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

Fundamentals

Imperfect balance sheet 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


Market Performance


7 Day Return

1.4%

SEMG

1.0%

US Oil and Gas

0.07%

US Market


1 Year Return

-14.1%

SEMG

-16.7%

US Oil and Gas

8.9%

US Market

Return vs Industry: SEMG exceeded the US Oil and Gas industry which returned -16.7% over the past year.

Return vs Market: SEMG underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

SEMGIndustryMarket
7 Day1.4%1.0%0.07%
30 Day-3.0%-4.3%-0.3%
90 Day32.2%-7.3%-1.6%
1 Year-0.8%-14.1%-13.5%-16.7%11.3%8.9%
3 Year-37.2%-52.7%-5.8%-14.4%46.3%36.8%
5 Year-69.7%-79.1%-23.1%-34.1%62.1%44.3%

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?

0.99x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: SEMG ($16.21) is trading above our estimate of fair value ($14.94)

Significantly Below Fair Value: SEMG is trading above our estimate of fair value.


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 overvalued based on its PB Ratio (1x) compared to the US Oil and Gas industry average (0.9x).


Next Steps

Future Growth

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

34.8%

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 (2.7% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: SEMG's revenue (2.7% 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?

-69.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SEMG is unprofitable, and losses have increased over the past 5 years at a rate of -69.6% 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 (20.6%).


Return on Equity

High ROE: SEMG has a negative Return on Equity (-0.31%), as it is currently unprofitable.


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is SemGroup's financial position?


Financial Position Analysis

Short Term Liabilities: SEMG's short term assets ($1.0B) exceeds its short term liabilities ($720.6M)

Long Term Liabilities: SEMG's short term assets (1.0B) 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 reduced from 104.1% to 92% over the past 5 years.

Debt Coverage: SEMG's debt is not well covered by operating cash flow (8%).

Interest Coverage: SEMG is unprofitable, therefore interest payments are not well covered by earnings.


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).


Next Steps

Dividend

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

11.66%

Current Dividend Yield


Dividend Yield vs Market

company11.7%marketbottom25%1.4%markettop25%3.7%industryaverage4.2%forecastin3Years11.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SEMG's dividend (11.66%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: SEMG's dividend (11.66%) is in the top 25% of dividend payers in the US market (3.68%)

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 6 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 (2091.1% payout ratio).


Next Steps

Management

What is the CEO of SemGroup's salary, the management and board of directors tenure and is there insider trading?

3.0yrs

Average management tenure


CEO

Carlin Conner (51yo)

5.5yrs

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 ($USD3.11M) is about average for companies of similar size in the US market ($USD4.07M).

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


Management Age and Tenure

3.0yrs

Average Tenure

51yo

Average Age

Experienced Management: SEMG's management team is considered experienced (3 years average tenure).


Board Age and Tenure

6.7yrs

Average Tenure

59yo

Average Age

Experienced Board: SEMG's board of directors are considered experienced (6.7 years average tenure).


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

SellUS$93,720,39715 Oct 19
Alinda Capital Partners LLC
EntityCompany
Shares5,642,408
Max PriceUS$16.61
SellUS$67,494,39819 Sep 19
Alinda Capital Partners LLC
EntityCompany
Shares4,087,081
Max PriceUS$16.56
BuyUS$248,55020 Nov 18
William McAdam
EntityIndividual
Role
Member of the Board of Directors
Director
Shares15,000
Max PriceUS$16.60

Ownership Breakdown


Management Team

  • William Gault

    Corporate Secretary

    • Tenure: 0yrs
  • Bob Fitzgerald (59yo)

    CFO & Executive VP

    • Tenure: 9.9yrs
    • Compensation: US$1.73m
  • Dave Gosse (51yo)

    Executive Vice President of Canadian Operations & Commercial

    • Tenure: 0yrs
  • Carlin Conner (51yo)

    President

    • Tenure: 5.5yrs
    • Compensation: US$3.11m
  • Alisa Perkins

    Treasurer

    • Tenure: 0yrs
  • Shaun Revere (49yo)

    Executive Vice President of U.S. Commercial

    • Tenure: 0.8yrs
  • Tom Sell (53yo)

    Chief Accounting Officer

    • Tenure: 3.6yrs
  • Dave Minielly (50yo)

    Executive Vice President of U.S. Operations

    • Tenure: 0.8yrs
  • Susan Lindberg (54yo)

    Executive VP & General Counsel

    • Tenure: 2.3yrs
    • Compensation: US$1.07m
  • Kevin Greenwell

    Director of Investor Relations

    • Tenure: 0yrs

Board Members

  • James Lytal (61yo)

    Director

    • Tenure: 7.9yrs
    • Compensation: US$256.00k
  • Bill McAdam (67yo)

    Director

    • Tenure: 2.6yrs
    • Compensation: US$244.19k
  • Tom McDaniel (70yo)

    Chairman of the Board

    • Tenure: 2.8yrs
    • Compensation: US$309.00k
  • Karl Kurz (57yo)

    Independent Director

    • Tenure: 9.9yrs
    • Compensation: US$234.00k
  • Ron Ballschmiede (63yo)

    Director

    • Tenure: 9.9yrs
    • Compensation: US$247.00k
  • Sarah Barpoulis (54yo)

    Independent Director

    • Tenure: 9.9yrs
    • Compensation: US$253.00k
  • Carlin Conner (51yo)

    President

    • Tenure: 5.5yrs
    • Compensation: US$3.11m
  • John Rowan (40yo)

    Non-Voting Observer

    • Tenure: 1.8yrs

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$1.286b
  • Shares outstanding: 79.32m
  • 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 com ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 00:15
End of Day Share Price2019/10/22 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.