Gibson Energy (GEI) AI Stock Analysis

• Market Cap: C$3.93B
• Dividend Yield: 7.19%
• Average Volume (3M): 745.79K
• Price to Earnings (P/E): 24.7
• Beta (1Y): 0.71
• Revenue Growth: -14.27%
• EPS Growth: -11.69%
• Country: CA
• Employees: 460
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Midstream
• EPS (TTM): 0.37
• Shares Outstanding: 163,831,440
• 10 Day Avg. Volume: 587,353
• 30 Day Avg. Volume: 745,792
• PEG Ratio: -0.76
• Price to Book (P/B): 4.09
• Price to Sales (P/S): 0.34
• P/FCF Ratio: 9.40
• 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$26.75
• Price Target Upside: 13.13% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 58 Neutral
• Price Target: C$26.00 ▲(9.94% Upside)

Gibson Energy's overall stock score reflects a mixed financial performance with strong cash flow management but high leverage. Technical indicators suggest bearish momentum, while valuation metrics indicate potential overvaluation despite an attractive dividend yield. The earnings call provided positive insights into project execution and safety, but highlighted challenges in marketing performance and financial leverage.

Positive Factors

Cash Flow Management

Strong cash flow management supports Gibson Energy's ability to meet financial obligations and invest in growth opportunities, enhancing long-term stability.

Project Execution

Successful project execution enhances operational capacity and market position, supporting long-term growth and competitive advantage.

Safety Performance

Strong safety performance reflects operational excellence and risk management, which are crucial for sustaining long-term business operations.

Negative Factors

High Leverage

High leverage can strain financial flexibility, increasing risk and potentially impacting the company's ability to invest in future growth.

Revenue Decline

A decline in revenue growth can hinder the company's ability to expand and compete, affecting long-term profitability and market position.

Muted Marketing Performance

Muted marketing performance limits revenue potential and could affect the company's ability to capitalize on market opportunities, impacting future growth.

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 generates revenue through several key streams, primarily from its midstream services in the oil and gas industry. The company earns money by charging fees for transporting crude oil via its extensive pipeline network and for the storage of crude oil and refined products at its terminals. Additionally, Gibson provides processing services and operational support for energy producers, enhancing its revenue through service contracts. The company also benefits from long-term partnerships and contracts with major oil and gas companies, securing a stable income flow. Strategic investments in infrastructure and operational efficiency further contribute to its profitability.

Gibson Energy Financial Statement Overview

Summary

Gibson Energy shows strong cash flow management and stable profitability margins, despite a decline in revenue growth. However, the high debt-to-equity ratio indicates potential financial risk due to leverage. The company should focus on improving revenue growth and reducing leverage to enhance financial health and stability.

Income Statement

Gibson Energy's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) data indicates a decline in revenue growth rate by 4.21%, which is concerning. However, the company maintains stable profitability margins with a gross profit margin of 3.79% and a net profit margin of 1.48%. The EBIT and EBITDA margins are also stable at 3.26% and 4.98%, respectively, indicating operational efficiency. Despite the revenue decline, the company has managed to sustain its profitability, which is a positive sign.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio of 3.23, suggesting significant leverage, which could pose a risk if not managed properly. The return on equity (ROE) is 17.17%, indicating decent profitability relative to shareholder equity. However, the equity ratio is low, which may imply a higher reliance on debt financing. The company needs to focus on improving its equity base to enhance financial stability.

Cash Flow

Gibson Energy's cash flow statement shows a strong free cash flow growth rate of 33.89% in the TTM period, which is a positive indicator of cash generation capability. The operating cash flow to net income ratio is 0.69, and the free cash flow to net income ratio is 0.68, reflecting efficient cash conversion from earnings. The company demonstrates strong cash flow management, which supports its ability to meet financial obligations and invest in growth opportunities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.77B	11.78B	11.01B	11.04B	7.21B	4.94B
Gross Profit	407.62M	423.64M	483.33M	394.44M	298.33M	306.14M
EBITDA	505.77M	496.05M	494.33M	449.44M	381.24M	378.56M
Net Income	159.00M	152.17M	214.21M	223.25M	145.05M	121.31M
Balance Sheet
Total Assets	4.64B	4.97B	4.95B	3.19B	3.43B	3.07B
Cash, Cash Equivalents and Short-Term Investments	41.57M	57.07M	143.76M	83.60M	62.69M	53.68M
Total Debt	2.76B	2.65B	2.77B	1.72B	1.74B	1.55B
Total Liabilities	3.79B	4.00B	4.03B	2.62B	2.79B	2.39B
Stockholders Equity	854.44M	972.07M	912.47M	573.02M	644.13M	679.65M
Cash Flow
Free Cash Flow	336.71M	284.31M	376.89M	398.68M	44.38M	181.92M
Operating Cash Flow	559.02M	459.56M	507.31M	539.06M	162.06M	397.02M
Investing Cash Flow	-223.75M	-142.28M	-1.60B	-134.40M	-127.06M	-303.95M
Financing Cash Flow	-339.45M	-405.10M	1.14B	-386.26M	-28.20M	-86.86M

Gibson Energy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 23.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:GEI, the sentiment is Negative. The current price of 23.65 is below the 20-day moving average (MA) of 25.62, below the 50-day MA of 25.52, and above the 200-day MA of 23.14, indicating a neutral trend. The MACD of -0.40 indicates Positive momentum. The RSI at 28.47 is Positive, neither overbought nor oversold. The STOCH value of 4.77 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:GEI.

Gibson Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KEY	72 Outperform	C$9.81B	18.49	18.92%	4.92%	1.57%	55.82%
PPL	67 Neutral	$30.98B	17.95	10.69%	5.27%	-3.86%	-9.35%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
TPZ	65 Neutral	C$3.78B	58.96	5.17%	5.47%	1.92%	11.06%
PKI	60 Neutral	C$6.95B	23.27	9.44%	3.60%	-10.91%	-21.14%
GEI	58 Neutral	C$3.93B	24.66	17.22%	7.19%	-14.27%	-11.69%
TWM	50 Neutral	C$123.10M	―	-21.94%	―	-30.00%	84.31%

Gibson Energy Corporate Events

Gibson Energy Achieves Record Throughput Following Gateway Dredging Completion

Gibson Energy reported strong second-quarter results for 2025, highlighted by the completion of the Gateway dredging project, which significantly increased throughput and set new volume records. The company achieved an Infrastructure Adjusted EBITDA of $153 million, reflecting robust performance despite planned downtimes. Key achievements included major turnarounds at the Moose Jaw Facility and Hardisty Diluent Recovery Unit, executed on time and under budget. The company’s strategic focus on safety was underscored by surpassing 9.5 million hours without a lost-time injury. Financially, Gibson faced a slight decrease in net income and distributable cash flow compared to the previous year, attributed to lower marketing contributions and higher capital expenditures. However, the company expects improvements in the second half of the year as benefits from recent projects are realized.

The most recent analyst rating on (TSE:GEI) stock is a Buy with a C$28.00 price target. To see the full list of analyst forecasts on Gibson Energy stock, see the TSE:GEI Stock Forecast page.

Gibson Energy Announces Quarterly Dividend

Gibson Energy has announced a quarterly dividend of $0.43 per common share, payable on October 17, 2025, to shareholders of record as of September 30, 2025. This decision underscores Gibson’s commitment to returning value to its shareholders and may enhance its attractiveness as an investment, reflecting positively on its financial health and stability.

The most recent analyst rating on (TSE:GEI) stock is a Buy with a C$28.00 price target. To see the full list of analyst forecasts on Gibson Energy stock, see the TSE:GEI Stock Forecast page.

Gibson Energy to Release Q2 2025 Financial Results

Gibson Energy announced that it will release its 2025 second quarter financial and operating results on July 28, 2025, after North American markets close. A conference call and webcast to discuss the results will be held the following day, providing stakeholders with insights into the company’s performance and strategic direction.

The most recent analyst rating on (TSE:GEI) stock is a Buy with a C$28.00 price target. To see the full list of analyst forecasts on Gibson Energy stock, see the TSE:GEI Stock Forecast page.