WHITECAP RESOURCES INC (WCP.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:WCP - CA96467A2002 - Common Stock
12 CAD
+0.1 (+0.84%)
WCP gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 206 industry peers in the Oil, Gas & Consumable Fuels industry. WCP scores excellent on profitability, 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.
- In the past year WCP had a positive cash flow from operations.
- 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
- The Return On Assets of WCP (4.79%) is better than 83.01% of its industry peers.
- The Return On Equity of WCP (8.35%) is better than 64.56% of its industry peers.
- WCP has a better Return On Invested Capital (4.76%) than 74.27% 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 has a better Profit Margin (20.18%) than 82.04% of its industry peers.
- In the last couple of years the Profit Margin of WCP has declined.
- With an excellent Operating Margin value of 24.35%, WCP belongs to the best of the industry, outperforming 80.10% of the companies in the same industry.
- In the last couple of years the Operating Margin of WCP has grown nicely.
- WCP has a better Gross Margin (72.69%) than 91.26% of its industry peers.
- WCP's Gross Margin has been stable in the last couple of years.
| 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so WCP is still creating some value.
- WCP has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, WCP has more shares outstanding
- Compared to 1 year ago, WCP has an improved debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.56, we must say that WCP is in the distress zone and has some risk of bankruptcy.
- WCP has a better Altman-Z score (1.56) than 65.05% 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 75.73% of its industry peers.
- WCP has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
- Looking at the Debt to Equity ratio, with a value of 0.32, WCP is in line with its industry, outperforming 58.74% 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
- WCP has a Current Ratio of 0.73. This is a bad value and indicates that WCP is not financially healthy enough and could expect problems in meeting its short term obligations.
- WCP has a Current ratio (0.73) which is in line with 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 57.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
- WCP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -19.86%.
- Measured over the past years, WCP shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -21.33% on average per year.
- The Revenue has grown by 36.36% in the past year. This is a very strong growth!
- WCP shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 25.03% yearly.
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
- WCP is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -4.59% yearly.
- The Revenue is expected to grow by 18.60% on average over the next years. This is quite good.
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
- WCP is valuated reasonably with a Price/Earnings ratio of 10.26.
- WCP's Price/Earnings ratio is a bit cheaper when compared to the industry. WCP is cheaper than 73.79% of the companies in the same industry.
- WCP's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
- WCP is valuated correctly with a Price/Forward Earnings ratio of 15.12.
- 65.05% of the companies in the same industry are more expensive than WCP, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, WCP is valued a bit 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 78.16% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, WCP is valued a bit cheaper than the industry average as 66.02% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.13 | ||
| EV/EBITDA | 7.21 |
4.3 Compensation for Growth
- The excellent profitability rating of WCP may justify a higher PE ratio.
- A cheap valuation may be justified as WCP's earnings are expected to decrease with -10.04% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-23.88%
EPS Next 3Y-10.04%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 6.13%, WCP is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 3.29, WCP pays a better dividend. On top of this WCP pays more dividend than 92.72% of the companies listed 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
- The dividend of WCP is nicely growing with an annual growth rate of 16.83%!
- WCP has been paying a dividend for at least 10 years, so it has 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
- 68.17% of the earnings are spent on dividend by WCP. 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%.