GEAR ENERGY LTD (GXE.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:GXE - CA36830P1045 - Common Stock
0.48 CAD
0 (0%)
GXE gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 214 industry peers in the Oil, Gas & Consumable Fuels industry. Both the profitability and the financial health of GXE get a neutral evaluation. Nothing too spectacular is happening here. GXE is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year GXE was profitable.
In the past year GXE had a positive cash flow from operations.
In multiple years GXE reported negative net income over the last 5 years.
In the past 5 years GXE always reported a positive cash flow from operatings.
1.2 Ratios
GXE has a better Return On Assets (3.59%) than 61.46% of its industry peers.
The Return On Equity of GXE (4.97%) is comparable to the rest of the industry.
GXE's Return On Invested Capital of 5.79% is fine compared to the rest of the industry. GXE outperforms 69.76% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GXE is in line with the industry average of 6.42%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.59% | ||
| ROE | 4.97% | ||
| ROIC | 5.79% |
ROA(3y)16.42%
ROA(5y)3.64%
ROE(3y)24.63%
ROE(5y)-0.59%
ROIC(3y)7.28%
ROIC(5y)4.5%
1.3 Margins
GXE has a Profit Margin of 9.19%. This is comparable to the rest of the industry: GXE outperforms 57.07% of its industry peers.
GXE's Profit Margin has improved in the last couple of years.
GXE has a Operating Margin (19.40%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of GXE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.4% | ||
| PM (TTM) | 9.19% | ||
| GM | N/A |
OM growth 3Y94.29%
OM growth 5Y15.28%
PM growth 3YN/A
PM growth 5Y5.23%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
GXE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, GXE has more shares outstanding
Compared to 1 year ago, GXE has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.95, we must say that GXE is in the distress zone and has some risk of bankruptcy.
GXE's Altman-Z score of 0.95 is in line compared to the rest of the industry. GXE outperforms 57.07% of its industry peers.
The Debt to FCF ratio of GXE is 0.63, which is an excellent value as it means it would take GXE, only 0.63 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.63, GXE belongs to the best of the industry, outperforming 93.66% of the companies in the same industry.
GXE has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.06, GXE is in the better half of the industry, outperforming 71.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.63 | ||
| Altman-Z | 0.95 |
ROIC/WACC0.71
WACC8.16%
2.3 Liquidity
A Current Ratio of 1.20 indicates that GXE should not have too much problems paying its short term obligations.
GXE has a Current ratio (1.20) which is in line with its industry peers.
A Quick Ratio of 0.88 indicates that GXE may have some problems paying its short term obligations.
GXE's Quick ratio of 0.88 is in line compared to the rest of the industry. GXE outperforms 52.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
The earnings per share for GXE have decreased strongly by -68.75% in the last year.
The Earnings Per Share has been growing by 8.45% on average over the past years. This is quite good.
GXE shows a decrease in Revenue. In the last year, the revenue decreased by -0.86%.
GXE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.46% yearly.
EPS 1Y (TTM)-68.75%
EPS 3Y-46.87%
EPS 5Y8.45%
EPS Q2Q%0%
Revenue 1Y (TTM)-0.86%
Revenue growth 3Y18.65%
Revenue growth 5Y5.46%
Sales Q2Q%-19.86%
3.2 Future
Based on estimates for the next years, GXE will show a very negative growth in Earnings Per Share. The EPS will decrease by -27.35% on average per year.
GXE is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.21% yearly.
EPS Next Y219.83%
EPS Next 2Y92.44%
EPS Next 3Y-12.35%
EPS Next 5Y-27.35%
Revenue Next Year-0.43%
Revenue Next 2Y0.82%
Revenue Next 3Y-5.63%
Revenue Next 5Y-2.21%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 9.60, which indicates a very decent valuation of GXE.
Compared to the rest of the industry, the Price/Earnings ratio of GXE indicates a somewhat cheap valuation: GXE is cheaper than 65.85% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.60, GXE is valued rather cheaply.
A Price/Forward Earnings ratio of 4.32 indicates a rather cheap valuation of GXE.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GXE indicates a rather cheap valuation: GXE is cheaper than 89.27% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.23, GXE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.6 | ||
| Fwd PE | 4.32 |
4.2 Price Multiples
95.12% of the companies in the same industry are more expensive than GXE, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, GXE is valued cheaply inside the industry as 94.15% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.23 | ||
| EV/EBITDA | 2.05 |
4.3 Compensation for Growth
GXE's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
GXE's earnings are expected to decrease with -12.35% in the coming years. This may justify a cheaper valuation.
PEG (NY)0.04
PEG (5Y)1.14
EPS Next 2Y92.44%
EPS Next 3Y-12.35%
5. Dividend
5.1 Amount
GXE has a Yearly Dividend Yield of 12.50%, which is a nice return.
Compared to an average industry Dividend Yield of 2.73, GXE pays a better dividend. On top of this GXE pays more dividend than 98.54% of the companies listed in the same industry.
GXE's Dividend Yield is rather good when compared to the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.5% |
5.2 History
GXE 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
GXE pays out 129.50% of its income as dividend. This is not a sustainable payout ratio.
DP129.5%
EPS Next 2Y92.44%
EPS Next 3Y-12.35%
TSX:GXE (2/7/2025, 7:00:00 PM)
0.48
0 (0%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners2.42%
Inst Owner ChangeN/A
Ins Owners7.6%
Ins Owner ChangeN/A
Market Cap126.52M
Revenue(TTM)132.51M
Net Income(TTM)12.18M
Analysts74.29
Price Target0.77 (60.42%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.5% |
Yearly Dividend0.1
Dividend Growth(5Y)N/A
DP129.5%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.08%
Min EPS beat(2)-0.99%
Max EPS beat(2)13.15%
EPS beat(4)1
Avg EPS beat(4)-71.71%
Min EPS beat(4)-248.51%
Max EPS beat(4)13.15%
EPS beat(8)2
Avg EPS beat(8)-36.08%
EPS beat(12)4
Avg EPS beat(12)-25%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-13.72%
Min Revenue beat(2)-15.09%
Max Revenue beat(2)-12.35%
Revenue beat(4)0
Avg Revenue beat(4)-8.42%
Min Revenue beat(4)-15.09%
Max Revenue beat(4)-1.19%
Revenue beat(8)1
Avg Revenue beat(8)-10.63%
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)-15.09%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-50%
EPS NY rev (1m)0%
EPS NY rev (3m)-13.64%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-12.83%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.6 | ||
| Fwd PE | 4.32 | ||
| P/S | 0.95 | ||
| P/FCF | 5.23 | ||
| P/OCF | 2 | ||
| P/B | 0.52 | ||
| P/tB | 0.52 | ||
| EV/EBITDA | 2.05 |
EPS(TTM)0.05
EY10.42%
EPS(NY)0.11
Fwd EY23.15%
FCF(TTM)0.09
FCFY19.13%
OCF(TTM)0.24
OCFY49.98%
SpS0.5
BVpS0.93
TBVpS0.93
PEG (NY)0.04
PEG (5Y)1.14
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.59% | ||
| ROE | 4.97% | ||
| ROCE | 8.04% | ||
| ROIC | 5.79% | ||
| ROICexc | 5.79% | ||
| ROICexgc | 5.79% | ||
| OM | 19.4% | ||
| PM (TTM) | 9.19% | ||
| GM | N/A | ||
| FCFM | 18.27% |
ROA(3y)16.42%
ROA(5y)3.64%
ROE(3y)24.63%
ROE(5y)-0.59%
ROIC(3y)7.28%
ROIC(5y)4.5%
ROICexc(3y)7.28%
ROICexc(5y)4.5%
ROICexgc(3y)7.28%
ROICexgc(5y)4.5%
ROCE(3y)10.11%
ROCE(5y)6.25%
ROICexgc growth 3Y112.35%
ROICexgc growth 5Y25.04%
ROICexc growth 3Y112.35%
ROICexc growth 5Y25.04%
OM growth 3Y94.29%
OM growth 5Y15.28%
PM growth 3YN/A
PM growth 5Y5.23%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.63 | ||
| Debt/EBITDA | 0.22 | ||
| Cap/Depr | 89.43% | ||
| Cap/Sales | 29.45% | ||
| Interest Coverage | 11.02 | ||
| Cash Conversion | 91.19% | ||
| Profit Quality | 198.74% | ||
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 0.95 |
F-Score6
WACC8.16%
ROIC/WACC0.71
Cap/Depr(3y)109.76%
Cap/Depr(5y)88.27%
Cap/Sales(3y)32.62%
Cap/Sales(5y)29.83%
Profit Quality(3y)86.29%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-68.75%
EPS 3Y-46.87%
EPS 5Y8.45%
EPS Q2Q%0%
EPS Next Y219.83%
EPS Next 2Y92.44%
EPS Next 3Y-12.35%
EPS Next 5Y-27.35%
Revenue 1Y (TTM)-0.86%
Revenue growth 3Y18.65%
Revenue growth 5Y5.46%
Sales Q2Q%-19.86%
Revenue Next Year-0.43%
Revenue Next 2Y0.82%
Revenue Next 3Y-5.63%
Revenue Next 5Y-2.21%
EBIT growth 1Y-3.56%
EBIT growth 3Y130.53%
EBIT growth 5Y21.58%
EBIT Next Year206.84%
EBIT Next 3Y27.06%
EBIT Next 5Y16%
FCF growth 1Y-53.48%
FCF growth 3Y-4.92%
FCF growth 5YN/A
OCF growth 1Y-28.64%
OCF growth 3Y28.14%
OCF growth 5Y8.78%
GEAR ENERGY LTD / GXE.CA FAQ
What is the ChartMill fundamental rating of GEAR ENERGY LTD (GXE.CA) stock?
ChartMill assigns a fundamental rating of 4 / 10 to GXE.CA.
What is the valuation status of GEAR ENERGY LTD (GXE.CA) stock?
ChartMill assigns a valuation rating of 8 / 10 to GEAR ENERGY LTD (GXE.CA). This can be considered as Undervalued.
Can you provide the profitability details for GEAR ENERGY LTD?
GEAR ENERGY LTD (GXE.CA) has a profitability rating of 5 / 10.
What is the valuation of GEAR ENERGY LTD based on its PE and PB ratios?
The Price/Earnings (PE) ratio for GEAR ENERGY LTD (GXE.CA) is 9.6 and the Price/Book (PB) ratio is 0.52.
Can you provide the expected EPS growth for GXE stock?
The Earnings per Share (EPS) of GEAR ENERGY LTD (GXE.CA) is expected to grow by 219.83% in the next year.