TOURMALINE OIL CORP (TOU.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:TOU - CA89156V1067 - Common Stock
62.48 CAD
-0.03 (-0.05%)
We assign a fundamental rating of 6 out of 10 to TOU. TOU was compared to 206 industry peers in the Oil, Gas & Consumable Fuels industry. While TOU has a great profitability rating, there are some minor concerns on its financial health. TOU is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- TOU had positive earnings in the past year.
- In the past year TOU had a positive cash flow from operations.
- Each year in the past 5 years TOU has been profitable.
- Each year in the past 5 years TOU had a positive operating cash flow.
1.2 Ratios
- TOU has a better Return On Assets (6.38%) than 89.32% of its industry peers.
- TOU has a better Return On Equity (9.04%) than 76.70% of its industry peers.
- TOU has a better Return On Invested Capital (6.40%) than 81.07% of its industry peers.
- TOU had an Average Return On Invested Capital over the past 3 years of 13.45%. This is significantly above the industry average of 6.62%.
- The last Return On Invested Capital (6.40%) for TOU is well below the 3 year average (13.45%), which needs to be investigated, but indicates that TOU had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.38% | ||
| ROE | 9.04% | ||
| ROIC | 6.4% |
ROA(3y)12.68%
ROA(5y)11.23%
ROE(3y)17.77%
ROE(5y)15.56%
ROIC(3y)13.45%
ROIC(5y)10.36%
1.3 Margins
- TOU has a better Profit Margin (24.76%) than 88.83% of its industry peers.
- In the last couple of years the Profit Margin of TOU has grown nicely.
- TOU has a better Operating Margin (30.24%) than 85.44% of its industry peers.
- In the last couple of years the Operating Margin of TOU has grown nicely.
- TOU has a better Gross Margin (98.52%) than 100.00% of its industry peers.
- In the last couple of years the Gross Margin of TOU has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.24% | ||
| PM (TTM) | 24.76% | ||
| GM | 98.52% |
OM growth 3Y-13.4%
OM growth 5Y8.65%
PM growth 3Y-20.73%
PM growth 5Y8.86%
GM growth 3Y-0.05%
GM growth 5Y0.07%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TOU is still creating some value.
- TOU has more shares outstanding than it did 1 year ago.
- TOU has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, TOU has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.92 indicates that TOU is not a great score, but indicates only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 2.92, TOU is in the better half of the industry, outperforming 78.16% of the companies in the same industry.
- The Debt to FCF ratio of TOU is 2.95, which is a good value as it means it would take TOU, 2.95 years of fcf income to pay off all of its debts.
- TOU's Debt to FCF ratio of 2.95 is amongst the best of the industry. TOU outperforms 85.92% of its industry peers.
- TOU has a Debt/Equity ratio of 0.10. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of TOU (0.10) is better than 71.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 2.95 | ||
| Altman-Z | 2.92 |
ROIC/WACC0.82
WACC7.83%
2.3 Liquidity
- TOU has a Current Ratio of 0.72. This is a bad value and indicates that TOU is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 0.72, TOU is in line with its industry, outperforming 44.17% of the companies in the same industry.
- A Quick Ratio of 0.72 indicates that TOU may have some problems paying its short term obligations.
- TOU has a Quick ratio (0.72) which is in line with its industry peers.
- TOU does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
- TOU shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -21.22%.
- Measured over the past years, TOU shows a very strong growth in Earnings Per Share. The EPS has been growing by 24.29% on average per year.
- The Revenue has decreased by -3.01% in the past year.
- Measured over the past years, TOU shows a very strong growth in Revenue. The Revenue has been growing by 20.93% on average per year.
EPS 1Y (TTM)-21.22%
EPS 3Y-17.7%
EPS 5Y24.29%
EPS Q2Q%-51%
Revenue 1Y (TTM)-3.01%
Revenue growth 3Y7.8%
Revenue growth 5Y20.93%
Sales Q2Q%59.02%
3.2 Future
- Based on estimates for the next years, TOU will show a small growth in Earnings Per Share. The EPS will grow by 1.50% on average per year.
- Based on estimates for the next years, TOU will show a quite strong growth in Revenue. The Revenue will grow by 8.08% on average per year.
EPS Next Y-5.63%
EPS Next 2Y15.18%
EPS Next 3Y15.97%
EPS Next 5Y1.5%
Revenue Next Year8.65%
Revenue Next 2Y16.04%
Revenue Next 3Y12.93%
Revenue Next 5Y8.08%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 17.90 indicates a rather expensive valuation of TOU.
- 65.53% of the companies in the same industry are more expensive than TOU, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of TOU to the average of the S&P500 Index (27.25), we can say TOU is valued slightly cheaper.
- The Price/Forward Earnings ratio is 13.46, which indicates a correct valuation of TOU.
- 68.45% of the companies in the same industry are more expensive than TOU, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of TOU to the average of the S&P500 Index (25.98), we can say TOU is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.9 | ||
| Fwd PE | 13.46 |
4.2 Price Multiples
- 75.73% of the companies in the same industry are more expensive than TOU, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of TOU is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.62 | ||
| EV/EBITDA | 7.38 |
4.3 Compensation for Growth
- The excellent profitability rating of TOU may justify a higher PE ratio.
- TOU's earnings are expected to grow with 15.97% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)0.74
EPS Next 2Y15.18%
EPS Next 3Y15.97%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.25%, TOU has a reasonable but not impressive dividend return.
- TOU's Dividend Yield is a higher than the industry average which is at 3.29.
- TOU's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.25% |
5.2 History
- The dividend of TOU is nicely growing with an annual growth rate of 48.01%!
- TOU has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)48.01%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- TOU pays out 84.49% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of TOU is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP84.49%
EPS Next 2Y15.18%
EPS Next 3Y15.97%
TOURMALINE OIL CORP / TOU.CA FAQ
What is the ChartMill fundamental rating of TOURMALINE OIL CORP (TOU.CA) stock?
ChartMill assigns a fundamental rating of 6 / 10 to TOU.CA.
What is the valuation status for TOU stock?
ChartMill assigns a valuation rating of 5 / 10 to TOURMALINE OIL CORP (TOU.CA). This can be considered as Fairly Valued.
What is the profitability of TOU stock?
TOURMALINE OIL CORP (TOU.CA) has a profitability rating of 9 / 10.
What are the PE and PB ratios of TOURMALINE OIL CORP (TOU.CA) stock?
The Price/Earnings (PE) ratio for TOURMALINE OIL CORP (TOU.CA) is 17.9 and the Price/Book (PB) ratio is 1.47.
What is the earnings growth outlook for TOURMALINE OIL CORP?
The Earnings per Share (EPS) of TOURMALINE OIL CORP (TOU.CA) is expected to decline by -5.63% in the next year.