ADVANTAGE ENERGY LTD (AAV.CA) Stock Fundamental Analysis
TSX:AAV - Toronto Stock Exchange - CA00791P1071 - Common Stock - Currency: CAD
Taking everything into account, AAV scores 4 out of 10 in our fundamental rating. AAV was compared to 221 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year AAV was profitable.
AAV had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: AAV reported negative net income in multiple years.
In the past 5 years AAV always reported a positive cash flow from operatings.
1.2 Ratios
AAV has a Return On Assets of 1.60%. This is comparable to the rest of the industry: AAV outperforms 52.49% of its industry peers.
AAV has a Return On Equity (2.82%) which is comparable to the rest of the industry.
AAV has a Return On Invested Capital (1.08%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for AAV is above the industry average of 7.70%.
The last Return On Invested Capital (1.08%) for AAV is well below the 3 year average (10.90%), which needs to be investigated, but indicates that AAV had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.6% | ||
| ROE | 2.82% | ||
| ROIC | 1.08% |
ROA(3y)13.44%
ROA(5y)4.09%
ROE(3y)18.81%
ROE(5y)5.45%
ROIC(3y)10.9%
ROIC(5y)6.8%
1.3 Margins
The Profit Margin of AAV (9.33%) is better than 62.44% of its industry peers.
In the last couple of years the Profit Margin of AAV has grown nicely.
With a Operating Margin value of 8.05%, AAV perfoms like the industry average, outperforming 52.04% of the companies in the same industry.
AAV's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 76.46%, AAV belongs to the top of the industry, outperforming 90.05% of the companies in the same industry.
AAV's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.05% | ||
| PM (TTM) | 9.33% | ||
| GM | 76.46% |
OM growth 3Y85.44%
OM growth 5Y49.24%
PM growth 3YN/A
PM growth 5Y32.21%
GM growth 3Y-0.12%
GM growth 5Y-0.79%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so AAV is still creating some value.
The number of shares outstanding for AAV has been reduced compared to 1 year ago.
Compared to 5 years ago, AAV has less shares outstanding
The debt/assets ratio for AAV is higher compared to a year ago.
2.2 Solvency
AAV has an Altman-Z score of 0.67. This is a bad value and indicates that AAV is not financially healthy and even has some risk of bankruptcy.
AAV's Altman-Z score of 0.67 is in line compared to the rest of the industry. AAV outperforms 54.30% of its industry peers.
AAV has a debt to FCF ratio of 40.55. This is a negative value and a sign of low solvency as AAV would need 40.55 years to pay back of all of its debts.
AAV's Debt to FCF ratio of 40.55 is in line compared to the rest of the industry. AAV outperforms 58.82% of its industry peers.
AAV has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.47, AAV is in line with its industry, outperforming 46.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 40.55 | ||
| Altman-Z | 0.67 |
ROIC/WACC0.14
WACC7.66%
2.3 Liquidity
AAV has a Current Ratio of 0.75. This is a bad value and indicates that AAV is not financially healthy enough and could expect problems in meeting its short term obligations.
AAV has a Current ratio (0.75) which is in line with its industry peers.
AAV has a Quick Ratio of 0.75. This is a bad value and indicates that AAV is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.75, AAV perfoms like the industry average, outperforming 56.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
The earnings per share for AAV have decreased strongly by -68.04% in the last year.
The Earnings Per Share has been growing by 66.51% on average over the past years. This is a very strong growth
AAV shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -14.12%.
Measured over the past years, AAV shows a quite strong growth in Revenue. The Revenue has been growing by 17.78% on average per year.
EPS 1Y (TTM)-68.04%
EPS 3Y15.07%
EPS 5Y66.51%
EPS Q2Q%-125%
Revenue 1Y (TTM)-14.12%
Revenue growth 3Y29.49%
Revenue growth 5Y17.78%
Sales Q2Q%-9.2%
3.2 Future
Based on estimates for the next years, AAV will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.64% on average per year.
The Revenue is expected to grow by 5.89% on average over the next years.
EPS Next Y-73.17%
EPS Next 2Y32.55%
EPS Next 3Y40.74%
EPS Next 5Y9.64%
Revenue Next Year4.32%
Revenue Next 2Y26.64%
Revenue Next 3Y19.9%
Revenue Next 5Y5.89%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 30.10 indicates a quite expensive valuation of AAV.
AAV's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 29.35, AAV is valued at the same level.
Based on the Price/Forward Earnings ratio of 8.30, the valuation of AAV can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AAV indicates a somewhat cheap valuation: AAV is cheaper than 63.80% of the companies listed in the same industry.
AAV is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.1 | ||
| Fwd PE | 8.3 |
4.2 Price Multiples
AAV's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as AAV.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 82.7 | ||
| EV/EBITDA | 9.71 |
4.3 Compensation for Growth
AAV has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as AAV's earnings are expected to grow with 40.74% in the coming years.
PEG (NY)N/A
PEG (5Y)0.45
EPS Next 2Y32.55%
EPS Next 3Y40.74%
5. Dividend
5.1 Amount
AAV does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:AAV (3/7/2025, 7:00:00 PM)
9.33
+0.36 (+4.01%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners38.61%
Inst Owner ChangeN/A
Ins Owners3.36%
Ins Owner ChangeN/A
Market Cap1.56B
Analysts77.14
Price Target14.23 (52.52%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.08
Dividend Growth(5Y)-43.68%
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-830.2%
Min EPS beat(2)-1486.14%
Max EPS beat(2)-174.26%
EPS beat(4)2
Avg EPS beat(4)-398.05%
Min EPS beat(4)-1486.14%
Max EPS beat(4)42.17%
EPS beat(8)3
Avg EPS beat(8)-206.71%
EPS beat(12)5
Avg EPS beat(12)-55.49%
EPS beat(16)7
Avg EPS beat(16)33.11%
Revenue beat(2)0
Avg Revenue beat(2)-12.37%
Min Revenue beat(2)-19.71%
Max Revenue beat(2)-5.03%
Revenue beat(4)0
Avg Revenue beat(4)-9.03%
Min Revenue beat(4)-19.71%
Max Revenue beat(4)-2.64%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0.36%
PT rev (3m)5.68%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-16.07%
EPS NY rev (1m)0%
EPS NY rev (3m)-26.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.75%
Revenue NY rev (1m)-0.81%
Revenue NY rev (3m)-0.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.1 | ||
| Fwd PE | 8.3 | ||
| P/S | 3.18 | ||
| P/FCF | 82.7 | ||
| P/OCF | 6.19 | ||
| P/B | 0.96 | ||
| P/tB | 0.96 | ||
| EV/EBITDA | 9.71 |
EPS(TTM)0.31
EY3.32%
EPS(NY)1.12
Fwd EY12.05%
FCF(TTM)0.11
FCFY1.21%
OCF(TTM)1.51
OCFY16.15%
SpS2.93
BVpS9.71
TBVpS9.68
PEG (NY)N/A
PEG (5Y)0.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.6% | ||
| ROE | 2.82% | ||
| ROCE | 1.48% | ||
| ROIC | 1.08% | ||
| ROICexc | 1.08% | ||
| ROICexgc | 1.08% | ||
| OM | 8.05% | ||
| PM (TTM) | 9.33% | ||
| GM | 76.46% | ||
| FCFM | 3.85% |
ROA(3y)13.44%
ROA(5y)4.09%
ROE(3y)18.81%
ROE(5y)5.45%
ROIC(3y)10.9%
ROIC(5y)6.8%
ROICexc(3y)11.1%
ROICexc(5y)6.93%
ROICexgc(3y)11.12%
ROICexgc(5y)6.94%
ROCE(3y)14.52%
ROCE(5y)9.07%
ROICexcg growth 3Y110.8%
ROICexcg growth 5Y67.78%
ROICexc growth 3Y110.63%
ROICexc growth 5Y67.7%
OM growth 3Y85.44%
OM growth 5Y49.24%
PM growth 3YN/A
PM growth 5Y32.21%
GM growth 3Y-0.12%
GM growth 5Y-0.79%
F-Score3
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 40.55 | ||
| Debt/EBITDA | 3.3 | ||
| Cap/Depr | 122.38% | ||
| Cap/Sales | 47.54% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 109.58% | ||
| Profit Quality | 41.23% | ||
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z | 0.67 |
F-Score3
WACC7.66%
ROIC/WACC0.14
Cap/Depr(3y)166.52%
Cap/Depr(5y)157.57%
Cap/Sales(3y)37.79%
Cap/Sales(5y)50.23%
Profit Quality(3y)45.86%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-68.04%
EPS 3Y15.07%
EPS 5Y66.51%
EPS Q2Q%-125%
EPS Next Y-73.17%
EPS Next 2Y32.55%
EPS Next 3Y40.74%
EPS Next 5Y9.64%
Revenue 1Y (TTM)-14.12%
Revenue growth 3Y29.49%
Revenue growth 5Y17.78%
Sales Q2Q%-9.2%
Revenue Next Year4.32%
Revenue Next 2Y26.64%
Revenue Next 3Y19.9%
Revenue Next 5Y5.89%
EBIT growth 1Y-83.2%
EBIT growth 3Y140.13%
EBIT growth 5Y75.77%
EBIT Next Year114.77%
EBIT Next 3Y64.59%
EBIT Next 5Y23.83%
FCF growth 1Y-91.12%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-45.06%
OCF growth 3Y47.53%
OCF growth 5Y16.73%