We assign a fundamental rating of 5 out of 10 to SBOW. SBOW was compared to 207 industry peers in the Oil, Gas & Consumable Fuels industry. While SBOW belongs to the best of the industry regarding profitability, there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on SBOW.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

SBOW had positive earnings in the past year.
SBOW had a positive operating cash flow in the past year.
SBOW had positive earnings in 4 of the past 5 years.
Each year in the past 5 years SBOW had a positive operating cash flow.

1.2 Ratios

The Return On Assets of SBOW (6.96%) is comparable to the rest of the industry.
SBOW has a Return On Equity of 15.97%. This is in the better half of the industry: SBOW outperforms 60.29% of its industry peers.
SBOW has a Return On Invested Capital of 10.91%. This is in the better half of the industry: SBOW outperforms 64.59% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SBOW is in line with the industry average of 21.94%.
The last Return On Invested Capital (10.91%) for SBOW is well below the 3 year average (23.87%), which needs to be investigated, but indicates that SBOW had better years and this may not be a problem.

		Industry Rank	Sector Rank
ROA	6.96%
ROE	15.97%
ROIC	10.91%

ROA(3y)13.77%

ROA(5y)0.04%

ROE(3y)32.57%

ROE(5y)-42.66%

ROIC(3y)23.87%

ROIC(5y)18.3%

1.3 Margins

SBOW's Profit Margin of 24.40% is fine compared to the rest of the industry. SBOW outperforms 71.29% of its industry peers.
In the last couple of years the Profit Margin of SBOW has grown nicely.
SBOW has a better Operating Margin (37.88%) than 72.73% of its industry peers.
SBOW's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 76.41%, SBOW belongs to the top of the industry, outperforming 84.69% of the companies in the same industry.
SBOW's Gross Margin has been stable in the last couple of years.

		Industry Rank	Sector Rank
OM	37.88%
PM (TTM)	24.4%
GM	76.41%

OM growth 3Y13.66%

OM growth 5Y-3.95%

PM growth 3YN/A

PM growth 5Y9.5%

GM growth 3Y0.4%

GM growth 5Y-0.72%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), SBOW is creating value.
SBOW has more shares outstanding than it did 1 year ago.
Compared to 1 year ago, SBOW has a worse debt to assets ratio.

2.2 Solvency

SBOW has an Altman-Z score of 1.22. This is a bad value and indicates that SBOW is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.22, SBOW is in line with its industry, outperforming 45.45% of the companies in the same industry.
A Debt/Equity ratio of 0.88 indicates that SBOW is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.88, SBOW is doing worse than 70.33% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.88
Debt/FCF	N/A
Altman-Z	1.22

ROIC/WACC1.68

WACC6.5%

2.3 Liquidity

SBOW has a Current Ratio of 0.63. This is a bad value and indicates that SBOW is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.63, SBOW is doing worse than 80.38% of the companies in the same industry.
SBOW has a Quick Ratio of 0.63. This is a bad value and indicates that SBOW is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.63, SBOW is doing worse than 76.08% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	0.63
Quick Ratio	0.63

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The earnings per share for SBOW have decreased strongly by -25.30% in the last year.
Measured over the past years, SBOW shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.25% on average per year.
SBOW shows a small growth in Revenue. In the last year, the Revenue has grown by 0.70%.
The Revenue has been growing by 20.45% on average over the past years. This is a very strong growth!

EPS 1Y (TTM)-25.3%

EPS 3Y45.22%

EPS 5Y-1.25%

EPS Q2Q%111.11%

Revenue 1Y (TTM)0.7%

Revenue growth 3Y54.35%

Revenue growth 5Y20.45%

Sales Q2Q%83.4%

3.2 Future

The Earnings Per Share is expected to grow by 14.19% on average over the next years. This is quite good.
The Revenue is expected to grow by 20.45% on average over the next years. This is a very strong growth

EPS Next Y8.16%

EPS Next 2Y22.1%

EPS Next 3Y14.19%

EPS Next 5YN/A

Revenue Next Year63.24%

Revenue Next 2Y33.74%

Revenue Next 3Y20.45%

Revenue Next 5YN/A

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 4.95, which indicates a rather cheap valuation of SBOW.
SBOW's Price/Earnings ratio is rather cheap when compared to the industry. SBOW is cheaper than 89.95% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.87, SBOW is valued rather cheaply.
With a Price/Forward Earnings ratio of 3.90, the valuation of SBOW can be described as very cheap.
SBOW's Price/Forward Earnings ratio is rather cheap when compared to the industry. SBOW is cheaper than 93.30% of the companies in the same industry.
SBOW's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.96.

		Industry Rank	Sector Rank
PE	4.95
Fwd PE	3.9

4.2 Price Multiples

SBOW's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SBOW is cheaper than 79.90% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	3.61

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of SBOW may justify a higher PE ratio.
SBOW's earnings are expected to grow with 14.19% in the coming years. This may justify a more expensive valuation.