FRONTERA ENERGY CORP (FEC.CA) Stock Fundamental Analysis
TSX:FEC - Toronto Stock Exchange - CA35905B1076 - Common Stock - Currency: CAD
Taking everything into account, FEC scores 3 out of 10 in our fundamental rating. FEC was compared to 218 industry peers in the Oil, Gas & Consumable Fuels industry. FEC scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. FEC is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year FEC has reported negative net income.
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's Return On Assets of -0.83% is in line compared to the rest of the industry. FEC outperforms 49.08% of its industry peers.
With a Return On Equity value of -1.41%, FEC perfoms like the industry average, outperforming 49.08% of the companies in the same industry.
FEC has a Return On Invested Capital of 4.62%. This is in the better half of the industry: FEC outperforms 69.27% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FEC is in line with the industry average of 7.29%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.83% | ||
| ROE | -1.41% | ||
| ROIC | 4.62% |
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 Operating Margin of 13.82% is in line compared to the rest of the industry. FEC outperforms 56.88% of its industry peers.
FEC's Operating Margin has declined in the last couple of years.
FEC's Gross Margin of 42.67% is in line compared to the rest of the industry. FEC outperforms 54.59% of its industry peers.
FEC's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.82% | ||
| PM (TTM) | N/A | ||
| GM | 42.67% |
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
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
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 -0.73. This is a bad value and indicates that FEC is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of FEC (-0.73) is worse than 71.56% of its industry peers.
The Debt to FCF ratio of FEC is 3.21, which is a good value as it means it would take FEC, 3.21 years of fcf income to pay off all of its debts.
FEC has a better Debt to FCF ratio (3.21) than 81.19% of its industry peers.
FEC has a Debt/Equity ratio of 0.28. This is a healthy value indicating a solid balance between debt and equity.
FEC has a Debt to Equity ratio of 0.28. This is comparable to the rest of the industry: FEC outperforms 57.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 3.21 | ||
| Altman-Z | -0.73 |
ROIC/WACC0.49
WACC9.44%
2.3 Liquidity
A Current Ratio of 0.80 indicates that FEC may have some problems paying its short term obligations.
FEC has a Current ratio of 0.80. This is comparable to the rest of the industry: FEC outperforms 53.21% of its industry peers.
FEC has a Quick Ratio of 0.80. 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 Quick ratio (0.70) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
The earnings per share for FEC have decreased strongly by -114.08% in the last year.
Looking at the last year, FEC shows a decrease in Revenue. The Revenue has decreased by -3.03% in the last year.
FEC shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.25% yearly.
EPS 1Y (TTM)-114.08%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-135.67%
Revenue 1Y (TTM)-3.03%
Revenue growth 3Y7.6%
Revenue growth 5Y-4.25%
Sales Q2Q%-2.97%
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.
4. Valuation
4.1 Price/Earnings Ratio
FEC reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
FEC is valuated cheaply with a Price/Forward Earnings ratio of 1.58.
Based on the Price/Forward Earnings ratio, FEC is valued cheaply inside the industry as 97.71% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 20.77. FEC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 1.58 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FEC is valued cheaply inside the industry as 97.71% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, FEC is valued cheaply inside the industry as 98.62% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.78 | ||
| EV/EBITDA | 1.4 |
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)N/A
PEG (5Y)N/A
EPS Next 2Y14.09%
EPS Next 3YN/A
5. Dividend
5.1 Amount
FEC has a Yearly Dividend Yield of 5.08%, which is a nice return.
In the last 3 months the price of FEC has falen by -38.56%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 7.45, 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 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.08% |
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 Years0
Div Non Decr Years0
5.3 Sustainability
FEC has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-48.26%
EPS Next 2Y14.09%
EPS Next 3YN/A
TSX:FEC (5/1/2025, 7:00:00 PM)
5.02
+0.04 (+0.8%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners18.56%
Inst Owner ChangeN/A
Ins Owners0.26%
Ins Owner ChangeN/A
Market Cap388.00M
Analysts45.71
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.08% |
Yearly Dividend0.19
Dividend Growth(5Y)N/A
DP-48.26%
Div Incr Years0
Div Non Decr Years0
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 | N/A | ||
| Fwd PE | 1.58 | ||
| P/S | 0.25 | ||
| P/FCF | 1.78 | ||
| P/OCF | 0.55 | ||
| P/B | 0.16 | ||
| P/tB | 0.16 | ||
| EV/EBITDA | 1.4 |
EPS(TTM)-0.42
EYN/A
EPS(NY)3.18
Fwd EY63.44%
FCF(TTM)2.82
FCFY56.14%
OCF(TTM)9.09
OCFY181.12%
SpS19.93
BVpS30.71
TBVpS30.71
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.83% | ||
| ROE | -1.41% | ||
| ROCE | 6.45% | ||
| ROIC | 4.62% | ||
| ROICexc | 5.03% | ||
| ROICexgc | 5.03% | ||
| OM | 13.82% | ||
| PM (TTM) | N/A | ||
| GM | 42.67% | ||
| FCFM | 14.14% |
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-Score4
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 3.21 | ||
| Debt/EBITDA | 1.15 | ||
| Cap/Depr | 133.57% | ||
| Cap/Sales | 31.48% | ||
| Interest Coverage | 3.2 | ||
| Cash Conversion | 122.03% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | -0.73 |
F-Score4
WACC9.44%
ROIC/WACC0.49
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)-114.08%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-135.67%
EPS Next Y80.95%
EPS Next 2Y14.09%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-3.03%
Revenue growth 3Y7.6%
Revenue growth 5Y-4.25%
Sales Q2Q%-2.97%
Revenue Next Year-2.56%
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-18.12%
EBIT growth 3Y-19.52%
EBIT growth 5Y-6.4%
EBIT Next Year153.4%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y740.2%
FCF growth 3Y116.05%
FCF growth 5Y-2.03%
OCF growth 1Y23.4%
OCF growth 3Y15.78%
OCF growth 5Y-1.46%