Is There An Opportunity With Kosmos Energy Ltd.'s (NYSE:KOS) 40% Undervaluation?
Apr 15
U.S. Oil and Gas Industry Analysis
UpdatedApr 16, 2024
DataAggregated Company Financials
Companies362
- 7D-2.2%
- 3M16.5%
- 1Y11.1%
- YTD11.9%
Over the last 7 days, the Oil and Gas industry has dropped 2.2%, driven by a pullback from Chevron of 2.3%. In contrast, NextDecade has gained 11%. This takes the industry's 12 month performance to a gain of 11%. Earnings are forecast to be flat in the coming years.
Industry Valuation and Performance
Has the U.S. Oil and Gas Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Tue, 16 Apr 2024 | US$2.2t | US$1.8t | US$192.6b | 9.9x | 11.5x | 1.2x |
| Thu, 14 Mar 2024 | US$2.0t | US$1.8t | US$193.4b | 8.6x | 10.6x | 1.1x |
| Sat, 10 Feb 2024 | US$1.9t | US$1.8t | US$205.4b | 8x | 9.3x | 1x |
| Mon, 08 Jan 2024 | US$2.0t | US$1.9t | US$230.1b | 7.8x | 8.9x | 1.1x |
| Wed, 06 Dec 2023 | US$2.0t | US$1.9t | US$230.4b | 7.7x | 8.8x | 1.1x |
| Fri, 03 Nov 2023 | US$2.0t | US$1.9t | US$236.9b | 7.1x | 8.6x | 1.1x |
| Sun, 01 Oct 2023 | US$2.1t | US$2.0t | US$261.6b | 6.5x | 8.2x | 1.1x |
| Tue, 29 Aug 2023 | US$2.1t | US$2.0t | US$261.4b | 6.5x | 7.9x | 1x |
| Thu, 27 Jul 2023 | US$2.0t | US$2.2t | US$305.1b | 6.1x | 6.7x | 0.9x |
| Sat, 24 Jun 2023 | US$1.9t | US$2.2t | US$307.3b | 5.3x | 6.1x | 0.8x |
| Mon, 22 May 2023 | US$1.9t | US$2.2t | US$307.4b | 5.3x | 6.2x | 0.9x |
| Wed, 19 Apr 2023 | US$2.0t | US$2.2t | US$273.8b | 6.1x | 7.5x | 0.9x |
| Fri, 17 Mar 2023 | US$1.9t | US$2.2t | US$274.9b | 5.6x | 6.7x | 0.8x |
| Sun, 12 Feb 2023 | US$2.1t | US$2.2t | US$267.8b | 6.8x | 8x | 1x |
| Tue, 10 Jan 2023 | US$2.1t | US$2.2t | US$254.2b | 6.9x | 8.1x | 1x |
| Thu, 08 Dec 2022 | US$2.0t | US$2.2t | US$254.2b | 7x | 8x | 0.9x |
| Sat, 05 Nov 2022 | US$2.2t | US$2.1t | US$243.6b | 8.1x | 9x | 1.1x |
| Mon, 03 Oct 2022 | US$1.8t | US$1.9t | US$190.0b | 8.8x | 9.5x | 0.9x |
| Wed, 31 Aug 2022 | US$2.0t | US$1.9t | US$190.0b | 9.9x | 10.6x | 1x |
| Fri, 29 Jul 2022 | US$1.8t | US$1.7t | US$118.4b | 12.7x | 15.4x | 1.1x |
| Sun, 26 Jun 2022 | US$1.7t | US$1.7t | US$116.0b | 11.6x | 15.1x | 1.1x |
| Tue, 24 May 2022 | US$2.0t | US$1.7t | US$115.2b | 13.6x | 17.4x | 1.2x |
| Thu, 21 Apr 2022 | US$2.0t | US$1.5t | US$97.5b | 15.6x | 20.2x | 1.3x |
| Sat, 19 Mar 2022 | US$1.8t | US$1.5t | US$96.8b | 15x | 18.4x | 1.2x |
| Mon, 14 Feb 2022 | US$1.7t | US$1.4t | US$79.4b | 17.8x | 21.3x | 1.2x |
| Wed, 12 Jan 2022 | US$1.6t | US$1.2t | US$31.0b | 17.5x | 50.3x | 1.2x |
| Fri, 10 Dec 2021 | US$1.4t | US$1.3t | US$32.1b | 16x | 43.5x | 1.1x |
| Sun, 07 Nov 2021 | US$1.5t | US$1.2t | US$31.2b | 19.2x | 47x | 1.2x |
| Tue, 05 Oct 2021 | US$1.4t | US$1.1t | -US$4,697,572,968.00 | 20.1x | -293.3x | 1.3x |
| Thu, 02 Sep 2021 | US$1.2t | US$1.1t | -US$5,398,683,915.82 | 14.3x | -224.5x | 1.1x |
| Sat, 31 Jul 2021 | US$1.2t | US$1.1t | -US$5,398,683,915.82 | 15.1x | -226.3x | 1.1x |
| Tue, 04 May 2021 | US$1.2t | US$909.1b | -US$46,626,798,496.61 | 13.9x | -25.6x | 1.3x |
Price to Earnings Ratio
-25.6x
Current Industry PE
- Investors are pessimistic on the American Oil and Gas industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 11.5x which is higher than its 3-year average PE of -18.2x.
- The 3-year average PS ratio of 1.1x is lower than the industry's current PS ratio of 1.2x.
Past Earnings Growth
- Total earnings for the Oil and Gas industry have gone up over the last three years, and the industry is now profitable. Revenues have grown 26% per year.
- This means that more sales are being generated by the industry overall, and subsequently profits are increasing too.
Industry Trends
Which industries have driven the changes within the U.S. Energy industry?
| US Market | -3.05% | |
| Energy | -2.47% | |
| Oil and Gas | -2.22% | |
| Coal and Fuels | -0.21% | |
| Integrated Oil and Gas | -1.27% | |
| Oil and Gas Exploration and Production | -1.86% | |
| Oil and Gas Storage and Transportation | -2.96% | |
| Oil and Gas Refining and Marketing | -5.08% | |
Industry PE
- Investors are most optimistic about the Integrated Oil and Gas industry, which is trading close to its 3-year average PE ratio of 14.2x.
- Analysts are expecting annual earnings growth of 1.4%, which is higher than its past year's earnings decline of 37.6% per year.
- Investors are most pessimistic about the Coal and Fuels industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average.
Forecasted Growth
- Analysts are most optimistic on the Oil and Gas Exploration and Production industry, expecting annual earnings growth of 3.8% over the next 5 years.
- This is better than its past earnings decline of 34% per year.
- In contrast, the Oil and Gas Refining and Marketing industry is expected to see its earnings decline by 19% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| NEXT NextDecade | US$6.22 | 11.1% +US$159.2m | 16.3% | PB5.5x | |
| FRO Frontline | US$24.16 | 2.9% +US$149.2m | 44.9% | PE8.2x | |
| TPL Texas Pacific Land | US$583.91 | 0.8% +US$110.2m | 5.8% | PE33.1x | |
| NOG Northern Oil and Gas | US$42.35 | 2.3% +US$95.0m | 23.8% | PE4.6x | |
| KOS Kosmos Energy | US$6.05 | 2.4% +US$66.0m | -20.0% | PE13.4x |
