BAYTEX ENERGY CORP (BTE) Stock Fundamental Analysis
NYSE:BTE - New York Stock Exchange, Inc. - CA07317Q1054 - Common Stock - Currency: USD
BTE gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 213 industry peers in the Oil, Gas & Consumable Fuels industry. There are concerns on the financial health of BTE while its profitability can be described as average. BTE has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
BTE had positive earnings in the past year.
BTE had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: BTE reported negative net income in multiple years.
In the past 5 years BTE always reported a positive cash flow from operatings.
1.2 Ratios
BTE has a Return On Assets (4.09%) which is comparable to the rest of the industry.
With a Return On Equity value of 7.62%, BTE perfoms like the industry average, outperforming 49.77% of the companies in the same industry.
The Return On Invested Capital of BTE (7.36%) is better than 61.50% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BTE is significantly below the industry average of 23.55%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.09% | ||
| ROE | 7.62% | ||
| ROIC | 7.36% |
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
BTE has a Profit Margin of 9.57%. This is comparable to the rest of the industry: BTE outperforms 54.93% of its industry peers.
BTE's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 24.87%, BTE is in line with its industry, outperforming 57.75% of the companies in the same industry.
In the last couple of years the Operating Margin of BTE has grown nicely.
With an excellent Gross Margin value of 81.22%, BTE belongs to the best of the industry, outperforming 91.08% of the companies in the same industry.
In the last couple of years the Gross Margin of BTE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.87% | ||
| PM (TTM) | 9.57% | ||
| GM | 81.22% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BTE is creating some value.
The number of shares outstanding for BTE has been reduced compared to 1 year ago.
Compared to 5 years ago, BTE has more shares outstanding
The debt/assets ratio for BTE has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.49, we must say that BTE is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of BTE (0.49) is worse than 66.67% of its industry peers.
BTE has a debt to FCF ratio of 3.21. This is a good value and a sign of high solvency as BTE would need 3.21 years to pay back of all of its debts.
BTE has a Debt to FCF ratio of 3.21. This is in the better half of the industry: BTE outperforms 77.00% of its industry peers.
BTE has a Debt/Equity ratio of 0.52. This is a neutral value indicating BTE is somewhat dependend on debt financing.
BTE's Debt to Equity ratio of 0.52 is in line compared to the rest of the industry. BTE outperforms 45.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 3.21 | ||
| Altman-Z | 0.49 |
ROIC/WACC1.16
WACC6.32%
2.3 Liquidity
A Current Ratio of 0.63 indicates that BTE may have some problems paying its short term obligations.
BTE has a Current ratio of 0.63. This is in the lower half of the industry: BTE underperforms 79.81% of its industry peers.
A Quick Ratio of 0.63 indicates that BTE may have some problems paying its short term obligations.
BTE's Quick ratio of 0.63 is on the low side compared to the rest of the industry. BTE is outperformed by 72.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 253.85% 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.
Looking at the last year, BTE shows a quite strong growth in Revenue. The Revenue has grown by 10.55% in the last year.
Measured over the past years, BTE shows a quite strong growth in Revenue. The Revenue has been growing by 17.51% on average per year.
EPS 1Y (TTM)253.85%
EPS 3Y-32.67%
EPS 5YN/A
EPS Q2Q%550%
Revenue 1Y (TTM)10.55%
Revenue growth 3Y29.61%
Revenue growth 5Y17.51%
Sales Q2Q%1.52%
3.2 Future
BTE is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -32.26% yearly.
The Revenue is expected to grow by 1.69% on average over the next years.
EPS Next Y-7.71%
EPS Next 2Y-86.8%
EPS Next 3Y-32.26%
EPS Next 5YN/A
Revenue Next Year10.28%
Revenue Next 2Y-1.32%
Revenue Next 3Y-0.46%
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.
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 6.97, the valuation of BTE can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of BTE indicates a rather cheap valuation: BTE is cheaper than 84.04% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of BTE to the average of the S&P500 Index (26.57), we can say BTE is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 542.63, the valuation of BTE can be described as expensive.
Based on the Price/Forward Earnings ratio, BTE is valued a bit more expensive than the industry average as 70.42% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of BTE to the average of the S&P500 Index (22.41), we can say BTE is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.97 | ||
| Fwd PE | 542.63 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BTE is valued cheaper than 97.18% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BTE indicates a rather cheap valuation: BTE is cheaper than 93.90% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.08 | ||
| EV/EBITDA | 1.96 |
4.3 Compensation for Growth
A cheap valuation may be justified as BTE's earnings are expected to decrease with -32.26% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-86.8%
EPS Next 3Y-32.26%
5. Dividend
5.1 Amount
BTE has a Yearly Dividend Yield of 3.31%.
Compared to an average industry Dividend Yield of 6.56, BTE has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, BTE pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.31% |
5.2 History
The dividend of BTE decreases each year by -45.77%.
BTE has been paying a dividend for at least 10 years, so it has 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
BTE pays out 22.10% of its income as dividend. This is a sustainable payout ratio.
The Dividend Rate of BTE has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP22.1%
EPS Next 2Y-86.8%
EPS Next 3Y-32.26%
2.02
-0.07 (-3.35%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners32.77%
Inst Owner Change19.14%
Ins Owners0.67%
Ins Owner ChangeN/A
Market Cap1.55B
Analysts72.86
Price Target3.18 (57.43%)
Short Float %9.98%
Short Ratio1.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.31% |
Yearly Dividend0.07
Dividend Growth(5Y)-45.77%
DP22.1%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-86.86%
Min EPS beat(2)-151.21%
Max EPS beat(2)-22.51%
EPS beat(4)0
Avg EPS beat(4)-55.34%
Min EPS beat(4)-151.21%
Max EPS beat(4)-19.55%
EPS beat(8)1
Avg EPS beat(8)-92.41%
EPS beat(12)4
Avg EPS beat(12)-20.72%
EPS beat(16)5
Avg EPS beat(16)14.79%
Revenue beat(2)1
Avg Revenue beat(2)3.16%
Min Revenue beat(2)-0.39%
Max Revenue beat(2)6.7%
Revenue beat(4)2
Avg Revenue beat(4)3.65%
Min Revenue beat(4)-0.39%
Max Revenue beat(4)8.33%
Revenue beat(8)5
Avg Revenue beat(8)1.06%
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)-1.11%
PT rev (3m)-18.35%
EPS NQ rev (1m)-76.92%
EPS NQ rev (3m)-76.92%
EPS NY rev (1m)0%
EPS NY rev (3m)-26.39%
Revenue NQ rev (1m)-17.44%
Revenue NQ rev (3m)-17.44%
Revenue NY rev (1m)0%
Revenue NY rev (3m)18.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.97 | ||
| Fwd PE | 542.63 | ||
| P/S | 0.63 | ||
| P/FCF | 3.08 | ||
| P/OCF | 1.08 | ||
| P/B | 0.5 | ||
| P/tB | 0.5 | ||
| EV/EBITDA | 1.96 |
EPS(TTM)0.29
EY14.36%
EPS(NY)0
Fwd EY0.18%
FCF(TTM)0.66
FCFY32.5%
OCF(TTM)1.88
OCFY92.84%
SpS3.21
BVpS4.03
TBVpS4.03
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.09% | ||
| ROE | 7.62% | ||
| ROCE | 11.62% | ||
| ROIC | 7.36% | ||
| ROICexc | 7.37% | ||
| ROICexgc | 7.37% | ||
| OM | 24.87% | ||
| PM (TTM) | 9.57% | ||
| GM | 81.22% | ||
| FCFM | 20.47% |
ROA(3y)5.56%
ROA(5y)-4.3%
ROE(3y)9.27%
ROE(5y)-64.21%
ROIC(3y)8.42%
ROIC(5y)N/A
ROICexc(3y)8.44%
ROICexc(5y)N/A
ROICexgc(3y)8.44%
ROICexgc(5y)N/A
ROCE(3y)13.28%
ROCE(5y)N/A
ROICexcg growth 3Y-2.67%
ROICexcg growth 5Y31.22%
ROICexc growth 3Y-2.67%
ROICexc growth 5Y31.22%
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%
F-Score8
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 3.21 | ||
| Debt/EBITDA | 1 | ||
| Cap/Depr | 93.35% | ||
| Cap/Sales | 38% | ||
| Interest Coverage | 3.81 | ||
| Cash Conversion | 89.16% | ||
| Profit Quality | 213.81% | ||
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z | 0.49 |
F-Score8
WACC6.32%
ROIC/WACC1.16
Cap/Depr(3y)94.96%
Cap/Depr(5y)82.19%
Cap/Sales(3y)33.65%
Cap/Sales(5y)31.28%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)253.85%
EPS 3Y-32.67%
EPS 5YN/A
EPS Q2Q%550%
EPS Next Y-7.71%
EPS Next 2Y-86.8%
EPS Next 3Y-32.26%
EPS Next 5YN/A
Revenue 1Y (TTM)10.55%
Revenue growth 3Y29.61%
Revenue growth 5Y17.51%
Sales Q2Q%1.52%
Revenue Next Year10.28%
Revenue Next 2Y-1.32%
Revenue Next 3Y-0.46%
Revenue Next 5Y1.69%
EBIT growth 1Y20.69%
EBIT growth 3Y13.71%
EBIT growth 5Y37.51%
EBIT Next Year83.55%
EBIT Next 3Y11.46%
EBIT Next 5Y10.2%
FCF growth 1Y23.48%
FCF growth 3Y14.4%
FCF growth 5Y16.36%
OCF growth 1Y68.77%
OCF growth 3Y38.88%
OCF growth 5Y17.98%