Southern Energy Corp. (SOU) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

ShaMaran Petroleum Corp.

Petrus Resources Ltd.

Rubellite Energy, Inc.

TAG Oil Ltd.

Southern Energy Corp.

Condor Energies, Inc.

Prairie Provident Resources, Inc.

Forza Petroleum Ltd.

NG Energy International Corp.

New Stratus Energy, Inc.

Africa Energy Corp.

Why is Southern Energy Corp. ?

Poor Management Efficiency with a low ROCE of 6.47%

The company has been able to generate a Return on Capital Employed (avg) of 6.47% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 5.14% signifying low profitability per unit of shareholders funds

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 25.00%, its profits have risen by 25.2%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Oil)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Southern Energy Corp. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Southern Energy Corp.

25.0%

-0.61

109.53%

S&P/TSX 60

29.6%

2.24

12.72%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.33%

EBIT Growth (5y)

-2.13%

EBIT to Interest (avg)

1.13

Debt to EBITDA (avg)

7.23

Net Debt to Equity (avg)

1.68

Sales to Capital Employed (avg)

0.42

Tax Ratio

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.10%

ROCE (avg)

6.47%

ROE (avg)

5.14%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

1.34

EV to EBIT

-10.62

EV to EBITDA

5.87

EV to Capital Employed

1.28

EV to Sales

1.49

PEG Ratio

Dividend Yield

ROCE (Latest)

-12.06%

ROE (Latest)

-34.34%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

Bullish

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

No Trend

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

11What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 2.63 MM

NET PROFIT(HY)

Higher at CAD -3.11 MM

ROCE(HY)

Highest at -39.47%

RAW MATERIAL COST(Y)

Fallen by -240.54% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 23.38 %

OPERATING PROFIT(Q)

Highest at CAD 2.24 MM

OPERATING PROFIT MARGIN(Q)

Highest at 38.44 %

-2What is not working for the Company

PRE-TAX PROFIT(Q)

At CAD -2.09 MM has Fallen at -35.07%

NET PROFIT(Q)

At CAD -2.09 MM has Fallen at -35.07%

Here's what is working for Southern Energy Corp.

Operating Cash Flow

Highest at CAD 2.63 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Operating Profit

Highest at CAD 2.24 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CAD MM)

Operating Profit Margin

Highest at 38.44 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Debt-Equity Ratio

Lowest at 23.38 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -240.54% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Southern Energy Corp.

Pre-Tax Profit

At CAD -2.09 MM has Fallen at -35.07%

over average net sales of the previous four periods of CAD -1.55 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CAD MM)

Net Profit

At CAD -2.09 MM has Fallen at -35.07%

over average net sales of the previous four periods of CAD -1.55 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CAD MM)