AMEX:SRCI

Stock Analysis Report

Executive Summary

SRC Energy Inc., an oil and natural gas company, engages in the acquisition, exploration, development, and production of oil, natural gas, and natural gas liquids primarily in the Denver-Julesburg Basin of Colorado.

Snowflake

Fundamentals

Fair value with acceptable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-7.7%

SRCI

0.9%

US Oil and Gas

-0.2%

US Market


1 Year Return

-46.4%

SRCI

-20.1%

US Oil and Gas

1.1%

US Market

SRCI underperformed the Oil and Gas industry which returned -20.1% over the past year.

SRCI underperformed the Market in United States of America which returned 1.1% over the past year.


Share holder returns

SRCIIndustryMarket
7 Day-7.7%0.9%-0.2%
30 Day1.5%5.3%2.5%
90 Day1.5%-4.9%1.6%
1 Year-46.4%-46.4%-17.2%-20.1%3.4%1.1%
3 Year-25.7%-25.7%1.8%-7.4%45.2%35.8%
5 Year-62.4%-62.4%-25.5%-35.6%62.6%44.8%

Price Volatility Vs. Market

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


Simply Wall St News

1 month ago | Simply Wall St

Why You Should Like SRC Energy Inc.’s (NYSEMKT:SRCI) ROCE

Valuation

Is SRC Energy undervalued based on future cash flows and its price relative to the stock market?

4.67x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

SRC Energy's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

SRC Energy's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

SRC Energy is good value based on earnings compared to the US Oil and Gas industry average.

SRC Energy is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

SRC Energy is poor value based on expected growth next year.


Price Based on Value of Assets

SRC Energy is good value based on assets compared to the US Oil and Gas industry average.


Next Steps

Future Growth

How is SRC Energy expected to perform in the next 1 to 3 years based on estimates from 15 analysts?

3.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

SRC Energy's revenue is expected to grow by 5.4% yearly, however this is not considered high growth (20% yearly).

SRC Energy's earnings are expected to grow by 3% yearly, however this is not considered high growth (20% yearly).

SRC Energy's revenue growth is positive but not above the United States of America market average.

SRC Energy's earnings growth is positive but not above the United States of America market average.

SRC Energy's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

SRC Energy is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has SRC Energy performed over the past 5 years?

37.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

SRC Energy has delivered over 20% year on year earnings growth in the past 5 years.

SRC Energy's 1-year earnings growth is less than its 5-year average (18.4% vs 37.5%)

SRC Energy's earnings growth has not exceeded the US Oil and Gas industry average in the past year (18.4% vs 22.6%).


Return on Equity

SRC Energy has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

SRC Energy used its assets more efficiently than the US Oil and Gas industry average last year based on Return on Assets.


Return on Capital Employed

SRC Energy has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).


Next Steps

Financial Health

How is SRC Energy's financial position?


Financial Position Analysis

SRC Energy's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

SRC Energy's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

SRC Energy's level of debt (41.5%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (13.6% vs 41.5% today).

Debt is well covered by operating cash flow (83.3%, greater than 20% of total debt).

SRC Energy earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.2x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate SRC Energy's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate SRC Energy's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as SRC Energy has not reported any payouts.

Unable to verify if SRC Energy's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as SRC Energy has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of SRC Energy's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

Lynn Peterson (66yo)

3.7yrs

Tenure

US$6,088,915

Compensation

Mr. Lynn Alan Peterson serves as the Chief Executive Officer and President at KOG Finance, LLC. Mr. Peterson has been the Chairman and Chief Executive Officer of SRC Energy Inc. (formerly Synergy Resources ...


CEO Compensation Analysis

Lynn's remuneration is higher than average for companies of similar size in United States of America.

Lynn's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.5yrs

Average Tenure

59yo

Average Age

The tenure for the SRC Energy management team is about average.


Board Age and Tenure

3.4yrs

Average Tenure

62.5yo

Average Age

The tenure for the SRC Energy board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUS$75,69907 Nov 18
Nicholas Spence
EntityIndividual
Role
Senior Key Executive
Executive VP & Chief Development Officer
Shares10,000
Max PriceUS$7.57

Ownership Breakdown


Management Team

  • Cathleen Osborn (66yo)

    Executive VP

    • Tenure: 4.1yrs
    • Compensation: US$1.56m
  • Jon Kruljac (58yo)

    Vice President of Capital Markets & Investor Relations

    • Tenure: 6.6yrs
  • Lynn Peterson (66yo)

    President

    • Tenure: 3.7yrs
    • Compensation: US$6.09m
  • Jimmy Henderson (54yo)

    Executive VP

    • Tenure: 4.1yrs
    • Compensation: US$2.69m
  • Craig Rasmuson (51yo)

    Executive Vice President of Business Development

    • Tenure: 3.3yrs
    • Compensation: US$998.02k
  • Mike Eberhard (61yo)

    Executive VP & COO

    • Tenure: 3.3yrs
    • Compensation: US$1.57m
  • Tom Birmingham

    Vice President of Exploration

    • Tenure: 3.8yrs
  • Sandra Jacoby

    Director of Human Resources

    • Tenure: 3.4yrs
  • Nick Spence (60yo)

    Executive VP & Chief Development Officer

    • Tenure: 3.3yrs
    • Compensation: US$1.57m
  • Jared Grenzenbach (43yo)

    Chief Accounting Officer & VP of Accounting

    • Tenure: 3.3yrs

Board Members

  • Paul Korus (62yo)

    Director

    • Tenure: 3.3yrs
    • Compensation: US$251.47k
  • Ray McElhaney (63yo)

    Lead Director

    • Tenure: 0.7yrs
    • Compensation: US$256.72k
  • Lynn Peterson (66yo)

    President

    • Tenure: 3.7yrs
    • Compensation: US$6.09m
  • Jack Aydin (78yo)

    Director

    • Tenure: 5.2yrs
    • Compensation: US$257.97k
  • Dan Kelly (60yo)

    Independent Director

    • Tenure: 3.6yrs
    • Compensation: US$246.72k
  • Jennifer Zucker (48yo)

    Independent Director

    • Tenure: 1.7yrs
    • Compensation: US$328.17k

Company Information

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


Key Information

  • Name: SRC Energy Inc.
  • Ticker: SRCI
  • Exchange: AMEX
  • Founded: 2005
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: US$1.164b
  • Shares outstanding: 243.50m
  • Website: https://www.srcenergy.com

Number of Employees


Location

  • SRC Energy Inc.
  • 1675 Broadway
  • Suite 2600
  • Denver
  • Colorado
  • 80202
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SRCIAMEX (NYSE MKT LLC)YesCommon StockUSUSDSep 2008
SYABST (Boerse-Stuttgart)YesCommon StockDEEURSep 2008

Biography

SRC Energy Inc., an oil and natural gas company, engages in the acquisition, exploration, development, and production of oil, natural gas, and natural gas liquids primarily in the Denver-Julesburg Basin of ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/20 23:59
End of Day Share Price2019/09/20 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.