Advantage Energy Ltd (AAV-DB.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:AAV-DB -
108.56 CAD
+0.56 (+0.52%)
Taking everything into account, AAV-DB scores 4 out of 10 in our fundamental rating. AAV-DB was compared to 206 industry peers in the Oil, Gas & Consumable Fuels industry. AAV-DB has a medium profitability rating, but doesn't score so well on its financial health evaluation. While showing a medium growth rate, AAV-DB is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- In the past year AAV-DB was profitable.
- In the past year AAV-DB had a positive cash flow from operations.
- AAV-DB had positive earnings in 4 of the past 5 years.
- Each year in the past 5 years AAV-DB had a positive operating cash flow.
1.2 Ratios
- AAV-DB has a Return On Assets (2.00%) which is comparable to the rest of the industry.
- AAV-DB has a Return On Equity (3.60%) which is in line with its industry peers.
- AAV-DB's Return On Invested Capital of 2.04% is in line compared to the rest of the industry. AAV-DB outperforms 53.74% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for AAV-DB is in line with the industry average of 6.62%.
- The 3 year average ROIC (7.48%) for AAV-DB is well above the current ROIC(2.04%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2% | ||
| ROE | 3.6% | ||
| ROIC | 2.04% |
ROA(3y)6.81%
ROA(5y)4.51%
ROE(3y)9.84%
ROE(5y)6.09%
ROIC(3y)7.48%
ROIC(5y)6.12%
1.3 Margins
- AAV-DB's Profit Margin of 9.69% is fine compared to the rest of the industry. AAV-DB outperforms 73.36% of its industry peers.
- In the last couple of years the Profit Margin of AAV-DB has declined.
- AAV-DB has a better Operating Margin (14.01%) than 61.68% of its industry peers.
- AAV-DB's Operating Margin has declined in the last couple of years.
- AAV-DB has a better Gross Margin (75.99%) than 92.52% of its industry peers.
- AAV-DB's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.01% | ||
| PM (TTM) | 9.69% | ||
| GM | 75.99% |
OM growth 3Y-49.16%
OM growth 5Y-4.25%
PM growth 3Y-63.34%
PM growth 5YN/A
GM growth 3Y-6.26%
GM growth 5Y-2.88%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AAV-DB is destroying value.
- Compared to 1 year ago, AAV-DB has more shares outstanding
- The number of shares outstanding for AAV-DB has been reduced compared to 5 years ago.
- AAV-DB has a worse debt/assets ratio than last year.
2.2 Solvency
- AAV-DB has an Altman-Z score of 8.05. This indicates that AAV-DB is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of AAV-DB (8.05) is better than 88.32% of its industry peers.
- A Debt/Equity ratio of 0.49 indicates that AAV-DB is not too dependend on debt financing.
- The Debt to Equity ratio of AAV-DB (0.49) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 8.05 |
ROIC/WACC0.26
WACC7.94%
2.3 Liquidity
- A Current Ratio of 0.40 indicates that AAV-DB may have some problems paying its short term obligations.
- The Current ratio of AAV-DB (0.40) is worse than 74.77% of its industry peers.
- AAV-DB has a Quick Ratio of 0.40. This is a bad value and indicates that AAV-DB is not financially healthy enough and could expect problems in meeting its short term obligations.
- AAV-DB's Quick ratio of 0.40 is on the low side compared to the rest of the industry. AAV-DB is outperformed by 72.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.4 | ||
| Quick Ratio | 0.4 |
3. Growth
3.1 Past
- AAV-DB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.68%, which is quite good.
- AAV-DB shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -60.25% yearly.
- Looking at the last year, AAV-DB shows a very strong growth in Revenue. The Revenue has grown by 27.84%.
- AAV-DB shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.00% yearly.
EPS 1Y (TTM)9.68%
EPS 3Y-60.25%
EPS 5YN/A
EPS Q2Q%100%
Revenue 1Y (TTM)27.84%
Revenue growth 3Y2.32%
Revenue growth 5Y15%
Sales Q2Q%-0.84%
3.2 Future
- Based on estimates for the next years, AAV-DB will show a very strong growth in Earnings Per Share. The EPS will grow by 109.06% on average per year.
- Based on estimates for the next years, AAV-DB will show a small growth in Revenue. The Revenue will grow by 6.28% on average per year.
EPS Next Y267.1%
EPS Next 2Y200.64%
EPS Next 3Y124.43%
EPS Next 5Y109.06%
Revenue Next Year22.11%
Revenue Next 2Y29.54%
Revenue Next 3Y20.88%
Revenue Next 5Y6.28%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 319.29, the valuation of AAV-DB can be described as expensive.
- AAV-DB's Price/Earnings is on the same level as the industry average.
- AAV-DB's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.60.
- The Price/Forward Earnings ratio is 92.39, which means the current valuation is very expensive for AAV-DB.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of AAV-DB is on the same level as its industry peers.
- AAV-DB's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 319.29 | ||
| Fwd PE | 92.39 |
4.2 Price Multiples
- AAV-DB's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 59.87 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- A more expensive valuation may be justified as AAV-DB's earnings are expected to grow with 124.43% in the coming years.
PEG (NY)1.2
PEG (5Y)N/A
EPS Next 2Y200.64%
EPS Next 3Y124.43%
5. Dividend
5.1 Amount
- No dividends for AAV-DB!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Advantage Energy Ltd / AAV-DB.CA FAQ
What is the fundamental rating for AAV-DB stock?
ChartMill assigns a fundamental rating of 4 / 10 to AAV-DB.CA.
What is the valuation status for AAV-DB stock?
ChartMill assigns a valuation rating of 2 / 10 to Advantage Energy Ltd (AAV-DB.CA). This can be considered as Overvalued.
What is the profitability of AAV-DB stock?
Advantage Energy Ltd (AAV-DB.CA) has a profitability rating of 5 / 10.
How financially healthy is Advantage Energy Ltd?
The financial health rating of Advantage Energy Ltd (AAV-DB.CA) is 3 / 10.
What is the earnings growth outlook for Advantage Energy Ltd?
The Earnings per Share (EPS) of Advantage Energy Ltd (AAV-DB.CA) is expected to grow by 267.1% in the next year.