BIRCHCLIFF ENERGY LTD (BIR.CA) Stock Fundamental Analysis
TSX:BIR - Toronto Stock Exchange - CA0906971035 - Common Stock - Currency: CAD
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.
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.
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 Rank | Sector 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%
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 Rank | Sector 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%
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.48 |
ROIC/WACC0.12
WACC7.13%
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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.52 |
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.82 | ||
| Fwd PE | 7.26 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as BIR.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.03 |
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%
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 Rank | Sector 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
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%
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)
Earnings (Next)
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 Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
Yearly Dividend0.4
Dividend Growth(5Y)24.5%
DP65.12%
Div Incr Years0
Div Non Decr Years0
Ex-Date
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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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%