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Storm Resources

TSX:SRX
Snowflake Description

Reasonable growth potential and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SRX
TSX
CA$125M
Market Cap
  1. Home
  2. CA
  3. Energy
Company description

Storm Resources Ltd. operates as a crude oil and natural gas exploration and development company in Canada. The last earnings update was 29 days ago. More info.


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  • Storm Resources has significant price volatility in the past 3 months.
SRX Share Price and Events
7 Day Returns
3%
TSX:SRX
15.2%
CA Oil and Gas
11.4%
CA Market
1 Year Returns
-56.7%
TSX:SRX
-41.5%
CA Oil and Gas
-22%
CA Market
SRX Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Storm Resources (SRX) 3% -18.9% -36% -56.7% -75.2% -77.6%
CA Oil and Gas 15.2% -37.6% -42.4% -41.5% -49.8% -53.6%
CA Market 11.4% -22.2% -23.5% -22% -19.8% -13.3%
1 Year Return vs Industry and Market
  • SRX underperformed the Oil and Gas industry which returned -41.5% over the past year.
  • SRX underperformed the Market in Canada which returned -22% over the past year.
Price Volatility
SRX
Industry
5yr Volatility vs Market

SRX Value

 Is Storm Resources 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 Storm Resources 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 Storm Resources.

TSX:SRX Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 2 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.4%
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:SRX
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))
= 0.825 (1 + (1- 26.5%) (99.32%))
1.287
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.29
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.44% + (1.287 * 5.44%)
8.44%

Discounted Cash Flow Calculation for TSX:SRX using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Storm Resources is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

TSX:SRX DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CAD, Millions) Source Present Value
Discounted (@ 8.44%)
2020 -1.60 Analyst x5 -1.48
2021 5.00 Analyst x5 4.25
2022 7.93 Est @ 58.57% 6.22
2023 11.21 Est @ 41.43% 8.11
2024 14.51 Est @ 29.43% 9.68
2025 17.57 Est @ 21.04% 10.80
2026 20.23 Est @ 15.16% 11.47
2027 22.46 Est @ 11.04% 11.75
2028 24.30 Est @ 8.16% 11.72
2029 25.79 Est @ 6.14% 11.47
Present value of next 10 years cash flows CA$83.00
TSX:SRX DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CA$25.79 × (1 + 1.44%) ÷ (8.44% – 1.44%)
CA$373.73
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CA$373.73 ÷ (1 + 8.44%)10
CA$166.21
TSX:SRX Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CA$83.00 + CA$166.21
CA$249.21
Equity Value per Share
(CAD)
= Total value / Shares Outstanding
= CA$249.21 / 121.56
CA$2.05
TSX:SRX Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$2.05
Current discount Discount to share price of CA$1.03
= -1 x (CA$1.03 - CA$2.05) / CA$2.05
49.8%

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

Current Discount
Amount off the current price Storm Resources is available for.
Intrinsic value
50%
Share price is CA$1.03 vs Future cash flow value of CA$2.05
Current Discount Checks
For Storm Resources to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Storm Resources's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Storm Resources's share price is below the future cash flow value, and 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 Storm Resources's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Storm Resources's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:SRX PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in CAD CA$0.09
TSX:SRX Share Price ** TSX (2020-03-27) in CAD CA$1.03
Canada Oil and Gas Industry PE Ratio Median Figure of 55 Publicly-Listed Oil and Gas Companies 6.35x
Canada Market PE Ratio Median Figure of 499 Publicly-Listed Companies 10.74x

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

** Primary Listing of Storm Resources.

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

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

= 1.03 ÷ 0.09

11.07x

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

  • Storm Resources is overvalued based on earnings compared to the CA Oil and Gas industry average.
  • Storm Resources is overvalued based on earnings compared to the Canada market.
Price based on expected Growth
Does Storm Resources's expected growth come at a high price?
Raw Data
TSX:SRX PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 11.07x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
Not available
Canada Oil and Gas Industry PEG Ratio Median Figure of 29 Publicly-Listed Oil and Gas Companies -0.04x
Canada Market PEG Ratio Median Figure of 234 Publicly-Listed Companies 0.69x

*Line of best fit is calculated by linear regression .

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

  • Unable to calculate PEG ratio for Storm Resources, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Storm Resources's assets?
Raw Data
TSX:SRX PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in CAD CA$3.47
TSX:SRX Share Price * TSX (2020-03-27) in CAD CA$1.03
Canada Oil and Gas Industry PB Ratio Median Figure of 198 Publicly-Listed Oil and Gas Companies 0.38x
Canada Market PB Ratio Median Figure of 2,352 Publicly-Listed Companies 1x
TSX:SRX PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 1.03 ÷ 3.47

0.3x

* Primary Listing of Storm Resources.

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

  • Storm Resources is good value based on assets compared to the CA Oil and Gas industry average.
X
Value checks
We assess Storm Resources'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. Storm Resources has a total score of 3/6, 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.

SRX Future Performance

 How is Storm Resources expected to perform in the next 1 to 3 years based on estimates from 2 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
49.1%
Expected annual growth in earnings per share.
Earnings growth vs Low Risk Savings
Is Storm Resources expected to grow at an attractive rate?
  • Storm Resources's earnings growth is expected to exceed the low risk savings rate of 1.4%.
Growth vs Market Checks
  • Storm Resources's earnings growth is expected to exceed the Canada market average.
  • Storm Resources's revenue growth is expected to exceed the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:SRX Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:SRX Future Earnings per Share Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 49.1%
TSX:SRX Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 19.7%
Canada Oil and Gas Industry Earnings Growth Rate Market Cap Weighted Average -3.9%
Canada Oil and Gas Industry Revenue Growth Rate Market Cap Weighted Average 1%
Canada Market Earnings Growth Rate Market Cap Weighted Average 7.7%
Canada Market Revenue Growth Rate Market Cap Weighted Average 3.9%

*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:SRX Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:SRX Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 244 95 1
2020-12-31 191 68 2
2020-03-28
TSX:SRX Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2019-12-31 165 69 11
2019-09-30 193 77 35
2019-06-30 211 88 42
2019-03-31 220 89 32
2018-12-31 218 92 40
2018-09-30 187 86 22
2018-06-30 168 75 15
2018-03-31 153 71 28
2017-12-31 146 64 40
2017-09-30 128 57 18
2017-06-30 118 56 17
2017-03-31 100 41 -13

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Storm Resources's earnings are expected to grow significantly at over 20% yearly.
  • Storm Resources's revenue is expected to grow by 19.7% yearly, however this is not considered high growth (20% yearly).
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:SRX Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from Storm Resources Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:SRX Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 0.31 0.31 0.31 1.00
2020-12-31 0.26 0.26 0.26 1.00
2020-03-28
TSX:SRX Past Financials Data
Date (Data in CAD Millions) EPS *
2019-12-31 0.09
2019-09-30 0.29
2019-06-30 0.35
2019-03-31 0.26
2018-12-31 0.33
2018-09-30 0.18
2018-06-30 0.13
2018-03-31 0.23
2017-12-31 0.33
2017-09-30 0.15
2017-06-30 0.14
2017-03-31 -0.11

*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.
  • Storm Resources is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Storm Resources'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.
Storm Resources has a total score of 4/6, 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.

SRX Past Performance

  How has Storm Resources 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 Storm Resources'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.
  • Storm Resources has delivered over 20% year on year earnings growth in the past 5 years.
  • Storm Resources's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Storm Resources's 1-year earnings growth is negative, it can't be compared to the CA Oil and Gas industry average.
Earnings and Revenue History
Storm Resources'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 Storm Resources Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:SRX Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 165.25 11.31 9.35
2019-09-30 193.46 35.22 9.21
2019-06-30 211.03 42.46 9.27
2019-03-31 220.17 31.78 9.47
2018-12-31 218.13 40.06 9.24
2018-09-30 186.98 21.88 9.72
2018-06-30 168.19 15.39 10.11
2018-03-31 153.45 27.95 10.56
2017-12-31 145.91 39.69 9.97
2017-09-30 128.47 18.17 9.50
2017-06-30 117.53 17.40 9.06
2017-03-31 99.79 -12.85 8.74
2016-12-31 73.46 -38.46 8.46
2016-09-30 62.97 -23.71 8.62
2016-06-30 58.52 -24.59 8.37
2016-03-31 61.91 -8.29 8.36
2015-12-31 64.75 -6.87 8.97
2015-09-30 74.84 -16.14 8.67
2015-06-30 80.65 -9.71 8.16
2015-03-31 83.01 1.08 7.37
2014-12-31 82.33 4.86 6.00
2014-09-30 71.93 -12.90 5.81
2014-06-30 62.18 -19.80 5.37
2014-03-31 53.03 -25.74 5.28
2013-12-31 43.54 -26.20 4.84
2013-09-30 38.46 -3.35 4.44
2013-06-30 35.52 -5.51 4.52
2013-03-31 33.50 -5.22 4.46

*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.
  • Storm Resources has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Storm Resources used its assets less efficiently than the CA Oil and Gas industry average last year based on Return on Assets.
  • Storm Resources 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 Storm Resources'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.
Storm Resources has a total score of 2/6, 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.

SRX Health

 How is Storm Resources'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 Storm Resources's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Storm Resources's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Storm Resources's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Storm Resources'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 0.2x 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 Storm Resources Company Filings, last reported 2 months ago.

TSX:SRX Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 421.71 121.61
2019-09-30 418.15 107.46
2019-06-30 417.56 84.57
2019-03-31 409.13 89.61
2018-12-31 407.93 86.78
2018-09-30 380.28 78.75
2018-06-30 372.29 87.31
2018-03-31 374.33 99.36
2017-12-31 364.74 100.99
2017-09-30 355.22 93.00
2017-06-30 353.52 84.16
2017-03-31 342.82 89.93
2016-12-31 319.78 78.83
2016-09-30 330.94 71.03
2016-06-30 330.08 74.03
2016-03-31 349.06 70.45
2015-12-31 352.56 57.08
2015-09-30 349.63 33.15 0.61
2015-06-30 349.77 45.40 0.94
2015-03-31 318.93 63.75 1.22
2014-12-31 321.56 46.03
2014-09-30 328.94 38.91 2.05
2014-06-30 318.53 18.48 2.22
2014-03-31 309.28 5.27 2.70
2013-12-31 217.87 10.63 3.48
2013-09-30 210.88 27.87 2.64
2013-06-30 211.11 21.22
2013-03-31 182.58 33.16
  • Storm Resources's level of debt (28.8%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (14.4% vs 28.8% today).
  • Debt is well covered by operating cash flow (56.3%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 3.9x coverage).
X
Financial health checks
We assess Storm Resources'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. Storm Resources 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.

SRX Dividends

 What is Storm Resources'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
0%
Current annual income from Storm Resources dividends. Estimated to be 0% next year.
If you bought CA$2,000 of Storm Resources shares you are expected to receive CA$0 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?
  • Unable to evaluate Storm Resources's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Storm Resources's dividend against the top 25% market benchmark as the company has not reported any payouts.
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:SRX 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 2 Analyst Estimates (S&P Global) See Below
Canada Oil and Gas Industry Average Dividend Yield Market Cap Weighted Average of 37 Stocks 8%
Canada Market Average Dividend Yield Market Cap Weighted Average of 327 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:SRX Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2021-12-31
2020-12-31 0.00 1.00
2020-03-28

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

  • Unable to perform a dividend volatility check as Storm Resources has not reported any payouts.
  • Unable to verify if Storm Resources's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Storm Resources's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Storm Resources has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Storm Resources's dividends in 3 years as they are not expected to pay a notable one for Canada.
X
Income/ dividend checks
We assess Storm Resources'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 Storm Resources afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Storm Resources has a total score of 0/6, see the detailed checks below.


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

SRX Management

 What is the CEO of Storm Resources'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
Brian Lavergne
COMPENSATION CA$628,500
AGE 53
TENURE AS CEO 9.8 years
CEO Bio

Mr. Brian Lavergne has been the President and Chief Executive Officer of Storm Resources Ltd. since June 8, 2010. Mr. Lavergne served as President and Chief Executive Officer of Storm Exploration Inc.(SEI) from June 29, 2004 to August 17, 2010. Mr. Lavergne served as the Vice President, Production of SEM from August 2002 to June 2003 and also served as its Chief Operating Officer until June 2004. From December 1998 to August 2002, he served with SEI. He served as Vice President, Production of SEI. Mr. Lavergne joined Storm in 1998 and served several years with Renaissance Energy Ltd. He served as the Chief Operating Officer and Vice President of Production at Storm Energy Ltd. From February 1994 to December 1998, Mr. Lavergne served at Renaissance Energy Ltd. He served as an Exploration Manager and Operations District Manager of Renaissance Energy Ltd. He has been an Executive Director of Storm Resources Ltd., since June 8, 2010. He is a Director, Member of Corporate Governance & Compensation Committee and Member of Reserves Committee of Penn West Santiago Ltd. Mr. Lavergne serves as a Director of SGR. He has been a Director at Altura Energy Inc. since July 31, 2015. He served as a Director of Strategic Oil & Gas Ltd. from November 27, 2012 to March 2013. He served as a Director of Titan Exploration Ltd. since August 24, 2004. He served as a Director of Storm Exploration Inc. since September 20, 2004 to August 17, 2010. He is a registered Professional Engineer in the Province of Alberta. Mr. Lavergne has a Bachelor of Science in Mechanical Engineering from the University of Alberta 1989.

CEO Compensation
  • Brian's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • Brian's remuneration is higher than average for companies of similar size in Canada.
Management Team Tenure

Average tenure of the Storm Resources management team in years:

4.8
Average Tenure
  • The tenure for the Storm Resources management team is about average.
Management Team

Brian Lavergne

TITLE
President
COMPENSATION
CA$629K
AGE
53
TENURE
9.8 yrs

Mike Hearn

TITLE
CFO & Corporate Secretary
COMPENSATION
CA$514K
TENURE
2.8 yrs

Robert Tiberio

TITLE
Chief Operating Officer
COMPENSATION
CA$712K
AGE
54
TENURE
9.6 yrs

Jamie Conboy

TITLE
Vice President of Geology
COMPENSATION
CA$596K
TENURE
4.8 yrs

Hayden Evans

TITLE
Vice President of Exploitation
COMPENSATION
CA$657K
TENURE
4.8 yrs
Board of Directors Tenure

Average tenure and age of the Storm Resources board of directors in years:

9.8
Average Tenure
63
Average Age
  • The tenure for the Storm Resources board of directors is about average.
Board of Directors

Stu Clark

TITLE
Independent Chairman
COMPENSATION
CA$137K
AGE
64
TENURE
9.6 yrs

Brian Lavergne

TITLE
President
COMPENSATION
CA$629K
AGE
53
TENURE
9.8 yrs

Mark Butler

TITLE
Independent Director
COMPENSATION
CA$128K
AGE
58
TENURE
9.8 yrs

Jim Wilson

TITLE
Independent Director
COMPENSATION
CA$137K
AGE
66
TENURE
9.8 yrs

John Brussa

TITLE
Independent Director
COMPENSATION
CA$119K
AGE
62
TENURE
9.8 yrs

Matt Brister

TITLE
Independent Director
COMPENSATION
CA$120K
AGE
61
TENURE
9.8 yrs

Greg Turnbull

TITLE
Independent Director
COMPENSATION
CA$119K
AGE
64
TENURE
9.8 yrs

P. Wierzba

TITLE
Independent Director
COMPENSATION
CA$124K
AGE
69
TENURE
9.8 yrs

Sheila Leggett

TITLE
Independent Director
COMPENSATION
CA$102K
TENURE
1.7 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Storm Resources individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
23. Mar 20 Buy Michael Hearn Individual 20. Mar 20 23. Mar 20 5,500 CA$0.95 CA$5,103
10. Mar 20 Buy Sheila Leggett Individual 31. Dec 19 31. Dec 19 146,778 CA$1.84 CA$270,071
12. Jan 20 Sell P. Wierzba Individual 07. Jan 20 07. Jan 20 -8,248 CA$1.62 CA$-13,403
21. Nov 19 Buy Michael Hearn Individual 20. Nov 19 21. Nov 19 1,000 CA$1.32 CA$1,299
18. Nov 19 Buy Michael Hearn Individual 18. Nov 19 18. Nov 19 3,000 CA$1.35 CA$4,050
28. Oct 19 Sell Jamie Conboy Individual 22. Oct 19 22. Oct 19 -12,000 CA$1.37 CA$-16,482
30. Sep 19 Buy Brian Lavergne Individual 27. Sep 19 27. Sep 19 3,900 CA$1.25 CA$4,875
24. Sep 19 Buy Brian Lavergne Individual 23. Sep 19 23. Sep 19 14,000 CA$1.27 CA$17,780
19. Sep 19 Buy Brian Lavergne Individual 18. Sep 19 18. Sep 19 5,000 CA$1.49 CA$7,450
09. Sep 19 Sell Hayden Evans Individual 04. Sep 19 04. Sep 19 -20,000 CA$1.30 CA$-26,000
04. Sep 19 Sell Jamie Conboy Individual 29. Aug 19 30. Aug 19 -20,000 CA$1.27 CA$-25,303
03. Sep 19 Buy Brian Lavergne Individual 29. Aug 19 29. Aug 19 5,000 CA$1.25 CA$6,250
28. Aug 19 Buy Brian Lavergne Individual 27. Aug 19 27. Aug 19 10,000 CA$1.30 CA$13,000
27. Aug 19 Sell Jamie Conboy Individual 22. Aug 19 22. Aug 19 -600 CA$1.44 CA$-864
27. Aug 19 Buy Michael Hearn Individual 26. Aug 19 27. Aug 19 2,800 CA$1.34 CA$3,736
22. Jul 19 Sell Jamie Conboy Individual 02. Apr 19 12. Jul 19 -33,000 CA$2.34 CA$-66,613
X
Management checks
We assess Storm Resources'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. Storm Resources 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.

SRX News

Simply Wall St News

Read This Before Selling Storm Resources Ltd. (TSE:SRX) Shares

So shareholders might well want to know whether insiders have been buying or selling shares in Storm Resources Ltd. … For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.' See our latest analysis for Storm Resources The Last 12 Months Of Insider Transactions At Storm Resources Over the last year, we can see that the biggest insider purchase was by Chairman Stuart Clark for CA$511k worth of shares, at about CA$2.05 per share. … In the last twelve months there was more buying than selling by Storm Resources insiders.

Simply Wall St -

Does Storm Resources Ltd.'s (TSE:SRX) CEO Salary Compare Well With Others?

View our latest analysis for Storm Resources How Does Brian Lavergne's Compensation Compare With Similar Sized Companies? … We compared total CEO remuneration at Storm Resources Ltd. … If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Storm Resources.

Simply Wall St -

Here's What Storm Resources Ltd.'s (TSE:SRX) ROCE Can Tell Us

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 Storm Resources: 0.076 = CA$41m ÷ (CA$570m - CA$31m) (Based on the trailing twelve months to March 2019.) So, Storm Resources has an ROCE of 7.6%. … How Storm Resources's Current Liabilities Impact Its ROCE Short term (or current) liabilities, are things like supplier invoices, overdrafts, or tax bills that need to be paid within 12 months. … Storm Resources reports few current liabilities, which have a negligible impact on its unremarkable ROCE.

Simply Wall St -

Do Directors Own Storm Resources Ltd. (TSE:SRX) Shares?

View our latest analysis for Storm Resources TSX:SRX Ownership Summary, July 16th 2019 What Does The Institutional Ownership Tell Us About Storm Resources? … We can see that Storm Resources does have institutional investors; and they hold 51% of the stock. … Insider Ownership Of Storm Resources The definition of company insiders can be subjective, and does vary between jurisdictions.

Simply Wall St -

Is Storm Resources Ltd. (TSE:SRX) Trading At A 45% Discount?

A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) estimate 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Levered FCF (CA$, Millions) CA$18.0m CA$20.8m CA$23.2m CA$25.2m CA$26.9m CA$28.3m CA$29.5m CA$30.5m CA$31.5m CA$32.3m Growth Rate Estimate Source Analyst x1 Est @ 15.6% Est @ 11.5% Est @ 8.63% Est @ 6.63% Est @ 5.22% Est @ 4.24% Est @ 3.55% Est @ 3.07% Est @ 2.73% Present Value (CA$, Millions) Discounted @ 8.73% CA$16.6 CA$17.6 CA$18.0 CA$18.0 CA$17.7 CA$17.1 CA$16.4 CA$15.6 CA$14.8 CA$14.0 ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF)= CA$165.9m We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = CA$32m × (1 + 1.9%) ÷ (8.7% – 1.9%) = CA$486m Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = CA$CA$486m ÷ ( 1 + 8.7%)10 = CA$210.35m The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is CA$376.22m. … TSX:SRX Intrinsic value, July 3rd 2019 Important assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows.

Simply Wall St -

Does Market Volatility Impact Storm Resources Ltd.'s (TSE:SRX) Share Price?

Check out our latest analysis for Storm Resources What SRX's beta value tells investors Given that it has a beta of 1.74, we can surmise that the Storm Resources share price has been fairly sensitive to market volatility (over the last 5 years). … Because it takes less capital to move the share price of a small company like this, when a stock this size is actively traded it is quite often more sensitive to market volatility than similar large companies. … What this means for you: Since Storm Resources 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 -

A Spotlight On Storm Resources Ltd.'s (TSE:SRX) Fundamentals

For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Storm Resources here. … TSX:SRX Income Statement, June 5th 2019 Next Steps: For Storm Resources, I've put together three key factors you should look at: Future Outlook: What are well-informed industry analysts predicting for SRX’s future growth? … Take a look at our free research report of analyst consensus for SRX’s outlook.

Simply Wall St -

Read This Before You Buy Storm Resources Ltd. (TSE:SRX) Because Of Its P/E Ratio

We'll apply a basic P/E ratio analysis to Storm Resources Ltd.'s (TSE:SRX), to help you decide if the stock is worth further research. … View our latest analysis for Storm Resources How Do I Calculate A Price To Earnings Ratio? … The formula for P/E is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Storm Resources: P/E of 7.6 = CA$2.01 ÷ CA$0.26 (Based on the trailing twelve months to March 2019.) Is A High Price-to-Earnings Ratio Good?

Simply Wall St -

Does Storm Resources Ltd.'s (TSE:SRX) CEO Pay Compare Well With Peers?

Brian Lavergne has been the CEO of Storm Resources Ltd. … This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … How Does Brian Lavergne's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Here's What Storm Resources Ltd.'s (TSE:SRX) ROCE Can Tell Us

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … Understanding Return On Capital Employed (ROCE). … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

Simply Wall St -

SRX Company Info

Description

Storm Resources Ltd. operates as a crude oil and natural gas exploration and development company in Canada. The company primarily owns interest in lands covering an area of 121,000 net acres in 172 net sections located in Umbach, Nig, and Fireweed areas of Northeast British Columbia. As of December 31, 2019, it had 195,482 thousand barrels of oil equivalent of total proved plus probable reserves. Storm Resources Ltd. was incorporated in 2010 and is headquartered in Calgary, Canada.

Details
Name: Storm Resources Ltd.
SRX
Exchange: TSX
Founded: 2010
CA$125,203,516
121,556,812
Website: http://www.stormresourcesltd.com
Address: Storm Resources Ltd.
215 – 2nd Street SW,
Suite 600,
Calgary,
Alberta, T2P 1M4,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX SRX Common Shares The Toronto Stock Exchange CA CAD 31. Aug 2010
OTCPK SRML.F Common Shares Pink Sheets LLC US USD 31. Aug 2010
DB 64T Common Shares Deutsche Boerse AG DE EUR 31. Aug 2010
Number of employees
Current staff
Staff numbers
27
Storm Resources employees.
Industry
Oil and Gas Exploration and Production
Energy
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/03/28 01:57
End of day share price update: 2020/03/27 00:00
Last estimates confirmation: 2020/03/27
Last earnings filing: 2020/02/28
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.