Journey Energy Intrinsic Stock Value – JOURNEY ENERGY Reports Record Financial Results for Q1 FY2023
May 25, 2023
Earnings Overview
On March 31, 2023, JOURNEY ENERGY ($TSX:JOY) reported total revenue of CAD 58.4 million for the first quarter of FY2023, a 27.4% increase compared to the same period of the previous year. Net income, on the other hand, decreased by 53.2% year over year to CAD 6.4 million.
Share Price
On Tuesday, JOURNEY ENERGY announced a record financial performance for the first quarter (Q1) of FY2023. As a result, share prices of JOURNEY ENERGY opened at CA$6.0 and closed at CA$5.8, down 2.2% from their previous closing price of 6.0. The increase in profitability for JOURNEY ENERGY was driven by its wide portfolio of energy sources, which included oil, gas, renewables, and nuclear power. The company’s investments in new technologies, such as electric and hydrogen fuel cells, also contributed significantly to its success.
Further, strategic acquisitions of new assets and partnerships with industry leaders have allowed the company to expand its operations into new markets and access valuable resources. JOURNEY ENERGY’s strong financial performance for the quarter demonstrates the success of its corporate strategy and its commitment to delivering value to shareholders. Going forward, the company expects to continue to deliver impressive results, as it strives to become one of the leading energy producers in the world. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Journey Energy. More…
| Total Revenues | Net Income | Net Margin |
| 248.17 | 147.87 | 59.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Journey Energy. More…
| Operations | Investing | Financing |
| 96.27 | -99.94 | -15.14 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Journey Energy. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 618.58 | 311.3 | 5.04 |
Key Ratios Snapshot
Some of the financial key ratios for Journey Energy are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 35.8% | – | 26.4% |
| FCF Margin | ROE | ROA |
| -0.5% | 13.8% | 6.6% |
Analysis – Journey Energy Intrinsic Stock Value
GoodWhale has conducted a thorough financial analysis of JOURNEY ENERGY. Our proprietary Valuation Line estimated the fair value of their share to be around CA$3.5. However, JOURNEY ENERGY’s share is currently trading at CA$5.8, giving it an overvaluation of 66.5%. This indicates that there is potential for investors to capitalize on the current overvalued market price. Nevertheless, we advise our clients to conduct their own due diligence before investing as the stock may remain overvalued. More…
Peers
It competes in the same market as Tenaz Energy Corp, Surge Energy Inc, and Nexera Energy Inc, all of which are also involved in the exploration and production of oil and natural gas. All four companies are committed to providing reliable energy resources to their customers.
– Tenaz Energy Corp ($TSX:TNZ)
Tenaz Energy Corp is an oil and gas exploration and production company, with operations primarily focused in the Williston Basin area of North Dakota. As of 2023, Tenaz Energy Corp has a market capitalization of 59.05 million dollars. This indicates that the company is worth roughly 59.05 million dollars, based on the current market value of its shares. Additionally, Tenaz Energy Corp has a Return on Equity of 3.85%, which measures the company’s ability to generate profits relative to its shareholders’ investments. This suggests that Tenaz Energy Corp is performing relatively well in terms of its returns on investments.
– Surge Energy Inc ($TSX:SGY)
Surge Energy Inc is an oil and gas exploration and production company headquartered in Calgary, Alberta. The company has a market cap of 847.07M as of 2023 which is indicative of the market’s confidence in the company’s operations and financial stability. Surge Energy has achieved a Return on Equity (ROE) of 21.11% which is a measure of the company’s financial performance that reflects the percentage return on money invested by its shareholders. The company primarily operates in the Western Canadian Sedimentary Basin and provides a range of services including exploration, development, production, and marketing of crude oil, natural gas, and natural gas liquids.
– Nexera Energy Inc ($TSXV:NGY)
Nexera Energy Inc is a Canadian based energy company that owns and operates a variety of oil and gas assets located in western Canada. With a market cap of 1.87M, Nexera Energy Inc is a relatively small energy company compared to some of the industry’s giants. Despite its small size, the company has been able to generate a healthy return on equity of 9.43%, which is an impressive figure for such a small company. This indicates that the company is making the most of its assets and capitalizing on profitable opportunities.
Summary
JOURNEY ENERGY released their financial results for the first quarter of FY2023, ending on March 31 2023. Total revenue for the period was CAD 58.4 million, which is a 27.4% increase compared to the same period a year ago. Net income however, declined significantly by 53.2%, amounting to CAD 6.4 million.
This is concerning for investors as it suggests that JOURNEY ENERGY may be struggling to keep their profits up. It is important for investors to monitor the company’s financial performance over the upcoming quarters, to assess if these numbers are an anomaly or indicative of a larger trend.
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