PEYTO EXPLORATION & DEV CORP (PEY.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:PEY - CA7170461064 - Common Stock
24.5 CAD
+0.1 (+0.41%)
Overall PEY gets a fundamental rating of 7 out of 10. We evaluated PEY against 206 industry peers in the Oil, Gas & Consumable Fuels industry. PEY has an excellent profitability rating, but there are some minor concerns on its financial health. PEY has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination! PEY also has an excellent dividend rating. This makes PEY very considerable for value and dividend and growth investing!
1. Profitability
1.1 Basic Checks
- In the past year PEY was profitable.
- In the past year PEY had a positive cash flow from operations.
- 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 (6.83%) is better than 89.81% of its industry peers.
- PEY has a better Return On Equity (13.40%) than 90.29% of its industry peers.
- The Return On Invested Capital of PEY (4.53%) is better than 73.79% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for PEY is above the industry average of 6.62%.
- The last Return On Invested Capital (4.53%) 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 | 6.83% | ||
| ROE | 13.4% | ||
| ROIC | 4.53% |
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
- PEY has a Profit Margin of 36.85%. This is amongst the best in the industry. PEY outperforms 96.60% of its industry peers.
- In the last couple of years the Profit Margin of PEY has grown nicely.
- With an excellent Operating Margin value of 29.75%, PEY belongs to the best of the industry, outperforming 83.98% of the companies in the same industry.
- PEY's Operating Margin has declined in the last couple of years.
- PEY has a Gross Margin of 82.67%. This is amongst the best in the industry. PEY outperforms 95.15% of its industry peers.
- PEY's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.75% | ||
| PM (TTM) | 36.85% | ||
| GM | 82.67% |
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.
- PEY has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, PEY has more shares outstanding
- The debt/assets ratio for PEY has been reduced compared to a year ago.
2.2 Solvency
- PEY has an Altman-Z score of 1.64. This is a bad value and indicates that PEY is not financially healthy and even has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.64, PEY is in the better half of the industry, outperforming 66.50% of the companies in the same industry.
- The Debt to FCF ratio of PEY is 3.49, which is a good value as it means it would take PEY, 3.49 years of fcf income to pay off all of its debts.
- PEY has a better Debt to FCF ratio (3.49) than 83.98% of its industry peers.
- PEY has a Debt/Equity ratio of 0.39. This is a healthy value indicating a solid balance between debt and equity.
- Looking at the Debt to Equity ratio, with a value of 0.39, PEY is in line with its industry, outperforming 53.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 3.49 | ||
| Altman-Z | 1.64 |
ROIC/WACC0.59
WACC7.68%
2.3 Liquidity
- A Current Ratio of 0.91 indicates that PEY may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.91, PEY is in the better half of the industry, outperforming 60.19% of the companies in the same industry.
- A Quick Ratio of 0.91 indicates that PEY may have some problems paying its short term obligations.
- PEY has a Quick ratio of 0.91. This is in the better half of the industry: PEY outperforms 63.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 23.49% over the past year.
- PEY shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 37.40% yearly.
- PEY shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.73%.
- The Revenue has been growing by 13.45% on average over the past years. This is quite good.
EPS 1Y (TTM)23.49%
EPS 3Y17.29%
EPS 5Y37.4%
EPS Q2Q%73.08%
Revenue 1Y (TTM)11.73%
Revenue growth 3Y0.66%
Revenue growth 5Y13.45%
Sales Q2Q%19.63%
3.2 Future
- Based on estimates for the next years, PEY will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.72% on average per year.
- Based on estimates for the next years, PEY will show a quite strong growth in Revenue. The Revenue will grow by 9.04% on average per year.
EPS Next Y42.25%
EPS Next 2Y27.07%
EPS Next 3Y19.6%
EPS Next 5Y13.72%
Revenue Next Year-13.7%
Revenue Next 2Y2.36%
Revenue Next 3Y-0.09%
Revenue Next 5Y9.04%
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.
- 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
- With a Price/Earnings ratio of 13.32, PEY is valued correctly.
- Based on the Price/Earnings ratio, PEY is valued a bit cheaper than 70.87% of the companies in the same industry.
- PEY's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.60.
- With a Price/Forward Earnings ratio of 10.69, the valuation of PEY can be described as very reasonable.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of PEY indicates a somewhat cheap valuation: PEY is cheaper than 71.36% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of PEY to the average of the S&P500 Index (25.83), we can say PEY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.32 | ||
| Fwd PE | 10.69 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PEY indicates a somewhat cheap valuation: PEY is cheaper than 70.39% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, PEY is valued a bit cheaper than the industry average as 71.36% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.99 | ||
| EV/EBITDA | 9 |
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 an outstanding 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 19.60% in the coming years.
PEG (NY)0.32
PEG (5Y)0.36
EPS Next 2Y27.07%
EPS Next 3Y19.6%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 5.56%, PEY is a good candidate for dividend investing.
- PEY's Dividend Yield is rather good when compared to the industry average which is at 3.29. PEY pays more dividend than 82.52% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, PEY pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.56% |
5.2 History
- The dividend of PEY is nicely growing with an annual growth rate of 36.29%!
- PEY has paid a dividend for at least 10 years, which is 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
- 70.79% of the earnings are spent on dividend by PEY. 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.
DP70.79%
EPS Next 2Y27.07%
EPS Next 3Y19.6%
PEYTO EXPLORATION & DEV CORP / PEY.CA FAQ
Can you provide the ChartMill fundamental rating for PEYTO EXPLORATION & DEV CORP?
ChartMill assigns a fundamental rating of 7 / 10 to PEY.CA.
What is the valuation status for PEY stock?
ChartMill assigns a valuation rating of 7 / 10 to PEYTO EXPLORATION & DEV CORP (PEY.CA). This can be considered as Undervalued.
What is the profitability of PEY stock?
PEYTO EXPLORATION & DEV CORP (PEY.CA) has a profitability rating of 8 / 10.
How financially healthy is PEYTO EXPLORATION & DEV CORP?
The financial health rating of PEYTO EXPLORATION & DEV CORP (PEY.CA) is 5 / 10.
What is the expected EPS growth for PEYTO EXPLORATION & DEV CORP (PEY.CA) stock?
The Earnings per Share (EPS) of PEYTO EXPLORATION & DEV CORP (PEY.CA) is expected to grow by 42.25% in the next year.