Gibson Energy (GEI) AI Stock Analysis

• Market Cap: C$4.01B
• Dividend Yield: 7.01%
• Average Volume (3M): 487.74K
• Price to Earnings (P/E): 24.9
• Beta (1Y): 0.77
• Revenue Growth: -5.85%
• EPS Growth: -8.05%
• Country: CA
• Employees: 460
• Sector: Energy
• Sector Strength: 54
• Industry: Oil & Gas Midstream
• EPS (TTM): 0.30
• Shares Outstanding: 163,706,650
• 10 Day Avg. Volume: 595,554
• 30 Day Avg. Volume: 487,738
• PEG Ratio: 0.28
• Price to Book (P/B): 6.03
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.55
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$25.28
• Price Target Upside: 3.12% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 73 Outperform
• Price Target: C$25.00 ▲(1.96%Upside)

Gibson Energy exhibits a sound operational and financial foundation with strong infrastructure performance and strategic growth initiatives. However, high leverage, valuation concerns, and marketing segment challenges temper the outlook. The high dividend yield provides support, but caution is advised given potential bearish technical signals.

Positive Factors

Dividends

The company's quarterly dividend was raised by about 5% to $0.43 per share, which is higher than expected and implies an attractive yield of approximately 7.3%.

Earnings

Solid infrastructure volumes and successful completion of key projects contributed to better-than-expected Q1 results.

Growth Potential

The Gateway terminal's EBITDA is expected to increase by 15-20% by the end of 2025, supporting a positive outlook for future growth.

Negative Factors

Financial Performance

The Q4/24 EBITDA results fell short of expectations, with a significant miss driven by atypical losses in the Marketing segment.

Leadership Changes

The departure of Senior VP & CFO Sean Brown is seen as a meaningful loss, impacting market confidence.

Valuation

The company appears more fully valued, suggesting a more balanced risk/reward profile.

Gibson Energy Business Overview & Revenue Model

Company Description

Gibson Energy Inc., a liquids infrastructure company, engages in the gathering, storage, optimization, processing, and marketing of liquids and refined products in North America. It operates through two segments, Infrastructure and Marketing. The Infrastructure segment operates a network of infrastructure assets that include oil terminals, rail loading and unloading facilities, gathering pipelines, and a crude oil processing facility. The Marketing segment purchases, sells, stores, and optimizes hydrocarbon products, including crude oil, natural gas liquids, road asphalt, roofing flux, frac oils, light and heavy straight run distillates, vacuum gas oil, and an oil-based mud product. The company was formerly known as Gibson Energy Holdings ULC and changed its name to Gibson Energy Inc. in April 2011. Gibson Energy Inc. was founded in 1950 and is headquartered in Calgary, Canada.

How the Company Makes Money

Gibson Energy makes money through a diverse revenue model centered around its infrastructure and logistics services. The company's key revenue streams include fees from storage and terminal services, where it charges customers for the use of its extensive tankage facilities. Additionally, transportation services generate revenue as Gibson Energy offers truck and pipeline transportation for crude oil and refined products. The marketing segment contributes to earnings by buying, selling, and blending crude oil and refined products, leveraging market conditions to optimize margins. Significant partnerships with oil producers and refiners, as well as long-term contracts, enhance revenue stability and growth. The company also benefits from strategic locations of its assets, which provide competitive advantages in serving key production and demand regions.

Gibson Energy Financial Statement Overview

Summary

Gibson Energy shows stable financial performance with strong cash flows and consistent profitability. While the income statement reflects operational stability, challenges include high leverage and inconsistent revenue growth.

Income Statement

Gibson Energy exhibits a stable income statement with a consistent EBIT margin of approximately 3%. The gross profit margin is around 3.66% in the TTM period, showing stability over the years. The net profit margin is modest at about 1.44% for TTM, slightly improved from the previous year. Revenue growth has been inconsistent, with a decline of 4.59% in TTM compared to the previous year. Overall, the income statement reflects operational stability with moderate profitability.

Balance Sheet

The balance sheet of Gibson Energy shows a debt-to-equity ratio of around 2.80, indicating a high leverage position. The equity ratio stands at 20.41% for TTM, suggesting moderate equity relative to total assets. The return on equity is modest at 16.99% for TTM, reflecting a reasonable return on shareholder investments. Despite the high leverage, the company maintains a stable equity position.

Cash Flow

The cash flow statement demonstrates strong operational cash generation with an operating cash flow to net income ratio of 3.20 for TTM, indicating effective cash conversion. The free cash flow to net income ratio is 2.18, showing robust free cash flow generation. However, the free cash flow has declined by 16.88% compared to the previous year, reflecting potential pressure on cash reserves.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
11.24B	11.78B	11.01B	11.04B	7.21B	4.94B
	Gross Profit
411.58M	423.64M	483.33M	394.44M	304.41M	306.14M
	EBIT
335.86M	344.27M	401.61M	355.07M	242.58M	247.10M
	EBITDA
534.23M	531.78M	535.79M	479.15M	416.44M	378.56M
	Net Income Common Stockholders
161.64M	152.17M	214.21M	223.25M	145.05M	121.31M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
46.09M	57.07M	143.76M	83.60M	62.69M	53.68M
	Total Assets
4.66B	4.97B	4.95B	3.19B	3.43B	3.07B
	Total Debt
2.67B	2.65B	2.77B	1.72B	1.74B	1.55B
	Net Debt
2.62B	2.59B	2.63B	1.63B	1.68B	1.50B
	Total Liabilities
3.71B	4.00B	4.03B	2.62B	2.79B	2.39B
	Stockholders Equity
951.68M	972.07M	912.47M	573.02M	644.13M	679.65M
Cash Flow		Free Cash Flow
351.78M	423.21M	444.44M	457.93M	99.13M	244.45M
	Operating Cash Flow
517.04M	598.45M	574.86M	598.31M	216.81M	459.55M
	Investing Cash Flow
-139.59M	-142.28M	-1.60B	-134.40M	-127.06M	-303.95M
	Financing Cash Flow
-440.53M	-405.10M	1.07B	-445.51M	-82.95M	-149.40M

Gibson Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.52
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:GEI, the sentiment is Positive. The current price of 24.52 is above the 20-day moving average (MA) of 23.05, above the 50-day MA of 22.20, and above the 200-day MA of 22.50, indicating a bullish trend. The MACD of 0.48 indicates Negative momentum. The RSI at 78.40 is Negative, neither overbought nor oversold. The STOCH value of 93.91 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:GEI.

Gibson Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KEY	81 Outperform	C$9.62B	17.63	19.55%	4.95%	8.00%	52.89%
PPL	74 Outperform	$29.81B	16.73	11.55%	5.04%	-5.42%	-1.70%
GEI	73 Outperform	C$4.01B	24.93	17.23%	7.01%	-5.85%	-8.05%
PKI	70 Outperform	C$6.65B	33.91	6.21%	3.77%	-9.79%	-49.13%
TPZ	68 Neutral	C$4.04B	74.35	4.22%	5.18%	2.02%	12.06%
Sector *	58 Neutral	$7.43B	3.43	-4.49%	10.08%	0.81%	-49.42%
TWM	42 Neutral	C$79.77M	―	-16.97%	―	-25.69%	87.47%

Gibson Energy Corporate Events

Gibson Energy Reports Strong Board Election Results

Gibson Energy announced the voting results for its board of directors at the annual and special meeting of shareholders, with all nominees receiving strong support. The election results reflect confidence in the company’s leadership and strategic direction, potentially reinforcing its market position and stakeholder trust.

Gibson Energy Achieves Record Infrastructure EBITDA in Q1 2025

Gibson Energy reported strong first-quarter results for 2025, driven by record infrastructure EBITDA and high volumes at its Gateway and Edmonton terminals. Despite a decrease in overall revenue due to reduced sales volumes and lower commodity prices, the company achieved a net income increase of 23% from the previous year. Strategic developments included a new long-term partnership with Baytex Energy and key leadership appointments, positioning Gibson for continued growth and operational efficiency.

Gibson Energy Declares Quarterly Dividend

Gibson Energy has announced a quarterly dividend of $0.43 per common share, payable on July 17, 2025, to shareholders of record as of June 30, 2025. This move reflects the company’s ongoing commitment to returning value to its shareholders and may enhance its attractiveness to investors, while also being subject to Canadian withholding tax for non-resident shareholders.

Gibson Energy Schedules Q1 2025 Earnings Release and Annual Meeting

Gibson Energy Inc. has announced the release of its 2025 first quarter financial and operating results scheduled for May 5, 2025, after market close, with a subsequent conference call and webcast on May 6, 2025. The company will also conduct its Annual General Meeting on May 6, 2025, in a hybrid format, enhancing accessibility and engagement for shareholders, which may positively impact stakeholder participation and company transparency.