BIRCHCLIFF ENERGY LTD (BIR.CA) Stock Fundamental Analysis
TSX:BIR - Toronto Stock Exchange - CA0906971035 - Common Stock - Currency: CAD
We assign a fundamental rating of 5 out of 10 to BIR. BIR was compared to 210 industry peers in the Oil, Gas & Consumable Fuels industry. While BIR is still in line with the averages on profitability rating, there are concerns on its financial health. BIR has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year BIR was profitable.
BIR had a positive operating cash flow in the past year.
BIR had positive earnings in 4 of the past 5 years.
In the past 5 years BIR always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of BIR (3.89%) is better than 75.24% of its industry peers.
BIR has a Return On Equity (6.07%) which is comparable to the rest of the industry.
BIR has a Return On Invested Capital of 0.85%. This is comparable to the rest of the industry: BIR outperforms 46.19% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BIR is in line with the industry average of 7.31%.
The last Return On Invested Capital (0.85%) for BIR is well below the 3 year average (5.95%), which needs to be investigated, but indicates that BIR had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.89% | ||
| ROE | 6.07% | ||
| ROIC | 0.85% |
ROA(3y)7.52%
ROA(5y)6.18%
ROE(3y)10.03%
ROE(5y)8.49%
ROIC(3y)5.95%
ROIC(5y)5.59%
1.3 Margins
With a decent Profit Margin value of 21.39%, BIR is doing good in the industry, outperforming 79.05% of the companies in the same industry.
BIR's Profit Margin has declined in the last couple of years.
BIR has a Operating Margin (6.58%) which is in line with its industry peers.
BIR's Operating Margin has declined in the last couple of years.
The Gross Margin of BIR (86.62%) is better than 96.67% of its industry peers.
In the last couple of years the Gross Margin of BIR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.58% | ||
| PM (TTM) | 21.39% | ||
| GM | 86.62% |
OM growth 3Y-63.51%
OM growth 5Y-36.69%
PM growth 3Y-35.89%
PM growth 5YN/A
GM growth 3Y-1.77%
GM growth 5Y-0.14%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BIR is destroying value.
Compared to 1 year ago, BIR has more shares outstanding
The number of shares outstanding for BIR has been increased compared to 5 years ago.
Compared to 1 year ago, BIR has a worse debt to assets ratio.
2.2 Solvency
BIR has an Altman-Z score of 1.49. This is a bad value and indicates that BIR is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.49, BIR is in the better half of the industry, outperforming 65.71% of the companies in the same industry.
BIR has a Debt/Equity ratio of 0.28. This is a healthy value indicating a solid balance between debt and equity.
BIR has a Debt to Equity ratio (0.28) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.49 |
ROIC/WACC0.13
WACC6.63%
2.3 Liquidity
A Current Ratio of 1.52 indicates that BIR should not have too much problems paying its short term obligations.
BIR has a better Current ratio (1.52) than 73.81% of its industry peers.
A Quick Ratio of 1.52 indicates that BIR should not have too much problems paying its short term obligations.
BIR has a Quick ratio of 1.52. This is in the better half of the industry: BIR outperforms 75.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.52 |
3. Growth
3.1 Past
BIR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 257.14%, which is quite impressive.
The earnings per share for BIR have been decreasing by -44.02% on average. This is quite bad
The Revenue has decreased by -4.51% in the past year.
Measured over the past years, BIR shows a decrease in Revenue. The Revenue has been decreasing by -0.16% on average per year.
EPS 1Y (TTM)257.14%
EPS 3Y-44.02%
EPS 5YN/A
EPS Q2Q%500%
Revenue 1Y (TTM)-4.51%
Revenue growth 3Y-11.82%
Revenue growth 5Y-0.16%
Sales Q2Q%21.26%
3.2 Future
BIR is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 37.16% yearly.
BIR is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 44.32% yearly.
EPS Next Y341.03%
EPS Next 2Y125.84%
EPS Next 3Y68.95%
EPS Next 5Y37.16%
Revenue Next Year229.62%
Revenue Next 2Y31.77%
Revenue Next 3Y44.32%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.42, the valuation of BIR can be described as correct.
Based on the Price/Earnings ratio, BIR is valued a bit cheaper than 62.86% of the companies in the same industry.
When comparing the Price/Earnings ratio of BIR to the average of the S&P500 Index (27.28), we can say BIR is valued slightly cheaper.
BIR is valuated cheaply with a Price/Forward Earnings ratio of 7.07.
BIR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BIR is cheaper than 73.33% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. BIR is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.42 | ||
| Fwd PE | 7.07 |
4.2 Price Multiples
BIR's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.12 |
4.3 Compensation for Growth
BIR's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
BIR has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as BIR's earnings are expected to grow with 68.95% in the coming years.
PEG (NY)0.04
PEG (5Y)N/A
EPS Next 2Y125.84%
EPS Next 3Y68.95%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.63%, BIR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.19, BIR has a dividend in line with its industry peers.
BIR's Dividend Yield is slightly below the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
5.2 History
On average, the dividend of BIR grows each year by 24.50%, which is quite nice.
BIR has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)24.5%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
65.12% of the earnings are spent on dividend by BIR. This is not a sustainable payout ratio.
BIR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP65.12%
EPS Next 2Y125.84%
EPS Next 3Y68.95%
TSX:BIR (7/2/2025, 7:00:00 PM)
7.21
-0.26 (-3.48%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners13.53%
Inst Owner ChangeN/A
Ins Owners0.71%
Ins Owner ChangeN/A
Market Cap1.96B
Analysts76.25
Price Target8.16 (13.18%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
Yearly Dividend0.4
Dividend Growth(5Y)24.5%
DP65.12%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)175.45%
Min EPS beat(2)21.86%
Max EPS beat(2)329.04%
EPS beat(4)3
Avg EPS beat(4)244.99%
Min EPS beat(4)-32.01%
Max EPS beat(4)661.06%
EPS beat(8)4
Avg EPS beat(8)53.63%
EPS beat(12)6
Avg EPS beat(12)17.69%
EPS beat(16)9
Avg EPS beat(16)21.36%
Revenue beat(2)0
Avg Revenue beat(2)-16.12%
Min Revenue beat(2)-21.25%
Max Revenue beat(2)-10.98%
Revenue beat(4)0
Avg Revenue beat(4)-13.4%
Min Revenue beat(4)-21.25%
Max Revenue beat(4)-0.74%
Revenue beat(8)2
Avg Revenue beat(8)-6.53%
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)4.63%
PT rev (3m)8.64%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)6.07%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)187.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.42 | ||
| Fwd PE | 7.07 | ||
| P/S | 3.07 | ||
| P/FCF | N/A | ||
| P/OCF | 7.41 | ||
| P/B | 0.87 | ||
| P/tB | 0.87 | ||
| EV/EBITDA | 9.12 |
EPS(TTM)0.5
EY6.93%
EPS(NY)1.02
Fwd EY14.15%
FCF(TTM)-0.06
FCFYN/A
OCF(TTM)0.97
OCFY13.49%
SpS2.35
BVpS8.29
TBVpS8.29
PEG (NY)0.04
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.89% | ||
| ROE | 6.07% | ||
| ROCE | 1.24% | ||
| ROIC | 0.85% | ||
| ROICexc | 0.85% | ||
| ROICexgc | 0.85% | ||
| OM | 6.58% | ||
| PM (TTM) | 21.39% | ||
| GM | 86.62% | ||
| FCFM | N/A |
ROA(3y)7.52%
ROA(5y)6.18%
ROE(3y)10.03%
ROE(5y)8.49%
ROIC(3y)5.95%
ROIC(5y)5.59%
ROICexc(3y)5.95%
ROICexc(5y)5.59%
ROICexgc(3y)5.95%
ROICexgc(5y)5.59%
ROCE(3y)8.7%
ROCE(5y)8.16%
ROICexcg growth 3Y-69.67%
ROICexcg growth 5Y-39.71%
ROICexc growth 3Y-69.67%
ROICexc growth 5Y-39.71%
OM growth 3Y-63.51%
OM growth 5Y-36.69%
PM growth 3Y-35.89%
PM growth 5YN/A
GM growth 3Y-1.77%
GM growth 5Y-0.14%
F-Score6
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.14 | ||
| Cap/Depr | 112.61% | ||
| Cap/Sales | 44.09% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 90.41% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.52 | ||
| Altman-Z | 1.49 |
F-Score6
WACC6.63%
ROIC/WACC0.13
Cap/Depr(3y)138.58%
Cap/Depr(5y)132.09%
Cap/Sales(3y)39.78%
Cap/Sales(5y)40.18%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)257.14%
EPS 3Y-44.02%
EPS 5YN/A
EPS Q2Q%500%
EPS Next Y341.03%
EPS Next 2Y125.84%
EPS Next 3Y68.95%
EPS Next 5Y37.16%
Revenue 1Y (TTM)-4.51%
Revenue growth 3Y-11.82%
Revenue growth 5Y-0.16%
Sales Q2Q%21.26%
Revenue Next Year229.62%
Revenue Next 2Y31.77%
Revenue Next 3Y44.32%
Revenue Next 5YN/A
EBIT growth 1Y-50.66%
EBIT growth 3Y-67.82%
EBIT growth 5Y-36.79%
EBIT Next Year1943.67%
EBIT Next 3Y161.91%
EBIT Next 5Y82.73%
FCF growth 1Y-103.58%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-70.02%
OCF growth 3Y-26.61%
OCF growth 5Y-9.04%