Genel Energy (GENL) AI Stock Analysis

• Market Cap: $211.18M
• Dividend Yield: N/A
• Average Volume (3M): 474.80K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.69
• Revenue Growth: -0.20%
• EPS Growth: -25.68%
• Country: UK
• Employees: 76
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.22
• Shares Outstanding: 279,402,860
• 10 Day Avg. Volume: 917,121
• 30 Day Avg. Volume: 474,796
• PEG Ratio: -0.11
• Price to Book (P/B): 0.64
• Price to Sales (P/S): 3.05
• P/FCF Ratio: 5.42
• Enterprise Value/Market Cap: 0.32
• Enterprise Value/Revenue: 0.92
• Enterprise Value/Gross Profit: -2.83
• Enterprise Value/Ebitda: -8.09
• 1Y Price Target: $79.68
• Price Target Upside: 3.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 60 Neutral
• Price Target: 69.00p ▼(-10.04% Downside)

The overall stock score reflects a mixed outlook. The company's strong cash flow and manageable debt levels are positive, but profitability challenges and a negative P/E ratio weigh heavily. Technical indicators suggest some positive momentum, but valuation concerns remain significant.

Genel Energy Business Overview & Revenue Model

Company Description

Genel Energy plc, through its subsidiaries, operates as an independent oil and gas exploration and production company. It operates through two segments, Production and Pre-production. The Production segment holds a 25% working interest in the Tawke PSC; 44% working interest in the Taq Taq PSC; and 30% working interest in the Sarta PSC located in the Kurdistan Region of Iraq (KRI). The Pre-Production segment holds a 40% working interest Qara Dagh PSC located in KRI; 50% working interest in Odewayne and 51% working interest in SL10B13 located in Somaliland; and 75% working interest in Lagzira in Morocco. As of December 31, 2021, the company had 63 millions of barrels (MMbbls) of proven net working interest reserves, and 104 MMbbls of proven plus probable net working interest reserves. Genel Energy plc is headquartered in London, the United Kingdom.

How the Company Makes Money

Genel Energy generates revenue primarily through the sale of crude oil produced from its fields in the Kurdistan Region of Iraq. The company's revenue model is largely dependent on the price of oil in the global markets, as well as the volume of oil it successfully extracts and sells. Key revenue streams include direct sales of crude oil to customers, which may involve contracts with international oil companies and refiners. Additionally, Genel benefits from strategic partnerships and joint ventures that enhance its operational capabilities and market access. Factors contributing to its earnings include the stability of the Kurdistan region, operational efficiencies in extraction and production processes, and favorable pricing agreements with buyers.

Genel Energy Financial Statement Overview

Summary

Genel Energy faces challenges in revenue and profitability, with negative EBIT and net income, and a declining gross profit margin. However, it maintains a stable equity position, decreasing debt levels, and improved cash flow, indicating better cash management.

Income Statement

The company has struggled with profitability, as evidenced by negative EBIT and net income in recent years. Gross profit margin has declined significantly, and revenue dropped sharply from 2022 to 2024. However, there was a slight recovery in EBITDA margin from 2023 to 2024.

Balance Sheet

The balance sheet shows a stable equity position with a decreasing total debt level, contributing to a manageable debt-to-equity ratio. However, a reduction in stockholders' equity over the years raises concerns about financial resilience.

Cash Flow

Despite operational challenges, the company has consistently generated positive operating cash flow. The free cash flow improved significantly in 2024 compared to a negative figure in 2023, indicating better cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	72.90M	74.70M	84.80M	432.70M	334.90M	159.70M
Gross Profit	-23.70M	5.00M	29.80M	232.50M	116.30M	-26.30M
EBITDA	-8.30M	8.30M	43.20M	300.00M	-106.20M	-212.10M
Net Income	-54.40M	-76.90M	-61.30M	-7.30M	-308.00M	-416.90M
Balance Sheet
Total Assets	566.10M	598.90M	795.10M	943.50M	1.02B	1.55B
Cash, Cash Equivalents and Short-Term Investments	225.00M	195.00M	363.40M	494.60M	313.70M	354.50M
Total Debt	90.60M	65.80M	244.20M	269.50M	278.10M	358.10M
Total Liabilities	205.20M	241.60M	361.20M	415.70M	435.30M	620.80M
Stockholders Equity	360.90M	357.30M	433.90M	527.80M	581.10M	929.80M
Cash Flow
Free Cash Flow	29.00M	42.10M	-43.40M	264.20M	115.50M	19.70M
Operating Cash Flow	49.70M	66.90M	55.10M	412.40M	228.10M	129.40M
Investing Cash Flow	-19.90M	-24.80M	-98.50M	-148.20M	-112.60M	-106.70M
Financing Cash Flow	-175.20M	-209.90M	-87.80M	-83.30M	-156.30M	-58.90M

Genel Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 76.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:GENL, the sentiment is Positive. The current price of 76.7 is above the 20-day moving average (MA) of 67.92, above the 50-day MA of 64.04, and above the 200-day MA of 61.40, indicating a bullish trend. The MACD of 2.89 indicates Negative momentum. The RSI at 66.34 is Neutral, neither overbought nor oversold. The STOCH value of 63.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:GENL.

Genel Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GENL	60 Neutral	$211.18M	―	-11.54%	―	-0.20%	-25.68%
CNE	52 Neutral	£146.00M	-8.86	3.03%	―	-32.66%	72.67%
TLW	50 Neutral	£161.11M	-1.03	-20.02%	―	-32.47%	-1490.91%
KIST	47 Neutral	£137.97M	-3.79	-141.46%	―	-16.87%	21.18%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

Genel Energy Corporate Events

Genel Energy Reports Strong Production Amidst Regional Challenges

Genel Energy reported robust production from the Tawke PSC, bolstered by consistent domestic market demand and cost reductions, leading to significant free cash flow. Despite recent drone attacks affecting operations in the Kurdistan Region of Iraq, the company maintains a strong cash position and is working on resuming optimal production. The company is also advancing its exploration activities in Oman and is optimistic about future potential, while ongoing discussions about resuming Kurdistan oil exports could further enhance revenue.

The most recent analyst rating on (GB:GENL) stock is a Buy with a £0.95 price target. To see the full list of analyst forecasts on Genel Energy stock, see the GB:GENL Stock Forecast page.