PEYTO EXPLORATION & DEV CORP (PEY.CA) Stock Fundamental Analysis
TSX:PEY - Toronto Stock Exchange - CA7170461064 - Common Stock - Currency: CAD
Overall PEY gets a fundamental rating of 6 out of 10. We evaluated PEY against 211 industry peers in the Oil, Gas & Consumable Fuels industry. While PEY belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. PEY may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, PEY could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
PEY had positive earnings in the past year.
In the past year PEY had a positive cash flow from operations.
Of the past 5 years PEY 4 years were profitable.
PEY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PEY has a Return On Assets of 5.10%. This is amongst the best in the industry. PEY outperforms 81.04% of its industry peers.
PEY has a better Return On Equity (10.41%) than 77.73% of its industry peers.
PEY has a Return On Invested Capital of 2.22%. This is comparable to the rest of the industry: PEY outperforms 49.29% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PEY is in line with the industry average of 7.38%.
The last Return On Invested Capital (2.22%) for PEY is well below the 3 year average (9.20%), which needs to be investigated, but indicates that PEY had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.1% | ||
| ROE | 10.41% | ||
| ROIC | 2.22% |
ROA(3y)6.71%
ROA(5y)4.64%
ROE(3y)13.38%
ROE(5y)9.33%
ROIC(3y)9.2%
ROIC(5y)7.53%
1.3 Margins
The Profit Margin of PEY (32.74%) is better than 90.52% of its industry peers.
PEY's Profit Margin has improved in the last couple of years.
PEY's Operating Margin of 17.74% is in line compared to the rest of the industry. PEY outperforms 59.24% of its industry peers.
In the last couple of years the Operating Margin of PEY has declined.
PEY has a Gross Margin of 77.47%. This is amongst the best in the industry. PEY outperforms 91.94% of its industry peers.
In the last couple of years the Gross Margin of PEY has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.74% | ||
| PM (TTM) | 32.74% | ||
| GM | 77.47% |
OM growth 3Y-30.43%
OM growth 5Y-3.2%
PM growth 3Y21.8%
PM growth 5Y2.26%
GM growth 3Y-5.54%
GM growth 5Y-1.94%
2. Health
2.1 Basic Checks
PEY 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 PEY has been increased compared to 1 year ago.
Compared to 5 years ago, PEY has more shares outstanding
PEY has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.17, we must say that PEY is in the distress zone and has some risk of bankruptcy.
PEY's Altman-Z score of 1.17 is fine compared to the rest of the industry. PEY outperforms 63.51% of its industry peers.
The Debt to FCF ratio of PEY is 6.32, which is on the high side as it means it would take PEY, 6.32 years of fcf income to pay off all of its debts.
PEY's Debt to FCF ratio of 6.32 is fine compared to the rest of the industry. PEY outperforms 70.62% of its industry peers.
PEY has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
PEY has a Debt to Equity ratio (0.48) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 6.32 | ||
| Altman-Z | 1.17 |
ROIC/WACC0.25
WACC9.04%
2.3 Liquidity
A Current Ratio of 1.46 indicates that PEY should not have too much problems paying its short term obligations.
PEY's Current ratio of 1.46 is fine compared to the rest of the industry. PEY outperforms 73.46% of its industry peers.
PEY has a Quick Ratio of 1.46. This is a normal value and indicates that PEY is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of PEY (1.46) is better than 74.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.46 |
3. Growth
3.1 Past
PEY shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.95%.
The Earnings Per Share has been growing by 37.40% on average over the past years. This is a very strong growth
PEY shows a decrease in Revenue. In the last year, the revenue decreased by -9.35%.
PEY shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.45% yearly.
EPS 1Y (TTM)-11.95%
EPS 3Y17.29%
EPS 5Y37.4%
EPS Q2Q%-15.22%
Revenue 1Y (TTM)-9.35%
Revenue growth 3Y0.66%
Revenue growth 5Y13.45%
Sales Q2Q%-6.59%
3.2 Future
PEY is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.47% yearly.
Based on estimates for the next years, PEY will show a quite strong growth in Revenue. The Revenue will grow by 11.80% on average per year.
EPS Next Y69.52%
EPS Next 2Y37.03%
EPS Next 3Y28.88%
EPS Next 5Y16.47%
Revenue Next Year25.14%
Revenue Next 2Y16.01%
Revenue Next 3Y9.34%
Revenue Next 5Y11.8%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 12.64 indicates a correct valuation of PEY.
64.93% of the companies in the same industry are more expensive than PEY, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.33. PEY is valued rather cheaply when compared to this.
PEY is valuated cheaply with a Price/Forward Earnings ratio of 7.46.
69.19% of the companies in the same industry are more expensive than PEY, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.37, PEY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.64 | ||
| Fwd PE | 7.46 |
4.2 Price Multiples
PEY's Enterprise Value to EBITDA is on the same level as the industry average.
60.19% of the companies in the same industry are more expensive than PEY, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.58 | ||
| EV/EBITDA | 9.29 |
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.
PEY has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as PEY's earnings are expected to grow with 28.88% in the coming years.
PEG (NY)0.18
PEG (5Y)0.34
EPS Next 2Y37.03%
EPS Next 3Y28.88%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.35%, PEY is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.57, PEY pays a better dividend. On top of this PEY pays more dividend than 92.42% of the companies listed in the same industry.
PEY's Dividend Yield is rather good when compared to the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.35% |
5.2 History
On average, the dividend of PEY grows each year by 36.29%, which is quite nice.
PEY has been paying a dividend for at least 10 years, so it has a reliable track record.
PEY has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)36.29%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
PEY pays out 91.92% of its income as dividend. This is not a sustainable payout ratio.
PEY's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP91.92%
EPS Next 2Y37.03%
EPS Next 3Y28.88%
TSX:PEY (4/22/2025, 7:00:00 PM)
17.95
+0.35 (+1.99%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners19.34%
Inst Owner ChangeN/A
Ins Owners2.26%
Ins Owner ChangeN/A
Market Cap3.57B
Analysts75.71
Price Target19.28 (7.41%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.35% |
Yearly Dividend1.32
Dividend Growth(5Y)36.29%
DP91.92%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-10.27%
Min EPS beat(2)-19.55%
Max EPS beat(2)-0.99%
EPS beat(4)1
Avg EPS beat(4)-4.55%
Min EPS beat(4)-19.55%
Max EPS beat(4)5.2%
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)0
Avg Revenue beat(2)-6%
Min Revenue beat(2)-11.33%
Max Revenue beat(2)-0.67%
Revenue beat(4)2
Avg Revenue beat(4)-0.2%
Min Revenue beat(4)-11.33%
Max Revenue beat(4)9.59%
Revenue beat(8)4
Avg Revenue beat(8)0.33%
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)0.8%
PT rev (3m)4.71%
EPS NQ rev (1m)-13.01%
EPS NQ rev (3m)4.1%
EPS NY rev (1m)9.83%
EPS NY rev (3m)10%
Revenue NQ rev (1m)6.56%
Revenue NQ rev (3m)6.56%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.64 | ||
| Fwd PE | 7.46 | ||
| P/S | 4.17 | ||
| P/FCF | 16.58 | ||
| P/OCF | 5.31 | ||
| P/B | 1.32 | ||
| P/tB | 1.32 | ||
| EV/EBITDA | 9.29 |
EPS(TTM)1.42
EY7.91%
EPS(NY)2.41
Fwd EY13.41%
FCF(TTM)1.08
FCFY6.03%
OCF(TTM)3.38
OCFY18.82%
SpS4.31
BVpS13.55
TBVpS13.55
PEG (NY)0.18
PEG (5Y)0.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.1% | ||
| ROE | 10.41% | ||
| ROCE | 2.9% | ||
| ROIC | 2.22% | ||
| ROICexc | 2.23% | ||
| ROICexgc | 2.23% | ||
| OM | 17.74% | ||
| PM (TTM) | 32.74% | ||
| GM | 77.47% | ||
| FCFM | 25.14% |
ROA(3y)6.71%
ROA(5y)4.64%
ROE(3y)13.38%
ROE(5y)9.33%
ROIC(3y)9.2%
ROIC(5y)7.53%
ROICexc(3y)9.24%
ROICexc(5y)7.55%
ROICexgc(3y)9.24%
ROICexgc(5y)7.55%
ROCE(3y)12.04%
ROCE(5y)9.85%
ROICexcg growth 3Y-38.49%
ROICexcg growth 5Y1.24%
ROICexc growth 3Y-38.49%
ROICexc growth 5Y1.24%
OM growth 3Y-30.43%
OM growth 5Y-3.2%
PM growth 3Y21.8%
PM growth 5Y2.26%
GM growth 3Y-5.54%
GM growth 5Y-1.94%
F-Score4
Asset Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 6.32 | ||
| Debt/EBITDA | 2.46 | ||
| Cap/Depr | 120.97% | ||
| Cap/Sales | 53.31% | ||
| Interest Coverage | 1.97 | ||
| Cash Conversion | 126.92% | ||
| Profit Quality | 76.8% | ||
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.46 | ||
| Altman-Z | 1.17 |
F-Score4
WACC9.04%
ROIC/WACC0.25
Cap/Depr(3y)139.5%
Cap/Depr(5y)130.8%
Cap/Sales(3y)43.72%
Cap/Sales(5y)47.38%
Profit Quality(3y)78.25%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-11.95%
EPS 3Y17.29%
EPS 5Y37.4%
EPS Q2Q%-15.22%
EPS Next Y69.52%
EPS Next 2Y37.03%
EPS Next 3Y28.88%
EPS Next 5Y16.47%
Revenue 1Y (TTM)-9.35%
Revenue growth 3Y0.66%
Revenue growth 5Y13.45%
Sales Q2Q%-6.59%
Revenue Next Year25.14%
Revenue Next 2Y16.01%
Revenue Next 3Y9.34%
Revenue Next 5Y11.8%
EBIT growth 1Y-61.56%
EBIT growth 3Y-29.97%
EBIT growth 5Y9.82%
EBIT Next Year199.86%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-7.85%
FCF growth 3Y32.41%
FCF growth 5Y14.29%
OCF growth 1Y4.26%
OCF growth 3Y13.66%
OCF growth 5Y16.23%