BAYTEX ENERGY CORP (BTE.CA)
CA07317Q1054 - Common Stock
We assign a fundamental rating of 4 out of 10 to BTE. BTE was compared to 220 industry peers in the Oil, Gas & Consumable Fuels industry. While BTE is still in line with the averages on profitability rating, there are concerns on its financial health. BTE has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
BTE had negative earnings in the past year.
In the past year BTE had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: BTE reported negative net income in multiple years.
Each year in the past 5 years BTE had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of -5.26%, BTE is not doing good in the industry: 63.55% of the companies in the same industry are doing better.
With a Return On Equity value of -10.32%, BTE is not doing good in the industry: 64.49% of the companies in the same industry are doing better.
BTE has a Return On Invested Capital of 8.50%. This is amongst the best in the industry. BTE outperforms 80.84% of its industry peers.
BTE had an Average Return On Invested Capital over the past 3 years of 9.78%. This is in line with the industry average of 7.85%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.26% | ||
| ROE | -10.32% | ||
| ROIC | 8.5% |
ROA(3y)15.67%
ROA(5y)-4.95%
ROE(3y)31.7%
ROE(5y)-65.43%
ROIC(3y)9.78%
ROIC(5y)N/A
1.3 Margins
BTE's Operating Margin of 24.41% is fine compared to the rest of the industry. BTE outperforms 71.03% of its industry peers.
In the last couple of years the Operating Margin of BTE has grown nicely.
BTE has a Gross Margin of 80.16%. This is amongst the best in the industry. BTE outperforms 91.12% of its industry peers.
BTE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.41% | ||
| PM (TTM) | N/A | ||
| GM | 80.16% |
OM growth 3YN/A
OM growth 5Y56.68%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y10.09%
GM growth 5Y1.85%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BTE is still creating some value.
The number of shares outstanding for BTE has been increased compared to 1 year ago.
BTE has more shares outstanding than it did 5 years ago.
The debt/assets ratio for BTE is higher compared to a year ago.
2.2 Solvency
BTE has an Altman-Z score of 0.65. This is a bad value and indicates that BTE is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.65, BTE is in line with its industry, outperforming 47.66% of the companies in the same industry.
BTE has a debt to FCF ratio of 6.79. This is a slightly negative value and a sign of low solvency as BTE would need 6.79 years to pay back of all of its debts.
The Debt to FCF ratio of BTE (6.79) is better than 71.50% of its industry peers.
BTE has a Debt/Equity ratio of 0.62. This is a neutral value indicating BTE is somewhat dependend on debt financing.
BTE has a worse Debt to Equity ratio (0.62) than 63.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 6.79 | ||
| Altman-Z | 0.65 |
ROIC/WACC1.13
WACC7.52%
2.3 Liquidity
BTE has a Current Ratio of 0.72. This is a bad value and indicates that BTE is not financially healthy enough and could expect problems in meeting its short term obligations.
BTE's Current ratio of 0.72 is on the low side compared to the rest of the industry. BTE is outperformed by 66.82% of its industry peers.
BTE has a Quick Ratio of 0.72. This is a bad value and indicates that BTE is not financially healthy enough and could expect problems in meeting its short term obligations.
BTE's Quick ratio of 0.72 is in line compared to the rest of the industry. BTE outperforms 49.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
The earnings per share for BTE have decreased strongly by -131.41% in the last year.
The Revenue has grown by 67.59% in the past year. This is a very strong growth!
The Revenue has been growing by 19.46% on average over the past years. This is quite good.
EPS 1Y (TTM)-131.41%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-63.89%
Revenue 1Y (TTM)67.59%
Revenue growth 3Y49.51%
Revenue growth 5Y19.46%
Sales Q2Q%89.24%
3.2 Future
BTE is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 56.86% yearly.
Based on estimates for the next years, BTE will show a small growth in Revenue. The Revenue will grow by 1.22% on average per year.
EPS Next Y391.78%
EPS Next 2Y154.29%
EPS Next 3Y70.57%
EPS Next 5Y56.86%
Revenue Next Year25.78%
Revenue Next 2Y12.51%
Revenue Next 3Y3.85%
Revenue Next 5Y1.22%
3.3 Evolution
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
BTE reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Based on the Price/Forward Earnings ratio of 6.18, the valuation of BTE can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BTE indicates a somewhat cheap valuation: BTE is cheaper than 69.63% of the companies listed in the same industry.
BTE is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.99, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 6.18 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BTE is valued cheaply inside the industry as 92.06% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, BTE is valued a bit cheaper than 70.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.18 | ||
| EV/EBITDA | 2.57 |
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.
A more expensive valuation may be justified as BTE's earnings are expected to grow with 70.57% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y154.29%
EPS Next 3Y70.57%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.16%, BTE has a reasonable but not impressive dividend return.
BTE's Dividend Yield is comparable with the industry average which is at 6.47.
BTE's Dividend Yield is comparable with the S&P500 average which is at 2.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.16% |
5.2 History
The dividend of BTE decreases each year by -50.19%.
BTE has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of BTE decreased recently.
Dividend Growth(5Y)-50.19%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
The earnings of BTE are negative and hence is the payout ratio. BTE will probably not be able to sustain this dividend level.
DP-18.16%
EPS Next 2Y154.29%
EPS Next 3Y70.57%
BAYTEX ENERGY CORP
TSX:BTE (9/13/2024, 7:00:00 PM)
4.14
-0.03 (-0.72%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.33B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.16% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 6.18 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.26% | ||
| ROE | -10.32% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 24.41% | ||
| PM (TTM) | N/A | ||
| GM | 80.16% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-131.41%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y391.78%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)67.59%
Revenue growth 3Y49.51%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y