ATHABASCA OIL CORP (ATH.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ATH - CA04682R1073 - Common Stock
7.56 CAD
+0.1 (+1.34%)
ATH gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 206 industry peers in the Oil, Gas & Consumable Fuels industry. ATH scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ATH has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year ATH was profitable.
- In the past year ATH had a positive cash flow from operations.
- In multiple years ATH reported negative net income over the last 5 years.
- ATH had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- ATH has a Return On Assets of 18.28%. This is amongst the best in the industry. ATH outperforms 97.20% of its industry peers.
- ATH has a better Return On Equity (26.00%) than 97.66% of its industry peers.
- With an excellent Return On Invested Capital value of 13.84%, ATH belongs to the best of the industry, outperforming 96.26% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for ATH is above the industry average of 6.62%.
- The last Return On Invested Capital (13.84%) for ATH is above the 3 year average (10.38%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.28% | ||
| ROE | 26% | ||
| ROIC | 13.84% |
ROA(3y)14.02%
ROA(5y)4.44%
ROE(3y)19%
ROE(5y)-2.87%
ROIC(3y)10.38%
ROIC(5y)N/A
1.3 Margins
- ATH's Profit Margin of 33.84% is amongst the best of the industry. ATH outperforms 95.79% of its industry peers.
- In the last couple of years the Profit Margin of ATH has grown nicely.
- ATH's Operating Margin of 30.10% is amongst the best of the industry. ATH outperforms 84.58% of its industry peers.
- In the last couple of years the Operating Margin of ATH has grown nicely.
- ATH's Gross Margin of 62.58% is amongst the best of the industry. ATH outperforms 80.37% of its industry peers.
- ATH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.1% | ||
| PM (TTM) | 33.84% | ||
| GM | 62.58% |
OM growth 3Y38.33%
OM growth 5Y30.41%
PM growth 3Y-14.63%
PM growth 5Y1.59%
GM growth 3Y1.13%
GM growth 5Y-0.42%
2. Health
2.1 Basic Checks
- ATH has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- The number of shares outstanding for ATH has been reduced compared to 1 year ago.
- The number of shares outstanding for ATH has been reduced compared to 5 years ago.
- Compared to 1 year ago, ATH has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 4.05 indicates that ATH is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 4.05, ATH belongs to the top of the industry, outperforming 81.78% of the companies in the same industry.
- The Debt to FCF ratio of ATH is 0.92, which is an excellent value as it means it would take ATH, only 0.92 years of fcf income to pay off all of its debts.
- ATH has a better Debt to FCF ratio (0.92) than 92.06% of its industry peers.
- A Debt/Equity ratio of 0.11 indicates that ATH is not too dependend on debt financing.
- With a decent Debt to Equity ratio value of 0.11, ATH is doing good in the industry, outperforming 70.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 0.92 | ||
| Altman-Z | 4.05 |
ROIC/WACC1.71
WACC8.1%
2.3 Liquidity
- ATH has a Current Ratio of 2.02. This indicates that ATH is financially healthy and has no problem in meeting its short term obligations.
- ATH has a Current ratio of 2.02. This is in the better half of the industry: ATH outperforms 79.44% of its industry peers.
- A Quick Ratio of 1.84 indicates that ATH should not have too much problems paying its short term obligations.
- The Quick ratio of ATH (1.84) is better than 80.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.02 | ||
| Quick Ratio | 1.84 |
3. Growth
3.1 Past
- ATH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 117.07%, which is quite impressive.
- The Earnings Per Share has been growing by 84.71% on average over the past years. This is a very strong growth
- ATH shows a small growth in Revenue. In the last year, the Revenue has grown by 3.40%.
- The Revenue has been growing by 11.85% on average over the past years. This is quite good.
EPS 1Y (TTM)117.07%
EPS 3Y0.21%
EPS 5Y84.71%
EPS Q2Q%16.67%
Revenue 1Y (TTM)3.4%
Revenue growth 3Y18%
Revenue growth 5Y11.85%
Sales Q2Q%-9.68%
3.2 Future
- Based on estimates for the next years, ATH will show a small growth in Earnings Per Share. The EPS will grow by 6.83% on average per year.
- Based on estimates for the next years, ATH will show a very negative growth in Revenue. The Revenue will decrease by -29.22% on average per year.
EPS Next Y-37.17%
EPS Next 2Y-34.08%
EPS Next 3Y-9.55%
EPS Next 5Y6.83%
Revenue Next Year-4.05%
Revenue Next 2Y-3.43%
Revenue Next 3Y-29.22%
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- 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 8.49 indicates a reasonable valuation of ATH.
- Compared to the rest of the industry, the Price/Earnings ratio of ATH indicates a rather cheap valuation: ATH is cheaper than 81.31% of the companies listed in the same industry.
- ATH's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
- With a Price/Forward Earnings ratio of 20.23, ATH is valued on the expensive side.
- Based on the Price/Forward Earnings ratio, ATH is valued a bit cheaper than 60.28% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, ATH is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.49 | ||
| Fwd PE | 20.23 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ATH is valued cheaper than 83.18% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, ATH is valued a bit cheaper than 67.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.07 | ||
| EV/EBITDA | 6.59 |
4.3 Compensation for Growth
- The excellent profitability rating of ATH may justify a higher PE ratio.
- ATH's earnings are expected to decrease with -9.55% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.1
EPS Next 2Y-34.08%
EPS Next 3Y-9.55%
5. Dividend
5.1 Amount
- ATH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
ATHABASCA OIL CORP / ATH.CA FAQ
What is the ChartMill fundamental rating of ATHABASCA OIL CORP (ATH.CA) stock?
ChartMill assigns a fundamental rating of 7 / 10 to ATH.CA.
What is the valuation status for ATH stock?
ChartMill assigns a valuation rating of 6 / 10 to ATHABASCA OIL CORP (ATH.CA). This can be considered as Fairly Valued.
How profitable is ATHABASCA OIL CORP (ATH.CA) stock?
ATHABASCA OIL CORP (ATH.CA) has a profitability rating of 8 / 10.
What is the valuation of ATHABASCA OIL CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ATHABASCA OIL CORP (ATH.CA) is 8.49 and the Price/Book (PB) ratio is 2.06.