AMEX:GTE

Stock Analysis Report

Executive Summary

Gran Tierra Energy Inc., together with its subsidiaries, engages in the exploration and production of oil and gas properties in Colombia and Ecuador.


Snowflake Analysis

Undervalued with imperfect balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

9.0%

GTE

-1.2%

US Oil and Gas

-4.1%

US Market


1 Year Return

-88.3%

GTE

-56.2%

US Oil and Gas

-14.9%

US Market

Return vs Industry: GTE underperformed the US Oil and Gas industry which returned -56.2% over the past year.

Return vs Market: GTE underperformed the US Market which returned -14.9% over the past year.


Shareholder returns

GTEIndustryMarket
7 Day9.0%-1.2%-4.1%
30 Day-57.2%-35.5%-19.1%
90 Day-78.6%-51.5%-23.4%
1 Year-88.3%-88.3%-54.4%-56.2%-13.2%-14.9%
3 Year-89.5%-89.5%-51.3%-56.1%10.7%3.5%
5 Year-90.7%-90.7%-54.7%-61.6%28.5%14.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Gran Tierra 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: GTE ($0.28) is trading below our estimate of fair value ($1.82)

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


Price To Earnings Ratio

PE vs Industry: GTE is good value based on its PE Ratio (2.7x) compared to the Oil and Gas industry average (7x).

PE vs Market: GTE is good value based on its PE Ratio (2.7x) compared to the US market (12.5x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: GTE is good value based on its PB Ratio (0.1x) compared to the US Oil and Gas industry average (0.5x).


Next Steps

Future Growth

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

-55.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GTE's earnings are forecast to decline over the next 3 years (-55.3% per year).

Earnings vs Market: GTE's earnings are forecast to decline over the next 3 years (-55.3% per year).

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

Revenue vs Market: GTE's revenue (5.9% per year) is forecast to grow slower than the US market (7.1% per year).

High Growth Revenue: GTE's revenue (5.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Gran Tierra Energy performed over the past 5 years?

48.1%

Historical annual earnings growth


Earnings and Revenue History

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

Growing Profit Margin: GTE's current net profit margins (6.8%) are lower than last year (16.7%).


Past Earnings Growth Analysis

Earnings Trend: GTE has become profitable over the past 5 years, growing earnings by 48.1% per year.

Accelerating Growth: GTE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: GTE had negative earnings growth (-62.3%) over the past year, making it difficult to compare to the Oil and Gas industry average (-11.9%).


Return on Equity

High ROE: GTE's Return on Equity (3.7%) is considered low.


Next Steps

Financial Health

How is Gran Tierra Energy's financial position?


Financial Position Analysis

Short Term Liabilities: GTE's short term assets ($290.7M) exceed its short term liabilities ($199.3M).

Long Term Liabilities: GTE's short term assets ($290.7M) do not cover its long term liabilities ($812.7M).


Debt to Equity History and Analysis

Debt Level: GTE's debt to equity ratio (67.5%) is considered high.

Reducing Debt: Insufficient data to determine if GTE's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: GTE'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: GTE is profitable, therefore cash runway is not a concern.

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


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if GTE'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 GTE'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?

3.8yrs

Average management tenure


CEO

Greg Guidry (63yo)

4.92s

Tenure

US$2,207,748

Compensation

Mr. Gary Stephen Guidry, also known as Greg, P.Eng. has been the Chief Executive Officer and President of Gran Tierra Energy, Inc. since May 7, 2015. Mr. Guidry has been Executive Director at Caracal Energ ...


CEO Compensation Analysis

Compensation vs Market: Greg's total compensation ($USD2.21M) is above average for companies of similar size in the US market ($USD609.32K).

Compensation vs Earnings: Greg's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Gary Guidry
President4.92yrsUS$2.21m0.94% $955.9k
Ryan Ellson
CFO & Executive VP of Finance4.92yrsUS$1.57m0.087% $88.9k
Remi Berthelet
Chief Operating Officer0.50yrUS$1.27m0.011% $11.7k
Lawrence West
Vice President of Exploration4.92yrsUS$1.01m0.095% $97.3k
Rodger Trimble
Vice President of Investor Relations3.83yrsno data0.026% $26.3k
Enrique Villalobos
President & Country Manager of Gran Tierra Energy Ecuador1.25yrsno datano data
Manuel Buitrago
President & Country Manager of Gran Tierra Energy Colombia2.25yrsno datano data

3.8yrs

Average Tenure

57yo

Average Age

Experienced Management: GTE's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gary Guidry
President4.92yrsUS$2.21m0.94% $955.9k
Brooke Wade
Independent Director4.83yrsUS$186.71k0.12% $118.9k
Robert Hodgins
Independent Chairmanno dataUS$259.09k0.0054% $5.6k
Peter Dey
Independent Director4.92yrsUS$191.33k0.0054% $5.6k
David Smith
Independent Director4.92yrsUS$193.64k0.15% $154.3k
Sondra Scott
Independent Director2.58yrsUS$183.25kno data
Ronald Royal
Independent Director4.92yrsUS$191.33k0.069% $70.8k
Evan Hazell
Independent Director4.83yrsUS$186.71k0.015% $15.3k

4.9yrs

Average Tenure

64.5yo

Average Age

Experienced Board: GTE's board of directors are considered experienced (4.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: GTE 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

Gran Tierra Energy Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Gran Tierra Energy Inc.
  • Ticker: GTE
  • Exchange: AMEX
  • Founded: 2003
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: US$102.058m
  • Shares outstanding: 366.98m
  • Website: https://www.grantierra.com

Number of Employees


Location

  • Gran Tierra Energy Inc.
  • 520 – 3rd Avenue SW
  • Suite 900
  • Calgary
  • Alberta
  • T2P 0R3
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GTEAMEX (NYSE MKT LLC)YesCommon SharesUSUSDJul 2005
G1PDB (Deutsche Boerse AG)YesCommon SharesDEEURJul 2005
GTETSX (The Toronto Stock Exchange)YesCommon SharesCACADJul 2005
GTELSE (London Stock Exchange)YesCommon SharesGBGBPJul 2005

Biography

Gran Tierra Energy Inc., together with its subsidiaries, engages in the exploration and production of oil and gas properties in Colombia and Ecuador. As of December 31, 2019, it had total proved undeveloped reserves of 31.0 million barrels of oil equivalent in Colombia. The company was founded in 2003 and is headquartered in Calgary, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/03 07:02
End of Day Share Price2020/04/02 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.