similar size in the US market ($USD2.53M).

Compensation vs Earnings: Carlin's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Carlin Conner
President5.67yrsUS$3.11m0.32% $3.8m
Robert Fitzgerald
CFO & Executive VP10.08yrsUS$1.73m0.17% $2.0m
Susan Lindberg
Executive VP & General Counsel2.5yrsUS$1.07m0.037% $441.7k
Thomas Sell
Chief Accounting Officer3.75yrsno data0.032% $385.2k
Kevin Greenwell
Director of Investor Relationsno datano datano data
David Gosse
Executive Vice President of Canadian Operations & Commercialno datano data0.069% $827.5k
David Minielly
Executive Vice President of U.S. Operations0.92yrno data0.092% $1.1m
Shaun Revere
Executive Vice President of U.S. Commercial0.92yrno data0.069% $831.1k
Alisa Perkins
Treasurerno datano datano data
William Gault
Corporate Secretaryno datano datano data

3.1yrs

Average Tenure

51yo

Average Age

Experienced Management: SEMG's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Carlin Conner
President5.67yrsUS$3.11m0.32% $3.8m
James Lytal
Independent Director8.08yrsUS$256.00k0.044% $528.0k
William McAdam
Independent Director2.75yrsUS$244.19k0.081% $968.3k
Thomas McDaniel
Independent Chairman of the Board2.92yrsUS$309.00k0.076% $913.4k
Karl Kurz
Independent Director10.08yrsUS$234.00k0.061% $734.7k
Ronald Ballschmiede
Independent Director10.08yrsUS$247.00k0.054% $650.6k
Sarah Barpoulis
Independent Director10.08yrsUS$253.00k0.051% $609.0k
John Rowan
Non-Voting Observer1.92yrsno datano data

6.9yrs

Average Tenure

59yo

Average Age

Experienced Board: SEMG's board of directors are considered experienced (6.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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

SemGroup Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SemGroup Corporation
  • Ticker: SEMG
  • Exchange: NYSE
  • Founded: 2000
  • Industry: Oil and Gas Storage and Transportation
  • Sector: Energy
  • Market Cap: US$1.199b
  • Shares outstanding: 79.61m
  • Website: https://www.semgroup.com

Number of Employees


Location

  • SemGroup Corporation
  • Two Warren Place
  • Suite 1500
  • Tulsa
  • Oklahoma
  • 74136
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SEMGNYSE (New York Stock Exchange)YesClass A Common StockUSUSDMar 2010
SG6DB (Deutsche Boerse AG)YesClass A Common StockDEEURMar 2010

Biography

SemGroup Corporation provides gathering, transportation, storage, distribution, marketing, and other midstream services for producers, refiners of petroleum products, and other market participants. The company operates in three segments: U.S. Liquids, U.S. Gas, and Canada. The U.S. Liquids segment operates crude oil pipelines, truck transportation, storage, terminals, and marketing businesses; stores, blends, and transports refinery products and refinery feedstock through pipeline, barge, rail, truck, and ship; and operates a residual fuel oil storage terminal in the U.S. Gulf Coast. This segment has 18.2 million barrels of storage capacity on the Houston Ship Channel; and 7.6 million barrels of storage capacity at the Cushing Interchange. It also operates a 460-mile crude oil gathering and transportation pipeline system in Kansas and northern Oklahoma; 75-mile crude oil gathering pipeline system that transports crude oil from production facilities in the DJ Basin to the pipeline owned by White Cliffs Pipeline, L.L.C.; 2 parallel 527-mile pipelines that transports crude oil from Platteville, Colorado to Cushing, Oklahoma; 3 pipelines with an aggregate of 106 miles of pipe; 30-lane crude oil truck unloading facility in Platteville, Colorado; and crude oil trucking fleet of approximately 245 transport trucks and 235 trailers. The U.S. Gas segment provides natural gas gathering, processing, and marketing services. It operates 842 miles of gathering lines in Oklahoma; and a 53-mile high pressure gathering pipeline located in the STACK play. The Canada segment owns and operates natural gas processing and gathering facilities with approximately 530 miles of natural gas gathering and transportation pipelines in Alberta, Canada. SemGroup Corporation was founded in 2000 and is headquartered in Tulsa, Oklahoma. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/09 00:27
End of Day Share Price2019/12/04 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.