WHITECAP RESOURCES INC (WCP.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:WCP - CA96467A2002 - Common Stock
12 CAD
+0.1 (+0.84%)
We assign a fundamental rating of 6 out of 10 to WCP. WCP was compared to 206 industry peers in the Oil, Gas & Consumable Fuels industry. WCP has an excellent profitability rating, but there are some minor concerns on its financial health. WCP is not valued too expensively and it also shows a decent growth rate. Finally WCP also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- WCP had positive earnings in the past year.
- WCP had a positive operating cash flow in the past year.
- WCP had positive earnings in 4 of the past 5 years.
- Each year in the past 5 years WCP had a positive operating cash flow.
1.2 Ratios
- WCP's Return On Assets of 4.79% is amongst the best of the industry. WCP outperforms 83.18% of its industry peers.
- With a decent Return On Equity value of 8.35%, WCP is doing good in the industry, outperforming 64.49% of the companies in the same industry.
- WCP has a better Return On Invested Capital (4.76%) than 74.77% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for WCP is above the industry average of 6.62%.
- The 3 year average ROIC (10.61%) for WCP is well above the current ROIC(4.76%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.79% | ||
| ROE | 8.35% | ||
| ROIC | 4.76% |
ROA(3y)11.67%
ROA(5y)1.26%
ROE(3y)21.19%
ROE(5y)-14.8%
ROIC(3y)10.61%
ROIC(5y)8.44%
1.3 Margins
- WCP's Profit Margin of 20.18% is amongst the best of the industry. WCP outperforms 82.24% of its industry peers.
- In the last couple of years the Profit Margin of WCP has declined.
- Looking at the Operating Margin, with a value of 24.35%, WCP is in the better half of the industry, outperforming 79.91% of the companies in the same industry.
- In the last couple of years the Operating Margin of WCP has grown nicely.
- WCP has a Gross Margin of 72.69%. This is amongst the best in the industry. WCP outperforms 90.65% of its industry peers.
- In the last couple of years the Gross Margin of WCP has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.35% | ||
| PM (TTM) | 20.18% | ||
| GM | 72.69% |
OM growth 3Y-8.71%
OM growth 5Y16.52%
PM growth 3Y-32.17%
PM growth 5YN/A
GM growth 3Y-0.79%
GM growth 5Y0.89%
2. Health
2.1 Basic Checks
- WCP has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- The number of shares outstanding for WCP has been reduced compared to 1 year ago.
- Compared to 5 years ago, WCP has more shares outstanding
- The debt/assets ratio for WCP has been reduced compared to a year ago.
2.2 Solvency
- WCP has an Altman-Z score of 1.56. This is a bad value and indicates that WCP is not financially healthy and even has some risk of bankruptcy.
- The Altman-Z score of WCP (1.56) is better than 65.42% of its industry peers.
- WCP has a debt to FCF ratio of 5.43. This is a neutral value as WCP would need 5.43 years to pay back of all of its debts.
- WCP has a better Debt to FCF ratio (5.43) than 76.17% of its industry peers.
- A Debt/Equity ratio of 0.32 indicates that WCP is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.32, WCP is in line with its industry, outperforming 59.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 5.43 | ||
| Altman-Z | 1.56 |
ROIC/WACC0.62
WACC7.73%
2.3 Liquidity
- A Current Ratio of 0.73 indicates that WCP may have some problems paying its short term obligations.
- WCP's Current ratio of 0.73 is in line compared to the rest of the industry. WCP outperforms 45.33% of its industry peers.
- A Quick Ratio of 0.73 indicates that WCP may have some problems paying its short term obligations.
- WCP's Quick ratio of 0.73 is in line compared to the rest of the industry. WCP outperforms 57.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
- The earnings per share for WCP have decreased strongly by -19.86% in the last year.
- WCP shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -21.33% yearly.
- Looking at the last year, WCP shows a very strong growth in Revenue. The Revenue has grown by 36.36%.
- The Revenue has been growing by 25.03% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-19.86%
EPS 3Y-21.33%
EPS 5YN/A
EPS Q2Q%-63.04%
Revenue 1Y (TTM)36.36%
Revenue growth 3Y13.58%
Revenue growth 5Y25.03%
Sales Q2Q%90.71%
3.2 Future
- Based on estimates for the next years, WCP will show a decrease in Earnings Per Share. The EPS will decrease by -4.59% on average per year.
- WCP is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 18.60% yearly.
EPS Next Y-31.88%
EPS Next 2Y-23.88%
EPS Next 3Y-10.04%
EPS Next 5Y-4.59%
Revenue Next Year55.79%
Revenue Next 2Y33.57%
Revenue Next 3Y22.21%
Revenue Next 5Y18.6%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- 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 10.26 indicates a reasonable valuation of WCP.
- Based on the Price/Earnings ratio, WCP is valued a bit cheaper than 73.83% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, WCP is valued rather cheaply.
- WCP is valuated correctly with a Price/Forward Earnings ratio of 15.12.
- WCP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. WCP is cheaper than 65.42% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of WCP to the average of the S&P500 Index (25.98), we can say WCP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.26 | ||
| Fwd PE | 15.12 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, WCP is valued a bit cheaper than 78.50% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, WCP is valued a bit cheaper than 65.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.13 | ||
| EV/EBITDA | 7.21 |
4.3 Compensation for Growth
- WCP has an outstanding profitability rating, which may justify a higher PE ratio.
- WCP's earnings are expected to decrease with -10.04% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-23.88%
EPS Next 3Y-10.04%
5. Dividend
5.1 Amount
- WCP has a Yearly Dividend Yield of 6.13%, which is a nice return.
- WCP's Dividend Yield is rather good when compared to the industry average which is at 3.29. WCP pays more dividend than 92.52% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, WCP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.13% |
5.2 History
- On average, the dividend of WCP grows each year by 16.83%, which is quite nice.
- WCP has paid a dividend for at least 10 years, which is a reliable track record.
- WCP has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)16.83%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
- WCP pays out 68.17% of its income as dividend. This is not a sustainable payout ratio.
- WCP's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP68.17%
EPS Next 2Y-23.88%
EPS Next 3Y-10.04%
WHITECAP RESOURCES INC / WCP.CA FAQ
Can you provide the ChartMill fundamental rating for WHITECAP RESOURCES INC?
ChartMill assigns a fundamental rating of 6 / 10 to WCP.CA.
Can you provide the valuation status for WHITECAP RESOURCES INC?
ChartMill assigns a valuation rating of 6 / 10 to WHITECAP RESOURCES INC (WCP.CA). This can be considered as Fairly Valued.
Can you provide the profitability details for WHITECAP RESOURCES INC?
WHITECAP RESOURCES INC (WCP.CA) has a profitability rating of 8 / 10.
What is the earnings growth outlook for WHITECAP RESOURCES INC?
The Earnings per Share (EPS) of WHITECAP RESOURCES INC (WCP.CA) is expected to decline by -31.88% in the next year.
How sustainable is the dividend of WHITECAP RESOURCES INC (WCP.CA) stock?
The dividend rating of WHITECAP RESOURCES INC (WCP.CA) is 7 / 10 and the dividend payout ratio is 68.17%.