BIRCHCLIFF ENERGY LTD (BIR.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:BIR - CA0906971035 - Common Stock
7.3 CAD
+0.18 (+2.53%)
We assign a fundamental rating of 4 out of 10 to BIR. BIR was compared to 214 industry peers in the Oil, Gas & Consumable Fuels industry. BIR has an average financial health and profitability rating. BIR has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year BIR was profitable.
- BIR had a positive operating cash flow in the past year.
- Of the past 5 years BIR 4 years were profitable.
- BIR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 2.13%, BIR is in line with its industry, outperforming 57.94% of the companies in the same industry.
- With a Return On Equity value of 3.29%, BIR perfoms like the industry average, outperforming 57.01% of the companies in the same industry.
- BIR has a Return On Invested Capital (1.67%) which is comparable to the rest of the industry.
- Measured over the past 3 years, the Average Return On Invested Capital for BIR is in line with the industry average of 6.53%.
- The last Return On Invested Capital (1.67%) for BIR is well below the 3 year average (5.95%), which needs to be investigated, but indicates that BIR had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.13% | ||
| ROE | 3.29% | ||
| ROIC | 1.67% |
ROA(3y)7.52%
ROA(5y)6.18%
ROE(3y)10.03%
ROE(5y)8.49%
ROIC(3y)5.95%
ROIC(5y)5.58%
1.3 Margins
- Looking at the Profit Margin, with a value of 10.94%, BIR is in the better half of the industry, outperforming 75.23% of the companies in the same industry.
- In the last couple of years the Profit Margin of BIR has declined.
- BIR's Operating Margin of 12.24% is in line compared to the rest of the industry. BIR outperforms 59.81% of its industry peers.
- BIR's Operating Margin has declined in the last couple of years.
- BIR's Gross Margin of 87.60% is amongst the best of the industry. BIR outperforms 97.66% of its industry peers.
- In the last couple of years the Gross Margin of BIR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.24% | ||
| PM (TTM) | 10.94% | ||
| GM | 87.6% |
OM growth 3Y-64.36%
OM growth 5Y-37.58%
PM growth 3Y-35.89%
PM growth 5YN/A
GM growth 3Y-1.77%
GM growth 5Y-0.14%
2. Health
2.1 Basic Checks
- BIR 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 BIR has been increased compared to 1 year ago.
- Compared to 5 years ago, BIR has more shares outstanding
- The debt/assets ratio for BIR is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.51, we must say that BIR is in the distress zone and has some risk of bankruptcy.
- BIR has a better Altman-Z score (1.51) than 64.95% of its industry peers.
- BIR has a debt to FCF ratio of 14.22. This is a negative value and a sign of low solvency as BIR would need 14.22 years to pay back of all of its debts.
- BIR's Debt to FCF ratio of 14.22 is fine compared to the rest of the industry. BIR outperforms 72.43% of its industry peers.
- BIR has a Debt/Equity ratio of 0.28. This is a healthy value indicating a solid balance between debt and equity.
- BIR's Debt to Equity ratio of 0.28 is fine compared to the rest of the industry. BIR outperforms 62.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 14.22 | ||
| Altman-Z | 1.51 |
ROIC/WACC0.25
WACC6.63%
2.3 Liquidity
- A Current Ratio of 1.23 indicates that BIR should not have too much problems paying its short term obligations.
- The Current ratio of BIR (1.23) is better than 69.63% of its industry peers.
- BIR has a Quick Ratio of 1.23. This is a normal value and indicates that BIR is financially healthy and should not expect problems in meeting its short term obligations.
- BIR's Quick ratio of 1.23 is fine compared to the rest of the industry. BIR outperforms 72.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 417.79% over the past year.
- The earnings per share for BIR have been decreasing by -44.02% on average. This is quite bad
- The Revenue has grown by 8.36% in the past year. This is quite good.
- BIR shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.16% yearly.
EPS 1Y (TTM)417.79%
EPS 3Y-44.02%
EPS 5YN/A
EPS Q2Q%-40.09%
Revenue 1Y (TTM)8.36%
Revenue growth 3Y-11.82%
Revenue growth 5Y-0.16%
Sales Q2Q%18.9%
3.2 Future
- BIR is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 27.68% yearly.
- The Revenue is expected to decrease by -51.05% on average over the next years. This is quite bad
EPS Next Y32.98%
EPS Next 2Y100.16%
EPS Next 3Y51.36%
EPS Next 5Y27.68%
Revenue Next Year102.64%
Revenue Next 2Y54.89%
Revenue Next 3Y-51.05%
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.
- 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
- With a Price/Earnings ratio of 28.08, BIR can be considered very expensive at the moment.
- 60.75% of the companies in the same industry are more expensive than BIR, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, BIR is valued at the same level.
- BIR is valuated reasonably with a Price/Forward Earnings ratio of 9.11.
- 74.77% of the companies in the same industry are more expensive than BIR, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of BIR to the average of the S&P500 Index (24.26), we can say BIR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.08 | ||
| Fwd PE | 9.11 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, BIR is valued a bit cheaper than 75.23% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of BIR is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.62 | ||
| EV/EBITDA | 7.61 |
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 51.36% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.85
PEG (5Y)N/A
EPS Next 2Y100.16%
EPS Next 3Y51.36%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.76%, BIR has a reasonable but not impressive dividend return.
- BIR's Dividend Yield is a higher than the industry average which is at 2.82.
- BIR's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
5.2 History
- On average, the dividend of BIR grows each year by 24.50%, which is quite nice.
- BIR has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)24.5%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 70.83% of the earnings are spent on dividend by BIR. This is not a sustainable payout ratio.
- BIR's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP70.83%
EPS Next 2Y100.16%
EPS Next 3Y51.36%
BIRCHCLIFF ENERGY LTD / BIR.CA FAQ
Can you provide the ChartMill fundamental rating for BIRCHCLIFF ENERGY LTD?
ChartMill assigns a fundamental rating of 4 / 10 to BIR.CA.
What is the valuation status for BIR stock?
ChartMill assigns a valuation rating of 5 / 10 to BIRCHCLIFF ENERGY LTD (BIR.CA). This can be considered as Fairly Valued.
What is the profitability of BIR stock?
BIRCHCLIFF ENERGY LTD (BIR.CA) has a profitability rating of 5 / 10.
How financially healthy is BIRCHCLIFF ENERGY LTD?
The financial health rating of BIRCHCLIFF ENERGY LTD (BIR.CA) is 4 / 10.
Can you provide the expected EPS growth for BIR stock?
The Earnings per Share (EPS) of BIRCHCLIFF ENERGY LTD (BIR.CA) is expected to grow by 32.98% in the next year.