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Superior Energy Services Inc Valuation – August 2018 $SPN

Company Profile (excerpt from Reuters): Superior Energy Services, Inc., incorporated on April 26, 1991, provides a range of services and products to the energy industry related to the exploration, development and production of oil and natural gas. The Company’s segments include Drilling Products and Services; Onshore Completion and Workover Services; Production Services, and Technical Solutions. The Drilling Products and Services segment rents and sells bottom hole assemblies, drill pipe, tubulars and specialized equipment for use with onshore and offshore oil and gas well drilling, completion, production and workover activities. It also provides on-site accommodations and machining services. The Onshore Completion and Workover Services segment provides pressure pumping services used to complete and stimulate production in new oil and gas wells, fluid handling services and well servicing rigs that provide a range of well completion, workover and maintenance services. The Production Services segment provides intervention services, such as coiled tubing, cased hole and mechanical wireline, hydraulic workover and snubbing, production testing and optimization, and remedial pumping services. The Technical Solutions segment provides services typically requiring specialized engineering, manufacturing or project planning, including well containment systems, stimulation and sand control services and well plug and abandonment services. It also includes production handling arrangements and the production and sale of oil and gas.

SPN Chart

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Downloadable PDF version of this valuation:

ModernGraham Valuation of SPN – August 2018

Stage 1: Is this company suitable for the Defensive Investor or the Enterprising Investor?

What kind of Intelligent Investor are you?

Defensive Investor; must pass 6 out of the following 7 tests.
1. Adequate Size of the Enterprise Market Cap > $2Bil $1,511,280,681 Fail
2. Sufficiently Strong Financial Condition Current Ratio > 2 1.97 Fail
3. Earnings Stability Positive EPS for 10 years prior Fail
4. Dividend Record Dividend Payments for 10 years prior Fail
5. Earnings Growth Increase of 33% in EPS in past 10 years using 3 year averages at beginning and end -656.76% Fail
6. Moderate PEmg Ratio PEmg < 20 -2.76 Fail
7. Moderate Price to Assets PB Ratio < 2.5 OR PB*PEmg < 50 1.38 Fail
Enterprising Investor; must pass 4 out of the following 5 tests, or be suitable for the Defensive Investor.
1. Sufficiently Strong Financial Condition Current Ratio > 1.5 1.97 Pass
2. Sufficiently Strong Financial Condition Debt to NCA < 1.1 3.42 Fail
3. Earnings Stability Positive EPS for 5 years prior Fail
4. Dividend Record Currently Pays Dividend Fail
5. Earnings Growth EPSmg greater than 5 years ago Fail

 

Stage 2: Determination of Intrinsic Value

EPSmg -$3.41
MG Growth Estimate -4.25%
MG Value $0.00
Opinion Overvalued
MG Grade D
MG Value based on 3% Growth -$49.45
MG Value based on 0% Growth -$28.99
Market Implied Growth Rate -5.63%
Current Price $9.42
% of Intrinsic Value N/A

Superior Energy Services, Inc. does not satisfy the requirements of either the Enterprising Investor or the more conservative Defensive Investor. The Defensive Investor is concerned with the small size, low current ratio, insufficient earnings stability or growth over the last ten years, and the poor dividend history, and the high PEmg and PB ratios. The Enterprising Investor has concerns regarding the level of debt relative to the net current assets, and the lack of earnings stability or growth over the last five years, and the lack of dividends. As a result, all value investors following the ModernGraham approach should explore other opportunities at this time or proceed cautiously with a speculative attitude.

As for a valuation, the company appears to be Overvalued after seeing its EPSmg (normalized earnings) decline from $1.15 in 2014 to an estimated $-3.41 for 2018. This level of negative earnings does not support a positive valuation.As a result, the ModernGraham valuation model, based on the Benjamin Graham value investing formula, returns an estimate of intrinsic value below the price.

At the time of valuation, further research into Superior Energy Services, Inc. revealed the company was trading above its Graham Number of $0. The company does not pay a dividend. Its PEmg (price over earnings per share – ModernGraham) was -2.76, which was below the industry average of 59.52, which by some methods of valuation makes it one of the most undervalued stocks in its industry. Finally, the company was trading above its Net Current Asset Value (NCAV) of $-7.82.

Superior Energy Services, Inc. scores quite poorly in the ModernGraham grading system, with an overall grade of D.

Stage 3: Information for Further Research

Net Current Asset Value (NCAV) -$7.82
Graham Number $0.00
PEmg -2.76
Current Ratio 1.97
PB Ratio 1.38
Current Dividend $0.00
Dividend Yield 0.00%
Number of Consecutive Years of Dividend Growth 0

Useful Links:

ModernGraham tagged articles Morningstar
Google Finance MSN Money
Yahoo Finance Seeking Alpha
GuruFocus SEC Filings

Most Recent Balance Sheet Figures

Balance Sheet Information 6/1/2018
Total Current Assets $762,448,000
Total Current Liabilities $387,946,000
Long-Term Debt $1,281,145,000
Total Assets $3,020,985,000
Intangible Assets $944,162,000
Total Liabilities $1,968,270,000
Shares Outstanding (Diluted Average) 154,278,000

Earnings Per Share History

EPS History
Next Fiscal Year Estimate -$1.04
Dec2017 -$1.35
Dec2016 -$5.85
Dec2015 -$12.33
Dec2014 $1.65
Dec2013 -$0.70
Dec2012 $2.42
Dec2011 $1.76
Dec2010 $1.03
Dec2009 -$1.31
Dec2008 $4.33
Dec2007 $3.41
Dec2006 $2.32
Dec2005 $0.85
Dec2004 $0.47
Dec2003 $0.41
Dec2002 $0.30
Dec2001 $0.77
Dec2000 $0.28
Dec1999 -$0.25
Dec1998 -$1.27

Earnings Per Share – ModernGraham History

EPSmg History
Next Fiscal Year Estimate -$3.41
Dec2017 -$4.30
Dec2016 -$4.84
Dec2015 -$3.37
Dec2014 $1.15
Dec2013 $0.81
Dec2012 $1.60
Dec2011 $1.40
Dec2010 $1.47
Dec2009 $1.77
Dec2008 $2.96
Dec2007 $2.02
Dec2006 $1.17
Dec2005 $0.58
Dec2004 $0.45
Dec2003 $0.39
Dec2002 $0.24

Recommended Reading:

Other ModernGraham posts about the company

Superior Energy Services Inc Valuation – Initial Coverage $SPN

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Disclaimer:

The author did not hold a position in any company mentioned in this article at the time of publication and had no intention of changing that position within the next 72 hours.  See my current holdings here.  This article is not investment advice; any reader should speak to a registered investment adviser prior to making any investment decisions.  ModernGraham is not affiliated with the company in any manner.  Please be sure to review our detailed disclaimer.

Superior Energy Services Inc Valuation – Initial Coverage $SPN

Benjamin Graham taught that Intelligent Investors must do a thorough fundamental analysis of investment opportunities to determine their intrinsic value and inherent risk.  This is best done by utilizing a systematic approach to analysis that will provide investors with a sense of how a specific company compares to another company or by reviewing the 10 Stocks for Using A Benjamin Graham Value Investing Strategy – February 2017.  By using the ModernGraham method one can review a company’s historical accomplishments and determine an intrinsic value that can be compared across industries.  What follows is a stock analysis showing a specific look at how Superior Energy Services Inc (SPN) fares in the ModernGraham valuation model.

Company Profile (obtained from Google Finance): Superior Energy Services, Inc. provides a range of services and products to the energy industry related to the exploration, development and production of oil and natural gas. The Company’s segments include Drilling Products and Services, which rents and sells bottom hole assemblies, drill pipe, tubulars and specialized equipment for use with onshore and offshore oil and gas well drilling, production and workover activities; Onshore Completion and Workover Services, which provides pressure pumping services used to complete and stimulate production in new oil and gas wells, fluid handling services and well servicing rigs that provide a range of well completion and maintenance services; Production Services, which provides intervention services, such as coiled tubing, cased hole and mechanical wireline, hydraulic workover and snubbing, and remedial pumping services, and Technical Solutions, which provides services requiring specialized engineering, manufacturing or project planning.

SPN Chart

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Downloadable PDF version of this valuation:

ModernGraham Valuation of SPN – February 2017

Stage 1: Is this company suitable for the Defensive Investor or the Enterprising Investor?

What kind of Intelligent Investor are you?

Defensive Investor; must pass 6 out of the following 7 tests.
1. Adequate Size of the Enterprise Market Cap > $2Bil $2,607,339,961 Pass
2. Sufficiently Strong Financial Condition Current Ratio > 2 2.27 Pass
3. Earnings Stability Positive EPS for 10 years prior Fail
4. Dividend Record Dividend Payments for 10 years prior Fail
5. Earnings Growth Increase of 33% in EPS in past 10 years using 3 year averages at beginning and end -348.06% Fail
6. Moderate PEmg Ratio PEmg < 20 -3.73 Fail
7. Moderate Price to Assets PB Ratio < 2.5 OR PB*PEmg < 50 1.73 Fail
Enterprising Investor; must pass 4 out of the following 5 tests, or be suitable for the Defensive Investor.
1. Sufficiently Strong Financial Condition Current Ratio > 1.5 2.27 Pass
2. Sufficiently Strong Financial Condition Debt to NCA < 1.1 2.87 Fail
3. Earnings Stability Positive EPS for 5 years prior Fail
4. Dividend Record Currently Pays Dividend Pass
5. Earnings Growth EPSmg greater than 5 years ago Fail

Stage 2: Determination of Intrinsic Value

EPSmg -$4.65
MG Growth Estimate -4.25%
MG Value $0.00
Opinion Overvalued
MG Grade D
MG Value based on 3% Growth -$67.36
MG Value based on 0% Growth -$39.49
Market Implied Growth Rate -6.11%
Current Price $17.32
% of Intrinsic Value N/A

Superior Energy Services, Inc. does not satisfy the requirements of either the Enterprising Investor or the more conservative Defensive Investor. The Defensive Investor is concerned with the insufficient earnings stability or growth over the last ten years, the poor dividend history, and the high PEmg and PB ratios. The Enterprising Investor has concerns regarding the level of debt relative to the net current assets, and the lack of earnings stability or growth over the last five years. As a result, all value investors following the ModernGraham approach should explore other opportunities at this time or proceed cautiously with a speculative attitude.

As for a valuation, the company appears to be Overvalued after seeing its EPSmg (normalized earnings) decline from $1.6 in 2012 to an estimated $-4.65 for 2016. This level of negative earnings does not support a positive valuation.As a result, the ModernGraham valuation model, based on the Benjamin Graham value investing formula, returns an estimate of intrinsic value below the price.

At the time of valuation, further research into Superior Energy Services, Inc. revealed the company was trading above its Graham Number of $0. The company pays a dividend of $0.24 per share, for a yield of 1.4% Its PEmg (price over earnings per share – ModernGraham) was -3.73, which was below the industry average of 69.19, which by some methods of valuation makes it one of the most undervalued stocks in its industry. Finally, the company was trading above its Net Current Asset Value (NCAV) of $-8.77.

Superior Energy Services, Inc. scores quite poorly in the ModernGraham grading system, with an overall grade of D.

Stage 3: Information for Further Research

Net Current Asset Value (NCAV) -$8.77
Graham Number $0.00
PEmg -3.73
Current Ratio 2.27
PB Ratio 1.74
Current Dividend $0.24
Dividend Yield 1.39%
Number of Consecutive Years of Dividend Growth 0

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ModernGraham tagged articles Morningstar
Google Finance MSN Money
Yahoo Finance Seeking Alpha
GuruFocus SEC Filings

Most Recent Balance Sheet Figures

Balance Sheet Information 9/1/2016
Total Current Assets $800,286,000
Total Current Liabilities $352,786,000
Long-Term Debt $1,283,581,000
Total Assets $3,643,820,000
Intangible Assets $1,034,039,000
Total Liabilities $2,130,087,000
Shares Outstanding (Diluted Average) 151,707,000

Earnings Per Share History

EPS History
Next Fiscal Year Estimate -$5.27
Dec2015 -$12.33
Dec2014 $1.65
Dec2013 -$0.69
Dec2012 $2.42
Dec2011 $1.76
Dec2010 $1.03
Dec2009 -$1.31
Dec2008 $4.33
Dec2007 $3.41
Dec2006 $2.32
Dec2005 $0.85
Dec2004 $0.47
Dec2003 $0.41
Dec2002 $0.30
Dec2001 $0.77
Dec2000 $0.28
Dec1999 -$0.25
Dec1998 -$1.27
Dec1997 $0.43
Dec1996 $0.22

Earnings Per Share – ModernGraham History

EPSmg History
Next Fiscal Year Estimate -$4.65
Dec2015 -$3.37
Dec2014 $1.15
Dec2013 $0.82
Dec2012 $1.60
Dec2011 $1.40
Dec2010 $1.47
Dec2009 $1.77
Dec2008 $2.96
Dec2007 $2.02
Dec2006 $1.17
Dec2005 $0.58
Dec2004 $0.45
Dec2003 $0.39
Dec2002 $0.24
Dec2001 $0.14
Dec2000 -$0.16

Recommended Reading:

Other ModernGraham posts about the company

None. This is the first time ModernGraham has covered the company.

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Disclaimer:

The author did not hold a position in any company mentioned in this article at the time of publication and had no intention of changing that position within the next 72 hours.  See my current holdings here.  This article is not investment advice; any reader should speak to a registered investment adviser prior to making any investment decisions.  ModernGraham is not affiliated with the company in any manner.  Please be sure to review our detailed disclaimer.

Cenovus Energy Inc Valuation – October 2018 $TSE-CVE

Company Profile (excerpt from Reuters): Cenovus Energy Inc is a Canada-based integrated oil and natural gas company. The Company’s operations, include oil sands projects in northern Alberta and oil production in Alberta and British Columbia. The Company is owner of two projects that are producing oil, Christina Lake and Foster Creek. The oil sands projects use a drilling method called steam-assisted gravity drainage or SAGD for short. The SAGD process uses natural gas to heat water into steam, which helps The Company to extract the oil out of the oil sands. The company also holds interest in two United States refineries, Wood River located in Roxana Illinois and Borger located in Borger Texas.

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Downloadable PDF version of this valuation:

ModernGraham Valuation of TSE-CVE – October 2018

Stage 1: Is this company suitable for the Defensive Investor or the Enterprising Investor?

What kind of Intelligent Investor are you?

Defensive Investor; must pass 6 out of the following 7 tests.
1. Adequate Size of the Enterprise Market Cap > $2Bil $16,400,000,000 Pass
2. Sufficiently Strong Financial Condition Current Ratio > 2 1.17 Fail
3. Earnings Stability Positive EPS for 10 years prior Fail
4. Dividend Record Dividend Payments for 10 years prior Fail
5. Earnings Growth Increase of 33% in EPS in past 10 years using 3 year averages at beginning and end -57.49% Fail
6. Moderate PEmg Ratio PEmg < 20 19.02 Pass
7. Moderate Price to Assets PB Ratio < 2.5 OR PB*PEmg < 50 0.84 Pass
Enterprising Investor; must pass 4 out of the following 5 tests, or be suitable for the Defensive Investor.
1. Sufficiently Strong Financial Condition Current Ratio > 1.5 1.17 Fail
2. Sufficiently Strong Financial Condition Debt to NCA < 1.1 15.37 Fail
3. Earnings Stability Positive EPS for 5 years prior Fail
4. Dividend Record Currently Pays Dividend Pass
5. Earnings Growth EPSmg greater than 5 years ago Fail

 

Stage 2: Determination of Intrinsic Value

EPSmg $0.68
MG Growth Estimate -4.25%
MG Value $0.00
Opinion Overvalued
MG Grade D
MG Value based on 3% Growth $9.89
MG Value based on 0% Growth $5.80
Market Implied Growth Rate 5.26%
Current Price $12.97
% of Intrinsic Value N/A

Cenovus Energy Inc does not satisfy the requirements of either the Enterprising Investor or the more conservative Defensive Investor. The Defensive Investor is concerned with the low current ratio, insufficient earnings stability or growth over the last ten years, and the poor dividend history. The Enterprising Investor has concerns regarding the level of debt relative to the current assets, and the lack of earnings stability or growth over the last five years. As a result, all value investors following the ModernGraham approach should explore other opportunities at this time or proceed cautiously with a speculative attitude.

As for a valuation, the company appears to be Overvalued after seeing its EPSmg (normalized earnings) decline from $1.18 in 2014 to an estimated $0.68 for 2018. This level of demonstrated earnings growth does not support the market’s implied estimate of 5.26% annual earnings growth over the next 7-10 years. As a result, the ModernGraham valuation model, based on the Benjamin Graham value investing formula, returns an estimate of intrinsic value below the price.

At the time of valuation, further research into Cenovus Energy Inc revealed the company was trading above its Graham Number of $0. The company pays a dividend of $0.2 per share, for a yield of 1.5% Its PEmg (price over earnings per share – ModernGraham) was 19.02, which was below the industry average of 60.49, which by some methods of valuation makes it one of the most undervalued stocks in its industry. Finally, the company was trading above its Net Current Asset Value (NCAV) of $-13.61.

Cenovus Energy Inc scores quite poorly in the ModernGraham grading system, with an overall grade of D.

Stage 3: Information for Further Research

Net Current Asset Value (NCAV) -$13.61
Graham Number $0.00
PEmg 19.02
Current Ratio 1.17
PB Ratio 0.84
Current Dividend $0.20
Dividend Yield 1.54%
Number of Consecutive Years of Dividend Growth 0

Useful Links:

ModernGraham tagged articles Morningstar
Google Finance MSN Money
Yahoo Finance Seeking Alpha
GuruFocus SEC Filings

Most Recent Balance Sheet Figures

Balance Sheet Information 6/1/2018
Total Current Assets $4,566,000,000
Total Current Liabilities $3,916,000,000
Long-Term Debt $9,992,000,000
Total Assets $40,299,000,000
Intangible Assets $2,272,000,000
Total Liabilities $21,296,000,000
Shares Outstanding (Diluted Average) 1,229,300,000

Earnings Per Share History

EPS History
Next Fiscal Year Estimate -$0.50
Dec2017 $3.05
Dec2016 -$0.65
Dec2015 $0.75
Dec2014 $0.98
Dec2013 $0.87
Dec2012 $1.31
Dec2011 $1.95
Dec2010 $1.43
Dec2009 $1.09
Dec2008 $3.83

Earnings Per Share – ModernGraham History

EPSmg History
Next Fiscal Year Estimate $0.68
Dec2017 $1.18
Dec2016 $0.38
Dec2015 $0.99
Dec2014 $1.18
Dec2013 $1.29
Dec2012 $1.64
Dec2011 $1.76
Dec2010 $1.53
Dec2009 $1.39
Dec2008 $1.28

Recommended Reading:

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Cenovus Energy Inc Valuation – Initial Coverage $TSE:CVE

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Denbury Resources Inc Valuation – August 2018 $DNR
California Resources Corp Valuation – August 2018 $CRC
Crew Energy Inc Valuation – August 2018 $TSE-CR
Superior Energy Services Inc Valuation – August 2018 $SPN

Disclaimer:

The author did not hold a position in any company mentioned in this article at the time of publication and had no intention of changing that position within the next 72 hours.  See my current holdings here.  This article is not investment advice; any reader should speak to a registered investment adviser prior to making any investment decisions.  ModernGraham is not affiliated with the company in any manner.  Please be sure to review our detailed disclaimer.

CNX Resources Corp Valuation – September 2018 $CNX

Company Profile (excerpt from Reuters): CNX Resources Corp., formerly CONSOL Energy Inc., incorporated on October 31, 1991, is an integrated energy company. The Company’s divisions include Exploration and Production (E&P), Pennsylvania (PA) Mining Operations and Other. The E&P division operates through three segments: Marcellus Shale, Coalbed Methane (CBM) and Other Gas, which produce pipeline quality natural gas for sale primarily to gas wholesalers. Its E&P division focuses on Appalachian area natural gas and liquids activities, including production, gathering, processing and acquisition of natural gas properties in the Appalachian Basin. The Company’s E&P operations are located throughout Appalachia. Its Other Gas properties include Shallow Oil and Gas, Chattanooga and Huron. The Other Gas segment is primarily related to shallow oil and gas production and the Chattanooga Shale in Tennessee. The principal activities of the PA Mining Operations division are mining, preparation and marketing of thermal coal, sold primarily to power generators. The PA Mining Operations division focuses on the extraction and preparation of coal in the Appalachian Basin. The Other division includes business activities, such as coal terminal operations and water operations.

 

Downloadable PDF version of this valuation:

ModernGraham Valuation of CNX – September 2018

Stage 1: Is this company suitable for the Defensive Investor or the Enterprising Investor?

What kind of Intelligent Investor are you?

Defensive Investor; must pass 6 out of the following 7 tests.
1. Adequate Size of the Enterprise Market Cap > $2Bil $3,178,842,385 Pass
2. Sufficiently Strong Financial Condition Current Ratio > 2 0.67 Fail
3. Earnings Stability Positive EPS for 10 years prior Fail
4. Dividend Record Dividend Payments for 10 years prior Fail
5. Earnings Growth Increase of 33% in EPS in past 10 years using 3 year averages at beginning and end -93.16% Fail
6. Moderate PEmg Ratio PEmg < 20 39.47 Fail
7. Moderate Price to Assets PB Ratio < 2.5 OR PB*PEmg < 50 0.65 Pass
Enterprising Investor; must pass 4 out of the following 5 tests, or be suitable for the Defensive Investor.
1. Sufficiently Strong Financial Condition Current Ratio > 1.5 0.67 Fail
2. Sufficiently Strong Financial Condition Debt to NCA < 1.1 -14.96 Fail
3. Earnings Stability Positive EPS for 5 years prior Fail
4. Dividend Record Currently Pays Dividend Fail
5. Earnings Growth EPSmg greater than 5 years ago Fail

 

Stage 2: Determination of Intrinsic Value

EPSmg $0.38
MG Growth Estimate -4.25%
MG Value $0.00
Opinion Overvalued
MG Grade C-
MG Value based on 3% Growth $5.48
MG Value based on 0% Growth $3.21
Market Implied Growth Rate 15.49%
Current Price $14.92
% of Intrinsic Value N/A

CNX Resources Corp does not satisfy the requirements of either the Enterprising Investor or the more conservative Defensive Investor. The Defensive Investor is concerned with the low current ratio, insufficient earnings stability or growth over the last ten years, and the poor dividend history, and the high PEmg ratio. The Enterprising Investor has concerns regarding the level of debt relative to the current assets, and the lack of earnings stability or growth over the last five years, and the lack of dividends. As a result, all value investors following the ModernGraham approach should explore other opportunities at this time or proceed cautiously with a speculative attitude.

As for a valuation, the company appears to be Overvalued after seeing its EPSmg (normalized earnings) decline from $1.81 in 2014 to an estimated $0.38 for 2018. This level of demonstrated earnings growth does not support the market’s implied estimate of 15.49% annual earnings growth over the next 7-10 years. As a result, the ModernGraham valuation model, based on the Benjamin Graham value investing formula, returns an estimate of intrinsic value below the price.

At the time of valuation, further research into CNX Resources Corp revealed the company was trading below its Graham Number of $31.62. The company does not pay a dividend. Its PEmg (price over earnings per share – ModernGraham) was 39.47, which was below the industry average of 58.86, which by some methods of valuation makes it one of the most undervalued stocks in its industry. Finally, the company was trading above its Net Current Asset Value (NCAV) of $-13.02.

CNX Resources Corp receives an average overall rating in the ModernGraham grading system, scoring a C-.

Stage 3: Information for Further Research

Net Current Asset Value (NCAV) -$13.02
Graham Number $31.62
PEmg 39.47
Current Ratio 0.67
PB Ratio 0.65
Current Dividend $0.00
Dividend Yield 0.00%
Number of Consecutive Years of Dividend Growth 0

Useful Links:

ModernGraham tagged articles Morningstar
Google Finance MSN Money
Yahoo Finance Seeking Alpha
GuruFocus SEC Filings

Most Recent Balance Sheet Figures

Balance Sheet Information 6/1/2018
Total Current Assets $319,146,000
Total Current Liabilities $474,991,000
Long-Term Debt $2,330,780,000
Total Assets $8,207,758,000
Intangible Assets $902,835,000
Total Liabilities $3,168,835,000
Shares Outstanding (Diluted Average) 218,930,000

Earnings Per Share History

EPS History
Next Fiscal Year Estimate $2.55
Dec2017 $1.65
Dec2016 -$3.70
Dec2015 -$1.64
Dec2014 $0.70
Dec2013 $2.87
Dec2012 $1.70
Dec2011 $2.76
Dec2010 $1.60
Dec2009 $2.95
Dec2008 $2.40
Dec2007 $1.45
Dec2006 $2.20
Dec2005 $3.13
Dec2004 $1.09
Dec2003 -$0.05
Dec2002 $0.08
Jun2001 $1.17
Jun2000 $0.68
Jun1999 $0.31
Dec1998 $0.87

Earnings Per Share – ModernGraham History

EPSmg History
Next Fiscal Year Estimate $0.38
Dec2017 -$0.48
Dec2016 -$1.03
Dec2015 $0.62
Dec2014 $1.81
Dec2013 $2.37
Dec2012 $2.18
Dec2011 $2.35
Dec2010 $2.14
Dec2009 $2.42
Dec2008 $2.12
Dec2007 $1.84
Dec2006 $1.78
Dec2005 $1.41
Dec2004 $0.57
Dec2003 $0.35
Dec2002 $0.57

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Denbury Resources Inc Valuation – August 2018 $DNR
California Resources Corp Valuation – August 2018 $CRC
Crew Energy Inc Valuation – August 2018 $TSE-CR
Superior Energy Services Inc Valuation – August 2018 $SPN
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Disclaimer:

The author did not hold a position in any company mentioned in this article at the time of publication and had no intention of changing that position within the next 72 hours.  See my current holdings here.  This article is not investment advice; any reader should speak to a registered investment adviser prior to making any investment decisions.  ModernGraham is not affiliated with the company in any manner.  Please be sure to review our detailed disclaimer.

Carbo Ceramics Inc Valuation – August 2018 $CRR

Company Profile (excerpt from Reuters): CARBO Ceramics Inc., incorporated on June 23, 1987, is a technology company that provides products and services to the global oil and gas and industrial markets. The Company operates through two segments: Oilfield Technologies and Services, and Environmental Products and Services.

 

Downloadable PDF version of this valuation:

ModernGraham Valuation of CRR – August 2018

Stage 1: Is this company suitable for the Defensive Investor or the Enterprising Investor?

What kind of Intelligent Investor are you?

Defensive Investor; must pass 6 out of the following 7 tests.
1. Adequate Size of the Enterprise Market Cap > $2Bil $239,417,748 Fail
2. Sufficiently Strong Financial Condition Current Ratio > 2 2.82 Pass
3. Earnings Stability Positive EPS for 10 years prior Fail
4. Dividend Record Dividend Payments for 10 years prior Fail
5. Earnings Growth Increase of 33% in EPS in past 10 years using 3 year averages at beginning and end -231.71% Fail
6. Moderate PEmg Ratio PEmg < 20 -2.00 Fail
7. Moderate Price to Assets PB Ratio < 2.5 OR PB*PEmg < 50 0.63 Fail
Enterprising Investor; must pass 4 out of the following 5 tests, or be suitable for the Defensive Investor.
1. Sufficiently Strong Financial Condition Current Ratio > 1.5 2.82 Pass
2. Sufficiently Strong Financial Condition Debt to NCA < 1.1 0.53 Pass
3. Earnings Stability Positive EPS for 5 years prior Fail
4. Dividend Record Currently Pays Dividend Fail
5. Earnings Growth EPSmg greater than 5 years ago Fail

 

Stage 2: Determination of Intrinsic Value

EPSmg -$4.36
MG Growth Estimate -4.25%
MG Value $1.81
Opinion Overvalued
MG Grade D
MG Value based on 3% Growth -$63.21
MG Value based on 0% Growth -$37.05
Market Implied Growth Rate -5.25%
Current Price $8.70
% of Intrinsic Value 481.17%

CARBO Ceramics Inc. does not satisfy the requirements of either the Enterprising Investor or the more conservative Defensive Investor. The Defensive Investor is concerned with the small size, insufficient earnings stability or growth over the last ten years, and the poor dividend history, and the high PEmg and PB ratios. The Enterprising Investor has concerns regarding the lack of earnings stability or growth over the last five years, and the lack of dividends. As a result, all value investors following the ModernGraham approach should explore other opportunities at this time or proceed cautiously with a speculative attitude.

As for a valuation, the company appears to be Overvalued after seeing its EPSmg (normalized earnings) decline from $3.68 in 2014 to an estimated $-4.36 for 2018. This level of negative earnings does not support a positive valuation.As a result, the ModernGraham valuation model, based on the Benjamin Graham value investing formula, returns an estimate of intrinsic value below the price.

At the time of valuation, further research into CARBO Ceramics Inc. revealed the company was trading above its Graham Number of $0. The company does not pay a dividend. Its PEmg (price over earnings per share – ModernGraham) was -2, which was below the industry average of 59.52, which by some methods of valuation makes it one of the most undervalued stocks in its industry. Finally, the company was trading above its Net Current Asset Value (NCAV) of $1.81.

CARBO Ceramics Inc. scores quite poorly in the ModernGraham grading system, with an overall grade of D.

Stage 3: Information for Further Research

Net Current Asset Value (NCAV) $1.81
Graham Number $0.00
PEmg -2.00
Current Ratio 2.82
PB Ratio 0.63
Current Dividend $0.00
Dividend Yield 0.00%
Number of Consecutive Years of Dividend Growth 0

Useful Links:

ModernGraham tagged articles Morningstar
Google Finance MSN Money
Yahoo Finance Seeking Alpha
GuruFocus SEC Filings

Most Recent Balance Sheet Figures

Balance Sheet Information 6/1/2018
Total Current Assets $179,498,000
Total Current Liabilities $63,668,000
Long-Term Debt $61,039,000
Total Assets $503,957,000
Intangible Assets $10,628,000
Total Liabilities $130,804,000
Shares Outstanding (Diluted Average) 26,931,000

Earnings Per Share History

EPS History
Next Fiscal Year Estimate -$2.09
Dec2017 -$9.49
Dec2016 -$3.29
Dec2015 -$4.76
Dec2014 $2.41
Dec2013 $3.67
Dec2012 $4.59
Dec2011 $5.62
Dec2010 $3.40
Dec2009 $2.27
Dec2008 $4.51
Dec2007 $2.20
Dec2006 $2.22
Dec2005 $1.93
Dec2004 $1.73
Dec2003 $1.25
Dec2002 $0.85
Dec2001 $1.16
Dec2000 $0.67
Dec1999 $0.47
Dec1998 $0.93

Earnings Per Share – ModernGraham History

EPSmg History
Next Fiscal Year Estimate -$4.36
Dec2017 -$4.43
Dec2016 -$1.09
Dec2015 $0.78
Dec2014 $3.68
Dec2013 $4.18
Dec2012 $4.31
Dec2011 $3.98
Dec2010 $3.08
Dec2009 $2.82
Dec2008 $2.91
Dec2007 $2.03
Dec2006 $1.82
Dec2005 $1.55
Dec2004 $1.28
Dec2003 $1.00
Dec2002 $0.85

Recommended Reading:

Other ModernGraham posts about the company

CARBO Ceramics Inc Valuation – Initial Coverage $CRR

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Murphy Oil Corp Valuation – August 2018 $MUR
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Denbury Resources Inc Valuation – August 2018 $DNR
California Resources Corp Valuation – August 2018 $CRC
Crew Energy Inc Valuation – August 2018 $TSE-CR
Superior Energy Services Inc Valuation – August 2018 $SPN
Crescent Point Energy Corp Valuation – August 2018 $TSE-CPG
Kelt Exploration Ltd Valuation – August 2018 $TSE-KEL

Disclaimer:

The author did not hold a position in any company mentioned in this article at the time of publication and had no intention of changing that position within the next 72 hours.  See my current holdings here.  This article is not investment advice; any reader should speak to a registered investment adviser prior to making any investment decisions.  ModernGraham is not affiliated with the company in any manner.  Please be sure to review our detailed disclaimer.

Supernus Pharmaceuticals Inc Valuation – August 2018 $SUPN

Company Profile (excerpt from Reuters): Supernus Pharmaceuticals, Inc., incorporated on March 30, 2005, is a pharmaceutical company focused on developing and commercializing products for the treatment of central nervous system (CNS) diseases. The Company offers Oxtellar XR (extended-release oxcarbazepine) and Trokendi XR (extended-release topiramate), its two treatments for patients with epilepsy. In addition, it is developing multiple product candidates in psychiatry to address unmet medical needs and market opportunities for the treatment of impulsive aggression (IA) and for the treatment of attention deficit hyperactivity disorder (ADHD). It is developing SPN-810 (molindone hydrochloride) to treat IA in patients having ADHD. It is developing SPN-812 (viloxazine hydrochloride) as a candidate to treat patients having ADHD.

 

Downloadable PDF version of this valuation:

ModernGraham Valuation of SUPN – August 2018

Stage 1: Is this company suitable for the Defensive Investor or the Enterprising Investor?

What kind of Intelligent Investor are you?

Defensive Investor; must pass 6 out of the following 7 tests.
1. Adequate Size of the Enterprise Market Cap > $2Bil $2,246,336,172 Pass
2. Sufficiently Strong Financial Condition Current Ratio > 2 2.74 Pass
3. Earnings Stability Positive EPS for 10 years prior Fail
4. Dividend Record Dividend Payments for 10 years prior Fail
5. Earnings Growth Increase of 33% in EPS in past 10 years using 3 year averages at beginning and end 21.91% Fail
6. Moderate PEmg Ratio PEmg < 20 33.72 Fail
7. Moderate Price to Assets PB Ratio < 2.5 OR PB*PEmg < 50 6.04 Fail
Enterprising Investor; must pass 4 out of the following 5 tests, or be suitable for the Defensive Investor.
1. Sufficiently Strong Financial Condition Current Ratio > 1.5 2.74 Pass
2. Sufficiently Strong Financial Condition Debt to NCA < 1.1 1.78 Fail
3. Earnings Stability Positive EPS for 5 years prior Fail
4. Dividend Record Currently Pays Dividend Fail
5. Earnings Growth EPSmg greater than 5 years ago Pass

 

Stage 2: Determination of Intrinsic Value

EPSmg $1.29
MG Growth Estimate 15.00%
MG Value $49.67
Opinion Fairly Valued
MG Grade D+
MG Value based on 3% Growth $18.71
MG Value based on 0% Growth $10.97
Market Implied Growth Rate 12.61%
Current Price $43.50
% of Intrinsic Value 87.59%

Supernus Pharmaceuticals Inc does not satisfy the requirements of either the Enterprising Investor or the more conservative Defensive Investor. The Defensive Investor is concerned with the insufficient earnings stability or growth over the last ten years, and the poor dividend history, and the high PEmg and PB ratios. The Enterprising Investor has concerns regarding the level of debt relative to the net current assets, and the lack of earnings stability over the last five years, and the lack of dividends. As a result, all value investors following the ModernGraham approach should explore other opportunities at this time or proceed cautiously with a speculative attitude.

As for a valuation, the company appears to be Fairly Valued after growing its EPSmg (normalized earnings) from $-0.89 in 2014 to an estimated $1.29 for 2018. This level of demonstrated earnings growth supports the market’s implied estimate of 12.61% annual earnings growth over the next 7-10 years. As a result, the ModernGraham valuation model, based on the Benjamin Graham value investing formula, returns an estimate of intrinsic value within a margin of safety relative to the price.

At the time of valuation, further research into Supernus Pharmaceuticals Inc revealed the company was trading above its Graham Number of $14.89. The company does not pay a dividend. Its PEmg (price over earnings per share – ModernGraham) was 33.72, which was below the industry average of 42.68, which by some methods of valuation makes it one of the most undervalued stocks in its industry. Finally, the company was trading above its Net Current Asset Value (NCAV) of $-3.28.

Supernus Pharmaceuticals Inc scores quite poorly in the ModernGraham grading system, with an overall grade of D+.

Stage 3: Information for Further Research

Net Current Asset Value (NCAV) -$3.28
Graham Number $14.89
PEmg 33.72
Current Ratio 2.74
PB Ratio 6.04
Current Dividend $0.00
Dividend Yield 0.00%
Number of Consecutive Years of Dividend Growth 0

Useful Links:

ModernGraham tagged articles Morningstar
Google Finance MSN Money
Yahoo Finance Seeking Alpha
GuruFocus SEC Filings

Most Recent Balance Sheet Figures

Balance Sheet Information 6/1/2018
Total Current Assets $284,516,000
Total Current Liabilities $103,934,000
Long-Term Debt $321,920,000
Total Assets $852,799,000
Intangible Assets $33,794,000
Total Liabilities $462,307,000
Shares Outstanding (Diluted Average) 54,203,000

Earnings Per Share History

EPS History
Next Fiscal Year Estimate $1.89
Dec2017 $1.08
Dec2016 $1.76
Dec2015 $0.28
Dec2014 -$0.26
Dec2013 -$2.90
Dec2012 -$2.72
Dec2011 $3.88

Earnings Per Share – ModernGraham History

EPSmg History
Next Fiscal Year Estimate $1.29
Dec2017 $0.66
Dec2016 $0.04
Dec2015 -$0.66
Dec2014 -$0.89
Dec2013 -$0.92
Dec2012 $0.13
Dec2011 $1.29

Recommended Reading:

Other ModernGraham posts about the company

Supernus Pharmaceuticals Inc Valuation – Initial Coverage $SUPN

Other ModernGraham posts about related companies

Spectrum Pharmaceuticals Inc Valuation – August 2018 $SPPI
Akorn Inc Valuation – July 2018 $AKRX
Mallinckrodt PLC Valuation – July 2018 $MNK
Bristol-Myers Squibb Company Valuation – June 2018 $BMY
Biogen Inc Valuation – June 2018 $BIIB
Mylan NV Valuation – June 2018 $MYL
Amgen Inc Valuation – June 2018 $AMGN
Celgene Corp Valuation – June 2018 $CELG
Allergan PLC Valuation – May 2018 $AGN
Incyte Corp Valuation – April 2018 $INCY

Disclaimer:

The author did not hold a position in any company mentioned in this article at the time of publication and had no intention of changing that position within the next 72 hours.  See my current holdings here.  This article is not investment advice; any reader should speak to a registered investment adviser prior to making any investment decisions.  ModernGraham is not affiliated with the company in any manner.  Please be sure to review our detailed disclaimer.

Murphy Oil Corp Valuation – August 2018 $MUR

Company Profile (excerpt from Reuters): Murphy Oil Corporation (Murphy), incorporated on June 29, 1964, is an oil and gas exploration and production company. The Company’s exploration and production business explores for and produces crude oil, natural gas and natural gas liquids across the world. The Company’s exploration and production activities are subdivided into four geographic segments: the United States, Canada, Malaysia and all other countries. The Company explores for and produces crude oil, natural gas and natural gas liquids around the world. This business maintains upstream operating offices in several locations around the world, including Houston, Texas, Calgary, Alberta, and Kuala Lumpur, Malaysia.

 

Downloadable PDF version of this valuation:

ModernGraham Valuation of MUR – August 2018

Stage 1: Is this company suitable for the Defensive Investor or the Enterprising Investor?

What kind of Intelligent Investor are you?

 

Defensive Investor; must pass 6 out of the following 7 tests.
1. Adequate Size of the Enterprise Market Cap > $2Bil $5,542,518,868 Pass
2. Sufficiently Strong Financial Condition Current Ratio > 2 1.46 Fail
3. Earnings Stability Positive EPS for 10 years prior Fail
4. Dividend Record Dividend Payments for 10 years prior Pass
5. Earnings Growth Increase of 33% in EPS in past 10 years using 3 year averages at beginning and end -114.11% Fail
6. Moderate PEmg Ratio PEmg < 20 -18.64 Fail
7. Moderate Price to Assets PB Ratio < 2.5 OR PB*PEmg < 50 1.16 Fail
Enterprising Investor; must pass 4 out of the following 5 tests, or be suitable for the Defensive Investor.
1. Sufficiently Strong Financial Condition Current Ratio > 1.5 1.46 Fail
2. Sufficiently Strong Financial Condition Debt to NCA < 1.1 7.04 Fail
3. Earnings Stability Positive EPS for 5 years prior Fail
4. Dividend Record Currently Pays Dividend Pass
5. Earnings Growth EPSmg greater than 5 years ago Fail

 

Stage 2: Determination of Intrinsic Value

EPSmg -$1.68
MG Growth Estimate -4.25%
MG Value $0.00
Opinion Overvalued
MG Grade D+
MG Value based on 3% Growth -$24.33
MG Value based on 0% Growth -$14.26
Market Implied Growth Rate -13.57%
Current Price $31.27
% of Intrinsic Value N/A

Murphy Oil Corporation does not satisfy the requirements of either the Enterprising Investor or the more conservative Defensive Investor. The Defensive Investor is concerned with the low current ratio, insufficient earnings stability or growth over the last ten years, and the high PEmg and PB ratios. The Enterprising Investor has concerns regarding the level of debt relative to the current assets, and the lack of earnings stability or growth over the last five years. As a result, all value investors following the ModernGraham approach should explore other opportunities at this time or proceed cautiously with a speculative attitude.

As for a valuation, the company appears to be Overvalued after seeing its EPSmg (normalized earnings) decline from $5.13 in 2014 to an estimated $-1.68 for 2018. This level of negative earnings does not support a positive valuation.As a result, the ModernGraham valuation model, based on the Benjamin Graham value investing formula, returns an estimate of intrinsic value below the price.

At the time of valuation, further research into Murphy Oil Corporation revealed the company was trading above its Graham Number of $30.85. The company pays a dividend of $1 per share, for a yield of 3.2%, putting it among the best dividend paying stocks today. Its PEmg (price over earnings per share – ModernGraham) was -18.64, which was below the industry average of 59.52, which by some methods of valuation makes it one of the most undervalued stocks in its industry. Finally, the company was trading above its Net Current Asset Value (NCAV) of $-22.75.

Murphy Oil Corporation scores quite poorly in the ModernGraham grading system, with an overall grade of D+.

Stage 3: Information for Further Research

Net Current Asset Value (NCAV) -$22.75
Graham Number $30.85
PEmg -18.64
Current Ratio 1.46
PB Ratio 1.16
Current Dividend $1.00
Dividend Yield 3.20%
Number of Consecutive Years of Dividend Growth 0

Useful Links:

 

ModernGraham tagged articles Morningstar
Google Finance MSN Money
Yahoo Finance Seeking Alpha
GuruFocus SEC Filings

Most Recent Balance Sheet Figures

Balance Sheet Information 6/1/2018
Total Current Assets $1,315,355,000
Total Current Liabilities $903,557,000
Long-Term Debt $2,897,345,000
Total Assets $9,945,449,000
Intangible Assets $0
Total Liabilities $5,273,811,000
Shares Outstanding (Diluted Average) 173,983,000

Earnings Per Share History

EPS History
Next Fiscal Year Estimate $1.58
Dec2017 -$1.81
Dec2016 -$1.60
Dec2015 -$13.03
Dec2014 $5.03
Dec2013 $5.94
Dec2012 $4.99
Dec2011 $4.49
Dec2010 $4.13
Dec2009 $4.35
Dec2008 $9.06
Dec2007 $4.01
Dec2006 $3.41
Dec2005 $4.55
Dec2004 $3.77
Dec2003 $1.59
Dec2002 $0.61
Dec2001 $1.81
Dec2000 $1.64
Dec1999 $0.67
Dec1998 -$0.08

Earnings Per Share – ModernGraham History

EPSmg History
Next Fiscal Year Estimate -$1.68
Dec2017 -$2.57
Dec2016 -$1.88
Dec2015 -$0.85
Dec2014 $5.13
Dec2013 $5.05
Dec2012 $4.87
Dec2011 $4.94
Dec2010 $5.11
Dec2009 $5.43
Dec2008 $5.63
Dec2007 $3.76
Dec2006 $3.36
Dec2005 $3.04
Dec2004 $2.15
Dec2003 $1.32
Dec2002 $1.10

Recommended Reading:

Other ModernGraham posts about the company

Most Overvalued Stocks of the S&P 500 – March 2017
Murphy Oil Corporation Valuation – March 2017 $MUR
Murphy Oil Corporation Valuation – November 2015 Update $MUR
26 Companies in the Spotlight This Week – 11/22/14
Murphy Oil Corporation Annual Valuation – 2014 $MUR

Other ModernGraham posts about related companies

Tidewater Inc Valuation – August 2018 $TDW
Carrizo Oil & Gas Inc Valuation – August 2018 $CRZO
Denbury Resources Inc Valuation – August 2018 $DNR
California Resources Corp Valuation – August 2018 $CRC
Crew Energy Inc Valuation – August 2018 $TSE-CR
Superior Energy Services Inc Valuation – August 2018 $SPN
Crescent Point Energy Corp Valuation – August 2018 $TSE-CPG
Kelt Exploration Ltd Valuation – August 2018 $TSE-KEL
Canadian Natural Resources Ltd Valuation – August 2018 $TSE:CNQ
SM Energy Co Valuation – August 2018 $SM

Disclaimer:

The author did not hold a position in any company mentioned in this article at the time of publication and had no intention of changing that position within the next 72 hours.  See my current holdings here.  This article is not investment advice; any reader should speak to a registered investment adviser prior to making any investment decisions.  ModernGraham is not affiliated with the company in any manner.  Please be sure to review our detailed disclaimer.

Suncor Energy Inc Valuation – August 2018 $TSE:SU

Company Profile (excerpt from Reuters): Suncor Energy Inc. (Suncor), is an integrated energy company. The Company is focused on developing Canada’s petroleum resource basin, Athabasca oil sands. The Company operates in three business segments: Oil Sands, Exploration and Production (E&P), and Refining and Marketing. In addition, it explores for, acquires, develops, produces and markets crude oil and natural gas in Canada and internationally. It transports and refines crude oil, and markets petroleum and petrochemical products primarily in Canada. It also markets third-party petroleum products. Suncor conducts energy trading activities focused principally on the marketing and trading of crude oil, natural gas, power and byproducts.

 

Downloadable PDF version of this valuation:

ModernGraham Valuation of TSE-SU – August 2018

Stage 1: Is this company suitable for the Defensive Investor or the Enterprising Investor?

What kind of Intelligent Investor are you?

Defensive Investor; must pass 6 out of the following 7 tests.
1. Adequate Size of the Enterprise Market Cap > $2Bil $87,090,000,000 Pass
2. Sufficiently Strong Financial Condition Current Ratio > 2 0.90 Fail
3. Earnings Stability Positive EPS for 10 years prior Fail
4. Dividend Record Dividend Payments for 10 years prior Pass
5. Earnings Growth Increase of 33% in EPS in past 10 years using 3 year averages at beginning and end 0.33% Fail
6. Moderate PEmg Ratio PEmg < 20 30.89 Fail
7. Moderate Price to Assets PB Ratio < 2.5 OR PB*PEmg < 50 1.94 Pass
Enterprising Investor; must pass 4 out of the following 5 tests, or be suitable for the Defensive Investor.
1. Sufficiently Strong Financial Condition Current Ratio > 1.5 0.90 Fail
2. Sufficiently Strong Financial Condition Debt to NCA < 1.1 -10.79 Fail
3. Earnings Stability Positive EPS for 5 years prior Fail
4. Dividend Record Currently Pays Dividend Pass
5. Earnings Growth EPSmg greater than 5 years ago Fail

 

Stage 2: Determination of Intrinsic Value

EPSmg $1.75
MG Growth Estimate -2.96%
MG Value $4.51
Opinion Overvalued
MG Grade D+
MG Value based on 3% Growth $25.34
MG Value based on 0% Growth $14.85
Market Implied Growth Rate 11.19%
Current Price $53.97
% of Intrinsic Value 1195.92%

Suncor Energy Inc. (USA) does not satisfy the requirements of either the Enterprising Investor or the more conservative Defensive Investor. The Defensive Investor is concerned with the low current ratio, insufficient earnings stability or growth over the last ten years, and the high PEmg ratio. The Enterprising Investor has concerns regarding the level of debt relative to the current assets, and the lack of earnings stability or growth over the last five years. As a result, all value investors following the ModernGraham approach should explore other opportunities at this time or proceed cautiously with a speculative attitude.

As for a valuation, the company appears to be Overvalued after seeing its EPSmg (normalized earnings) decline from $2.18 in 2014 to an estimated $1.75 for 2018. This level of demonstrated earnings growth does not support the market’s implied estimate of 11.19% annual earnings growth over the next 7-10 years. As a result, the ModernGraham valuation model, based on the Benjamin Graham value investing formula, returns an estimate of intrinsic value below the price.

At the time of valuation, further research into Suncor Energy Inc. (USA) revealed the company was trading above its Graham Number of $44.06. The company pays a dividend of $1.28 per share, for a yield of 2.4%, putting it among the best dividend paying stocks today. Its PEmg (price over earnings per share – ModernGraham) was 30.89, which was below the industry average of 59.52, which by some methods of valuation makes it one of the most undervalued stocks in its industry. Finally, the company was trading above its Net Current Asset Value (NCAV) of $-22.06.

Suncor Energy Inc. (USA) scores quite poorly in the ModernGraham grading system, with an overall grade of D+.

Stage 3: Information for Further Research

Net Current Asset Value (NCAV) -$22.06
Graham Number $44.06
PEmg 30.89
Current Ratio 0.90
PB Ratio 1.94
Current Dividend $1.28
Dividend Yield 2.37%
Number of Consecutive Years of Dividend Growth 8

Useful Links:

ModernGraham tagged articles Morningstar
Google Finance MSN Money
Yahoo Finance Seeking Alpha
GuruFocus SEC Filings

Most Recent Balance Sheet Figures

Balance Sheet Information 6/1/2018
Total Current Assets $10,697,000,000
Total Current Liabilities $11,951,000,000
Long-Term Debt $13,535,000,000
Total Assets $92,434,000,000
Intangible Assets $3,059,000,000
Total Liabilities $46,891,000,000
Shares Outstanding (Diluted Average) 1,641,000,000

Earnings Per Share History

EPS History
Next Fiscal Year Estimate $3.12
Dec2017 $2.68
Dec2016 $0.27
Dec2015 -$1.38
Dec2014 $1.84
Dec2013 $2.60
Dec2012 $1.76
Dec2011 $2.67
Dec2010 $2.43
Dec2009 $0.95
Dec2008 $2.26
Dec2007 $3.17
Dec2006 $3.16
Dec2005 $1.24
Dec2004 $1.17
Dec2003 $1.13
Dec2002 $0.81
Dec2001 $0.39
Dec2000 $0.39
Dec1999 $0.18
Dec1998 $0.20

Earnings Per Share – ModernGraham History

EPSmg History
Next Fiscal Year Estimate $1.75
Dec2017 $1.11
Dec2016 $0.55
Dec2015 $0.96
Dec2014 $2.18
Dec2013 $2.26
Dec2012 $2.06
Dec2011 $2.24
Dec2010 $2.15
Dec2009 $2.06
Dec2008 $2.47
Dec2007 $2.38
Dec2006 $1.82
Dec2005 $1.08
Dec2004 $0.93
Dec2003 $0.73
Dec2002 $0.49

Recommended Reading:

Other ModernGraham posts about the company

5 Overvalued Canadian Stocks for Intelligent Investors – March 2017
Suncor Energy Inc Valuation – Initial Coverage $TSE:SU

Other ModernGraham posts about related companies

Carrizo Oil & Gas Inc Valuation – August 2018 $CRZO
Denbury Resources Inc Valuation – August 2018 $DNR
California Resources Corp Valuation – August 2018 $CRC
Crew Energy Inc Valuation – August 2018 $TSE-CR
Superior Energy Services Inc Valuation – August 2018 $SPN
Crescent Point Energy Corp Valuation – August 2018 $TSE-CPG
Kelt Exploration Ltd Valuation – August 2018 $TSE-KEL
Canadian Natural Resources Ltd Valuation – August 2018 $TSE:CNQ
SM Energy Co Valuation – August 2018 $SM
Surge Energy Inc Valuation – July 2018 $TSE:SGY

Disclaimer:

The author did not hold a position in any company mentioned in this article at the time of publication and had no intention of changing that position within the next 72 hours.  See my current holdings here.  This article is not investment advice; any reader should speak to a registered investment adviser prior to making any investment decisions.  ModernGraham is not affiliated with the company in any manner.  Please be sure to review our detailed disclaimer.

Tidewater Inc Valuation – August 2018 $TDW

Company Profile (excerpt from Reuters): Tidewater Inc., incorporated on February 7, 1956, provides offshore service vessels and marine support services to the global offshore energy industry. The Company operates a fleet of marine service vessels. The Company operates through four segments: Americas, Asia/Pacific, Middle East/North Africa and Sub-Saharan Africa/Europe. Its Americas segment includes the activities of the Company’s North American operations, which include operations in the United States Gulf of Mexico (GOM), and the United States and Canadian coastal waters of the Pacific and Atlantic oceans, as well as operations of offshore Mexico, Trinidad and Brazil. The Asia/Pacific segment includes its Australian and Southeast Asian and Western Pacific operations. The Middle East/North Africa segment includes its operations in the Mediterranean and Red Seas, the Black Sea, the Arabian Gulf and offshore India. The Company’s Sub-Saharan Africa/Europe segment includes operations conducted along the East and West Coasts of Africa, as well as operations in and around the Caspian Sea, the North Sea, and certain other arctic/cold water markets.

 

Downloadable PDF version of this valuation:

ModernGraham Valuation of TDW – August 2018

Stage 1: Is this company suitable for the Defensive Investor or the Enterprising Investor?

What kind of Intelligent Investor are you?

Defensive Investor; must pass 6 out of the following 7 tests.
1. Adequate Size of the Enterprise Market Cap > $2Bil $813,856,800 Fail
2. Sufficiently Strong Financial Condition Current Ratio > 2 4.71 Pass
3. Earnings Stability Positive EPS for 10 years prior Fail
4. Dividend Record Dividend Payments for 10 years prior Fail
5. Earnings Growth Increase of 33% in EPS in past 10 years using 3 year averages at beginning and end -75000033.33% Fail
6. Moderate PEmg Ratio PEmg < 20 -41.35 Fail
7. Moderate Price to Assets PB Ratio < 2.5 OR PB*PEmg < 50 0.78 Fail
Enterprising Investor; must pass 4 out of the following 5 tests, or be suitable for the Defensive Investor.
1. Sufficiently Strong Financial Condition Current Ratio > 1.5 4.71 Pass
2. Sufficiently Strong Financial Condition Debt to NCA < 1.1 0.70 Pass
3. Earnings Stability Positive EPS for 5 years prior Fail
4. Dividend Record Currently Pays Dividend Fail
5. Earnings Growth EPSmg greater than 5 years ago Fail

 

Stage 2: Determination of Intrinsic Value

EPSmg -$0.75
MG Growth Estimate -4.25%
MG Value $5.25
Opinion Overvalued
MG Grade D
MG Value based on 3% Growth -$10.87
MG Value based on 0% Growth -$6.37
Market Implied Growth Rate -24.92%
Current Price $31.01
% of Intrinsic Value 591.21%

Tidewater Inc. does not satisfy the requirements of either the Enterprising Investor or the more conservative Defensive Investor. The Defensive Investor is concerned with the small size, insufficient earnings stability or growth over the last ten years, and the poor dividend history, and the high PEmg and PB ratios. The Enterprising Investor has concerns regarding the lack of earnings stability or growth over the last five years, and the lack of dividends. As a result, all value investors following the ModernGraham approach should explore other opportunities at this time or proceed cautiously with a speculative attitude.

As for a valuation, the company appears to be Overvalued after seeing its EPSmg (normalized earnings) decline from $0 in 2014 to an estimated $-0.75 for 2018. This level of negative earnings does not support a positive valuation.As a result, the ModernGraham valuation model, based on the Benjamin Graham value investing formula, returns an estimate of intrinsic value below the price.

At the time of valuation, further research into Tidewater Inc. revealed the company was trading above its Graham Number of $0. The company does not pay a dividend. Its PEmg (price over earnings per share – ModernGraham) was -41.35, which was below the industry average of 59.52, which by some methods of valuation makes it one of the most undervalued stocks in its industry. Finally, the company was trading above its Net Current Asset Value (NCAV) of $5.25.

Tidewater Inc. scores quite poorly in the ModernGraham grading system, with an overall grade of D.

Stage 3: Information for Further Research

Net Current Asset Value (NCAV) $5.25
Graham Number $0.00
PEmg -41.35
Current Ratio 4.71
PB Ratio 0.78
Current Dividend $0.00
Dividend Yield 0.00%
Number of Consecutive Years of Dividend Growth 0

Useful Links:

ModernGraham tagged articles Morningstar
Google Finance MSN Money
Yahoo Finance Seeking Alpha
GuruFocus SEC Filings

Most Recent Balance Sheet Figures

Balance Sheet Information 6/1/2018
Total Current Assets $797,331,000
Total Current Liabilities $169,121,000
Long-Term Debt $438,559,000
Total Assets $1,643,542,000
Intangible Assets $0
Total Liabilities $668,016,000
Shares Outstanding (Diluted Average) 24,654,000

Earnings Per Share History

EPS History
Next Fiscal Year Estimate -$2.25

Earnings Per Share – ModernGraham History

EPSmg History
Next Fiscal Year Estimate -$0.75

Recommended Reading:

Other ModernGraham posts about the company

Tidewater Inc Valuation – February 2017 $TDW
Tidewater Inc Valuation – August 2016 $TDW
Tidewater Inc. Analysis – 2015 Update $TDW
21 Companies in the Spotlight This Week – June 14, 2014
Tidewater Inc. Annual Valuation – 2014 $TDW

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Disclaimer:

The author did not hold a position in any company mentioned in this article at the time of publication and had no intention of changing that position within the next 72 hours.  See my current holdings here.  This article is not investment advice; any reader should speak to a registered investment adviser prior to making any investment decisions.  ModernGraham is not affiliated with the company in any manner.  Please be sure to review our detailed disclaimer.

Carrizo Oil & Gas Inc Valuation – August 2018 $CRZO

Company Profile (excerpt from Reuters): Carrizo Oil & Gas, Inc. (Carrizo), incorporated on September 24, 1993, is an energy company. The Company is engaged in the exploration, development and production of oil and gas from resource plays located in the United States. Its operations are focused in proven, producing oil and gas plays in the Eagle Ford Shale in South Texas, the Delaware Basin in West Texas, the Utica Shale in Ohio, the Niobrara Formation in Colorado, and the Marcellus Shale in Pennsylvania. As of December 31, 2016, the Company’s proved reserves of 200 million barrels of oil equivalent (MMBoe) were 64% crude oil, 12% natural gas liquids (NGLs) and 24% natural gas. As of December 31, 2016, it operated approximately 94% of the wells in Eagle Ford in which it held an interest. As of December 31, 2016, it held an average interest of approximately 85% in these operated wells. As of December 31, 2016, it owned leases covering approximately 309,200 gross (179,179 net) acres in the Eagle Ford, Niobrara, Utica and the Delaware Basin areas.

 

Downloadable PDF version of this valuation:

ModernGraham Valuation of CRZO – August 2018

Stage 1: Is this company suitable for the Defensive Investor or the Enterprising Investor?

What kind of Intelligent Investor are you?

Defensive Investor; must pass 6 out of the following 7 tests.
1. Adequate Size of the Enterprise Market Cap > $2Bil $2,230,812,793 Pass
2. Sufficiently Strong Financial Condition Current Ratio > 2 0.26 Fail
3. Earnings Stability Positive EPS for 10 years prior Fail
4. Dividend Record Dividend Payments for 10 years prior Fail
5. Earnings Growth Increase of 33% in EPS in past 10 years using 3 year averages at beginning and end 53.70% Pass
6. Moderate PEmg Ratio PEmg < 20 -6.09 Fail
7. Moderate Price to Assets PB Ratio < 2.5 OR PB*PEmg < 50 3.41 Fail
Enterprising Investor; must pass 4 out of the following 5 tests, or be suitable for the Defensive Investor.
1. Sufficiently Strong Financial Condition Current Ratio > 1.5 0.26 Fail
2. Sufficiently Strong Financial Condition Debt to NCA < 1.1 -4.05 Fail
3. Earnings Stability Positive EPS for 5 years prior Fail
4. Dividend Record Currently Pays Dividend Fail
5. Earnings Growth EPSmg greater than 5 years ago Fail

 

Stage 2: Determination of Intrinsic Value

EPSmg -$4.00
MG Growth Estimate -4.25%
MG Value $0.00
Opinion Overvalued
MG Grade D
MG Value based on 3% Growth -$58.02
MG Value based on 0% Growth -$34.01
Market Implied Growth Rate -7.29%
Current Price $24.35
% of Intrinsic Value N/A

Carrizo Oil & Gas Inc does not satisfy the requirements of either the Enterprising Investor or the more conservative Defensive Investor. The Defensive Investor is concerned with the low current ratio, insufficient earnings stability over the last ten years, and the poor dividend history, and the high PEmg and PB ratios. The Enterprising Investor has concerns regarding the level of debt relative to the current assets, and the lack of earnings stability or growth over the last five years, and the lack of dividends. As a result, all value investors following the ModernGraham approach should explore other opportunities at this time or proceed cautiously with a speculative attitude.

As for a valuation, the company appears to be Overvalued after seeing its EPSmg (normalized earnings) decline from $2.34 in 2014 to an estimated $-4 for 2018. This level of negative earnings does not support a positive valuation.As a result, the ModernGraham valuation model, based on the Benjamin Graham value investing formula, returns an estimate of intrinsic value below the price.

At the time of valuation, further research into Carrizo Oil & Gas Inc revealed the company was trading above its Graham Number of $13.99. The company does not pay a dividend. Its PEmg (price over earnings per share – ModernGraham) was -6.09, which was below the industry average of 59.52, which by some methods of valuation makes it one of the most undervalued stocks in its industry. Finally, the company was trading above its Net Current Asset Value (NCAV) of $-23.73.

Carrizo Oil & Gas Inc scores quite poorly in the ModernGraham grading system, with an overall grade of D.

Stage 3: Information for Further Research

Net Current Asset Value (NCAV) -$23.73
Graham Number $13.99
PEmg -6.09
Current Ratio 0.26
PB Ratio 3.41
Current Dividend $0.00
Dividend Yield 0.00%
Number of Consecutive Years of Dividend Growth 0

Useful Links:

ModernGraham tagged articles Morningstar
Google Finance MSN Money
Yahoo Finance Seeking Alpha
GuruFocus SEC Filings

Most Recent Balance Sheet Figures

Balance Sheet Information 6/1/2018
Total Current Assets $132,505,000
Total Current Liabilities $503,531,000
Long-Term Debt $1,502,307,000
Total Assets $2,721,839,000
Intangible Assets $0
Total Liabilities $2,122,513,000
Shares Outstanding (Diluted Average) 83,853,000

Earnings Per Share History

EPS History
Next Fiscal Year Estimate $1.91
Dec2017 $1.06
Dec2016 -$11.27
Dec2015 -$22.45
Dec2014 $4.90
Dec2013 $1.06
Dec2012 $1.39
Dec2011 $0.92
Dec2010 $0.29
Dec2009 -$6.61
Dec2008 -$1.49
Dec2007 $0.57
Dec2006 $0.71
Dec2005 $0.42
Dec2004 $0.49
Dec2003 $0.43
Dec2002 $0.26
Dec2001 $0.57
Dec2000 $0.74
Dec1999 -$0.07
Dec1998 -$2.15

Earnings Per Share – ModernGraham History

EPSmg History
Next Fiscal Year Estimate -$4.00
Dec2017 -$6.42
Dec2016 -$8.53
Dec2015 -$5.72
Dec2014 $2.34
Dec2013 $0.51
Dec2012 -$0.21
Dec2011 -$1.10
Dec2010 -$1.84
Dec2009 -$2.36
Dec2008 -$0.11
Dec2007 $0.56
Dec2006 $0.52
Dec2005 $0.43
Dec2004 $0.46
Dec2003 $0.42
Dec2002 $0.23

Recommended Reading:

Other ModernGraham posts about the company

Carrizo Oil & Gas Inc Valuation – Initial Coverage $CRZO

Other ModernGraham posts about related companies

Denbury Resources Inc Valuation – August 2018 $DNR
California Resources Corp Valuation – August 2018 $CRC
Crew Energy Inc Valuation – August 2018 $TSE-CR
Superior Energy Services Inc Valuation – August 2018 $SPN
Crescent Point Energy Corp Valuation – August 2018 $TSE-CPG
Kelt Exploration Ltd Valuation – August 2018 $TSE-KEL
Canadian Natural Resources Ltd Valuation – August 2018 $TSE:CNQ
SM Energy Co Valuation – August 2018 $SM
Surge Energy Inc Valuation – July 2018 $TSE:SGY
CIRCOR International Inc Valuation – July 2018 $CIR

Disclaimer:

The author did not hold a position in any company mentioned in this article at the time of publication and had no intention of changing that position within the next 72 hours.  See my current holdings here.  This article is not investment advice; any reader should speak to a registered investment adviser prior to making any investment decisions.  ModernGraham is not affiliated with the company in any manner.  Please be sure to review our detailed disclaimer.

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