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GIBSON ENERGY INC (GEI.CA) Stock Fundamental Analysis

TSX:GEI - Toronto Stock Exchange - CA3748252069 - Common Stock - Currency: CAD

24.3  +0.13 (+0.54%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to GEI. GEI was compared to 220 industry peers in the Oil, Gas & Consumable Fuels industry. There are concerns on the financial health of GEI while its profitability can be described as average. GEI has a decent growth rate and is not valued too expensively. Finally GEI also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

GEI had positive earnings in the past year.
In the past year GEI had a positive cash flow from operations.
Each year in the past 5 years GEI has been profitable.
GEI had a positive operating cash flow in each of the past 5 years.
GEI.CA Yearly Net Income VS EBIT VS OCF VS FCFGEI.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 0 200M -200M 400M

1.2 Ratios

GEI has a Return On Assets of 4.42%. This is in the better half of the industry: GEI outperforms 69.27% of its industry peers.
GEI's Return On Equity of 22.78% is amongst the best of the industry. GEI outperforms 95.12% of its industry peers.
GEI's Return On Invested Capital of 8.48% is amongst the best of the industry. GEI outperforms 81.46% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GEI is in line with the industry average of 7.79%.
The last Return On Invested Capital (8.48%) for GEI is above the 3 year average (8.12%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 4.42%
ROE 22.78%
ROIC 8.48%
ROA(3y)5.18%
ROA(5y)5.13%
ROE(3y)28.32%
ROE(5y)25.37%
ROIC(3y)8.12%
ROIC(5y)8.07%
GEI.CA Yearly ROA, ROE, ROICGEI.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20

1.3 Margins

Looking at the Profit Margin, with a value of 1.73%, GEI is in line with its industry, outperforming 48.78% of the companies in the same industry.
GEI's Profit Margin has declined in the last couple of years.
GEI has a Operating Margin of 3.20%. This is comparable to the rest of the industry: GEI outperforms 45.37% of its industry peers.
In the last couple of years the Operating Margin of GEI has remained more or less at the same level.
GEI has a Gross Margin of 4.08%. This is in the lower half of the industry: GEI underperforms 63.90% of its industry peers.
GEI's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 3.2%
PM (TTM) 1.73%
GM 4.08%
OM growth 3Y-11.7%
OM growth 5Y-0.4%
PM growth 3Y-7.49%
PM growth 5Y-2.48%
GM growth 3Y-10.88%
GM growth 5Y-0.14%
GEI.CA Yearly Profit, Operating, Gross MarginsGEI.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 2 -2 4 -4 6

3

2. Health

2.1 Basic Checks

GEI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, GEI has more shares outstanding
The number of shares outstanding for GEI has been increased compared to 5 years ago.
Compared to 1 year ago, GEI has a worse debt to assets ratio.
GEI.CA Yearly Shares OutstandingGEI.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M
GEI.CA Yearly Total Debt VS Total AssetsGEI.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B

2.2 Solvency

An Altman-Z score of 2.89 indicates that GEI is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of GEI (2.89) is better than 78.05% of its industry peers.
The Debt to FCF ratio of GEI is 4.99, which is a neutral value as it means it would take GEI, 4.99 years of fcf income to pay off all of its debts.
GEI has a better Debt to FCF ratio (4.99) than 77.07% of its industry peers.
A Debt/Equity ratio of 2.41 is on the high side and indicates that GEI has dependencies on debt financing.
GEI's Debt to Equity ratio of 2.41 is on the low side compared to the rest of the industry. GEI is outperformed by 89.27% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.41
Debt/FCF 4.99
Altman-Z 2.89
ROIC/WACC1.27
WACC6.69%
GEI.CA Yearly LT Debt VS Equity VS FCFGEI.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M 1B 1.5B 2B 2.5B

2.3 Liquidity

GEI has a Current Ratio of 0.70. This is a bad value and indicates that GEI is not financially healthy enough and could expect problems in meeting its short term obligations.
GEI's Current ratio of 0.70 is in line compared to the rest of the industry. GEI outperforms 43.41% of its industry peers.
A Quick Ratio of 0.60 indicates that GEI may have some problems paying its short term obligations.
GEI's Quick ratio of 0.60 is on the low side compared to the rest of the industry. GEI is outperformed by 61.46% of its industry peers.
Industry RankSector Rank
Current Ratio 0.7
Quick Ratio 0.6
GEI.CA Yearly Current Assets VS Current LiabilitesGEI.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M 1B

4

3. Growth

3.1 Past

GEI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -15.79%.
GEI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.86% yearly.
The Revenue has grown by 14.27% in the past year. This is quite good.
The Revenue has been growing by 9.98% on average over the past years. This is quite good.
EPS 1Y (TTM)-15.79%
EPS 3Y17.92%
EPS 5Y12.86%
EPS Q2Q%200%
Revenue 1Y (TTM)14.27%
Revenue growth 3Y30.66%
Revenue growth 5Y9.98%
Sales Q2Q%-10.08%

3.2 Future

Based on estimates for the next years, GEI will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.09% on average per year.
Based on estimates for the next years, GEI will show a small growth in Revenue. The Revenue will grow by 0.47% on average per year.
EPS Next Y-8.52%
EPS Next 2Y5.27%
EPS Next 3Y7.44%
EPS Next 5Y8.09%
Revenue Next Year10.52%
Revenue Next 2Y-1.7%
Revenue Next 3Y-3.4%
Revenue Next 5Y0.47%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
GEI.CA Yearly Revenue VS EstimatesGEI.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2B 4B 6B 8B 10B
GEI.CA Yearly EPS VS EstimatesGEI.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 0.5 -0.5 1 1.5 2

4

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 18.98 indicates a rather expensive valuation of GEI.
GEI's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of GEI to the average of the S&P500 Index (29.39), we can say GEI is valued slightly cheaper.
With a Price/Forward Earnings ratio of 15.55, GEI is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as GEI.
Compared to an average S&P500 Price/Forward Earnings ratio of 94.38, GEI is valued rather cheaply.
Industry RankSector Rank
PE 18.98
Fwd PE 15.55
GEI.CA Price Earnings VS Forward Price EarningsGEI.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

GEI's Enterprise Value to EBITDA ratio is in line with the industry average.
73.17% of the companies in the same industry are more expensive than GEI, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 7.67
EV/EBITDA 11.36
GEI.CA Per share dataGEI.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

GEI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.48
EPS Next 2Y5.27%
EPS Next 3Y7.44%

8

5. Dividend

5.1 Amount

GEI has a Yearly Dividend Yield of 6.79%, which is a nice return.
Compared to an average industry Dividend Yield of 6.44, GEI pays a better dividend. On top of this GEI pays more dividend than 92.20% of the companies listed in the same industry.
GEI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.30.
Industry RankSector Rank
Dividend Yield 6.79%

5.2 History

The dividend of GEI has a limited annual growth rate of 2.44%.
GEI has been paying a dividend for at least 10 years, so it has a reliable track record.
GEI has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)2.44%
Div Incr Years5
Div Non Decr Years13
GEI.CA Yearly Dividends per shareGEI.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.5 1 1.5

5.3 Sustainability

122.90% of the earnings are spent on dividend by GEI. This is not a sustainable payout ratio.
The dividend of GEI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP122.9%
EPS Next 2Y5.27%
EPS Next 3Y7.44%
GEI.CA Yearly Income VS Free CF VS DividendGEI.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M 400M
GEI.CA Dividend Payout.GEI.CA Dividend Payout, showing the Payout Ratio.GEI.CA Dividend Payout.PayoutRetained Earnings

GIBSON ENERGY INC

TSX:GEI (2/11/2025, 7:00:00 PM)

24.3

+0.13 (+0.54%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)10-29 2024-10-29/amc
Earnings (Next)02-18 2025-02-18/amc
Inst Owners52.52%
Inst Owner ChangeN/A
Ins Owners0.58%
Ins Owner ChangeN/A
Market Cap3.96B
Analysts77.65
Price Target27.58 (13.5%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 6.79%
Yearly Dividend1.49
Dividend Growth(5Y)2.44%
DP122.9%
Div Incr Years5
Div Non Decr Years13
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.18%
Min EPS beat(2)-2.41%
Max EPS beat(2)6.76%
EPS beat(4)1
Avg EPS beat(4)-17.09%
Min EPS beat(4)-46.74%
Max EPS beat(4)6.76%
EPS beat(8)4
Avg EPS beat(8)-12.03%
EPS beat(12)7
Avg EPS beat(12)-4.1%
EPS beat(16)10
Avg EPS beat(16)-0.42%
Revenue beat(2)0
Avg Revenue beat(2)-10.29%
Min Revenue beat(2)-15.17%
Max Revenue beat(2)-5.41%
Revenue beat(4)1
Avg Revenue beat(4)-5.92%
Min Revenue beat(4)-16.41%
Max Revenue beat(4)13.32%
Revenue beat(8)5
Avg Revenue beat(8)8.49%
Revenue beat(12)9
Avg Revenue beat(12)19.21%
Revenue beat(16)9
Avg Revenue beat(16)12.08%
PT rev (1m)0.14%
PT rev (3m)3.83%
EPS NQ rev (1m)0.82%
EPS NQ rev (3m)-20.21%
EPS NY rev (1m)-0.78%
EPS NY rev (3m)-2.75%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.53%
Revenue NY rev (1m)-0.47%
Revenue NY rev (3m)2.56%
Valuation
Industry RankSector Rank
PE 18.98
Fwd PE 15.55
P/S 0.32
P/FCF 7.67
P/OCF 5.77
P/B 4.28
P/tB 9.54
EV/EBITDA 11.36
EPS(TTM)1.28
EY5.27%
EPS(NY)1.56
Fwd EY6.43%
FCF(TTM)3.17
FCFY13.04%
OCF(TTM)4.21
OCFY17.33%
SpS75.02
BVpS5.68
TBVpS2.55
PEG (NY)N/A
PEG (5Y)1.48
Profitability
Industry RankSector Rank
ROA 4.42%
ROE 22.78%
ROCE 11.16%
ROIC 8.48%
ROICexc 8.62%
ROICexgc 10.12%
OM 3.2%
PM (TTM) 1.73%
GM 4.08%
FCFM 4.22%
ROA(3y)5.18%
ROA(5y)5.13%
ROE(3y)28.32%
ROE(5y)25.37%
ROIC(3y)8.12%
ROIC(5y)8.07%
ROICexc(3y)8.4%
ROICexc(5y)8.32%
ROICexgc(3y)9.9%
ROICexgc(5y)9.87%
ROCE(3y)10.68%
ROCE(5y)10.62%
ROICexcg growth 3Y-1.31%
ROICexcg growth 5Y-3.98%
ROICexc growth 3Y-0.41%
ROICexc growth 5Y-2.74%
OM growth 3Y-11.7%
OM growth 5Y-0.4%
PM growth 3Y-7.49%
PM growth 5Y-2.48%
GM growth 3Y-10.88%
GM growth 5Y-0.14%
F-Score5
Asset Turnover2.56
Health
Industry RankSector Rank
Debt/Equity 2.41
Debt/FCF 4.99
Debt/EBITDA 3.91
Cap/Depr 94.93%
Cap/Sales 1.39%
Interest Coverage 2.92
Cash Conversion 120.35%
Profit Quality 244.84%
Current Ratio 0.7
Quick Ratio 0.6
Altman-Z 2.89
F-Score5
WACC6.69%
ROIC/WACC1.27
Cap/Depr(3y)85.46%
Cap/Depr(5y)107.67%
Cap/Sales(3y)1.36%
Cap/Sales(5y)2.43%
Profit Quality(3y)160.32%
Profit Quality(5y)147.13%
High Growth Momentum
Growth
EPS 1Y (TTM)-15.79%
EPS 3Y17.92%
EPS 5Y12.86%
EPS Q2Q%200%
EPS Next Y-8.52%
EPS Next 2Y5.27%
EPS Next 3Y7.44%
EPS Next 5Y8.09%
Revenue 1Y (TTM)14.27%
Revenue growth 3Y30.66%
Revenue growth 5Y9.98%
Sales Q2Q%-10.08%
Revenue Next Year10.52%
Revenue Next 2Y-1.7%
Revenue Next 3Y-3.4%
Revenue Next 5Y0.47%
EBIT growth 1Y9.53%
EBIT growth 3Y15.37%
EBIT growth 5Y9.53%
EBIT Next Year46.49%
EBIT Next 3Y17.04%
EBIT Next 5Y11.73%
FCF growth 1Y35.24%
FCF growth 3Y22.04%
FCF growth 5Y5.8%
OCF growth 1Y29.23%
OCF growth 3Y7.74%
OCF growth 5Y0.39%