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Gibson Energy

TSX:GEI
Snowflake Description

Solid track record with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
GEI
TSX
CA$2B
Market Cap
  1. Home
  2. CA
  3. Energy
Company description

Gibson Energy Inc., a crude oil infrastructure company, engages in the gathering, storage, optimization, processing, and marketing of crude oil and refined products in North America. The last earnings update was 42 days ago. More info.


Add to Portfolio Compare Print
  • Gibson Energy has significant price volatility in the past 3 months.
GEI Share Price and Events
7 Day Returns
9.1%
TSX:GEI
10.8%
CA Oil and Gas
1.4%
CA Market
1 Year Returns
-31.6%
TSX:GEI
-41.3%
CA Oil and Gas
-24.8%
CA Market
GEI Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Gibson Energy (GEI) 9.1% -33.7% -39.9% -31.6% -18.2% -40.9%
CA Oil and Gas 10.8% -29.5% -40.9% -41.3% -49.1% -53.7%
CA Market 1.4% -19.2% -24.9% -24.8% -22.4% -17%
1 Year Return vs Industry and Market
  • GEI outperformed the Oil and Gas industry which returned -41.3% over the past year.
  • GEI underperformed the Market in Canada which returned -24.8% over the past year.
Price Volatility
GEI
Industry
5yr Volatility vs Market

Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Gibson Energy to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Gibson Energy.

TSX:GEI Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Dividend Discount Model
Dividend Per Share Company Filings (2019-12-31) in CAD CA$ 1.3713870967742
Payout Ratio Company Filings (2019-12-31) 12570.8%
Discount Rate (Cost of Equity) See below 8.1%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:GEI
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.4%
Equity Risk Premium S&P Global 5.4%
Oil and Gas Unlevered Beta Simply Wall St/ S&P Global 0.83
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.83 (1 + (1- 26.5%) (58.8%))
1.221
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.22
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.44% + (1.221 * 5.44%)
8.08%

Discounted Cash Flow Calculation for TSX:GEI using Dividend Discount Model Model

The calculations below outline how an intrinsic value for Gibson Energy is arrived at by discounting future dividends to their present value. This approach is used for finance firms where free cash flow is difficult to estimate (e.g. Banks/ Insurance firms).

If the firm does not pay the majority of its earnings out as a dividend this method will often arrive at a value significantly lower than the share price.

See our documentation to learn about this calculation.

TSX:GEI Gordon Growth Model
Calculation Result
Value per share = Expected dividends per share / (Discount Rate - Perpetual growth rate)
= CA$1.37 / (8.08% - 1.44%)
CA$19.14
TSX:GEI Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$19.14
Current discount Discount to share price of CA$16.00
= -1 x (CA$16.00 - CA$19.14) / CA$19.14
16.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Gibson Energy is available for.
Intrinsic value
16%
Share price is CA$16 vs Future cash flow value of CA$19.14
Current Discount Checks
For Gibson Energy to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Gibson Energy's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Gibson Energy's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Gibson Energy's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Gibson Energy's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:GEI PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in CAD CA$1.21
TSX:GEI Share Price ** TSX (2020-04-03) in CAD CA$16
Canada Oil and Gas Industry PE Ratio Median Figure of 53 Publicly-Listed Oil and Gas Companies 6.35x
Canada Market PE Ratio Median Figure of 498 Publicly-Listed Companies 10.33x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Gibson Energy.

TSX:GEI PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:GEI Share Price ÷ EPS (both in CAD)

= 16 ÷ 1.21

13.18x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Gibson Energy is overvalued based on earnings compared to the CA Oil and Gas industry average.
  • Gibson Energy is overvalued based on earnings compared to the Canada market.
Price based on expected Growth
Does Gibson Energy's expected growth come at a high price?
Raw Data
TSX:GEI PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 13.18x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts
0.3%per year
Canada Oil and Gas Industry PEG Ratio Median Figure of 29 Publicly-Listed Oil and Gas Companies -0.06x
Canada Market PEG Ratio Median Figure of 233 Publicly-Listed Companies 0.68x

*Line of best fit is calculated by linear regression .

TSX:GEI PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 13.18x ÷ 0.3%

39.85x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Gibson Energy is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Gibson Energy's assets?
Raw Data
TSX:GEI PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in CAD CA$5.22
TSX:GEI Share Price * TSX (2020-04-03) in CAD CA$16
Canada Oil and Gas Industry PB Ratio Median Figure of 197 Publicly-Listed Oil and Gas Companies 0.43x
Canada Market PB Ratio Median Figure of 2,359 Publicly-Listed Companies 0.99x
TSX:GEI PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:GEI Share Price ÷ Book Value per Share (both in CAD)

= 16 ÷ 5.22

3.06x

* Primary Listing of Gibson Energy.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Gibson Energy is overvalued based on assets compared to the CA Oil and Gas industry average.
X
Value checks
We assess Gibson Energy's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Oil and Gas industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Oil and Gas industry average (and greater than 0)? (1 check)
  5. Gibson Energy has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Gibson Energy expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
0.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Gibson Energy expected to grow at an attractive rate?
  • Gibson Energy's earnings growth is positive but not above the low risk savings rate of 1.4%.
Growth vs Market Checks
  • Gibson Energy's earnings growth is positive but not above the Canada market average.
  • Gibson Energy's revenues are expected to decrease over the next 1-3 years, this is below the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:GEI Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:GEI Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts 0.3%
TSX:GEI Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts -1.9%
Canada Oil and Gas Industry Earnings Growth Rate Market Cap Weighted Average -18.6%
Canada Oil and Gas Industry Revenue Growth Rate Market Cap Weighted Average -1.4%
Canada Market Earnings Growth Rate Market Cap Weighted Average 5.1%
Canada Market Revenue Growth Rate Market Cap Weighted Average 3.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:GEI Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:GEI Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-12-31 435
2023-12-31 432
2022-12-31 442 172
2021-12-31 7,085 426 168 3
2020-12-31 7,071 395 123 3
2020-04-06
TSX:GEI Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2019-12-31 7,336 369 176
2019-09-30 6,984 535 186
2019-06-30 7,121 430 147
2019-03-31 6,908 424 128
2018-12-31 6,847 564 81
2018-09-30 7,182 337 -22
2018-06-30 6,346 216 -34
2018-03-31 5,948 240 -51
2017-12-31 5,660 197 -66
2017-09-30 5,423 207 -61
2017-06-30 5,308 206 -86
2017-03-31 5,087 216 -217

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Gibson Energy's earnings are expected to grow by 0.3% yearly, however this is not considered high growth (20% yearly).
  • Gibson Energy's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:GEI Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below

All data from Gibson Energy Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:GEI Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-12-31
2023-12-31
2022-12-31 1.13 1.13 1.13 1.00
2021-12-31 1.18 1.58 0.89 5.00
2020-12-31 0.95 1.16 0.82 4.00
2020-04-06
TSX:GEI Past Financials Data
Date (Data in CAD Millions) EPS *
2019-12-31 1.21
2019-09-30 1.28
2019-06-30 1.02
2019-03-31 0.89
2018-12-31 0.56
2018-09-30 -0.15
2018-06-30 -0.24
2018-03-31 -0.36
2017-12-31 -0.47
2017-09-30 -0.43
2017-06-30 -0.61
2017-03-31 -1.56

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Gibson Energy is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Gibson Energy's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Gibson Energy has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Gibson Energy performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Gibson Energy's growth in the last year to its industry (Oil and Gas).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Gibson Energy has delivered over 20% year on year earnings growth in the past 5 years.
  • Gibson Energy's 1-year earnings growth exceeds its 5-year average (117.4% vs 40.9%)
  • Gibson Energy's earnings growth has exceeded the CA Oil and Gas industry average in the past year (117.4% vs -2.5%).
Earnings and Revenue History
Gibson Energy's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Gibson Energy Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:GEI Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 7,336.32 176.34 47.41
2019-09-30 6,984.37 186.17 45.66
2019-06-30 7,120.95 147.47 52.29
2019-03-31 6,907.65 128.02 50.47
2018-12-31 6,846.59 81.13 51.79
2018-09-30 7,182.43 -22.00 51.40
2018-06-30 6,346.27 -34.23 54.89
2018-03-31 5,948.45 -51.42 60.90
2017-12-31 5,659.65 -66.33 54.19
2017-09-30 5,423.39 -61.07 50.53
2017-06-30 5,308.27 -86.44 51.10
2017-03-31 5,086.78 -216.86 54.42
2016-12-31 4,594.18 -178.17 53.45
2016-09-30 4,269.55 -354.51 60.40
2016-06-30 4,439.80 -364.93 60.01
2016-03-31 4,919.20 -239.30 51.76
2015-12-31 5,405.31 -295.37 56.42
2015-09-30 6,292.22 -55.03 60.31
2015-06-30 7,303.24 -5.29 57.23
2015-03-31 7,855.18 25.29 52.87
2014-12-31 8,573.53 91.94 50.88
2014-09-30 8,513.10 99.26 51.68
2014-06-30 7,994.99 133.32 49.12
2014-03-31 7,488.35 104.24 45.93
2013-12-31 6,940.67 103.82 42.94
2013-09-30 6,330.87 119.70 40.21
2013-06-30 5,674.62 107.12 38.26

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst Gibson Energy has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.
  • Gibson Energy used its assets more efficiently than the CA Oil and Gas industry average last year based on Return on Assets.
  • Gibson 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).
X
Past performance checks
We assess Gibson Energy's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Oil and Gas industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Gibson Energy has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Gibson Energy's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Gibson Energy's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Gibson Energy is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Gibson Energy's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Gibson Energy's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Gibson Energy Company Filings, last reported 3 months ago.

TSX:GEI Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 760.61 1,243.84 47.23
2019-09-30 772.33 1,482.74 348.85
2019-06-30 766.14 1,264.94 71.99
2019-03-31 776.15 1,218.14 68.77
2018-12-31 758.23 1,132.04 95.30
2018-09-30 784.08 1,225.93 39.94
2018-06-30 827.49 1,172.29 39.57
2018-03-31 868.59 1,235.02 55.25
2017-12-31 910.60 1,208.04 32.14
2017-09-30 1,032.88 1,135.74 39.29
2017-06-30 1,098.70 1,040.78 53.13
2017-03-31 1,154.74 1,046.06 79.73
2016-12-31 1,057.10 1,359.15 60.16
2016-09-30 1,124.98 1,340.73 94.81
2016-06-30 1,193.49 1,333.33 242.43
2016-03-31 1,135.48 1,334.70 39.16
2015-12-31 1,167.00 1,326.42 82.78
2015-09-30 1,388.01 1,266.15 36.34
2015-06-30 1,400.51 1,214.81 171.34
2015-03-31 1,444.73 1,225.59 172.55
2014-12-31 1,427.18 1,165.37 131.91
2014-09-30 1,414.16 1,143.13 125.28
2014-06-30 1,394.68 1,113.19 348.05
2014-03-31 1,416.89 874.03 65.78
2013-12-31 1,368.63 757.57 97.18
2013-09-30 1,346.06 738.72 110.48
2013-06-30 1,338.12 749.42 130.74
  • Gibson Energy's level of debt (163.5%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (81.3% vs 163.5% today).
  • Debt is well covered by operating cash flow (29.6%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 3.7x coverage).
X
Financial health checks
We assess Gibson Energy's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Gibson Energy has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
8.5%
Current annual income from Gibson Energy dividends. Estimated to be 8.57% next year.
If you bought CA$2,000 of Gibson Energy shares you are expected to receive CA$170 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Gibson Energy's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (2.75%).
  • Gibson Energy's dividend is below the markets top 25% of dividend payers in Canada (8.52%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:GEI Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
Canada Oil and Gas Industry Average Dividend Yield Market Cap Weighted Average of 37 Stocks 7.6%
Canada Market Average Dividend Yield Market Cap Weighted Average of 324 Stocks 4.7%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.3%
Canada Bottom 25% Dividend Yield 25th Percentile 2.7%
Canada Top 25% Dividend Yield 75th Percentile 8.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:GEI Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2024-12-31
2023-12-31
2022-12-31 1.41 3.00
2021-12-31 1.38 14.00
2020-12-31 1.35 14.00
2020-04-06
TSX:GEI Past Annualized Dividends Data
Date (Data in CA$) Dividend per share (annual) Avg. Yield (%)
2020-02-24 1.360 7.615
2019-11-04 1.320 4.993
2019-08-06 1.320 5.731
2019-05-06 1.320 5.746
2019-03-04 1.320 5.771
2018-11-06 1.320 6.532
2018-08-08 1.320 6.499
2018-05-08 1.320 7.537
2018-03-05 1.320 7.957
2017-11-08 1.320 7.531
2017-08-01 1.320 7.593
2017-05-08 1.320 7.582
2017-03-07 1.320 6.886
2016-11-01 1.320 7.213
2016-08-02 1.320 7.652
2016-05-03 1.320 8.601
2016-03-01 1.320 7.432
2015-11-04 1.280 8.575
2015-08-06 1.280 7.033
2015-05-05 1.280 5.686
2015-03-04 1.280 4.719
2014-11-04 1.200 4.590
2014-08-07 1.200 3.491
2014-05-06 1.200 3.660
2014-03-04 1.200 4.199
2013-11-05 1.100 4.113
2013-08-07 1.100 4.622
2013-03-05 1.100 4.338
2012-11-06 1.040 4.358
2012-08-07 1.000 4.422
2012-05-09 1.000 4.776
2012-03-06 1.000 4.706
2011-11-08 0.960 4.870
2011-08-17 0.960 5.373

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Gibson Energy has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Gibson Energy only paid a dividend in the past 9 years.
Current Payout to shareholders
What portion of Gibson Energy's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.9x coverage).
Future Payout to shareholders
  • Dividends after 3 years are not well covered by earnings (0.8x coverage).
X
Income/ dividend checks
We assess Gibson Energy's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Gibson Energy afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Gibson Energy has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Steve Spaulding
COMPENSATION CA$5,396,711
AGE 53
TENURE AS CEO 2.8 years
CEO Bio

Mr. Steven R. Spaulding, also known as Steve, has been President, Chief Executive Officer and Director at Gibson Energy Inc. since June 19, 2017. Mr. Spaulding served as Senior Vice President of Processing and Natural Gas Liquids at EnLink Midstream Partners, LP and Enlink Midstream, Inc. since April 2010. He served as Senior Vice President of Gathering and Processing at Crosstex Energy. Previously, Mr. Spaulding served as Manager of the North American processing and NGL business at Chevron Corp. He is an accomplished industry veteran with more than 25 years' experience in the midstream space. He served as Executive Vice President of Lone Star NGL LLC, a subsidiary of Energy Transfer Partners. He served as Executive Vice President of NGL's at Energy Transfer Partners. He has expertise in leading midstream businesses, building organizations, business development, marketing and operations, which began with his roots of almost twenty years spent at Chevron and Texaco. He was responsible for developing and leading trading, marketing, commercial and business development for Chevron's equity production, NGL assets and upstream production projects. During his 20-year tenure at Chevron, Mr. Spaulding also managed the commercial and marketing activities of its midstream assets and was involved in the development and operations of the 524-mile NGL pipeline project in southern Louisiana that included the Texaco Expanded NGL Distribution System (TENDS). Mr. Spaulding started his career in Engineering and also served as an Operations Manager for various processing and NGL assets. Mr. Spaulding holds a Bachelor of Science in Chemical Engineering from the University of Oklahoma.

CEO Compensation
  • Steve's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Steve's remuneration is higher than average for companies of similar size in Canada.
Management Team Tenure

Average tenure of the Gibson Energy management team in years:

2.5
Average Tenure
  • The tenure for the Gibson Energy management team is about average.
Management Team

Steve Spaulding

TITLE
President
COMPENSATION
CA$5M
AGE
53
TENURE
2.8 yrs

Sean Brown

TITLE
Senior VP & CFO
COMPENSATION
CA$2M
TENURE
4.1 yrs

Sean Wilson

TITLE
Senior VP
COMPENSATION
CA$2M
TENURE
2.5 yrs

Kyle DeGruchy

TITLE
Senior Vice President of Supply & Marketing
COMPENSATION
CA$2M
TENURE
0.2 yrs

Mike Lindsay

TITLE
Senior Vice President of Operations & Engineering
TENURE
2.5 yrs

Mark Chyc-Cies

TITLE
Vice President of Strategy

Tammi Price

TITLE
Vice President of Finance and Corporate Affairs

Orin Atkins

TITLE
Vice President of U.S. Business Development
COMPENSATION
CA$2M
TENURE
2.3 yrs

Shirley Wong

TITLE
General Manager of Operations

Alasdair Ross

TITLE
Manager of Operations SCM
Board of Directors Tenure

Average tenure and age of the Gibson Energy board of directors in years:

5
Average Tenure
62
Average Age
  • The tenure for the Gibson Energy board of directors is about average.
Board of Directors

Jim Estey

TITLE
Independent Chairman
COMPENSATION
CA$245K
AGE
66
TENURE
7 yrs

Steve Spaulding

TITLE
President
COMPENSATION
CA$5M
AGE
53
TENURE
2.8 yrs

Marshall McRae

TITLE
Independent Director
COMPENSATION
CA$180K
AGE
62
TENURE
8.8 yrs

Jim Cleary

TITLE
Independent Director
COMPENSATION
CA$230K
AGE
64
TENURE
7 yrs

Mary Peters

TITLE
Independent Director
COMPENSATION
CA$211K
AGE
62
TENURE
6.2 yrs

Doug Bloom

TITLE
Independent Director
COMPENSATION
CA$160K
AGE
61
TENURE
3.9 yrs

John Festival

TITLE
Independent Director
COMPENSATION
CA$160K
AGE
58
TENURE
1.9 yrs

Judy Cotte

TITLE
Independent Director
TENURE
0.1 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Gibson Energy individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
25. Mar 20 Buy James Cleary Individual 24. Mar 20 24. Mar 20 5,000 CA$15.19 CA$75,950
09. Mar 20 Buy James Estey Individual 09. Mar 20 09. Mar 20 4,000 CA$20.55 CA$82,200
06. Mar 20 Sell James Estey Individual 02. Mar 20 02. Mar 20 -150 CA$25.63 CA$-3,844
31. May 19 Buy Susan Jones Individual 31. May 19 31. May 19 6,818 CA$21.95 CA$149,655
X
Management checks
We assess Gibson Energy's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Gibson Energy has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Are Investors Undervaluing Gibson Energy Inc. (TSE:GEI) By 31%?

Using the most recent financial data, we'll take a look at whether the stock is fairly priced by taking the expected future cash flows and discounting them to their present value. … A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, and so the sum of these future cash flows is then discounted to today's value: 10-year free cash flow (FCF) forecast 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Levered FCF (CA$, Millions) CA$258.0m CA$283.7m CA$347.0m CA$351.0m CA$355.9m CA$361.4m CA$367.4m CA$373.9m CA$380.7m CA$387.7m Growth Rate Estimate Source Analyst x1 Analyst x3 Analyst x1 Analyst x1 Est @ 1.39% Est @ 1.55% Est @ 1.67% Est @ 1.75% Est @ 1.81% Est @ 1.85% Present Value (CA$, Millions) Discounted @ 8.61% CA$237.6 CA$240.5 CA$270.9 CA$252.3 CA$235.5 CA$220.2 CA$206.2 CA$193.2 CA$181.1 CA$169.8 ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF)= CA$2.2b After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = CA$388m × (1 + 1.9%) ÷ (8.6% – 1.9%) = CA$5.9b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = CA$CA$5.9b ÷ ( 1 + 8.6%)10 = CA$2.60b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is CA$4.81b.

Simply Wall St -

Can Gibson Energy Inc. (TSE:GEI) Maintain Its Strong Returns?

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Gibson Energy: 19% = CA$147m ÷ CA$766m (Based on the trailing twelve months to June 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … Does Gibson Energy Have A Good Return On Equity? … Combining Gibson Energy's Debt And Its 19% Return On Equity It's worth noting the significant use of debt by Gibson Energy, leading to its debt to equity ratio of 1.65.

Simply Wall St -

Does It Make Sense To Buy Gibson Energy Inc. (TSE:GEI) For Its Yield?

Cash is slightly more important than profit from a dividend perspective, but given Gibson Energy's payments were not well covered by either earnings or cash flow, we are concerned about the sustainability of this dividend. … While there may be fluctuations in the past , Gibson Energy's earnings per share have basically not grown from where they were five years ago. … Earnings growth generally bodes well for the future value of company dividend payments.

Simply Wall St -

Should You Like Gibson Energy Inc.’s (TSE:GEI) High Return On Capital Employed?

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Gibson Energy: 0.12 = CA$287m ÷ (CA$3.0b - CA$655m) (Based on the trailing twelve months to March 2019.) Therefore, Gibson Energy has an ROCE of 12%. … Do Gibson Energy's Current Liabilities Skew Its ROCE? … Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE.

Simply Wall St -

How Gibson Energy Inc. (TSE:GEI) Can Impact Your Portfolio Volatility

A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market. … View our latest analysis for Gibson Energy What we can learn from GEI's beta value Given that it has a beta of 1.22, we can surmise that the Gibson Energy share price has been fairly sensitive to market volatility (over the last 5 years). … What this means for you: Since Gibson Energy tends to moves up when the market is going up, and down when it's going down, potential investors may wish to reflect on the overall market, when considering the stock.

Simply Wall St -

Is Gibson Energy Inc. (TSE:GEI) At Risk Of Cutting Its Dividend?

Dividend paying stocks like Gibson Energy Inc. … With a eight-year payment history and a 6.0% yield, many investors probably find Gibson Energy intriguing. … When buying stocks for their dividends, you should always run through the checks below, to see if the dividend looks sustainable.

Simply Wall St -

Why You Should Like Gibson Energy Inc.’s (TSE:GEI) ROCE

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Understanding Return On Capital Employed (ROCE). … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

Will Gibson Energy Inc.'s (TSE:GEI) Earnings Grow In The Next Couple Of Years?

In December 2018, Gibson Energy Inc. … (TSE:GEI) announced its most recent earnings update, which … negative earnings

Simply Wall St -

Should Gibson Energy (TSE:GEI) Be Disappointed With Their 41% Profit?

(TSE:GEI) share price is up 41% in the last year, clearly besting than the market return of around -0.2% (not including dividends). … When a company has just transitioned to profitability, earnings per share growth is not always the best way to look at the share price action. … Absent any improvement, we don't think a thirst for dividends is pushing up the Gibson Energy's share price.

Simply Wall St -

What Kind Of Shareholders Own Gibson Energy Inc. (TSE:GEI)?

Generally speaking, as a company grows, institutions will increase their ownership. … Conversely, insiders often decrease their ownership over time. … We can zoom in on the different ownership groups, to learn more about GEI

Simply Wall St -

Company Info

Description

Gibson Energy Inc., a crude oil infrastructure company, engages in the gathering, storage, optimization, processing, and marketing of crude oil and refined products in North America. It operates through Infrastructure and Marketing segments. The Infrastructure segment operates a network of infrastructure assets that include oil terminals, rail loading and unloading facilities, gathering pipelines, and a crude oil processing facility, as well as procession, recovery, and disposal terminals. The Marketing segment purchases, sells, stores, and optimizes hydrocarbon products, including crude oil, natural gas liquids, road asphalt, roofing flux, frac oils, light and heavy straight run distillates, combined vacuum gas oil, and an oil-based mud product. The company was formerly known as Gibson Energy Holdings ULC and changed its name to Gibson Energy Inc. in April 2011. Gibson Energy Inc. was founded in 1950 and is headquartered in Calgary, Canada.

Details
Name: Gibson Energy Inc.
GEI
Exchange: TSX
Founded: 1950
CA$2,339,339,440
146,208,715
Website: http://www.gibsonenergy.com
Address: Gibson Energy Inc.
440-2nd Avenue SW,
Suite 1700,
Calgary,
Alberta, T2P 5E9,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX GEI Common Shares The Toronto Stock Exchange CA CAD 08. Jun 2011
OTCPK GBNX.F Common Shares Pink Sheets LLC US USD 08. Jun 2011
DB 8GB Common Shares Deutsche Boerse AG DE EUR 08. Jun 2011
Number of employees
Current staff
Staff numbers
500
Gibson Energy employees.
Industry
Oil and Gas Storage and Transportation
Energy
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/06 04:56
End of day share price update: 2020/04/03 00:00
Last estimates confirmation: 2020/03/31
Last earnings filing: 2020/02/24
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.