PEYTO EXPLORATION & DEV CORP (PEY.CA) Stock Fundamental Analysis
TSX:PEY - Toronto Stock Exchange - CA7170461064 - Common Stock - Currency: CAD
We assign a fundamental rating of 6 out of 10 to PEY. PEY was compared to 221 industry peers in the Oil, Gas & Consumable Fuels industry. While PEY has a great profitability rating, there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on PEY. PEY also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
PEY had positive earnings in the past year.
PEY had a positive operating cash flow in the past year.
PEY had positive earnings in 4 of the past 5 years.
PEY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of PEY (5.19%) is better than 72.46% of its industry peers.
The Return On Equity of PEY (10.61%) is better than 71.01% of its industry peers.
With a Return On Invested Capital value of 2.84%, PEY perfoms like the industry average, outperforming 48.79% of the companies in the same industry.
PEY had an Average Return On Invested Capital over the past 3 years of 11.55%. This is above the industry average of 7.73%.
The 3 year average ROIC (11.55%) for PEY is well above the current ROIC(2.84%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.19% | ||
| ROE | 10.61% | ||
| ROIC | 2.84% |
ROA(3y)6.36%
ROA(5y)4.36%
ROE(3y)12.78%
ROE(5y)8.8%
ROIC(3y)11.55%
ROIC(5y)7.44%
1.3 Margins
PEY has a Profit Margin of 32.20%. This is amongst the best in the industry. PEY outperforms 95.65% of its industry peers.
PEY's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 21.88%, PEY is in the better half of the industry, outperforming 71.01% of the companies in the same industry.
PEY's Operating Margin has improved in the last couple of years.
PEY's Gross Margin of 76.68% is amongst the best of the industry. PEY outperforms 89.86% of its industry peers.
PEY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.88% | ||
| PM (TTM) | 32.2% | ||
| GM | 76.68% |
OM growth 3Y92.15%
OM growth 5Y21.77%
PM growth 3YN/A
PM growth 5Y2.65%
GM growth 3Y1.68%
GM growth 5Y-0.35%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so PEY is still 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.
The debt/assets ratio for PEY is higher compared to a year ago.
2.2 Solvency
PEY has an Altman-Z score of 1.11. This is a bad value and indicates that PEY is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 1.11, PEY is doing good in the industry, outperforming 60.87% of the companies in the same industry.
PEY has a debt to FCF ratio of 6.53. This is a slightly negative value and a sign of low solvency as PEY would need 6.53 years to pay back of all of its debts.
PEY's Debt to FCF ratio of 6.53 is fine compared to the rest of the industry. PEY outperforms 69.57% 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.
Looking at the Debt to Equity ratio, with a value of 0.45, PEY is in line with its industry, outperforming 43.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 6.53 | ||
| Altman-Z | 1.11 |
ROIC/WACC0.39
WACC7.31%
2.3 Liquidity
A Current Ratio of 1.28 indicates that PEY should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.28, PEY is in the better half of the industry, outperforming 61.84% of the companies in the same industry.
A Quick Ratio of 1.28 indicates that PEY should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.28, PEY is doing good in the industry, outperforming 71.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.28 |
3. Growth
3.1 Past
The earnings per share for PEY have decreased strongly by -17.13% in the last year.
Measured over the past years, PEY shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.78% on average per year.
PEY shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -14.83%.
PEY shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.74% yearly.
EPS 1Y (TTM)-17.13%
EPS 3YN/A
EPS 5Y15.78%
EPS Q2Q%-21.21%
Revenue 1Y (TTM)-14.83%
Revenue growth 3Y35.72%
Revenue growth 5Y14.74%
Sales Q2Q%19.37%
3.2 Future
The Earnings Per Share is expected to grow by 16.81% on average over the next years. This is quite good.
The Revenue is expected to grow by 8.01% on average over the next years. This is quite good.
EPS Next Y-6.9%
EPS Next 2Y16.64%
EPS Next 3Y15.49%
EPS Next 5Y16.81%
Revenue Next Year6.55%
Revenue Next 2Y15.09%
Revenue Next 3Y12.82%
Revenue Next 5Y8.01%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
PEY is valuated reasonably with a Price/Earnings ratio of 11.12.
65.22% of the companies in the same industry are more expensive than PEY, based on the Price/Earnings ratio.
PEY is valuated cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 7.56, which indicates a rather cheap valuation of PEY.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PEY indicates a somewhat cheap valuation: PEY is cheaper than 70.53% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.68. PEY is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.12 | ||
| Fwd PE | 7.56 |
4.2 Price Multiples
64.73% of the companies in the same industry are more expensive than PEY, based on the Enterprise Value to EBITDA ratio.
63.28% 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 | 15.76 | ||
| EV/EBITDA | 8.19 |
4.3 Compensation for Growth
The excellent 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 15.49% in the coming years.
PEG (NY)N/A
PEG (5Y)0.7
EPS Next 2Y16.64%
EPS Next 3Y15.49%
5. Dividend
5.1 Amount
PEY has a Yearly Dividend Yield of 8.01%, which is a nice return.
PEY's Dividend Yield is rather good when compared to the industry average which is at 6.50. PEY pays more dividend than 93.24% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, PEY pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.01% |
5.2 History
The dividend of PEY is nicely growing with an annual growth rate of 9.87%!
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)9.87%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
PEY pays out 88.45% of its income as dividend. This is not a sustainable payout ratio.
PEY's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP88.45%
EPS Next 2Y16.64%
EPS Next 3Y15.49%
TSX:PEY (2/21/2025, 7:00:00 PM)
16.57
+0.1 (+0.61%)
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 Cap3.30B
Analysts72.86
Price Target19.02 (14.79%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.01% |
Yearly Dividend1.23
Dividend Growth(5Y)9.87%
DP88.45%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.92%
Min EPS beat(2)-2.86%
Max EPS beat(2)-0.99%
EPS beat(4)2
Avg EPS beat(4)2.45%
Min EPS beat(4)-2.86%
Max EPS beat(4)8.44%
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)1
Avg Revenue beat(2)0.47%
Min Revenue beat(2)-0.67%
Max Revenue beat(2)1.6%
Revenue beat(4)3
Avg Revenue beat(4)4.63%
Min Revenue beat(4)-0.67%
Max Revenue beat(4)9.59%
Revenue beat(8)5
Avg Revenue beat(8)5.35%
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)3.32%
PT rev (3m)3.9%
EPS NQ rev (1m)-6.8%
EPS NQ rev (3m)-6.8%
EPS NY rev (1m)-3.36%
EPS NY rev (3m)-4.19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-6.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.12 | ||
| Fwd PE | 7.56 | ||
| P/S | 3.66 | ||
| P/FCF | 15.76 | ||
| P/OCF | 5 | ||
| P/B | 1.21 | ||
| P/tB | 1.21 | ||
| EV/EBITDA | 8.19 |
EPS(TTM)1.49
EY8.99%
EPS(NY)2.19
Fwd EY13.23%
FCF(TTM)1.05
FCFY6.35%
OCF(TTM)3.31
OCFY20%
SpS4.53
BVpS13.75
TBVpS13.75
PEG (NY)N/A
PEG (5Y)0.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.19% | ||
| ROE | 10.61% | ||
| ROCE | 3.75% | ||
| ROIC | 2.84% | ||
| ROICexc | 2.85% | ||
| ROICexgc | 2.85% | ||
| OM | 21.88% | ||
| PM (TTM) | 32.2% | ||
| GM | 76.68% | ||
| FCFM | 23.23% |
ROA(3y)6.36%
ROA(5y)4.36%
ROE(3y)12.78%
ROE(5y)8.8%
ROIC(3y)11.55%
ROIC(5y)7.44%
ROICexc(3y)11.59%
ROICexc(5y)7.46%
ROICexgc(3y)11.59%
ROICexgc(5y)7.46%
ROCE(3y)15.23%
ROCE(5y)9.81%
ROICexcg growth 3Y128.59%
ROICexcg growth 5Y28.85%
ROICexc growth 3Y128.59%
ROICexc growth 5Y28.85%
OM growth 3Y92.15%
OM growth 5Y21.77%
PM growth 3YN/A
PM growth 5Y2.65%
GM growth 3Y1.68%
GM growth 5Y-0.35%
F-Score4
Asset Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 6.53 | ||
| Debt/EBITDA | 2.19 | ||
| Cap/Depr | 121.76% | ||
| Cap/Sales | 49.98% | ||
| Interest Coverage | 2.91 | ||
| Cash Conversion | 116.33% | ||
| Profit Quality | 72.12% | ||
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.28 | ||
| Altman-Z | 1.11 |
F-Score4
WACC7.31%
ROIC/WACC0.39
Cap/Depr(3y)145.39%
Cap/Depr(5y)123.55%
Cap/Sales(3y)40.43%
Cap/Sales(5y)45.78%
Profit Quality(3y)72.97%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-17.13%
EPS 3YN/A
EPS 5Y15.78%
EPS Q2Q%-21.21%
EPS Next Y-6.9%
EPS Next 2Y16.64%
EPS Next 3Y15.49%
EPS Next 5Y16.81%
Revenue 1Y (TTM)-14.83%
Revenue growth 3Y35.72%
Revenue growth 5Y14.74%
Sales Q2Q%19.37%
Revenue Next Year6.55%
Revenue Next 2Y15.09%
Revenue Next 3Y12.82%
Revenue Next 5Y8.01%
EBIT growth 1Y-64.56%
EBIT growth 3Y160.8%
EBIT growth 5Y39.72%
EBIT Next Year224.76%
EBIT Next 3Y60.61%
EBIT Next 5YN/A
FCF growth 1Y-19.92%
FCF growth 3YN/A
FCF growth 5Y-1.65%
OCF growth 1Y-13.46%
OCF growth 3Y46.98%
OCF growth 5Y5.8%