ADVANTAGE ENERGY LTD (AAV.CA) Stock Fundamental Analysis
Canada • Toronto Stock Exchange • TSX:AAV • CA00791P1071
11.01 CAD
-0.11 (-0.99%)
Last: Jan 30, 2026, 07:00 PM
Overall AAV gets a fundamental rating of 4 out of 10. We evaluated AAV against 206 industry peers in the Oil, Gas & Consumable Fuels industry. There are concerns on the financial health of AAV while its profitability can be described as average. AAV has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- AAV had positive earnings in the past year.
- In the past year AAV had a positive cash flow from operations.
- AAV had positive earnings in 4 of the past 5 years.
- In the past 5 years AAV always reported a positive cash flow from operatings.
1.2 Ratios
- AAV has a Return On Assets (2.00%) which is in line with its industry peers.
- AAV's Return On Equity of 3.60% is in line compared to the rest of the industry. AAV outperforms 57.28% of its industry peers.
- AAV has a Return On Invested Capital (2.04%) which is comparable to the rest of the industry.
- Measured over the past 3 years, the Average Return On Invested Capital for AAV is in line with the industry average of 6.62%.
- The 3 year average ROIC (7.48%) for AAV is well above the current ROIC(2.04%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2% | ||
| ROE | 3.6% | ||
| ROIC | 2.04% |
ROA(3y)6.81%
ROA(5y)4.51%
ROE(3y)9.84%
ROE(5y)6.09%
ROIC(3y)7.48%
ROIC(5y)6.12%
1.3 Margins
- Looking at the Profit Margin, with a value of 9.69%, AAV is in the better half of the industry, outperforming 73.79% of the companies in the same industry.
- In the last couple of years the Profit Margin of AAV has declined.
- AAV has a better Operating Margin (14.01%) than 62.14% of its industry peers.
- AAV's Operating Margin has declined in the last couple of years.
- The Gross Margin of AAV (75.99%) is better than 93.20% of its industry peers.
- AAV's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.01% | ||
| PM (TTM) | 9.69% | ||
| GM | 75.99% |
OM growth 3Y-49.16%
OM growth 5Y-4.25%
PM growth 3Y-63.34%
PM growth 5YN/A
GM growth 3Y-6.26%
GM growth 5Y-2.88%
2. Health
2.1 Basic Checks
- AAV has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- AAV has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for AAV has been reduced compared to 5 years ago.
- AAV has a worse debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 0.80, we must say that AAV is in the distress zone and has some risk of bankruptcy.
- AAV's Altman-Z score of 0.80 is in line compared to the rest of the industry. AAV outperforms 53.88% of its industry peers.
- AAV has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.
- AAV has a Debt to Equity ratio (0.49) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.8 |
ROIC/WACC0.26
WACC7.8%
2.3 Liquidity
- A Current Ratio of 0.40 indicates that AAV may have some problems paying its short term obligations.
- With a Current ratio value of 0.40, AAV is not doing good in the industry: 75.24% of the companies in the same industry are doing better.
- A Quick Ratio of 0.40 indicates that AAV may have some problems paying its short term obligations.
- AAV has a Quick ratio of 0.40. This is in the lower half of the industry: AAV underperforms 72.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.4 | ||
| Quick Ratio | 0.4 |
3. Growth
3.1 Past
- AAV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.68%, which is quite good.
- Measured over the past years, AAV shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -60.25% on average per year.
- Looking at the last year, AAV shows a very strong growth in Revenue. The Revenue has grown by 27.84%.
- Measured over the past years, AAV shows a quite strong growth in Revenue. The Revenue has been growing by 15.00% on average per year.
EPS 1Y (TTM)9.68%
EPS 3Y-60.25%
EPS 5YN/A
EPS Q2Q%100%
Revenue 1Y (TTM)27.84%
Revenue growth 3Y2.32%
Revenue growth 5Y15%
Sales Q2Q%-0.84%
3.2 Future
- AAV is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 109.06% yearly.
- AAV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.28% yearly.
EPS Next Y267.1%
EPS Next 2Y200.64%
EPS Next 3Y124.43%
EPS Next 5Y109.06%
Revenue Next Year22.11%
Revenue Next 2Y29.54%
Revenue Next 3Y20.88%
Revenue Next 5Y6.28%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 32.38, the valuation of AAV can be described as expensive.
- AAV's Price/Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 28.32, AAV is valued at the same level.
- Based on the Price/Forward Earnings ratio of 9.37, the valuation of AAV can be described as reasonable.
- Based on the Price/Forward Earnings ratio, AAV is valued a bit cheaper than 73.79% of the companies in the same industry.
- AAV is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.38 | ||
| Fwd PE | 9.37 |
4.2 Price Multiples
- 72.82% of the companies in the same industry are more expensive than AAV, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.81 |
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.
- AAV's earnings are expected to grow with 124.43% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.12
PEG (5Y)N/A
EPS Next 2Y200.64%
EPS Next 3Y124.43%
5. Dividend
5.1 Amount
- No dividends for AAV!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
ADVANTAGE ENERGY LTD / AAV.CA FAQ
What is the ChartMill fundamental rating of ADVANTAGE ENERGY LTD (AAV.CA) stock?
ChartMill assigns a fundamental rating of 4 / 10 to AAV.CA.
What is the valuation status for AAV stock?
ChartMill assigns a valuation rating of 5 / 10 to ADVANTAGE ENERGY LTD (AAV.CA). This can be considered as Fairly Valued.
What is the profitability of AAV stock?
ADVANTAGE ENERGY LTD (AAV.CA) has a profitability rating of 5 / 10.
Can you provide the PE and PB ratios for AAV stock?
The Price/Earnings (PE) ratio for ADVANTAGE ENERGY LTD (AAV.CA) is 32.38 and the Price/Book (PB) ratio is 1.09.