TOPAZ ENERGY CORP (TPZ.CA) Stock Fundamental Analysis
TSX:TPZ - Toronto Stock Exchange - CA89055A2039 - Common Stock - Currency: CAD
TPZ gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 210 industry peers in the Oil, Gas & Consumable Fuels industry. TPZ has an excellent financial health rating, but there are some minor concerns on its profitability. TPZ shows excellent growth, but is valued quite expensive already. This makes TPZ very considerable for growth 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.
In the past 5 years TPZ has always been profitable.
Each year in the past 5 years TPZ had a positive operating cash flow.
1.2 Ratios
TPZ has a Return On Assets of 2.83%. This is in the better half of the industry: TPZ outperforms 67.14% of its industry peers.
The Return On Equity of TPZ (4.10%) is comparable to the rest of the industry.
With a Return On Invested Capital value of 3.87%, TPZ perfoms like the industry average, outperforming 52.86% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TPZ is below the industry average of 7.31%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.83% | ||
| ROE | 4.1% | ||
| ROIC | 3.87% |
ROA(3y)3.58%
ROA(5y)2.55%
ROE(3y)4.88%
ROE(5y)3.41%
ROIC(3y)4.11%
ROIC(5y)2.9%
1.3 Margins
TPZ's Profit Margin of 16.08% is fine compared to the rest of the industry. TPZ outperforms 76.67% of its industry peers.
In the last couple of years the Profit Margin of TPZ has declined.
Looking at the Operating Margin, with a value of 31.95%, TPZ belongs to the top of the industry, outperforming 81.43% of the companies in the same industry.
TPZ's Operating Margin has improved in the last couple of years.
The Gross Margin of TPZ (97.80%) is better than 99.52% of its industry peers.
In the last couple of years the Gross Margin of TPZ has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.95% | ||
| PM (TTM) | 16.08% | ||
| GM | 97.8% |
OM growth 3Y13.38%
OM growth 5Y48.89%
PM growth 3Y4.45%
PM growth 5Y-19.19%
GM growth 3Y-0.12%
GM growth 5Y0.21%
2. Health
2.1 Basic Checks
TPZ has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
TPZ has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, TPZ has more shares outstanding
Compared to 1 year ago, TPZ has a worse debt to assets ratio.
2.2 Solvency
TPZ has an Altman-Z score of 4.09. This indicates that TPZ is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of TPZ (4.09) is better than 84.76% of its industry peers.
TPZ has a debt to FCF ratio of 1.82. This is a very positive value and a sign of high solvency as it would only need 1.82 years to pay back of all of its debts.
TPZ has a better Debt to FCF ratio (1.82) than 84.76% of its industry peers.
TPZ has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of TPZ (0.41) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 1.82 | ||
| Altman-Z | 4.09 |
ROIC/WACC0.52
WACC7.39%
2.3 Liquidity
A Current Ratio of 4.16 indicates that TPZ has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 4.16, TPZ belongs to the top of the industry, outperforming 88.10% of the companies in the same industry.
TPZ has a Quick Ratio of 4.16. This indicates that TPZ is financially healthy and has no problem in meeting its short term obligations.
TPZ's Quick ratio of 4.16 is amongst the best of the industry. TPZ outperforms 88.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.16 | ||
| Quick Ratio | 4.16 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.67% over the past year.
The Earnings Per Share has been growing by 25.82% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 1.52% in the past year.
TPZ shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 85.61% yearly.
EPS 1Y (TTM)16.67%
EPS 3Y12.11%
EPS 5Y25.82%
EPS Q2Q%100%
Revenue 1Y (TTM)1.52%
Revenue growth 3Y13.88%
Revenue growth 5Y85.61%
Sales Q2Q%17.82%
3.2 Future
TPZ is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 47.15% yearly.
Based on estimates for the next years, TPZ will show a quite strong growth in Revenue. The Revenue will grow by 14.37% on average per year.
EPS Next Y9.15%
EPS Next 2Y48.08%
EPS Next 3Y47.15%
EPS Next 5YN/A
Revenue Next Year20.58%
Revenue Next 2Y17.93%
Revenue Next 3Y14.37%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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
A Price/Earnings ratio of 73.11 indicates a quite expensive valuation of TPZ.
Compared to the rest of the industry, the Price/Earnings ratio of TPZ is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.28, TPZ is valued quite expensively.
With a Price/Forward Earnings ratio of 37.65, TPZ can be considered very expensive at the moment.
TPZ's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of TPZ to the average of the S&P500 Index (21.76), we can say TPZ is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 73.11 | ||
| Fwd PE | 37.65 |
4.2 Price Multiples
TPZ's Enterprise Value to EBITDA is on the same level as the industry average.
TPZ's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TPZ is cheaper than 67.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.53 | ||
| EV/EBITDA | 14.75 |
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.
The decent profitability rating of TPZ may justify a higher PE ratio.
TPZ's earnings are expected to grow with 47.15% in the coming years. This may justify a more expensive valuation.
PEG (NY)7.99
PEG (5Y)2.83
EPS Next 2Y48.08%
EPS Next 3Y47.15%
5. Dividend
5.1 Amount
TPZ has a Yearly Dividend Yield of 5.22%, which is a nice return.
TPZ's Dividend Yield is a higher than the industry average which is at 6.19.
Compared to an average S&P500 Dividend Yield of 2.42, TPZ pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.22% |
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
372.65% of the earnings are spent on dividend by TPZ. This is not a sustainable payout ratio.
DP372.65%
EPS Next 2Y48.08%
EPS Next 3Y47.15%
TSX:TPZ (7/2/2025, 7:00:00 PM)
25.59
-0.07 (-0.27%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners28.71%
Inst Owner ChangeN/A
Ins Owners4.19%
Ins Owner ChangeN/A
Market Cap3.93B
Analysts82.22
Price Target31.77 (24.15%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.22% |
Yearly Dividend1.28
Dividend Growth(5Y)N/A
DP372.65%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-39.85%
Min EPS beat(2)-67.71%
Max EPS beat(2)-11.99%
EPS beat(4)2
Avg EPS beat(4)15.59%
Min EPS beat(4)-67.71%
Max EPS beat(4)74.72%
EPS beat(8)3
Avg EPS beat(8)14.8%
EPS beat(12)4
Avg EPS beat(12)5.5%
EPS beat(16)4
Avg EPS beat(16)-6.78%
Revenue beat(2)1
Avg Revenue beat(2)-2%
Min Revenue beat(2)-5.39%
Max Revenue beat(2)1.38%
Revenue beat(4)1
Avg Revenue beat(4)-4.79%
Min Revenue beat(4)-12.21%
Max Revenue beat(4)1.38%
Revenue beat(8)4
Avg Revenue beat(8)-1.86%
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)-0.46%
PT rev (3m)-2.57%
EPS NQ rev (1m)0%
EPS NQ rev (3m)7.5%
EPS NY rev (1m)0%
EPS NY rev (3m)-27.57%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.35%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 73.11 | ||
| Fwd PE | 37.65 | ||
| P/S | 12.06 | ||
| P/FCF | 13.53 | ||
| P/OCF | 13.77 | ||
| P/B | 3.08 | ||
| P/tB | 3.08 | ||
| EV/EBITDA | 14.75 |
EPS(TTM)0.35
EY1.37%
EPS(NY)0.68
Fwd EY2.66%
FCF(TTM)1.89
FCFY7.39%
OCF(TTM)1.86
OCFY7.26%
SpS2.12
BVpS8.31
TBVpS8.31
PEG (NY)7.99
PEG (5Y)2.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.83% | ||
| ROE | 4.1% | ||
| ROCE | 5.66% | ||
| ROIC | 3.87% | ||
| ROICexc | 3.87% | ||
| ROICexgc | 3.87% | ||
| OM | 31.95% | ||
| PM (TTM) | 16.08% | ||
| GM | 97.8% | ||
| FCFM | 89.12% |
ROA(3y)3.58%
ROA(5y)2.55%
ROE(3y)4.88%
ROE(5y)3.41%
ROIC(3y)4.11%
ROIC(5y)2.9%
ROICexc(3y)4.11%
ROICexc(5y)2.92%
ROICexgc(3y)4.11%
ROICexgc(5y)2.92%
ROCE(3y)6.01%
ROCE(5y)4.24%
ROICexcg growth 3Y22.47%
ROICexcg growth 5Y125.99%
ROICexc growth 3Y22.47%
ROICexc growth 5Y125.99%
OM growth 3Y13.38%
OM growth 5Y48.89%
PM growth 3Y4.45%
PM growth 5Y-19.19%
GM growth 3Y-0.12%
GM growth 5Y0.21%
F-Score4
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 1.82 | ||
| Debt/EBITDA | 1.75 | ||
| Cap/Depr | 2.57% | ||
| Cap/Sales | 1.57% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 94.13% | ||
| Profit Quality | 554.24% | ||
| Current Ratio | 4.16 | ||
| Quick Ratio | 4.16 | ||
| Altman-Z | 4.09 |
F-Score4
WACC7.39%
ROIC/WACC0.52
Cap/Depr(3y)3.1%
Cap/Depr(5y)2.51%
Cap/Sales(3y)1.97%
Cap/Sales(5y)1.7%
Profit Quality(3y)503.21%
Profit Quality(5y)952.85%
High Growth Momentum
Growth
EPS 1Y (TTM)16.67%
EPS 3Y12.11%
EPS 5Y25.82%
EPS Q2Q%100%
EPS Next Y9.15%
EPS Next 2Y48.08%
EPS Next 3Y47.15%
EPS Next 5YN/A
Revenue 1Y (TTM)1.52%
Revenue growth 3Y13.88%
Revenue growth 5Y85.61%
Sales Q2Q%17.82%
Revenue Next Year20.58%
Revenue Next 2Y17.93%
Revenue Next 3Y14.37%
Revenue Next 5YN/A
EBIT growth 1Y14.97%
EBIT growth 3Y29.11%
EBIT growth 5Y176.36%
EBIT Next Year10.8%
EBIT Next 3Y9.91%
EBIT Next 5YN/A
FCF growth 1Y-12.3%
FCF growth 3Y18.35%
FCF growth 5YN/A
OCF growth 1Y-14.85%
OCF growth 3Y18.74%
OCF growth 5Y79.71%