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FRONTERA ENERGY CORP (FEC.CA) Stock Fundamental Analysis

TSX:FEC - Toronto Stock Exchange - CA35905B1076 - Common Stock - Currency: CAD

6.75  +0.01 (+0.15%)

Fundamental Rating

4

Taking everything into account, FEC scores 4 out of 10 in our fundamental rating. FEC was compared to 207 industry peers in the Oil, Gas & Consumable Fuels industry. FEC has an average financial health and profitability rating. FEC is valued correctly, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

4

1. Profitability

1.1 Basic Checks

In the past year FEC was profitable.
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.
FEC.CA Yearly Net Income VS EBIT VS OCF VS FCFFEC.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B -2B -4B

1.2 Ratios

The Return On Assets of FEC (0.41%) is comparable to the rest of the industry.
With a Return On Equity value of 0.69%, FEC perfoms like the industry average, outperforming 54.11% of the companies in the same industry.
FEC has a better Return On Invested Capital (4.16%) than 70.05% of its industry peers.
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 7.39%.
The last Return On Invested Capital (4.16%) for FEC is well below the 3 year average (8.37%), which needs to be investigated, but indicates that FEC had better years and this may not be a problem.
Industry RankSector 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
FEC.CA Yearly ROA, ROE, ROICFEC.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100 -100

1.3 Margins

FEC has a Profit Margin (1.06%) which is in line with its industry peers.
With a Operating Margin value of 12.20%, FEC perfoms like the industry average, outperforming 56.52% of the companies in the same industry.
FEC's Operating Margin has declined in the last couple of years.
FEC has a Gross Margin of 41.13%. This is comparable to the rest of the industry: FEC outperforms 55.07% of its industry peers.
FEC's Gross Margin has declined in the last couple of years.
Industry RankSector 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%
FEC.CA Yearly Profit, Operating, Gross MarginsFEC.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100 -100

5

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FEC is destroying value.
Compared to 1 year ago, FEC has less shares outstanding
The number of shares outstanding for FEC has been reduced compared to 5 years ago.
Compared to 1 year ago, FEC has an improved debt to assets ratio.
FEC.CA Yearly Shares OutstandingFEC.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M
FEC.CA Yearly Total Debt VS Total AssetsFEC.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B 5B

2.2 Solvency

FEC has an Altman-Z score of -0.68. This is a bad value and indicates that FEC is not financially healthy and even has some risk of bankruptcy.
FEC has a Altman-Z score of -0.68. This is in the lower half of the industry: FEC underperforms 70.53% 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.
Looking at the Debt to FCF ratio, with a value of 2.76, FEC belongs to the top of the industry, outperforming 81.64% of the companies in the same industry.
A Debt/Equity ratio of 0.27 indicates that FEC is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.27, FEC is in the better half of the industry, outperforming 60.39% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.27
Debt/FCF 2.76
Altman-Z -0.68
ROIC/WACC0.46
WACC9.14%
FEC.CA Yearly LT Debt VS Equity VS FCFFEC.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B -1B -2B -3B

2.3 Liquidity

A Current Ratio of 0.84 indicates that FEC may have some problems paying its short term obligations.
With a Current ratio value of 0.84, FEC perfoms like the industry average, outperforming 57.97% of the companies in the same industry.
A Quick Ratio of 0.75 indicates that FEC may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.75, FEC is in line with its industry, outperforming 58.94% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.84
Quick Ratio 0.75
FEC.CA Yearly Current Assets VS Current LiabilitesFEC.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

1

3. Growth

3.1 Past

FEC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -93.99%.
The Revenue has decreased by -3.42% in the past year.
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

Based on estimates for the next years, FEC will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.09% on average per year.
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.
FEC.CA Yearly Revenue VS EstimatesFEC.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B
FEC.CA Yearly EPS VS EstimatesFEC.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 5 -5

6

4. Valuation

4.1 Price/Earnings Ratio

FEC is valuated quite expensively with a Price/Earnings ratio of 37.50.
The rest of the industry has a similar Price/Earnings ratio as FEC.
When comparing the Price/Earnings ratio of FEC to the average of the S&P500 Index (27.29), we can say FEC is valued slightly more expensively.
With a Price/Forward Earnings ratio of 3.00, the valuation of FEC can be described as very cheap.
Based on the Price/Forward Earnings ratio, FEC is valued cheaper than 95.17% of the companies in the same industry.
FEC is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.74, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 37.5
Fwd PE 3
FEC.CA Price Earnings VS Forward Price EarningsFEC.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

FEC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. FEC is cheaper than 96.62% of the companies in the same industry.
FEC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. FEC is cheaper than 98.55% of the companies in the same industry.
Industry RankSector Rank
P/FCF 2.1
EV/EBITDA 1.77
FEC.CA Per share dataFEC.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

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.
FEC's earnings are expected to grow with 14.09% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.46
PEG (5Y)N/A
EPS Next 2Y14.09%
EPS Next 3YN/A

3

5. Dividend

5.1 Amount

FEC has a Yearly Dividend Yield of 3.71%.
Compared to an average industry Dividend Yield of 6.35, FEC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.37, FEC pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.71%

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
FEC.CA Yearly Dividends per shareFEC.CA Yearly Dividends per shareYearly Dividends per share 2019 2020 2024 2025 0.5 1

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
FEC.CA Yearly Income VS Free CF VS DividendFEC.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B -2B -4B
FEC.CA Dividend Payout.FEC.CA Dividend Payout, showing the Payout Ratio.FEC.CA Dividend Payout.PayoutRetained Earnings

FRONTERA ENERGY CORP

TSX:FEC (7/4/2025, 7:00:00 PM)

6.75

+0.01 (+0.15%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)05-08 2025-05-08
Earnings (Next)08-05 2025-08-05
Inst Owners17.29%
Inst Owner ChangeN/A
Ins Owners0.26%
Ins Owner ChangeN/A
Market Cap521.71M
Analysts45.71
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 3.71%
Yearly Dividend0.19
Dividend Growth(5Y)N/A
DP127.72%
Div Incr Years1
Div Non Decr Years1
Ex-Date07-03 2025-07-03 (0.0625)
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 RankSector Rank
PE 37.5
Fwd PE 3
P/S 0.34
P/FCF 2.1
P/OCF 0.75
P/B 0.22
P/tB 0.22
EV/EBITDA 1.77
EPS(TTM)0.18
EY2.67%
EPS(NY)2.25
Fwd EY33.36%
FCF(TTM)3.22
FCFY47.66%
OCF(TTM)9.02
OCFY133.58%
SpS19.76
BVpS30.33
TBVpS30.33
PEG (NY)0.46
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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 -0.68
F-Score6
WACC9.14%
ROIC/WACC0.46
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%