WHITECAP RESOURCES INC (WCP.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:WCP - CA96467A2002 - Common Stock
12 CAD
+0.1 (+0.84%)
Overall WCP gets a fundamental rating of 6 out of 10. We evaluated WCP against 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 has a decent growth rate and is not valued too expensively. 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.
- WCP had a positive operating cash flow in each of the past 5 years.
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.
- WCP's Return On Equity of 8.35% is fine compared to the rest of the industry. WCP outperforms 64.49% of its industry peers.
- With a decent Return On Invested Capital value of 4.76%, WCP is doing good in the industry, outperforming 74.77% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years 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 Profit Margin of 20.18%. This is amongst the best in the industry. WCP outperforms 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 79.91% of its industry peers.
- 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
- 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.
- The number of shares outstanding for WCP has been increased compared to 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.
- The Debt to FCF ratio of WCP is 5.43, which is a neutral value as it means it would take WCP, 5.43 years of fcf income to pay off all of its debts.
- WCP's Debt to FCF ratio of 5.43 is fine compared to the rest of the industry. WCP outperforms 76.17% of its industry peers.
- A Debt/Equity ratio of 0.32 indicates that WCP is not too dependend on debt financing.
- WCP has a Debt to Equity ratio of 0.32. This is comparable to the rest of the industry: WCP outperforms 59.35% of its industry peers.
| 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 comparable to the rest of the industry.
- A Quick Ratio of 0.73 indicates that WCP may have some problems paying its short term obligations.
- WCP has a Quick ratio of 0.73. This is comparable 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
- WCP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -19.86%.
- 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
- 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
- The Price/Earnings ratio is 10.26, which indicates a very decent valuation of WCP.
- WCP's Price/Earnings ratio is a bit cheaper when compared to the industry. WCP is cheaper than 73.83% 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.
- The Price/Forward Earnings ratio is 15.12, which indicates a correct valuation of WCP.
- 65.42% of the companies in the same industry are more expensive than WCP, based on the Price/Forward Earnings ratio.
- 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
- 78.50% of the companies in the same industry are more expensive than WCP, based on the Enterprise Value to EBITDA ratio.
- 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
- 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 92.52% 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 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.
- The Dividend Rate of WCP has been growing, while earnings will be declining. 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%.