BIRCHCLIFF ENERGY LTD (BIR.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:BIR - CA0906971035 - Common Stock
7.25 CAD
-0.07 (-0.96%)
Taking everything into account, BIR scores 4 out of 10 in our fundamental rating. BIR was compared to 206 industry peers in the Oil, Gas & Consumable Fuels industry. BIR has only an average score on both its financial health and profitability. BIR has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- BIR had positive earnings in the past year.
- BIR had a positive operating cash flow in the past year.
- Of the past 5 years BIR 4 years were profitable.
- BIR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of BIR (2.13%) is comparable to the rest of the industry.
- BIR's Return On Equity of 3.29% is in line compared to the rest of the industry. BIR outperforms 56.80% of its industry peers.
- BIR has a Return On Invested Capital (1.67%) which is comparable to the rest of the industry.
- The Average Return On Invested Capital over the past 3 years for BIR is in line with the industry average of 6.62%.
- The last Return On Invested Capital (1.67%) 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 | 2.13% | ||
| ROE | 3.29% | ||
| ROIC | 1.67% |
ROA(3y)7.52%
ROA(5y)6.18%
ROE(3y)10.03%
ROE(5y)8.49%
ROIC(3y)5.95%
ROIC(5y)5.58%
1.3 Margins
- With a decent Profit Margin value of 10.94%, BIR is doing good in the industry, outperforming 74.76% of the companies in the same industry.
- BIR's Profit Margin has declined in the last couple of years.
- BIR has a Operating Margin (12.24%) which is in line with its industry peers.
- BIR's Operating Margin has declined in the last couple of years.
- BIR's Gross Margin of 87.60% is amongst the best of the industry. BIR outperforms 97.57% 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 | 12.24% | ||
| PM (TTM) | 10.94% | ||
| GM | 87.6% |
OM growth 3Y-64.36%
OM growth 5Y-37.58%
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.
- BIR has more shares outstanding than it did 1 year ago.
- BIR has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, BIR has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.54, we must say that BIR is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.54, BIR is in the better half of the industry, outperforming 63.11% of the companies in the same industry.
- The Debt to FCF ratio of BIR is 14.22, which is on the high side as it means it would take BIR, 14.22 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 14.22, BIR is in the better half of the industry, outperforming 71.36% of the companies in the same industry.
- A Debt/Equity ratio of 0.28 indicates that BIR is not too dependend on debt financing.
- The Debt to Equity ratio of BIR (0.28) is better than 61.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 14.22 | ||
| Altman-Z | 1.54 |
ROIC/WACC0.25
WACC6.79%
2.3 Liquidity
- A Current Ratio of 1.23 indicates that BIR should not have too much problems paying its short term obligations.
- BIR has a Current ratio of 1.23. This is in the better half of the industry: BIR outperforms 68.93% of its industry peers.
- A Quick Ratio of 1.23 indicates that BIR should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.23, BIR is in the better half of the industry, outperforming 71.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
- BIR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 417.79%, which is quite impressive.
- BIR shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -44.02% yearly.
- Looking at the last year, BIR shows a quite strong growth in Revenue. The Revenue has grown by 8.36% in the last 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)417.79%
EPS 3Y-44.02%
EPS 5YN/A
EPS Q2Q%-40.09%
Revenue 1Y (TTM)8.36%
Revenue growth 3Y-11.82%
Revenue growth 5Y-0.16%
Sales Q2Q%18.9%
3.2 Future
- Based on estimates for the next years, BIR will show a very strong growth in Earnings Per Share. The EPS will grow by 27.68% on average per year.
- BIR is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -51.05% yearly.
EPS Next Y32.98%
EPS Next 2Y100.58%
EPS Next 3Y51.36%
EPS Next 5Y27.68%
Revenue Next Year102.64%
Revenue Next 2Y54.89%
Revenue Next 3Y-51.05%
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 accelerating.
- 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
- Based on the Price/Earnings ratio of 27.88, the valuation of BIR can be described as expensive.
- Based on the Price/Earnings ratio, BIR is valued a bit cheaper than the industry average as 60.19% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 28.60. BIR is around the same levels.
- The Price/Forward Earnings ratio is 9.01, which indicates a very decent valuation of BIR.
- BIR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BIR is cheaper than 76.21% of the companies in the same industry.
- BIR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.88 | ||
| Fwd PE | 9.01 |
4.2 Price Multiples
- 73.79% of the companies in the same industry are more expensive than BIR, based on the Enterprise Value to EBITDA ratio.
- BIR's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.32 | ||
| EV/EBITDA | 7.77 |
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.
- A more expensive valuation may be justified as BIR's earnings are expected to grow with 51.36% in the coming years.
PEG (NY)0.85
PEG (5Y)N/A
EPS Next 2Y100.58%
EPS Next 3Y51.36%
5. Dividend
5.1 Amount
- BIR has a Yearly Dividend Yield of 1.69%. Purely for dividend investing, there may be better candidates out there.
- BIR's Dividend Yield is a higher than the industry average which is at 3.29.
- Compared to an average S&P500 Dividend Yield of 1.82, BIR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
5.2 History
- The dividend of BIR is nicely growing with an annual growth rate of 24.50%!
- 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
- 70.83% of the earnings are spent on dividend by BIR. This is not a sustainable payout ratio.
- BIR's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP70.83%
EPS Next 2Y100.58%
EPS Next 3Y51.36%
BIRCHCLIFF ENERGY LTD / BIR.CA FAQ
Can you provide the ChartMill fundamental rating for BIRCHCLIFF ENERGY LTD?
ChartMill assigns a fundamental rating of 4 / 10 to BIR.CA.
What is the valuation status for BIR stock?
ChartMill assigns a valuation rating of 5 / 10 to BIRCHCLIFF ENERGY LTD (BIR.CA). This can be considered as Fairly Valued.
What is the profitability of BIR stock?
BIRCHCLIFF ENERGY LTD (BIR.CA) has a profitability rating of 5 / 10.
How financially healthy is BIRCHCLIFF ENERGY LTD?
The financial health rating of BIRCHCLIFF ENERGY LTD (BIR.CA) is 4 / 10.
Can you provide the expected EPS growth for BIR stock?
The Earnings per Share (EPS) of BIRCHCLIFF ENERGY LTD (BIR.CA) is expected to grow by 32.98% in the next year.