EXCO TECHNOLOGIES LTD (XTC.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:XTC - CA30150P1099 - Common Stock
6.81 CAD
-0.05 (-0.73%)
XTC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 5 industry peers in the Automobile Components industry. Both the profitability and the financial health of XTC get a neutral evaluation. Nothing too spectacular is happening here. XTC has a correct valuation and a medium growth rate. XTC also has an excellent dividend rating. With these ratings, XTC could be worth investigating further for dividend investing!.
1. Profitability
1.1 Basic Checks
- XTC had positive earnings in the past year.
- In the past year XTC had a positive cash flow from operations.
- Each year in the past 5 years XTC has been profitable.
- Each year in the past 5 years XTC had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of XTC (3.95%) is better than 80.00% of its industry peers.
- XTC has a Return On Equity of 5.96%. This is in the better half of the industry: XTC outperforms 80.00% of its industry peers.
- XTC has a worse Return On Invested Capital (5.19%) than 60.00% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for XTC is in line with the industry average of 6.17%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.95% | ||
| ROE | 5.96% | ||
| ROIC | 5.19% |
ROA(3y)4.38%
ROA(5y)5.07%
ROE(3y)6.94%
ROE(5y)7.48%
ROIC(3y)6.43%
ROIC(5y)6.91%
1.3 Margins
- Looking at the Profit Margin, with a value of 3.95%, XTC is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
- In the last couple of years the Profit Margin of XTC has declined.
- The Operating Margin of XTC (5.50%) is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of XTC has declined.
- With a decent Gross Margin value of 20.00%, XTC is doing good in the industry, outperforming 80.00% of the companies in the same industry.
- XTC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.5% | ||
| PM (TTM) | 3.95% | ||
| GM | 20% |
OM growth 3Y-0.65%
OM growth 5Y-1.76%
PM growth 3Y0.6%
PM growth 5Y-9.89%
GM growth 3Y0.24%
GM growth 5Y-1.4%
2. Health
2.1 Basic Checks
- XTC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, XTC has less shares outstanding
- Compared to 5 years ago, XTC has less shares outstanding
- The debt/assets ratio for XTC has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.96 indicates that XTC is not a great score, but indicates only limited risk for bankruptcy at the moment.
- XTC has a better Altman-Z score (2.96) than 80.00% of its industry peers.
- XTC has a debt to FCF ratio of 3.27. This is a good value and a sign of high solvency as XTC would need 3.27 years to pay back of all of its debts.
- XTC's Debt to FCF ratio of 3.27 is on the low side compared to the rest of the industry. XTC is outperformed by 60.00% of its industry peers.
- A Debt/Equity ratio of 0.24 indicates that XTC is not too dependend on debt financing.
- The Debt to Equity ratio of XTC (0.24) is better than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 3.27 | ||
| Altman-Z | 2.96 |
ROIC/WACC0.66
WACC7.85%
2.3 Liquidity
- XTC has a Current Ratio of 2.70. This indicates that XTC is financially healthy and has no problem in meeting its short term obligations.
- XTC has a better Current ratio (2.70) than 80.00% of its industry peers.
- A Quick Ratio of 1.58 indicates that XTC should not have too much problems paying its short term obligations.
- XTC has a Quick ratio of 1.58. This is in the better half of the industry: XTC outperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.7 | ||
| Quick Ratio | 1.58 |
3. Growth
3.1 Past
- The earnings per share for XTC have decreased strongly by -16.88% in the last year.
- The Earnings Per Share has been decreasing by -1.49% on average over the past years.
- XTC shows a decrease in Revenue. In the last year, the revenue decreased by -3.53%.
- The Revenue has been growing by 8.34% on average over the past years. This is quite good.
EPS 1Y (TTM)-16.88%
EPS 3Y10.06%
EPS 5Y-1.49%
EPS Q2Q%10%
Revenue 1Y (TTM)-3.53%
Revenue growth 3Y7.89%
Revenue growth 5Y8.34%
Sales Q2Q%-3.06%
3.2 Future
- XTC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 38.76% yearly.
- XTC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.19% yearly.
EPS Next Y42.03%
EPS Next 2Y38.76%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.18%
Revenue Next 2Y5.19%
Revenue Next 3YN/A
Revenue Next 5YN/A
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 10.64, the valuation of XTC can be described as reasonable.
- Based on the Price/Earnings ratio, XTC is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
- XTC is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 7.49, the valuation of XTC can be described as very cheap.
- XTC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. XTC is cheaper than 80.00% of the companies in the same industry.
- XTC is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.64 | ||
| Fwd PE | 7.49 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, XTC is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
- Based on the Price/Free Cash Flow ratio, XTC is valued a bit more expensive than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.7 | ||
| EV/EBITDA | 4.81 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- A more expensive valuation may be justified as XTC's earnings are expected to grow with 38.76% in the coming years.
PEG (NY)0.25
PEG (5Y)N/A
EPS Next 2Y38.76%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 6.18%, XTC is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 2.62, XTC pays a better dividend. On top of this XTC pays more dividend than 100.00% of the companies listed in the same industry.
- XTC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.18% |
5.2 History
- The dividend of XTC has a limited annual growth rate of 2.32%.
- XTC has been paying a dividend for at least 10 years, so it has a reliable track record.
- XTC has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)2.32%
Div Incr Years0
Div Non Decr Years21
5.3 Sustainability
- XTC pays out 66.23% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of XTC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP66.23%
EPS Next 2Y38.76%
EPS Next 3YN/A
EXCO TECHNOLOGIES LTD / XTC.CA FAQ
What is the ChartMill fundamental rating of EXCO TECHNOLOGIES LTD (XTC.CA) stock?
ChartMill assigns a fundamental rating of 5 / 10 to XTC.CA.
What is the valuation status of EXCO TECHNOLOGIES LTD (XTC.CA) stock?
ChartMill assigns a valuation rating of 5 / 10 to EXCO TECHNOLOGIES LTD (XTC.CA). This can be considered as Fairly Valued.
How profitable is EXCO TECHNOLOGIES LTD (XTC.CA) stock?
EXCO TECHNOLOGIES LTD (XTC.CA) has a profitability rating of 5 / 10.
Can you provide the financial health for XTC stock?
The financial health rating of EXCO TECHNOLOGIES LTD (XTC.CA) is 6 / 10.
How sustainable is the dividend of EXCO TECHNOLOGIES LTD (XTC.CA) stock?
The dividend rating of EXCO TECHNOLOGIES LTD (XTC.CA) is 8 / 10 and the dividend payout ratio is 66.23%.