FRONTERA ENERGY CORP (FEC.CA) Stock Fundamental Analysis
TSX:FEC - Toronto Stock Exchange - CA35905B1076 - Common Stock - Currency: CAD
We assign a fundamental rating of 4 out of 10 to FEC. FEC was compared to 210 industry peers in the Oil, Gas & Consumable Fuels industry. FEC has only an average score on both its financial health and profitability. FEC has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
FEC had positive earnings in the past year.
FEC had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: FEC reported negative net income in multiple years.
FEC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FEC has a Return On Assets (0.41%) which is in line with its industry peers.
With a Return On Equity value of 0.69%, FEC perfoms like the industry average, outperforming 51.90% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.16%, FEC is in the better half of the industry, outperforming 70.48% of the companies in the same industry.
FEC had an Average Return On Invested Capital over the past 3 years of 8.37%. This is in line with the industry average of 7.31%.
The 3 year average ROIC (8.37%) for FEC is well above the current ROIC(4.16%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.41% | ||
| ROE | 0.69% | ||
| ROIC | 4.16% |
ROA(3y)5.35%
ROA(5y)3.2%
ROE(3y)9.12%
ROE(5y)0.31%
ROIC(3y)8.37%
ROIC(5y)N/A
1.3 Margins
FEC's Profit Margin of 1.06% is in line compared to the rest of the industry. FEC outperforms 52.86% of its industry peers.
With a Operating Margin value of 12.20%, FEC perfoms like the industry average, outperforming 54.76% of the companies in the same industry.
FEC's Operating Margin has declined in the last couple of years.
The Gross Margin of FEC (41.13%) is comparable to the rest of the industry.
FEC's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.2% | ||
| PM (TTM) | 1.06% | ||
| GM | 41.13% |
OM growth 3Y-25.21%
OM growth 5Y-2.25%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-7.22%
GM growth 5Y-2.66%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FEC is destroying value.
FEC has less shares outstanding than it did 1 year ago.
FEC has less shares outstanding than it did 5 years ago.
The debt/assets ratio for FEC has been reduced compared to a year ago.
2.2 Solvency
FEC has an Altman-Z score of -0.71. This is a bad value and indicates that FEC is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -0.71, FEC is doing worse than 73.81% of the companies in the same industry.
The Debt to FCF ratio of FEC is 2.76, which is a good value as it means it would take FEC, 2.76 years of fcf income to pay off all of its debts.
FEC has a better Debt to FCF ratio (2.76) than 83.33% of its industry peers.
A Debt/Equity ratio of 0.27 indicates that FEC is not too dependend on debt financing.
FEC has a better Debt to Equity ratio (0.27) than 61.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 2.76 | ||
| Altman-Z | -0.71 |
ROIC/WACC0.47
WACC8.9%
2.3 Liquidity
FEC has a Current Ratio of 0.84. This is a bad value and indicates that FEC is not financially healthy enough and could expect problems in meeting its short term obligations.
FEC has a Current ratio (0.84) which is comparable to the rest of the industry.
A Quick Ratio of 0.75 indicates that FEC may have some problems paying its short term obligations.
The Quick ratio of FEC (0.75) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
The earnings per share for FEC have decreased strongly by -93.99% in the last year.
Looking at the last year, FEC shows a decrease in Revenue. The Revenue has decreased by -3.42% in the last year.
The Revenue has been decreasing by -4.25% on average over the past years.
EPS 1Y (TTM)-93.99%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%437.1%
Revenue 1Y (TTM)-3.42%
Revenue growth 3Y7.6%
Revenue growth 5Y-4.25%
Sales Q2Q%3.73%
3.2 Future
FEC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.09% yearly.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next Y80.95%
EPS Next 2Y14.09%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-2.56%
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 34.94, which means the current valuation is very expensive for FEC.
FEC's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.82. FEC is valued slightly more expensive when compared to this.
The Price/Forward Earnings ratio is 2.74, which indicates a rather cheap valuation of FEC.
Based on the Price/Forward Earnings ratio, FEC is valued cheaply inside the industry as 95.71% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 36.21. FEC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.94 | ||
| Fwd PE | 2.74 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FEC indicates a rather cheap valuation: FEC is cheaper than 97.14% of the companies listed in the same industry.
99.05% of the companies in the same industry are more expensive than FEC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.74 | ||
| EV/EBITDA | 1.6 |
4.3 Compensation for Growth
FEC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as FEC's earnings are expected to grow with 14.09% in the coming years.
PEG (NY)0.43
PEG (5Y)N/A
EPS Next 2Y14.09%
EPS Next 3YN/A
5. Dividend
5.1 Amount
FEC has a Yearly Dividend Yield of 3.93%.
FEC's Dividend Yield is a higher than the industry average which is at 5.92.
Compared to an average S&P500 Dividend Yield of 2.39, FEC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.93% |
5.2 History
FEC has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
127.72% of the earnings are spent on dividend by FEC. This is not a sustainable payout ratio.
DP127.72%
EPS Next 2Y14.09%
EPS Next 3YN/A
TSX:FEC (8/1/2025, 7:00:00 PM)
6.29
-0.07 (-1.1%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners17.29%
Inst Owner ChangeN/A
Ins Owners0.26%
Ins Owner ChangeN/A
Market Cap440.68M
Analysts45.71
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.93% |
Yearly Dividend0.19
Dividend Growth(5Y)N/A
DP127.72%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
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)0%
PT rev (3m)0%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.94 | ||
| Fwd PE | 2.74 | ||
| P/S | 0.28 | ||
| P/FCF | 1.74 | ||
| P/OCF | 0.62 | ||
| P/B | 0.18 | ||
| P/tB | 0.18 | ||
| EV/EBITDA | 1.6 |
EPS(TTM)0.18
EY2.86%
EPS(NY)2.3
Fwd EY36.54%
FCF(TTM)3.62
FCFY57.59%
OCF(TTM)10.15
OCFY161.41%
SpS22.25
BVpS34.15
TBVpS34.15
PEG (NY)0.43
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.41% | ||
| ROE | 0.69% | ||
| ROCE | 5.81% | ||
| ROIC | 4.16% | ||
| ROICexc | 4.49% | ||
| ROICexgc | 4.49% | ||
| OM | 12.2% | ||
| PM (TTM) | 1.06% | ||
| GM | 41.13% | ||
| FCFM | 16.28% |
ROA(3y)5.35%
ROA(5y)3.2%
ROE(3y)9.12%
ROE(5y)0.31%
ROIC(3y)8.37%
ROIC(5y)N/A
ROICexc(3y)9.43%
ROICexc(5y)N/A
ROICexgc(3y)9.43%
ROICexgc(5y)N/A
ROCE(3y)11.64%
ROCE(5y)N/A
ROICexcg growth 3Y-25.37%
ROICexcg growth 5Y-13.07%
ROICexc growth 3Y-25.37%
ROICexc growth 5Y-12.42%
OM growth 3Y-25.21%
OM growth 5Y-2.25%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-7.22%
GM growth 5Y-2.66%
F-Score6
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 2.76 | ||
| Debt/EBITDA | 1.16 | ||
| Cap/Depr | 124.85% | ||
| Cap/Sales | 29.34% | ||
| Interest Coverage | 2.85 | ||
| Cash Conversion | 127.78% | ||
| Profit Quality | 1541.8% | ||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z | -0.71 |
F-Score6
WACC8.9%
ROIC/WACC0.47
Cap/Depr(3y)167.7%
Cap/Depr(5y)157.38%
Cap/Sales(3y)34.06%
Cap/Sales(5y)30.42%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-93.99%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%437.1%
EPS Next Y80.95%
EPS Next 2Y14.09%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-3.42%
Revenue growth 3Y7.6%
Revenue growth 5Y-4.25%
Sales Q2Q%3.73%
Revenue Next Year-2.56%
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-33.06%
EBIT growth 3Y-19.52%
EBIT growth 5Y-6.4%
EBIT Next Year153.4%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y163.36%
FCF growth 3Y116.05%
FCF growth 5Y-2.03%
OCF growth 1Y1.25%
OCF growth 3Y15.78%
OCF growth 5Y-1.46%