TOPAZ ENERGY CORP (TPZ.CA) Stock Fundamental Analysis
TSX:TPZ - Toronto Stock Exchange - CA89055A2039 - Common Stock - Currency: CAD
Taking everything into account, TPZ scores 7 out of 10 in our fundamental rating. TPZ was compared to 214 industry peers in the Oil, Gas & Consumable Fuels industry. TPZ gets an excellent profitability rating and is at the same time showing great financial health properties. TPZ is not overvalued while it is showing excellent growth. This is an interesting combination. With these ratings, TPZ could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
In the past year TPZ was profitable.
TPZ had a positive operating cash flow in the past year.
Each year in the past 5 years TPZ has been profitable.
Each year in the past 5 years TPZ had a positive operating cash flow.
1.2 Ratios
TPZ has a better Return On Assets (3.79%) than 67.16% of its industry peers.
TPZ has a Return On Equity (5.35%) which is comparable to the rest of the industry.
TPZ has a better Return On Invested Capital (4.31%) than 64.18% of its industry peers.
TPZ had an Average Return On Invested Capital over the past 3 years of 3.86%. This is below the industry average of 7.73%.
The 3 year average ROIC (3.86%) for TPZ is below the current ROIC(4.31%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.79% | ||
| ROE | 5.35% | ||
| ROIC | 4.31% |
ROA(3y)3.34%
ROA(5y)2.24%
ROE(3y)4.4%
ROE(5y)2.88%
ROIC(3y)3.86%
ROIC(5y)2.4%
1.3 Margins
TPZ's Profit Margin of 19.68% is fine compared to the rest of the industry. TPZ outperforms 75.12% of its industry peers.
In the last couple of years the Profit Margin of TPZ has grown nicely.
Looking at the Operating Margin, with a value of 29.90%, TPZ belongs to the top of the industry, outperforming 80.10% of the companies in the same industry.
TPZ's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 97.85%, TPZ belongs to the best of the industry, outperforming 99.00% of the companies in the same industry.
TPZ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.9% | ||
| PM (TTM) | 19.68% | ||
| GM | 97.85% |
OM growth 3Y77.45%
OM growth 5YN/A
PM growth 3Y68.59%
PM growth 5YN/A
GM growth 3Y0.72%
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TPZ is destroying value.
Compared to 1 year ago, TPZ has more shares outstanding
Compared to 1 year ago, TPZ has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.89 indicates that TPZ is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 4.89, TPZ belongs to the best of the industry, outperforming 87.06% of the companies in the same industry.
The Debt to FCF ratio of TPZ is 1.63, which is an excellent value as it means it would take TPZ, only 1.63 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.63, TPZ belongs to the best of the industry, outperforming 88.56% of the companies in the same industry.
A Debt/Equity ratio of 0.36 indicates that TPZ is not too dependend on debt financing.
TPZ has a Debt to Equity ratio (0.36) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 1.63 | ||
| Altman-Z | 4.89 |
ROIC/WACC0.58
WACC7.39%
2.3 Liquidity
A Current Ratio of 1.89 indicates that TPZ should not have too much problems paying its short term obligations.
The Current ratio of TPZ (1.89) is better than 78.11% of its industry peers.
TPZ has a Quick Ratio of 1.89. This is a normal value and indicates that TPZ is financially healthy and should not expect problems in meeting its short term obligations.
TPZ has a Quick ratio of 1.89. This is in the better half of the industry: TPZ outperforms 79.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.89 | ||
| Quick Ratio | 1.89 |
3. Growth
3.1 Past
TPZ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 32.26%, which is quite impressive.
Measured over the past years, TPZ shows a very strong growth in Earnings Per Share. The EPS has been growing by 121.89% on average per year.
The Revenue has decreased by -6.37% in the past year.
Measured over the past years, TPZ shows a very strong growth in Revenue. The Revenue has been growing by 47.64% on average per year.
EPS 1Y (TTM)32.26%
EPS 3Y121.89%
EPS 5YN/A
EPS Q2Q%71.43%
Revenue 1Y (TTM)-6.37%
Revenue growth 3Y47.64%
Revenue growth 5YN/A
Sales Q2Q%-14.19%
3.2 Future
The Earnings Per Share is expected to grow by 32.35% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 17.10% on average over the next years. This is quite good.
EPS Next Y26.41%
EPS Next 2Y25.19%
EPS Next 3Y32.35%
EPS Next 5YN/A
Revenue Next Year24.01%
Revenue Next 2Y24.42%
Revenue Next 3Y17.1%
Revenue Next 5YN/A
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
TPZ is valuated quite expensively with a Price/Earnings ratio of 61.05.
Compared to the rest of the industry, the Price/Earnings ratio of TPZ is on the same level as its industry peers.
TPZ is valuated expensively when we compare the Price/Earnings ratio to 28.35, which is the current average of the S&P500 Index.
TPZ is valuated quite expensively with a Price/Forward Earnings ratio of 51.52.
TPZ's Price/Forward Earnings is on the same level as the industry average.
TPZ's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 95.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 61.05 | ||
| Fwd PE | 51.52 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TPZ is on the same level as its industry peers.
TPZ's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TPZ is cheaper than 63.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.9 | ||
| EV/EBITDA | 14.54 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TPZ does not grow enough to justify the current Price/Earnings ratio.
TPZ has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as TPZ's earnings are expected to grow with 32.35% in the coming years.
PEG (NY)2.31
PEG (5Y)N/A
EPS Next 2Y25.19%
EPS Next 3Y32.35%
5. Dividend
5.1 Amount
TPZ has a Yearly Dividend Yield of 5.08%, which is a nice return.
Compared to an average industry Dividend Yield of 6.59, TPZ pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.28, TPZ pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.08% |
5.2 History
TPZ has been paying a dividend for over 5 years, so it has already some track record.
TPZ has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
300.99% of the earnings are spent on dividend by TPZ. This is not a sustainable payout ratio.
DP300.99%
EPS Next 2Y25.19%
EPS Next 3Y32.35%
TOPAZ ENERGY CORP
TSX:TPZ (2/5/2025, 7:00:00 PM)
25.03
-0.28 (-1.11%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners19.44%
Inst Owner ChangeN/A
Ins Owners4.16%
Ins Owner ChangeN/A
Market Cap3.83B
Analysts82.35
Price Target32.48 (29.76%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.08% |
Yearly Dividend1.22
Dividend Growth(5Y)N/A
DP300.99%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)71.03%
Min EPS beat(2)67.34%
Max EPS beat(2)74.72%
EPS beat(4)3
Avg EPS beat(4)60.17%
Min EPS beat(4)-35.42%
Max EPS beat(4)134.02%
EPS beat(8)3
Avg EPS beat(8)14.76%
EPS beat(12)4
Avg EPS beat(12)7.88%
EPS beat(16)5
Avg EPS beat(16)18.17%
Revenue beat(2)0
Avg Revenue beat(2)-7.58%
Min Revenue beat(2)-12.21%
Max Revenue beat(2)-2.96%
Revenue beat(4)2
Avg Revenue beat(4)-1.34%
Min Revenue beat(4)-12.21%
Max Revenue beat(4)6.08%
Revenue beat(8)4
Avg Revenue beat(8)1.37%
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)1.47%
PT rev (3m)8.36%
EPS NQ rev (1m)4.21%
EPS NQ rev (3m)-14.66%
EPS NY rev (1m)0%
EPS NY rev (3m)9.53%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)10.84%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 61.05 | ||
| Fwd PE | 51.52 | ||
| P/S | 12.25 | ||
| P/FCF | 14.9 | ||
| P/OCF | 13.32 | ||
| P/B | 3.33 | ||
| P/tB | 3.33 | ||
| EV/EBITDA | 14.54 |
EPS(TTM)0.41
EY1.64%
EPS(NY)0.49
Fwd EY1.94%
FCF(TTM)1.68
FCFY6.71%
OCF(TTM)1.88
OCFY7.5%
SpS2.04
BVpS7.51
TBVpS7.51
PEG (NY)2.31
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.79% | ||
| ROE | 5.35% | ||
| ROCE | 5.88% | ||
| ROIC | 4.31% | ||
| ROICexc | 4.31% | ||
| ROICexgc | 4.31% | ||
| OM | 29.9% | ||
| PM (TTM) | 19.68% | ||
| GM | 97.85% | ||
| FCFM | 82.19% |
ROA(3y)3.34%
ROA(5y)2.24%
ROE(3y)4.4%
ROE(5y)2.88%
ROIC(3y)3.86%
ROIC(5y)2.4%
ROICexc(3y)3.86%
ROICexc(5y)2.42%
ROICexgc(3y)3.86%
ROICexgc(5y)2.42%
ROCE(3y)5.25%
ROCE(5y)3.26%
ROICexcg growth 3Y105.2%
ROICexcg growth 5YN/A
ROICexc growth 3Y105.2%
ROICexc growth 5YN/A
OM growth 3Y77.45%
OM growth 5YN/A
PM growth 3Y68.59%
PM growth 5YN/A
GM growth 3Y0.72%
GM growth 5YN/A
F-Score5
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 1.63 | ||
| Debt/EBITDA | 1.43 | ||
| Cap/Depr | 15.33% | ||
| Cap/Sales | 9.74% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 98.35% | ||
| Profit Quality | 417.67% | ||
| Current Ratio | 1.89 | ||
| Quick Ratio | 1.89 | ||
| Altman-Z | 4.89 |
F-Score5
WACC7.39%
ROIC/WACC0.58
Cap/Depr(3y)2.46%
Cap/Depr(5y)335.12%
Cap/Sales(3y)1.63%
Cap/Sales(5y)275.57%
Profit Quality(3y)506.15%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)32.26%
EPS 3Y121.89%
EPS 5YN/A
EPS Q2Q%71.43%
EPS Next Y26.41%
EPS Next 2Y25.19%
EPS Next 3Y32.35%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.37%
Revenue growth 3Y47.64%
Revenue growth 5YN/A
Sales Q2Q%-14.19%
Revenue Next Year24.01%
Revenue Next 2Y24.42%
Revenue Next 3Y17.1%
Revenue Next 5YN/A
EBIT growth 1Y6.57%
EBIT growth 3Y161.99%
EBIT growth 5YN/A
EBIT Next Year778.27%
EBIT Next 3Y124.57%
EBIT Next 5YN/A
FCF growth 1Y-14.66%
FCF growth 3Y52.55%
FCF growth 5YN/A
OCF growth 1Y-5.72%
OCF growth 3Y53.17%
OCF growth 5YN/A