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. There are concerns on the financial health of BIR while its profitability can be described as average. BIR is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year BIR was profitable.
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.
BIR has a Return On Equity of 6.07%. This is comparable to the rest of the industry: BIR outperforms 59.81% of its industry peers.
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.
Measured over the past 3 years, the Average Return On Invested Capital 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.
Looking at the Operating Margin, with a value of 6.58%, BIR is in line with its industry, outperforming 50.24% of the companies in the same industry.
In the last couple of years the Operating Margin of BIR has declined.
BIR has a better Gross Margin (86.62%) 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
BIR has an Altman-Z score of 1.43. 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 (1.43) is better than 65.07% 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 has a Debt to Equity ratio (0.28) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.43 |
ROIC/WACC0.12
WACC7.05%
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 has a Quick ratio of 1.52. This is in the better half 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%.
Measured over the past years, BIR shows a decrease in Revenue. The Revenue has been decreasing by -0.16% on average per year.
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
Based on estimates for the next years, BIR will show a very strong growth in Earnings Per Share. The EPS will grow by 37.16% on average per year.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
Based on the Price/Earnings ratio of 13.86, the valuation of BIR can be described as correct.
BIR's Price/Earnings ratio is a bit cheaper when compared to the industry. BIR is cheaper than 63.64% of the companies in the same industry.
When comparing the Price/Earnings ratio of BIR to the average of the S&P500 Index (26.55), we can say BIR is valued slightly cheaper.
A Price/Forward Earnings ratio of 6.79 indicates a rather cheap valuation of BIR.
Based on the Price/Forward Earnings ratio, BIR is valued a bit cheaper than 76.08% of the companies in the same industry.
BIR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.86 | ||
| Fwd PE | 6.79 |
4.2 Price Multiples
64.59% of the companies in the same industry are more expensive than BIR, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.67 |
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
With a Yearly Dividend Yield of 1.76%, BIR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.54, BIR has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.39, BIR is paying slightly less dividend.
| 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
65.12% of the earnings are spent on dividend by BIR. This is not a sustainable payout ratio.
BIR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP65.12%
EPS Next 2Y125.84%
EPS Next 3Y68.95%
TSX:BIR (6/10/2025, 7:00:00 PM)
6.93
-0.06 (-0.86%)
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 Cap1.89B
Analysts76.25
Price Target7.99 (15.3%)
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 | 13.86 | ||
| Fwd PE | 6.79 | ||
| P/S | 2.95 | ||
| P/FCF | N/A | ||
| P/OCF | 7.13 | ||
| P/B | 0.84 | ||
| P/tB | 0.84 | ||
| EV/EBITDA | 8.67 |
EPS(TTM)0.5
EY7.22%
EPS(NY)1.02
Fwd EY14.72%
FCF(TTM)-0.06
FCFYN/A
OCF(TTM)0.97
OCFY14.03%
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 | 1.43 |
F-Score6
WACC7.05%
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%