BIRCHCLIFF ENERGY LTD (BIR.CA) Stock Fundamental Analysis
TSX:BIR - Toronto Stock Exchange - CA0906971035 - Common Stock - Currency: CAD
BIR gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 221 industry peers in the Oil, Gas & Consumable Fuels industry. There are concerns on the financial health of BIR while its profitability can be described as average. BIR has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year BIR was profitable.
BIR had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: BIR reported negative net income in multiple years.
Of the past 5 years BIR 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of BIR (0.46%) is comparable to the rest of the industry.
With a Return On Equity value of 0.70%, BIR perfoms like the industry average, outperforming 46.86% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 0.48%, BIR is in line with its industry, outperforming 45.41% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for BIR is in line with the industry average of 7.73%.
The last Return On Invested Capital (0.48%) for BIR is well below the 3 year average (8.92%), which needs to be investigated, but indicates that BIR had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.46% | ||
| ROE | 0.7% | ||
| ROIC | 0.48% |
ROA(3y)10.47%
ROA(5y)5.43%
ROE(3y)14.58%
ROE(5y)7.28%
ROIC(3y)8.92%
ROIC(5y)6.21%
1.3 Margins
The Profit Margin of BIR (2.50%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of BIR has declined.
BIR has a Operating Margin (3.68%) which is in line with its industry peers.
In the last couple of years the Operating Margin of BIR has declined.
Looking at the Gross Margin, with a value of 84.24%, BIR belongs to the top of the industry, outperforming 95.65% of the companies in the same industry.
BIR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.68% | ||
| PM (TTM) | 2.5% | ||
| GM | 84.24% |
OM growth 3Y24.41%
OM growth 5Y-6.26%
PM growth 3YN/A
PM growth 5Y-39.19%
GM growth 3Y0.25%
GM growth 5Y0.45%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BIR is still creating some value.
There is no outstanding debt for BIR. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
BIR has an Altman-Z score of 1.28. This is a bad value and indicates that BIR is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of BIR (1.28) is better than 62.32% of its industry peers.
BIR has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of BIR (0.27) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.28 |
ROIC/WACC0.06
WACC7.43%
2.3 Liquidity
BIR has a Current Ratio of 1.01. This is a normal value and indicates that BIR is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.01, BIR is in line with its industry, outperforming 54.11% of the companies in the same industry.
A Quick Ratio of 1.01 indicates that BIR should not have too much problems paying its short term obligations.
BIR has a Quick ratio of 1.01. This is comparable to the rest of the industry: BIR outperforms 59.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 396.93% over the past year.
Measured over the past years, BIR shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -44.13% on average per year.
EPS 1Y (TTM)396.93%
EPS 3Y-44.13%
EPS 5YN/A
EPS Q2Q%743.86%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-14.22%
3.2 Future
Based on estimates for the next years, BIR will show a very strong growth in Earnings Per Share. The EPS will grow by 37.33% on average per year.
The Revenue is expected to decrease by -57.08% on average over the next years. This is quite bad
EPS Next Y164.22%
EPS Next 2Y107.21%
EPS Next 3Y67.68%
EPS Next 5Y37.33%
Revenue Next Year16.78%
Revenue Next 2Y-57.08%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 28.95, the valuation of BIR can be described as expensive.
BIR's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 30.19. BIR is around the same levels.
The Price/Forward Earnings ratio is 11.02, which indicates a very decent valuation of BIR.
BIR's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.58. BIR is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.95 | ||
| Fwd PE | 11.02 |
4.2 Price Multiples
BIR's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. BIR is cheaper than 63.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.23 |
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.
BIR's earnings are expected to grow with 67.68% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.18
PEG (5Y)N/A
EPS Next 2Y107.21%
EPS Next 3Y67.68%
5. Dividend
5.1 Amount
BIR has a Yearly Dividend Yield of 2.03%.
Compared to an average industry Dividend Yield of 6.30, BIR has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.30, BIR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.03% |
5.2 History
On average, the dividend of BIR grows each year by 44.06%, which is quite nice.
BIR has been paying a dividend for over 5 years, so it has already some track record.
BIR has decreased its dividend in the last 3 years.
Dividend Growth(5Y)44.06%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
873.24% of the earnings are spent on dividend by BIR. This is not a sustainable payout ratio.
The dividend of BIR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP873.24%
EPS Next 2Y107.21%
EPS Next 3Y67.68%
BIRCHCLIFF ENERGY LTD
TSX:BIR (2/14/2025, 7:00:00 PM)
5.79
-0.11 (-1.86%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners16.58%
Inst Owner ChangeN/A
Ins Owners0.71%
Ins Owner ChangeN/A
Market Cap1.57B
Analysts73.33
Price Target7.19 (24.18%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.03% |
Yearly Dividend0.8
Dividend Growth(5Y)44.06%
DP873.24%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)314.52%
Min EPS beat(2)-32.01%
Max EPS beat(2)661.06%
EPS beat(4)1
Avg EPS beat(4)-145.96%
Min EPS beat(4)-1088.12%
Max EPS beat(4)661.06%
EPS beat(8)2
Avg EPS beat(8)-29.37%
EPS beat(12)5
Avg EPS beat(12)-9.32%
EPS beat(16)8
Avg EPS beat(16)12.66%
Revenue beat(2)0
Avg Revenue beat(2)-10.68%
Min Revenue beat(2)-20.63%
Max Revenue beat(2)-0.74%
Revenue beat(4)0
Avg Revenue beat(4)-7.88%
Min Revenue beat(4)-20.63%
Max Revenue beat(4)-0.23%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)9.8%
PT rev (3m)6.01%
EPS NQ rev (1m)-66.67%
EPS NQ rev (3m)-66.67%
EPS NY rev (1m)-13.64%
EPS NY rev (3m)-9.52%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-9.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.95 | ||
| Fwd PE | 11.02 | ||
| P/S | 2.56 | ||
| P/FCF | N/A | ||
| P/OCF | 6.63 | ||
| P/B | 0.72 | ||
| P/tB | 0.72 | ||
| EV/EBITDA | 8.23 |
EPS(TTM)0.2
EY3.45%
EPS(NY)0.53
Fwd EY9.07%
FCF(TTM)-0.13
FCFYN/A
OCF(TTM)0.87
OCFY15.08%
SpS2.26
BVpS8.03
TBVpS8.03
PEG (NY)0.18
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.46% | ||
| ROE | 0.7% | ||
| ROCE | 0.7% | ||
| ROIC | 0.48% | ||
| ROICexc | 0.48% | ||
| ROICexgc | 0.48% | ||
| OM | 3.68% | ||
| PM (TTM) | 2.5% | ||
| GM | 84.24% | ||
| FCFM | N/A |
ROA(3y)10.47%
ROA(5y)5.43%
ROE(3y)14.58%
ROE(5y)7.28%
ROIC(3y)8.92%
ROIC(5y)6.21%
ROICexc(3y)8.92%
ROICexc(5y)6.21%
ROICexgc(3y)8.92%
ROICexgc(5y)6.21%
ROCE(3y)12.93%
ROCE(5y)9%
ROICexcg growth 3Y32.06%
ROICexcg growth 5Y-5.31%
ROICexc growth 3Y32.06%
ROICexc growth 5Y-5.31%
OM growth 3Y24.41%
OM growth 5Y-6.26%
PM growth 3YN/A
PM growth 5Y-39.19%
GM growth 3Y0.25%
GM growth 5Y0.45%
F-Score4
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.23 | ||
| Cap/Depr | 112.73% | ||
| Cap/Sales | 44.38% | ||
| Interest Coverage | 2.24 | ||
| Cash Conversion | 89.56% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.01 | ||
| Quick Ratio | 1.01 | ||
| Altman-Z | 1.28 |
F-Score4
WACC7.43%
ROIC/WACC0.06
Cap/Depr(3y)137.78%
Cap/Depr(5y)137.69%
Cap/Sales(3y)33.4%
Cap/Sales(5y)40.87%
Profit Quality(3y)113.34%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)396.93%
EPS 3Y-44.13%
EPS 5YN/A
EPS Q2Q%743.86%
EPS Next Y164.22%
EPS Next 2Y107.21%
EPS Next 3Y67.68%
EPS Next 5Y37.33%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-14.22%
Revenue Next Year16.78%
Revenue Next 2Y-57.08%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-90.46%
EBIT growth 3Y37.06%
EBIT growth 5Y-2.78%
EBIT Next Year359.23%
EBIT Next 3Y106.1%
EBIT Next 5Y58.87%
FCF growth 1Y-105.92%
FCF growth 3YN/A
FCF growth 5Y-5.51%
OCF growth 1Y-73.57%
OCF growth 3Y19.42%
OCF growth 5Y-0.24%