ALVOPETRO ENERGY LTD (ALV.CA) Stock Fundamental Analysis
Canada - TSX Venture Exchange - TSX-V:ALV - CA02255Q2099 - Common Stock
7.14 CAD
-0.01 (-0.14%)
ALV gets a fundamental rating of 9 out of 10. The analysis compared the fundamentals against 206 industry peers in the Oil, Gas & Consumable Fuels industry. ALV gets an excellent profitability rating and is at the same time showing great financial health properties. ALV is evaluated to be cheap and growing strongly. This does not happen too often! These ratings would make ALV suitable for value and growth and quality investing!
1. Profitability
1.1 Basic Checks
- ALV had positive earnings in the past year.
- In the past year ALV had a positive cash flow from operations.
- Each year in the past 5 years ALV has been profitable.
- Each year in the past 5 years ALV had a positive operating cash flow.
1.2 Ratios
- ALV has a Return On Assets of 16.43%. This is amongst the best in the industry. ALV outperforms 96.12% of its industry peers.
- ALV has a Return On Equity of 20.46%. This is amongst the best in the industry. ALV outperforms 96.60% of its industry peers.
- The Return On Invested Capital of ALV (22.13%) is better than 98.54% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for ALV is significantly above the industry average of 6.62%.
- The last Return On Invested Capital (22.13%) for ALV is well below the 3 year average (35.60%), which needs to be investigated, but indicates that ALV had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.43% | ||
| ROE | 20.46% | ||
| ROIC | 22.13% |
ROA(3y)24.78%
ROA(5y)18.79%
ROE(3y)31.47%
ROE(5y)24.7%
ROIC(3y)35.6%
ROIC(5y)26.7%
1.3 Margins
- Looking at the Profit Margin, with a value of 38.83%, ALV belongs to the top of the industry, outperforming 97.09% of the companies in the same industry.
- ALV's Profit Margin has improved in the last couple of years.
- ALV has a Operating Margin of 52.53%. This is amongst the best in the industry. ALV outperforms 98.54% of its industry peers.
- In the last couple of years the Operating Margin of ALV has grown nicely.
- The Gross Margin of ALV (90.70%) is better than 98.54% of its industry peers.
- ALV's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 52.53% | ||
| PM (TTM) | 38.83% | ||
| GM | 90.7% |
OM growth 3Y3.79%
OM growth 5YN/A
PM growth 3Y27.83%
PM growth 5YN/A
GM growth 3Y0.17%
GM growth 5Y24.02%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ALV is creating value.
- ALV has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, ALV has more shares outstanding
- The debt/assets ratio for ALV has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 6.49 indicates that ALV is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 6.49, ALV belongs to the best of the industry, outperforming 86.41% of the companies in the same industry.
- ALV has a debt to FCF ratio of 1.38. This is a very positive value and a sign of high solvency as it would only need 1.38 years to pay back of all of its debts.
- ALV has a Debt to FCF ratio of 1.38. This is amongst the best in the industry. ALV outperforms 89.32% of its industry peers.
- ALV has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of ALV (0.06) is better than 74.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 1.38 | ||
| Altman-Z | 6.49 |
ROIC/WACC2.8
WACC7.91%
2.3 Liquidity
- ALV has a Current Ratio of 1.13. This is a normal value and indicates that ALV is financially healthy and should not expect problems in meeting its short term obligations.
- With a decent Current ratio value of 1.13, ALV is doing good in the industry, outperforming 65.05% of the companies in the same industry.
- ALV has a Quick Ratio of 1.13. This is a normal value and indicates that ALV is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 1.13, ALV is in the better half of the industry, outperforming 66.99% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
- ALV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 33.33%, which is quite impressive.
- Measured over the past years, ALV shows a very strong growth in Earnings Per Share. The EPS has been growing by 36.25% on average per year.
- Looking at the last year, ALV shows a decrease in Revenue. The Revenue has decreased by -0.14% in the last year.
- Measured over the past years, ALV shows a very strong growth in Revenue. The Revenue has been growing by 158.24% on average per year.
EPS 1Y (TTM)33.33%
EPS 3Y36.25%
EPS 5YN/A
EPS Q2Q%-36.84%
Revenue 1Y (TTM)-0.14%
Revenue growth 3Y11.72%
Revenue growth 5Y158.24%
Sales Q2Q%8.41%
3.2 Future
- The Earnings Per Share is expected to grow by 46.42% on average over the next years. This is a very strong growth
- The Revenue is expected to grow by 13.62% on average over the next years. This is quite good.
EPS Next Y43.72%
EPS Next 2Y46.42%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year16.29%
Revenue Next 2Y19.69%
Revenue Next 3Y11.39%
Revenue Next 5Y13.62%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 9.92, which indicates a very decent valuation of ALV.
- 74.76% of the companies in the same industry are more expensive than ALV, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of ALV to the average of the S&P500 Index (27.25), we can say ALV is valued rather cheaply.
- ALV is valuated cheaply with a Price/Forward Earnings ratio of 5.63.
- 93.69% of the companies in the same industry are more expensive than ALV, based on the Price/Forward Earnings ratio.
- ALV's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.92 | ||
| Fwd PE | 5.63 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ALV is valued cheaply inside the industry as 88.83% of the companies are valued more expensively.
- 62.14% of the companies in the same industry are more expensive than ALV, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.19 | ||
| EV/EBITDA | 4.85 |
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.
- The excellent profitability rating of ALV may justify a higher PE ratio.
- ALV's earnings are expected to grow with 46.42% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.23
PEG (5Y)N/A
EPS Next 2Y46.42%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 7.24%, ALV is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 3.29, ALV pays a better dividend. On top of this ALV pays more dividend than 94.66% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, ALV pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.24% |
5.2 History
- ALV has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 70.26% of the earnings are spent on dividend by ALV. This is not a sustainable payout ratio.
DP70.26%
EPS Next 2Y46.42%
EPS Next 3YN/A
ALVOPETRO ENERGY LTD / ALV.CA FAQ
Can you provide the ChartMill fundamental rating for ALVOPETRO ENERGY LTD?
ChartMill assigns a fundamental rating of 9 / 10 to ALV.CA.
Can you provide the valuation status for ALVOPETRO ENERGY LTD?
ChartMill assigns a valuation rating of 9 / 10 to ALVOPETRO ENERGY LTD (ALV.CA). This can be considered as Undervalued.
Can you provide the profitability details for ALVOPETRO ENERGY LTD?
ALVOPETRO ENERGY LTD (ALV.CA) has a profitability rating of 10 / 10.
Can you provide the expected EPS growth for ALV stock?
The Earnings per Share (EPS) of ALVOPETRO ENERGY LTD (ALV.CA) is expected to grow by 43.72% in the next year.
How sustainable is the dividend of ALVOPETRO ENERGY LTD (ALV.CA) stock?
The dividend rating of ALVOPETRO ENERGY LTD (ALV.CA) is 5 / 10 and the dividend payout ratio is 70.26%.