PEYTO EXPLORATION & DEV CORP (PEY.CA) Stock Fundamental Analysis
TSX:PEY - Toronto Stock Exchange - CA7170461064 - Common Stock - Currency: CAD
Taking everything into account, PEY scores 6 out of 10 in our fundamental rating. PEY was compared to 207 industry peers in the Oil, Gas & Consumable Fuels industry. PEY scores excellent on profitability, but there are concerns on its financial health. PEY is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year PEY was profitable.
PEY had a positive operating cash flow in the past year.
Of the past 5 years PEY 4 years were profitable.
In the past 5 years PEY always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of PEY (5.50%) is better than 85.02% of its industry peers.
PEY's Return On Equity of 11.37% is amongst the best of the industry. PEY outperforms 81.64% of its industry peers.
PEY has a Return On Invested Capital of 3.18%. This is comparable to the rest of the industry: PEY outperforms 53.62% 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 7.39%.
The 3 year average ROIC (9.20%) for PEY is well above the current ROIC(3.18%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.5% | ||
| ROE | 11.37% | ||
| ROIC | 3.18% |
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
Looking at the Profit Margin, with a value of 32.69%, PEY belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
PEY's Profit Margin has improved in the last couple of years.
PEY's Operating Margin of 23.07% is fine compared to the rest of the industry. PEY outperforms 73.43% of its industry peers.
PEY's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 80.56%, PEY belongs to the best of the industry, outperforming 93.72% of the companies in the same industry.
In the last couple of years the Gross Margin of PEY has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.07% | ||
| PM (TTM) | 32.69% | ||
| GM | 80.56% |
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.
PEY has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, PEY has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.24, we must say that PEY is in the distress zone and has some risk of bankruptcy.
PEY's Altman-Z score of 1.24 is fine compared to the rest of the industry. PEY outperforms 64.73% of its industry peers.
PEY has a debt to FCF ratio of 5.27. This is a neutral value as PEY would need 5.27 years to pay back of all of its debts.
PEY has a Debt to FCF ratio of 5.27. This is in the better half of the industry: PEY outperforms 70.53% of its industry peers.
PEY has a Debt/Equity ratio of 0.45. This is a healthy value indicating a solid balance between debt and equity.
PEY has a Debt to Equity ratio (0.45) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 5.27 | ||
| Altman-Z | 1.24 |
ROIC/WACC0.39
WACC8.1%
2.3 Liquidity
PEY has a Current Ratio of 0.75. This is a bad value and indicates that PEY is not financially healthy enough and could expect problems in meeting its short term obligations.
PEY has a Current ratio (0.75) which is comparable to the rest of the industry.
A Quick Ratio of 0.75 indicates that PEY may have some problems paying its short term obligations.
PEY has a Quick ratio (0.75) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
The earnings per share for PEY have decreased by -9.20% in the last year.
Measured over the past years, PEY shows a very strong growth in Earnings Per Share. The EPS has been growing by 37.40% on average per year.
The Revenue has been growing slightly by 2.92% in the past year.
The Revenue has been growing by 13.45% on average over the past years. This is quite good.
EPS 1Y (TTM)-9.2%
EPS 3Y17.29%
EPS 5Y37.4%
EPS Q2Q%11.76%
Revenue 1Y (TTM)2.92%
Revenue growth 3Y0.66%
Revenue growth 5Y13.45%
Sales Q2Q%0.63%
3.2 Future
The Earnings Per Share is expected to grow by 16.47% on average over the next years. This is quite good.
Based on estimates for the next years, PEY will show a quite strong growth in Revenue. The Revenue will grow by 11.27% on average per year.
EPS Next Y69.52%
EPS Next 2Y37.03%
EPS Next 3Y28.88%
EPS Next 5Y16.47%
Revenue Next Year33.3%
Revenue Next 2Y19.75%
Revenue Next 3Y15.74%
Revenue Next 5Y11.27%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.01, PEY is valued correctly.
PEY's Price/Earnings ratio is a bit cheaper when compared to the industry. PEY is cheaper than 65.70% of the companies in the same industry.
When comparing the Price/Earnings ratio of PEY to the average of the S&P500 Index (27.30), we can say PEY is valued rather cheaply.
A Price/Forward Earnings ratio of 7.22 indicates a rather cheap valuation of PEY.
76.81% of the companies in the same industry are more expensive than PEY, based on the Price/Forward Earnings ratio.
PEY's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.01 | ||
| Fwd PE | 7.22 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PEY is valued a bit cheaper than the industry average as 64.73% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PEY indicates a somewhat cheap valuation: PEY is cheaper than 65.22% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.12 | ||
| EV/EBITDA | 8.61 |
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.
The decent profitability rating of PEY 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)0.19
PEG (5Y)0.35
EPS Next 2Y37.03%
EPS Next 3Y28.88%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.09%, PEY is a good candidate for dividend investing.
PEY's Dividend Yield is rather good when compared to the industry average which is at 6.35. PEY pays more dividend than 92.75% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, PEY pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.09% |
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 Years4
Div Non Decr Years4
5.3 Sustainability
PEY pays out 87.99% of its income as dividend. This is not a sustainable payout ratio.
The dividend of PEY is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP87.99%
EPS Next 2Y37.03%
EPS Next 3Y28.88%
TSX:PEY (7/11/2025, 7:00:00 PM)
19.25
+0.28 (+1.48%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners21.89%
Inst Owner ChangeN/A
Ins Owners2.71%
Ins Owner ChangeN/A
Market Cap3.84B
Analysts73.33
Price Target21.58 (12.1%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.09% |
Yearly Dividend1.32
Dividend Growth(5Y)36.29%
DP87.99%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-14.99%
Min EPS beat(2)-19.55%
Max EPS beat(2)-10.42%
EPS beat(4)0
Avg EPS beat(4)-8.46%
Min EPS beat(4)-19.55%
Max EPS beat(4)-0.99%
EPS beat(8)3
Avg EPS beat(8)1.87%
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)-11.54%
Min Revenue beat(2)-11.75%
Max Revenue beat(2)-11.33%
Revenue beat(4)1
Avg Revenue beat(4)-5.54%
Min Revenue beat(4)-11.75%
Max Revenue beat(4)1.6%
Revenue beat(8)3
Avg Revenue beat(8)-4.73%
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)11.1%
PT rev (3m)11.95%
EPS NQ rev (1m)1.89%
EPS NQ rev (3m)-14.29%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.79%
Revenue NQ rev (1m)-2.56%
Revenue NQ rev (3m)-5.63%
Revenue NY rev (1m)0%
Revenue NY rev (3m)6.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.01 | ||
| Fwd PE | 7.22 | ||
| P/S | 4.25 | ||
| P/FCF | 15.12 | ||
| P/OCF | 5.52 | ||
| P/B | 1.48 | ||
| P/tB | 1.48 | ||
| EV/EBITDA | 8.61 |
EPS(TTM)1.48
EY7.69%
EPS(NY)2.67
Fwd EY13.85%
FCF(TTM)1.27
FCFY6.61%
OCF(TTM)3.49
OCFY18.11%
SpS4.53
BVpS13.02
TBVpS13.02
PEG (NY)0.19
PEG (5Y)0.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.5% | ||
| ROE | 11.37% | ||
| ROCE | 4.16% | ||
| ROIC | 3.18% | ||
| ROICexc | 3.22% | ||
| ROICexgc | 3.22% | ||
| OM | 23.07% | ||
| PM (TTM) | 32.69% | ||
| GM | 80.56% | ||
| FCFM | 28.12% |
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-Score6
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 5.27 | ||
| Debt/EBITDA | 2 | ||
| Cap/Depr | 116.08% | ||
| Cap/Sales | 48.9% | ||
| Interest Coverage | 3.05 | ||
| Cash Conversion | 118.14% | ||
| Profit Quality | 86.03% | ||
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z | 1.24 |
F-Score6
WACC8.1%
ROIC/WACC0.39
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)-9.2%
EPS 3Y17.29%
EPS 5Y37.4%
EPS Q2Q%11.76%
EPS Next Y69.52%
EPS Next 2Y37.03%
EPS Next 3Y28.88%
EPS Next 5Y16.47%
Revenue 1Y (TTM)2.92%
Revenue growth 3Y0.66%
Revenue growth 5Y13.45%
Sales Q2Q%0.63%
Revenue Next Year33.3%
Revenue Next 2Y19.75%
Revenue Next 3Y15.74%
Revenue Next 5Y11.27%
EBIT growth 1Y-20.56%
EBIT growth 3Y-29.97%
EBIT growth 5Y9.82%
EBIT Next Year183.27%
EBIT Next 3Y39.44%
EBIT Next 5YN/A
FCF growth 1Y-21.78%
FCF growth 3Y32.41%
FCF growth 5Y14.29%
OCF growth 1Y-14.2%
OCF growth 3Y13.66%
OCF growth 5Y16.23%