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BIRCHCLIFF ENERGY LTD (BIR.CA) Stock Fundamental Analysis

TSX:BIR - Toronto Stock Exchange - CA0906971035 - Common Stock - Currency: CAD

7.41  +0.04 (+0.54%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to BIR. BIR was compared to 209 industry peers in the Oil, Gas & Consumable Fuels industry. While BIR is still in line with the averages on profitability rating, there are concerns on its financial health. BIR has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

BIR had positive earnings in the past year.
In the past year BIR had a positive cash flow from operations.
Of the past 5 years BIR 4 years were profitable.
Each year in the past 5 years BIR had a positive operating cash flow.
BIR.CA Yearly Net Income VS EBIT VS OCF VS FCFBIR.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M -500M

1.2 Ratios

BIR's Return On Assets of 3.89% is fine compared to the rest of the industry. BIR outperforms 75.12% of its industry peers.
With a Return On Equity value of 6.07%, BIR perfoms like the industry average, outperforming 59.81% of the companies in the same industry.
With a Return On Invested Capital value of 0.85%, BIR perfoms like the industry average, outperforming 47.37% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BIR is in line with the industry average of 7.47%.
The last Return On Invested Capital (0.85%) 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 RankSector Rank
ROA 3.89%
ROE 6.07%
ROIC 0.85%
ROA(3y)7.52%
ROA(5y)6.18%
ROE(3y)10.03%
ROE(5y)8.49%
ROIC(3y)5.95%
ROIC(5y)5.59%
BIR.CA Yearly ROA, ROE, ROICBIR.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 20

1.3 Margins

BIR has a better Profit Margin (21.39%) than 79.43% of its industry peers.
BIR's Profit Margin has declined in the last couple of years.
BIR has a Operating Margin of 6.58%. This is comparable to the rest of the industry: BIR outperforms 50.24% of its industry peers.
In the last couple of years the Operating Margin of BIR has declined.
The Gross Margin of BIR (86.62%) is better than 96.65% 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 RankSector Rank
OM 6.58%
PM (TTM) 21.39%
GM 86.62%
OM growth 3Y-63.51%
OM growth 5Y-36.69%
PM growth 3Y-35.89%
PM growth 5YN/A
GM growth 3Y-1.77%
GM growth 5Y-0.14%
BIR.CA Yearly Profit, Operating, Gross MarginsBIR.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40 60 80

3

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BIR is destroying value.
BIR has more shares outstanding than it did 1 year ago.
The number of shares outstanding for BIR has been increased compared to 5 years ago.
BIR has a worse debt/assets ratio than last year.
BIR.CA Yearly Shares OutstandingBIR.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M 250M
BIR.CA Yearly Total Debt VS Total AssetsBIR.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

2.2 Solvency

Based on the Altman-Z score of 1.48, we must say that BIR is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.48, BIR is in the better half of the industry, outperforming 65.07% of the companies in the same industry.
BIR has a Debt/Equity ratio of 0.28. This is a healthy value indicating a solid balance between debt and equity.
BIR has a Debt to Equity ratio of 0.28. This is comparable to the rest of the industry: BIR outperforms 58.37% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.28
Debt/FCF N/A
Altman-Z 1.48
ROIC/WACC0.12
WACC7.13%
BIR.CA Yearly LT Debt VS Equity VS FCFBIR.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B 2B

2.3 Liquidity

A Current Ratio of 1.52 indicates that BIR should not have too much problems paying its short term obligations.
BIR has a Current ratio of 1.52. This is in the better half of the industry: BIR outperforms 72.73% of its industry peers.
BIR has a Quick Ratio of 1.52. 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 1.52 is fine compared to the rest of the industry. BIR outperforms 74.64% of its industry peers.
Industry RankSector Rank
Current Ratio 1.52
Quick Ratio 1.52
BIR.CA Yearly Current Assets VS Current LiabilitesBIR.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M

6

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 257.14% over the past year.
The earnings per share for BIR have been decreasing by -44.02% on average. This is quite bad
BIR shows a decrease in Revenue. In the last year, the revenue decreased by -4.51%.
BIR shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.16% yearly.
EPS 1Y (TTM)257.14%
EPS 3Y-44.02%
EPS 5YN/A
EPS Q2Q%500%
Revenue 1Y (TTM)-4.51%
Revenue growth 3Y-11.82%
Revenue growth 5Y-0.16%
Sales Q2Q%21.26%

3.2 Future

BIR is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 37.16% yearly.
BIR is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 44.32% yearly.
EPS Next Y341.03%
EPS Next 2Y125.84%
EPS Next 3Y68.95%
EPS Next 5Y37.16%
Revenue Next Year229.62%
Revenue Next 2Y31.77%
Revenue Next 3Y44.32%
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 accelerating: in the next years the growth will be better than in the last years.
BIR.CA Yearly Revenue VS EstimatesBIR.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 200M 400M 600M 800M 1B
BIR.CA Yearly EPS VS EstimatesBIR.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 0 0.5 1 1.5 2 2.5

6

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 14.82, which indicates a correct valuation of BIR.
63.64% of the companies in the same industry are more expensive than BIR, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of BIR to the average of the S&P500 Index (26.31), we can say BIR is valued slightly cheaper.
BIR is valuated cheaply with a Price/Forward Earnings ratio of 7.26.
Based on the Price/Forward Earnings ratio, BIR is valued a bit cheaper than 73.21% of the companies in the same industry.
BIR is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 14.82
Fwd PE 7.26
BIR.CA Price Earnings VS Forward Price EarningsBIR.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as BIR.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 9.03
BIR.CA Per share dataBIR.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6 8

4.3 Compensation for Growth

BIR's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of BIR may justify a higher PE ratio.
A more expensive valuation may be justified as BIR's earnings are expected to grow with 68.95% in the coming years.
PEG (NY)0.04
PEG (5Y)N/A
EPS Next 2Y125.84%
EPS Next 3Y68.95%

4

5. Dividend

5.1 Amount

BIR has a Yearly Dividend Yield of 1.76%.
BIR's Dividend Yield is comparable with the industry average which is at 6.54.
BIR's Dividend Yield is slightly below the S&P500 average, which is at 2.39.
Industry RankSector Rank
Dividend Yield 1.76%

5.2 History

The dividend of BIR is nicely growing with an annual growth rate of 24.50%!
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
BIR.CA Yearly Dividends per shareBIR.CA Yearly Dividends per shareYearly Dividends per share 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6

5.3 Sustainability

65.12% of the earnings are spent on dividend by BIR. This is not a sustainable payout ratio.
The dividend of BIR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP65.12%
EPS Next 2Y125.84%
EPS Next 3Y68.95%
BIR.CA Yearly Income VS Free CF VS DividendBIR.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M 400M -400M 600M -600M
BIR.CA Dividend Payout.BIR.CA Dividend Payout, showing the Payout Ratio.BIR.CA Dividend Payout.PayoutRetained Earnings

BIRCHCLIFF ENERGY LTD

TSX:BIR (6/13/2025, 7:00:00 PM)

7.41

+0.04 (+0.54%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)05-14 2025-05-14/amc
Earnings (Next)08-12 2025-08-12/amc
Inst Owners16.52%
Inst Owner ChangeN/A
Ins Owners0.7%
Ins Owner ChangeN/A
Market Cap2.02B
Analysts76.25
Price Target7.99 (7.83%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.76%
Yearly Dividend0.4
Dividend Growth(5Y)24.5%
DP65.12%
Div Incr Years0
Div Non Decr Years0
Ex-Date06-13 2025-06-13 (0.03)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)175.45%
Min EPS beat(2)21.86%
Max EPS beat(2)329.04%
EPS beat(4)3
Avg EPS beat(4)244.99%
Min EPS beat(4)-32.01%
Max EPS beat(4)661.06%
EPS beat(8)4
Avg EPS beat(8)53.63%
EPS beat(12)6
Avg EPS beat(12)17.69%
EPS beat(16)9
Avg EPS beat(16)21.36%
Revenue beat(2)0
Avg Revenue beat(2)-16.12%
Min Revenue beat(2)-21.25%
Max Revenue beat(2)-10.98%
Revenue beat(4)0
Avg Revenue beat(4)-13.4%
Min Revenue beat(4)-21.25%
Max Revenue beat(4)-0.74%
Revenue beat(8)2
Avg Revenue beat(8)-6.53%
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)1.07%
PT rev (3m)9.07%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)67.95%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)187.48%
Valuation
Industry RankSector Rank
PE 14.82
Fwd PE 7.26
P/S 3.15
P/FCF N/A
P/OCF 7.62
P/B 0.89
P/tB 0.89
EV/EBITDA 9.03
EPS(TTM)0.5
EY6.75%
EPS(NY)1.02
Fwd EY13.77%
FCF(TTM)-0.06
FCFYN/A
OCF(TTM)0.97
OCFY13.12%
SpS2.35
BVpS8.29
TBVpS8.29
PEG (NY)0.04
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 3.89%
ROE 6.07%
ROCE 1.24%
ROIC 0.85%
ROICexc 0.85%
ROICexgc 0.85%
OM 6.58%
PM (TTM) 21.39%
GM 86.62%
FCFM N/A
ROA(3y)7.52%
ROA(5y)6.18%
ROE(3y)10.03%
ROE(5y)8.49%
ROIC(3y)5.95%
ROIC(5y)5.59%
ROICexc(3y)5.95%
ROICexc(5y)5.59%
ROICexgc(3y)5.95%
ROICexgc(5y)5.59%
ROCE(3y)8.7%
ROCE(5y)8.16%
ROICexcg growth 3Y-69.67%
ROICexcg growth 5Y-39.71%
ROICexc growth 3Y-69.67%
ROICexc growth 5Y-39.71%
OM growth 3Y-63.51%
OM growth 5Y-36.69%
PM growth 3Y-35.89%
PM growth 5YN/A
GM growth 3Y-1.77%
GM growth 5Y-0.14%
F-Score6
Asset Turnover0.18
Health
Industry RankSector Rank
Debt/Equity 0.28
Debt/FCF N/A
Debt/EBITDA 2.14
Cap/Depr 112.61%
Cap/Sales 44.09%
Interest Coverage 250
Cash Conversion 90.41%
Profit Quality N/A
Current Ratio 1.52
Quick Ratio 1.52
Altman-Z 1.48
F-Score6
WACC7.13%
ROIC/WACC0.12
Cap/Depr(3y)138.58%
Cap/Depr(5y)132.09%
Cap/Sales(3y)39.78%
Cap/Sales(5y)40.18%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)257.14%
EPS 3Y-44.02%
EPS 5YN/A
EPS Q2Q%500%
EPS Next Y341.03%
EPS Next 2Y125.84%
EPS Next 3Y68.95%
EPS Next 5Y37.16%
Revenue 1Y (TTM)-4.51%
Revenue growth 3Y-11.82%
Revenue growth 5Y-0.16%
Sales Q2Q%21.26%
Revenue Next Year229.62%
Revenue Next 2Y31.77%
Revenue Next 3Y44.32%
Revenue Next 5YN/A
EBIT growth 1Y-50.66%
EBIT growth 3Y-67.82%
EBIT growth 5Y-36.79%
EBIT Next Year1943.67%
EBIT Next 3Y161.91%
EBIT Next 5Y82.73%
FCF growth 1Y-103.58%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-70.02%
OCF growth 3Y-26.61%
OCF growth 5Y-9.04%