OTCPK:SUME

Stock Analysis Report

Executive Summary

Summer Energy Holdings, Inc., through its subsidiaries, operates as a retail electric service provider in Texas, Massachusetts, Rhode Island, and New Hampshire.


Snowflake Analysis

Mediocre balance sheet with weak fundamentals.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-5.3%

SUME

0.2%

US Electric Utilities

-1.1%

US Market


1 Year Return

-28.6%

SUME

26.3%

US Electric Utilities

17.8%

US Market

Return vs Industry: SUME underperformed the US Electric Utilities industry which returned 25.7% over the past year.

Return vs Market: SUME underperformed the US Market which returned 17.9% over the past year.


Shareholder returns

SUMEIndustryMarket
7 Day-5.3%0.2%-1.1%
30 Day-5.3%3.1%1.5%
90 Day-23.2%14.2%6.6%
1 Year-28.6%-28.6%30.5%26.3%20.2%17.8%
3 Year-7.8%-7.8%52.4%37.8%47.5%38.1%
5 Year100.0%100.0%91.6%59.6%71.2%52.4%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Summer Energy Holdings undervalued compared to its fair value and its price relative to the market?

4.74x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

PE vs Industry: SUME is unprofitable, so we can't compare its PE Ratio to the Electric Utilities industry average.

PE vs Market: SUME 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 SUME's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SUME is overvalued based on its PB Ratio (4.7x) compared to the US Electric Utilities industry average (2.4x).


Next Steps

Future Growth

How is Summer Energy Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

7.9%

Forecasted Utilities industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Summer Energy Holdings has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

  • Take a look at our analysis of SUME’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on the OTC Markets Website. If you are looking for more of a qualitative research into the company, you can access Summer Energy Holdings's filings and announcements here.
  • Explore growth companies in the Utilities industry.

Past Performance

How has Summer Energy Holdings performed over the past 5 years?

-35.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SUME is currently unprofitable.

Growing Profit Margin: SUME is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SUME is unprofitable, and losses have increased over the past 5 years at a rate of -35.7% per year.

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

Earnings vs Industry: SUME is unprofitable, making it difficult to compare its past year earnings growth to the Electric Utilities industry (6%).


Return on Equity

High ROE: SUME has a negative Return on Equity (-69.48%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Summer Energy Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: SUME's short term assets ($58.5M) exceed its short term liabilities ($46.1M).

Long Term Liabilities: SUME's short term assets ($58.5M) exceed its long term liabilities ($5.4M).


Debt to Equity History and Analysis

Debt Level: SUME's debt to equity ratio (108.3%) is considered high.

Reducing Debt: SUME had negative shareholder equity 5 years ago, but is now positive and has therefore improved.


Balance Sheet

Inventory Level: SUME has a low level of unsold assets or inventory.

Debt Coverage by Assets: SUME's debt is covered by short term assets (assets are 5.7x 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: SUME has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: SUME has less than a year of cash runway if free cash flow continues to reduce at historical rates of -35.8% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

6.5yrs

Average management tenure


CEO

Neil Leibman (59yo)

7.1yrs

Tenure

US$234,593

Compensation

Mr. Neil M. Leibman serves as the Chief Operating Officer of Rangers Baseball Express LLC. Mr. Neil M. Leibman has been the Chief Executive Officer of Summer Energy Holdings, Inc. since January 21, 2013. M ...


CEO Compensation Analysis

Compensation vs Market: Neil's total compensation ($USD234.59K) is below average for companies of similar size in the US market ($USD522.48K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Neil Leibman
CEO & Director7.1yrsUS$234.59k12.8% $5.7m
Angela Hanley
President6yrsUS$598.54k0.32% $143.0k
Jaleea George
CFO, Treasurer7.9yrsUS$417.05k1.96% $874.6k
Travis Andrews
Chief Supply Officer0yrsUS$268.24kno data
Kelli Mitchell
Chief Operating Officer0.5yrsno datano data

6.5yrs

Average Tenure

57.5yo

Average Age

Experienced Management: SUME's management team is seasoned and experienced (6.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Neil Leibman
CEO & Director7.1yrsUS$234.59k12.8% $5.7m
Jaleea George
CFO, Treasurer7.9yrsUS$417.05k1.96% $874.6k
James Stapleton
Independent Director7.9yrsUS$69.95k0.079% $35.5k
Stuart Gaylor
Non-Executive Chairman7.8yrsUS$79.94k7.68% $3.4m
Tom O'Leary
Independent Director6.9yrsUS$69.95k12.8% $5.7m
Andrew Bursten
Independent Director6.7yrsUS$69.95k4.62% $2.1m
Jeffery Meeks
Independent Director7.9yrsUS$69.95k0.079% $35.5k
Albert Larose
Independent Director1.8yrsUS$54.07k6.43% $2.9m

7.5yrs

Average Tenure

58.5yo

Average Age

Experienced Board: SUME's board of directors are considered experienced (7.5 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 been diluted in the past year, with total shares outstanding growing by 14.9%.


Top Shareholders

Company Information

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


Key Information

  • Name: Summer Energy Holdings, Inc.
  • Ticker: SUME
  • Exchange: OTCPK
  • Founded: 2011
  • Industry: Electric Utilities
  • Sector: Utilities
  • Market Cap: US$44.733m
  • Shares outstanding: 31.50m
  • Website: https://www.summerenergy.com

Number of Employees


Location

  • Summer Energy Holdings, Inc.
  • 5847 San Felipe Street
  • Suite 3700
  • Houston
  • Texas
  • 77057
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SUMEOTCPK (Pink Sheets LLC)YesCommon StockUSUSDMar 2012

Biography

Summer Energy Holdings, Inc., through its subsidiaries, operates as a retail electric service provider in Texas, Massachusetts, Rhode Island, and New Hampshire. The company procures wholesale energy and resells to commercial and residential customers. Summer Energy Holdings, Inc. was founded in 2011 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 Analysis2020/02/24 03:23
End of Day Share Price2020/02/20 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.