GRAN TIERRA ENERGY INC (GTE) Stock Fundamental Analysis
NYSEARCA:GTE - NYSE Arca - US38500T2006 - Common Stock - Currency: USD
We assign a fundamental rating of 2 out of 10 to GTE. GTE was compared to 211 industry peers in the Oil, Gas & Consumable Fuels industry. Both the profitability and financial health of GTE have multiple concerns. GTE does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year GTE has reported negative net income.
GTE had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: GTE reported negative net income in multiple years.
In the past 5 years GTE always reported a positive cash flow from operatings.
1.2 Ratios
GTE has a worse Return On Assets (-0.96%) than 71.09% of its industry peers.
GTE has a Return On Equity of -4.06%. This is in the lower half of the industry: GTE underperforms 69.19% of its industry peers.
With a Return On Invested Capital value of 5.95%, GTE perfoms like the industry average, outperforming 52.61% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for GTE is significantly below the industry average of 23.79%.
The 3 year average ROIC (14.19%) for GTE is well above the current ROIC(5.95%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.96% | ||
| ROE | -4.06% | ||
| ROIC | 5.95% |
ROA(3y)3.38%
ROA(5y)-10.21%
ROE(3y)10.83%
ROE(5y)-51.24%
ROIC(3y)14.19%
ROIC(5y)N/A
1.3 Margins
GTE's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 15.64%, GTE perfoms like the industry average, outperforming 47.39% of the companies in the same industry.
In the last couple of years the Operating Margin of GTE has remained more or less at the same level.
GTE's Gross Margin of 61.88% is fine compared to the rest of the industry. GTE outperforms 69.67% of its industry peers.
GTE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.64% | ||
| PM (TTM) | N/A | ||
| GM | 61.88% |
OM growth 3Y-15.77%
OM growth 5Y0.59%
PM growth 3Y-61.37%
PM growth 5Y-40.23%
GM growth 3Y-2.55%
GM growth 5Y0.05%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), GTE is creating some value.
Compared to 1 year ago, GTE has more shares outstanding
Compared to 5 years ago, GTE has less shares outstanding
Compared to 1 year ago, GTE has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of -0.21, we must say that GTE is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of GTE (-0.21) is worse than 70.62% of its industry peers.
The Debt to FCF ratio of GTE is 136.65, which is on the high side as it means it would take GTE, 136.65 years of fcf income to pay off all of its debts.
GTE has a Debt to FCF ratio (136.65) which is in line with its industry peers.
A Debt/Equity ratio of 1.84 is on the high side and indicates that GTE has dependencies on debt financing.
GTE has a Debt to Equity ratio of 1.84. This is in the lower half of the industry: GTE underperforms 78.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.84 | ||
| Debt/FCF | 136.65 | ||
| Altman-Z | -0.21 |
ROIC/WACC0.67
WACC8.85%
2.3 Liquidity
GTE has a Current Ratio of 0.50. This is a bad value and indicates that GTE is not financially healthy enough and could expect problems in meeting its short term obligations.
GTE has a Current ratio of 0.50. This is amonst the worse of the industry: GTE underperforms 85.31% of its industry peers.
GTE has a Quick Ratio of 0.50. This is a bad value and indicates that GTE is not financially healthy enough and could expect problems in meeting its short term obligations.
GTE has a worse Quick ratio (0.39) than 89.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.5 | ||
| Quick Ratio | 0.39 |
3. Growth
3.1 Past
GTE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -442.39%.
Measured over the past years, GTE shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -37.23% on average per year.
The Revenue has decreased by -2.39% in the past year.
Measured over the past years, GTE shows a small growth in Revenue. The Revenue has been growing by 1.72% on average per year.
EPS 1Y (TTM)-442.39%
EPS 3Y-55.64%
EPS 5Y-37.23%
EPS Q2Q%-21456%
Revenue 1Y (TTM)-2.39%
Revenue growth 3Y9.49%
Revenue growth 5Y1.72%
Sales Q2Q%8.22%
3.2 Future
GTE is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -112.42% yearly.
GTE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.61% yearly.
EPS Next Y-253.72%
EPS Next 2Y-112.42%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.02%
Revenue Next 2Y-26.23%
Revenue Next 3Y10.61%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
GTE reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Also next year GTE is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GTE is valued cheaply inside the industry as 92.42% of the companies are valued more expensively.
GTE's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.54 | ||
| EV/EBITDA | 2.35 |
4.3 Compensation for Growth
A cheap valuation may be justified as GTE's earnings are expected to decrease with -112.42% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-112.42%
EPS Next 3YN/A
5. Dividend
5.1 Amount
GTE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
4.6
-0.12 (-2.54%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners57.3%
Inst Owner Change0%
Ins Owners13.97%
Ins Owner Change0.12%
Market Cap162.33M
Analysts74
Price Target10.2 (121.74%)
Short Float %3.12%
Short Ratio3.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
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%
PT rev (3m)0%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)3.63%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.26 | ||
| P/FCF | 30.54 | ||
| P/OCF | 0.64 | ||
| P/B | 0.41 | ||
| P/tB | 0.41 | ||
| EV/EBITDA | 2.35 |
EPS(TTM)-0.34
EYN/A
EPS(NY)-3.07
Fwd EYN/A
FCF(TTM)0.15
FCFY3.27%
OCF(TTM)7.13
OCFY155.07%
SpS17.99
BVpS11.16
TBVpS11.16
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.96% | ||
| ROE | -4.06% | ||
| ROCE | 7.54% | ||
| ROIC | 5.95% | ||
| ROICexc | 6.32% | ||
| ROICexgc | 6.32% | ||
| OM | 15.64% | ||
| PM (TTM) | N/A | ||
| GM | 61.88% | ||
| FCFM | 0.84% |
ROA(3y)3.38%
ROA(5y)-10.21%
ROE(3y)10.83%
ROE(5y)-51.24%
ROIC(3y)14.19%
ROIC(5y)N/A
ROICexc(3y)15.65%
ROICexc(5y)N/A
ROICexgc(3y)15.65%
ROICexgc(5y)N/A
ROCE(3y)18.14%
ROCE(5y)N/A
ROICexcg growth 3Y-15.8%
ROICexcg growth 5Y8.4%
ROICexc growth 3Y-15.8%
ROICexc growth 5Y9.72%
OM growth 3Y-15.77%
OM growth 5Y0.59%
PM growth 3Y-61.37%
PM growth 5Y-40.23%
GM growth 3Y-2.55%
GM growth 5Y0.05%
F-Score3
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.84 | ||
| Debt/FCF | 136.65 | ||
| Debt/EBITDA | 2.1 | ||
| Cap/Depr | 99.89% | ||
| Cap/Sales | 38.82% | ||
| Interest Coverage | 1.65 | ||
| Cash Conversion | 72.77% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.5 | ||
| Quick Ratio | 0.39 | ||
| Altman-Z | -0.21 |
F-Score3
WACC8.85%
ROIC/WACC0.67
Cap/Depr(3y)111.44%
Cap/Depr(5y)100.02%
Cap/Sales(3y)35.1%
Cap/Sales(5y)35.49%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-442.39%
EPS 3Y-55.64%
EPS 5Y-37.23%
EPS Q2Q%-21456%
EPS Next Y-253.72%
EPS Next 2Y-112.42%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-2.39%
Revenue growth 3Y9.49%
Revenue growth 5Y1.72%
Sales Q2Q%8.22%
Revenue Next Year7.02%
Revenue Next 2Y-26.23%
Revenue Next 3Y10.61%
Revenue Next 5YN/A
EBIT growth 1Y-42.87%
EBIT growth 3Y-7.77%
EBIT growth 5Y2.33%
EBIT Next Year1201.8%
EBIT Next 3Y131.28%
EBIT Next 5YN/A
FCF growth 1Y-95.03%
FCF growth 3Y-62.3%
FCF growth 5YN/A
OCF growth 1Y-32.55%
OCF growth 3Y-0.75%
OCF growth 5Y6.14%