WHITECAP RESOURCES INC (WCP.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:WCP - CA96467A2002 - Common Stock
11.9 CAD
-0.02 (-0.17%)
WCP gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 214 industry peers in the Oil, Gas & Consumable Fuels industry. While WCP belongs to the best of the industry regarding profitability, 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.
- Of the past 5 years WCP 4 years were profitable.
- In the past 5 years WCP always reported a positive cash flow from operatings.
1.2 Ratios
- WCP's Return On Assets of 4.79% is amongst the best of the industry. WCP outperforms 83.64% of its industry peers.
- With a decent Return On Equity value of 8.35%, WCP is doing good in the industry, outperforming 64.95% of the companies in the same industry.
- WCP's Return On Invested Capital of 4.76% is fine compared to the rest of the industry. WCP outperforms 75.23% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for WCP is above the industry average of 6.53%.
- 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 82.24% of its industry peers.
- WCP's Profit Margin has declined in the last couple of years.
- WCP has a better Operating Margin (24.35%) than 80.37% of its industry peers.
- WCP's Operating Margin has improved in the last couple of years.
- WCP has a Gross Margin of 72.69%. This is amongst the best in the industry. WCP outperforms 91.12% 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
- 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.
- WCP has more shares outstanding than it did 5 years ago.
- WCP has a better debt/assets ratio than last year.
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.
- WCP's Altman-Z score of 1.56 is fine compared to the rest of the industry. WCP outperforms 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's Debt to FCF ratio of 5.43 is fine compared to the rest of the industry. WCP outperforms 76.64% 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.
- With a Debt to Equity ratio value of 0.32, WCP perfoms like the industry average, outperforming 59.81% 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.
- With a Current ratio value of 0.73, WCP perfoms like the industry average, outperforming 45.79% of the companies in the same industry.
- WCP has a Quick 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's Quick ratio of 0.73 is in line compared to the rest of the industry. WCP outperforms 58.41% 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%.
- The earnings per share for WCP have been decreasing by -21.33% on average. This is quite bad
- Looking at the last year, WCP shows a very strong growth in Revenue. The Revenue has grown by 36.36%.
- 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.
- Based on estimates for the next years, WCP will show a quite strong growth in Revenue. The Revenue will grow by 18.60% on average per year.
EPS Next Y-31.44%
EPS Next 2Y-20.79%
EPS Next 3Y-7.45%
EPS Next 5Y-4.59%
Revenue Next Year60.92%
Revenue Next 2Y41.36%
Revenue Next 3Y27.41%
Revenue Next 5Y18.6%
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 10.17 indicates a reasonable valuation of WCP.
- Compared to the rest of the industry, the Price/Earnings ratio of WCP indicates a somewhat cheap valuation: WCP is cheaper than 74.77% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of WCP to the average of the S&P500 Index (27.32), we can say WCP is valued rather cheaply.
- WCP is valuated correctly with a Price/Forward Earnings ratio of 13.85.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of WCP indicates a somewhat cheap valuation: WCP is cheaper than 66.82% of the companies listed in the same industry.
- WCP's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.17 | ||
| Fwd PE | 13.85 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, WCP is valued a bit cheaper than 79.91% 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 66.82% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.95 | ||
| EV/EBITDA | 7.17 |
4.3 Compensation for Growth
- WCP has an outstanding profitability rating, which may justify a higher PE ratio.
- A cheap valuation may be justified as WCP's earnings are expected to decrease with -7.45% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-20.79%
EPS Next 3Y-7.45%
5. Dividend
5.1 Amount
- WCP has a Yearly Dividend Yield of 6.31%, which is a nice return.
- Compared to an average industry Dividend Yield of 2.82, WCP pays a better dividend. On top of this WCP pays more dividend than 91.59% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.83, WCP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.31% |
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
- 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-20.79%
EPS Next 3Y-7.45%
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 -31.44% 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%.