What are the top 20 Undervalued Stocks (selected over 5 market cap classes) in the Energy Sector? I have used the analysis tools on the website stockcalc.com to generate the content of this blog post. Have a look down the Welcome page www.stockcalc.com/Welcome for some of the free lists and reports available.
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Undervalued Stocks – Energy Sector
Today our focus is the Energy sector and we are looking at companies that are undervalued based on our Weighted Average Valuation (WAV) calculation which we do for the 8000 stocks each night in the StockCalc database.
The Energy sector is comprised of companies in the following Industry groups: Oil & Gas Drilling, E&P, Integrated, Midstream, Refining & Marketing, Equipment & Services as well as Thermal Coal and Uranium.
The sector includes companies that are engaged in exploring, drilling, producing, manufacturing, refining, marketing and transporting of petroleum and natural gas as well as companies that own and operate oilfield pipelines or refine, gather, market, and sell petroleum and petroleum products. This group also includes companies that mine thermal coal or mine, refine, produce, and mill uranium and uranium-related materials.
The stocks are generally held both for their dividends and capital appreciation.
We generate our Weighted Average Valuation (WAV) from 5 models and Analyst consensus. Overview of the models used: Discounted Cash Flow (DCF value) is a valuation technique where cash flow projections are discounted back to the present to calculate value per share. A Comparables model values the company on the basis of ratios from selected comparable companies. We actually do 3 types of comparables models. An Adjusted Book Value (ABV) is calculated by multiplying book value per share by its historical Price to Book ratio. If we have Analyst coverage we look at the consensus target price.
Today’s Data – Energy
In the table below we can see the close price (Nov 26th 2021) and valuation for these companies along with the ratio of valuation to price as well as their market cap class and average trading volume.
|Stock Symbol||Company Name||Close Price($)||Valuation ($)||Value/ Price||M Cap Class||Average Volume|
|PTR-N||PetroChina Co||44.28||60.14||1.36||Large Cap||269946|
|TRP-N||TC Energy||47.63||53.16||1.12||Large Cap||1203292|
|TOU-T||Tourmaline Oil||43.96||48.64||1.11||Large Cap||2937667|
|SNP-N||China Petroleum||46.85||51.26||1.09||Large Cap||200676|
|WES-N||Western Midstream||21.13||26.05||1.23||Mid Cap||830993|
|ETRN-N||Equitrans Midstream||10.21||12.33||1.21||Mid Cap||2631998|
|CTRA-N||Coterra Energy||19.99||23.77||1.19||Mid Cap||7171731|
|ENBL-N||Enable Midstream Partners||7.40||8.50||1.15||Mid Cap||681337|
|TGS-N||Transportadora de Gas||4.84||7.90||1.63||Small Cap||169565|
|HWX-T||Headwater Exploration||4.71||7.14||1.52||Small Cap||1102829|
|PBFX-N||PBF Logistics||12.47||16.52||1.32||Small Cap||281505|
|SRLP-N||Sprague Resources||15.78||20.66||1.31||Small Cap||61678|
|CIVI-N||Civitas Resources||51.80||67.00||1.29||Small Cap||505568|
|HMLP-N||Hoegh LNG Partners||4.65||9.57||2.06||Micro Cap||95340|
|TNP-N||Tsakos Energy Navigation||7.80||16.00||2.05||Micro Cap||107912|
|ITE-T||i3 Energy||0.19||0.36||1.92||Micro Cap||418814|
|GLOP-N||GasLog Partners||4.93||8.61||1.75||Micro Cap||210116|
|BPT-N||BP Prudhoe Bay||4.00||5.81||1.45||Micro Cap||196440|
N-NYSE, Q-Nasdaq, A-American, T-Toronto, X-Toronto Venture
Lets look at a few companies…
Lets look at a couple of the companies on this list to get a better understanding of them.
TransCanada Corp is an energy infrastructure company. Its business segments include, Natural Gas Pipelines, Liquid Pipelines and Energy. The company has pipeline and power generation assets in Canada, the United States, and Mexico.
Tsakos Energy Navigation
Tsakos Energy Navigation Ltd operates crude oil and petroleum product tankers which provide marine transportation services for national, major and other independent oil companies and refiners. It also transport liquefied natural gas.
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