FRONTERA ENERGY CORP (FEC.CA) Stock Fundamental Analysis
TSX:FEC - Toronto Stock Exchange - CA35905B1076 - Common Stock - Currency: CAD
Overall FEC gets a fundamental rating of 4 out of 10. We evaluated FEC against 210 industry peers in the Oil, Gas & Consumable Fuels industry. Both the profitability and the financial health of FEC get a neutral evaluation. Nothing too spectacular is happening here. 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.
In the past year FEC had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: FEC reported negative net income in multiple years.
Each year in the past 5 years FEC had a positive operating cash flow.
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 52.38% of the companies in the same industry.
The Return On Invested Capital of FEC (4.16%) is better than 70.48% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FEC 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 has a Profit Margin of 1.06%. This is comparable to the rest of the industry: FEC outperforms 53.33% of its industry peers.
Looking at the Operating Margin, with a value of 12.20%, FEC is in line with its industry, outperforming 54.76% of the companies in the same industry.
In the last couple of years the Operating Margin of FEC has declined.
Looking at the Gross Margin, with a value of 41.13%, FEC is in line with its industry, outperforming 54.29% of the companies in the same industry.
In the last couple of years the Gross Margin of FEC has declined.
| 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
FEC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
FEC has a worse Altman-Z score (-0.71) than 73.81% of its industry peers.
FEC has a debt to FCF ratio of 2.76. This is a good value and a sign of high solvency as FEC would need 2.76 years to pay back of all of its debts.
FEC has a Debt to FCF ratio of 2.76. This is amongst the best in the industry. FEC outperforms 82.38% of its industry peers.
A Debt/Equity ratio of 0.27 indicates that FEC is not too dependend on debt financing.
The Debt to Equity ratio of FEC (0.27) is better than 60.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 2.76 | ||
| Altman-Z | -0.71 |
ROIC/WACC0.45
WACC9.35%
2.3 Liquidity
A Current Ratio of 0.84 indicates that FEC may have some problems paying 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.
With a Quick ratio value of 0.75, FEC perfoms like the industry average, outperforming 57.14% of the companies in the same 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.
FEC shows a decrease in Revenue. In the last year, the revenue decreased by -3.42%.
Measured over the past years, FEC shows a decrease in Revenue. The Revenue has been decreasing by -4.25% on average per year.
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
The Earnings Per Share is expected to grow by 14.09% on average over the next years. This is quite good.
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
Based on the Price/Earnings ratio of 34.44, the valuation of FEC can be described as expensive.
FEC's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.05, FEC is valued a bit more expensive.
With a Price/Forward Earnings ratio of 2.74, the valuation of FEC can be described as very cheap.
FEC's Price/Forward Earnings ratio is rather cheap when compared to the industry. FEC is cheaper than 95.24% of the companies in the same industry.
FEC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 37.67.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.44 | ||
| 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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FEC indicates a rather cheap valuation: FEC is cheaper than 99.05% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.73 | ||
| EV/EBITDA | 1.6 |
4.3 Compensation for Growth
The 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 3.94%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.32, FEC pays a bit more dividend than its industry peers.
FEC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.94% |
5.2 History
FEC has been paying a dividend for less than 5 years, so it still needs to build a track record.
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 (7/25/2025, 7:00:00 PM)
6.2
-0.23 (-3.58%)
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 Cap432.20M
Analysts45.71
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.94% |
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 | 34.44 | ||
| Fwd PE | 2.74 | ||
| P/S | 0.28 | ||
| P/FCF | 1.73 | ||
| P/OCF | 0.62 | ||
| P/B | 0.18 | ||
| P/tB | 0.18 | ||
| EV/EBITDA | 1.6 |
EPS(TTM)0.18
EY2.9%
EPS(NY)2.27
Fwd EY36.54%
FCF(TTM)3.59
FCFY57.89%
OCF(TTM)10.06
OCFY162.24%
SpS22.05
BVpS33.83
TBVpS33.83
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
WACC9.35%
ROIC/WACC0.45
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%