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Saturn Oil & Gas (SOIL-T) is a high risk growth company with significant net debt, but also with strong potential for growth. The recent acquisition has contributed to strong quarterly results, and the company's diversified nature with a strong management team bodes well for optimized free cash flow generation. While risky due to its small size in a volatile industry, the stock is extremely cheap and has the potential for future growth.
They've done some debt equity issues in recent years. The stock is very cheap. If they can stop buying companies, this can do well and help cash flow.
Production has been growing. As the market rally broadens, watch the smaller/mid-cap companies.
SOIL is a $328.6M company with a revenue base of ~$396M, and over the past 12 months it has generated net income of $392, however, it also was cash flow negative over the past 12 months. All of its cash from operations were eroded by increased CAPEX spending, which was funded by a combination of debt and share issuance. Its debt levels are quite high, but its valuation is also very low, but right now this is common in the oil and gas sector as commodity prices continue to weaken. SOIL has demonstrated some good qualities, and insiders have been buying. Its lack of dividend and relatively small size are probably the main drawbacks here.
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Passed on last private placement.
Large abandonment liabilities.
Small company that doesn't attractive institutional investment.
Has taken on lots of debt.
No return of capital until 2024.
Weary on prospects of company.
Saturn Oil & Gas is a Canadian stock, trading under the symbol SOIL-T on the Toronto Stock Exchange (SOIL-CT). It is usually referred to as TSX:SOIL or SOIL-T
In the last year, 1 stock analyst published opinions about SOIL-T. 1 analyst recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Saturn Oil & Gas .
Saturn Oil & Gas was never recommended as a Top Pick on Stockchase. Read the latest stock experts ratings for Saturn Oil & Gas .
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
In the last year, there was no coverage of Saturn Oil & Gas published on Stockchase.
On 2024-12-13, Saturn Oil & Gas (SOIL-T) stock closed at a price of $2.16.
We think it is a high risk growth company with nearly $800M in net debt at a market cap of $551M. The stock is extremely cheap at 2x forward earnings and it has recently made an acquisition which should help it continue to grow. Recent quarterly results were also strong reflecting this acquisition. The upgrade highlighted SOIL as a diversified entity, with a strong management team that should be able to optimze free cash flow generation. We think it is an risky purchase, at a small size in a volatile industry, but the potential for growth is there and it is extremely cheap.
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