FRONTERA ENERGY CORP (FEC.CA) Stock Fundamental Analysis
TSX:FEC - Toronto Stock Exchange - CA35905B1076 - Common Stock - Currency: CAD
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.
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.
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 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 (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 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
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 2.76 | ||
| Altman-Z | -0.68 |
ROIC/WACC0.46
WACC9.14%
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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.75 |
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.5 | ||
| Fwd PE | 3 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.1 | ||
| EV/EBITDA | 1.77 |
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
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 Rank | Sector 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
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 (7/4/2025, 7:00:00 PM)
6.75
+0.01 (+0.15%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
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 Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.71% |
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 | 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 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 | -0.68 |
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%