BAYTEX ENERGY CORP (BTE.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:BTE - CA07317Q1054 - Common Stock
4.54 CAD
+0.06 (+1.34%)
Taking everything into account, BTE scores 5 out of 10 in our fundamental rating. BTE was compared to 214 industry peers in the Oil, Gas & Consumable Fuels industry. BTE has an average financial health and profitability rating. BTE is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year BTE was profitable.
- BTE had a positive operating cash flow in the past year.
- In multiple years BTE reported negative net income over the last 5 years.
- BTE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of BTE (2.82%) is better than 72.43% of its industry peers.
- BTE has a Return On Equity of 5.12%. This is comparable to the rest of the industry: BTE outperforms 59.35% of its industry peers.
- With a decent Return On Invested Capital value of 5.61%, BTE is doing good in the industry, outperforming 78.04% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for BTE is in line with the industry average of 6.53%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.82% | ||
| ROE | 5.12% | ||
| ROIC | 5.61% |
ROA(3y)5.56%
ROA(5y)-4.3%
ROE(3y)9.27%
ROE(5y)-64.21%
ROIC(3y)8.42%
ROIC(5y)N/A
1.3 Margins
- The Profit Margin of BTE (7.02%) is better than 61.22% of its industry peers.
- In the last couple of years the Profit Margin of BTE has declined.
- BTE has a Operating Margin of 20.16%. This is in the better half of the industry: BTE outperforms 76.64% of its industry peers.
- In the last couple of years the Operating Margin of BTE has grown nicely.
- BTE has a better Gross Margin (79.89%) than 94.39% of its industry peers.
- BTE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.16% | ||
| PM (TTM) | 7.02% | ||
| GM | 79.89% |
OM growth 3Y-12.27%
OM growth 5Y17.02%
PM growth 3Y-59.31%
PM growth 5YN/A
GM growth 3Y1.18%
GM growth 5Y1.87%
2. Health
2.1 Basic Checks
- BTE has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- BTE has less shares outstanding than it did 1 year ago.
- BTE has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for BTE has been reduced compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 0.64, we must say that BTE is in the distress zone and has some risk of bankruptcy.
- BTE's Altman-Z score of 0.64 is in line compared to the rest of the industry. BTE outperforms 53.74% of its industry peers.
- The Debt to FCF ratio of BTE is 4.80, which is a neutral value as it means it would take BTE, 4.80 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of BTE (4.80) is better than 81.31% of its industry peers.
- A Debt/Equity ratio of 0.48 indicates that BTE is not too dependend on debt financing.
- BTE has a Debt to Equity ratio (0.48) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 4.8 | ||
| Altman-Z | 0.64 |
ROIC/WACC0.73
WACC7.72%
2.3 Liquidity
- A Current Ratio of 0.58 indicates that BTE may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.58, BTE is doing worse than 63.08% of the companies in the same industry.
- BTE has a Quick Ratio of 0.58. This is a bad value and indicates that BTE is not financially healthy enough and could expect problems in meeting its short term obligations.
- BTE's Quick ratio of 0.58 is in line compared to the rest of the industry. BTE outperforms 43.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 168.29% over the past year.
- Measured over the past years, BTE shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -32.67% on average per year.
- BTE shows a decrease in Revenue. In the last year, the revenue decreased by -8.89%.
- BTE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.51% yearly.
EPS 1Y (TTM)168.29%
EPS 3Y-32.67%
EPS 5YN/A
EPS Q2Q%-82.61%
Revenue 1Y (TTM)-8.89%
Revenue growth 3Y29.61%
Revenue growth 5Y17.51%
Sales Q2Q%-30.54%
3.2 Future
- Based on estimates for the next years, BTE will show a very negative growth in Earnings Per Share. The EPS will decrease by -36.56% on average per year.
- Based on estimates for the next years, BTE will show a small growth in Revenue. The Revenue will grow by 1.69% on average per year.
EPS Next Y9.71%
EPS Next 2Y-55.57%
EPS Next 3Y-42.94%
EPS Next 5Y-36.56%
Revenue Next Year-16.66%
Revenue Next 2Y-31.8%
Revenue Next 3Y-11.45%
Revenue Next 5Y1.69%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 16.21 indicates a correct valuation of BTE.
- Compared to the rest of the industry, the Price/Earnings ratio of BTE indicates a somewhat cheap valuation: BTE is cheaper than 66.36% of the companies listed in the same industry.
- BTE is valuated rather cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 79.32, the valuation of BTE can be described as expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of BTE is on the same level as its industry peers.
- BTE is valuated expensively when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.21 | ||
| Fwd PE | 79.32 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, BTE is valued cheaply inside the industry as 94.39% of the companies are valued more expensively.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of BTE indicates a rather cheap valuation: BTE is cheaper than 88.32% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.31 | ||
| EV/EBITDA | 2.84 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- BTE has a very decent profitability rating, which may justify a higher PE ratio.
- A cheap valuation may be justified as BTE's earnings are expected to decrease with -42.94% in the coming years.
PEG (NY)1.67
PEG (5Y)N/A
EPS Next 2Y-55.57%
EPS Next 3Y-42.94%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.01%, BTE has a reasonable but not impressive dividend return.
- BTE's Dividend Yield is a higher than the industry average which is at 2.82.
- Compared to an average S&P500 Dividend Yield of 1.81, BTE has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.01% |
5.2 History
- The dividend of BTE decreases each year by -45.77%.
- BTE has paid a dividend for at least 10 years, which is a reliable track record.
- The dividend of BTE decreased recently.
Dividend Growth(5Y)-45.77%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- 32.39% of the earnings are spent on dividend by BTE. This is a low number and sustainable payout ratio.
- BTE's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP32.39%
EPS Next 2Y-55.57%
EPS Next 3Y-42.94%
BAYTEX ENERGY CORP / BTE.CA FAQ
What is the fundamental rating for BTE stock?
ChartMill assigns a fundamental rating of 5 / 10 to BTE.CA.
What is the valuation status of BAYTEX ENERGY CORP (BTE.CA) stock?
ChartMill assigns a valuation rating of 5 / 10 to BAYTEX ENERGY CORP (BTE.CA). This can be considered as Fairly Valued.
Can you provide the profitability details for BAYTEX ENERGY CORP?
BAYTEX ENERGY CORP (BTE.CA) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for BTE stock?
The Price/Earnings (PE) ratio for BAYTEX ENERGY CORP (BTE.CA) is 16.21 and the Price/Book (PB) ratio is 0.83.
How financially healthy is BAYTEX ENERGY CORP?
The financial health rating of BAYTEX ENERGY CORP (BTE.CA) is 4 / 10.