AKITA DRILLING LTD-CL A (AKT-A.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:AKT-A - CA0099051009 - Common Stock
1.99 CAD
-0.06 (-2.93%)
We assign a fundamental rating of 4 out of 10 to AKT-A. AKT-A was compared to 27 industry peers in the Energy Equipment & Services industry. AKT-A has only an average score on both its financial health and profitability. AKT-A has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year AKT-A was profitable.
- AKT-A had a positive operating cash flow in the past year.
- The reported net income has been mixed in the past 5 years: AKT-A reported negative net income in multiple years.
- AKT-A had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- AKT-A has a Return On Assets of 8.50%. This is in the better half of the industry: AKT-A outperforms 74.07% of its industry peers.
- The Return On Equity of AKT-A (12.07%) is better than 74.07% of its industry peers.
- The Return On Invested Capital of AKT-A (4.30%) is worse than 70.37% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for AKT-A is significantly below the industry average of 177.00%.
- The 3 year average ROIC (2.35%) for AKT-A is below the current ROIC(4.30%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.5% | ||
| ROE | 12.07% | ||
| ROIC | 4.3% |
ROA(3y)4.46%
ROA(5y)-6.44%
ROE(3y)7.47%
ROE(5y)-10.96%
ROIC(3y)2.35%
ROIC(5y)N/A
1.3 Margins
- AKT-A's Profit Margin of 9.94% is amongst the best of the industry. AKT-A outperforms 85.19% of its industry peers.
- AKT-A has a Operating Margin of 6.34%. This is comparable to the rest of the industry: AKT-A outperforms 40.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.34% | ||
| PM (TTM) | 9.94% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- AKT-A has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for AKT-A remains at a similar level compared to 1 year ago.
- AKT-A has more shares outstanding than it did 5 years ago.
- AKT-A has a better debt/assets ratio than last year.
2.2 Solvency
- AKT-A has an Altman-Z score of 1.92. This is not the best score and indicates that AKT-A is in the grey zone with still only limited risk for bankruptcy at the moment.
- AKT-A's Altman-Z score of 1.92 is in line compared to the rest of the industry. AKT-A outperforms 51.85% of its industry peers.
- The Debt to FCF ratio of AKT-A is 7.17, which is on the high side as it means it would take AKT-A, 7.17 years of fcf income to pay off all of its debts.
- AKT-A has a Debt to FCF ratio of 7.17. This is comparable to the rest of the industry: AKT-A outperforms 51.85% of its industry peers.
- AKT-A has a Debt/Equity ratio of 0.22. This is a healthy value indicating a solid balance between debt and equity.
- AKT-A has a better Debt to Equity ratio (0.22) than 74.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 7.17 | ||
| Altman-Z | 1.92 |
ROIC/WACC0.54
WACC7.9%
2.3 Liquidity
- AKT-A has a Current Ratio of 2.11. This indicates that AKT-A is financially healthy and has no problem in meeting its short term obligations.
- With a decent Current ratio value of 2.11, AKT-A is doing good in the industry, outperforming 70.37% of the companies in the same industry.
- A Quick Ratio of 2.11 indicates that AKT-A has no problem at all paying its short term obligations.
- AKT-A has a Quick ratio of 2.11. This is in the better half of the industry: AKT-A outperforms 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.11 | ||
| Quick Ratio | 2.11 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 816.67% over the past year.
- Looking at the last year, AKT-A shows a very strong growth in Revenue. The Revenue has grown by 24.94%.
- The Revenue has been growing slightly by 1.91% on average over the past years.
EPS 1Y (TTM)816.67%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%33.33%
Revenue 1Y (TTM)24.94%
Revenue growth 3Y20.65%
Revenue growth 5Y1.91%
Sales Q2Q%-2.67%
3.2 Future
- Based on estimates for the next years, AKT-A will show a decrease in Earnings Per Share. The EPS will decrease by -9.18% on average per year.
- Based on estimates for the next years, AKT-A will show a small growth in Revenue. The Revenue will grow by 0.59% on average per year.
EPS Next Y-0.12%
EPS Next 2Y-17.13%
EPS Next 3Y-9.18%
EPS Next 5YN/A
Revenue Next Year-1.34%
Revenue Next 2Y0.22%
Revenue Next 3Y0.59%
Revenue Next 5YN/A
3.3 Evolution
- 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
- A Price/Earnings ratio of 3.62 indicates a rather cheap valuation of AKT-A.
- AKT-A's Price/Earnings ratio is rather cheap when compared to the industry. AKT-A is cheaper than 96.30% of the companies in the same industry.
- AKT-A is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 8.78, which indicates a very decent valuation of AKT-A.
- AKT-A's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. AKT-A is cheaper than 74.07% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.32. AKT-A is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.62 | ||
| Fwd PE | 8.78 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, AKT-A is valued cheaper than 96.30% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, AKT-A is valued a bit cheaper than 62.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.64 | ||
| EV/EBITDA | 2.59 |
4.3 Compensation for Growth
- AKT-A's earnings are expected to decrease with -9.18% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-17.13%
EPS Next 3Y-9.18%
5. Dividend
5.1 Amount
- AKT-A does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
AKITA DRILLING LTD-CL A / AKT-A.CA FAQ
Can you provide the ChartMill fundamental rating for AKITA DRILLING LTD-CL A?
ChartMill assigns a fundamental rating of 4 / 10 to AKT-A.CA.
What is the valuation status for AKT-A stock?
ChartMill assigns a valuation rating of 6 / 10 to AKITA DRILLING LTD-CL A (AKT-A.CA). This can be considered as Fairly Valued.
How profitable is AKITA DRILLING LTD-CL A (AKT-A.CA) stock?
AKITA DRILLING LTD-CL A (AKT-A.CA) has a profitability rating of 4 / 10.
What is the financial health of AKITA DRILLING LTD-CL A (AKT-A.CA) stock?
The financial health rating of AKITA DRILLING LTD-CL A (AKT-A.CA) is 5 / 10.
Is the dividend of AKITA DRILLING LTD-CL A sustainable?
The dividend rating of AKITA DRILLING LTD-CL A (AKT-A.CA) is 0 / 10 and the dividend payout ratio is 0%.