GEAR ENERGY LTD (GXE.CA) Fundamental Analysis & Valuation

TSX:GXE • CA36830P1045

Current stock price

0.48 CAD
0 (0%)
Last:

This GXE.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

5

1. GXE.CA Profitability Analysis

1.1 Basic Checks

  • GXE had positive earnings in the past year.
  • 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.
GXE.CA Yearly Net Income VS EBIT VS OCF VS FCFGXE.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 50M -50M

1.2 Ratios

  • With a decent Return On Assets value of 3.59%, GXE is doing good in the industry, outperforming 61.46% of the companies in the same industry.
  • GXE has a Return On Equity of 4.97%. This is comparable to the rest of the industry: GXE outperforms 50.24% of its industry peers.
  • GXE has a Return On Invested Capital of 5.79%. This is in the better half of the industry: GXE outperforms 69.76% of its industry peers.
  • GXE had an Average Return On Invested Capital over the past 3 years of 7.28%. This is in line with the industry average of 6.78%.
Industry RankSector 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%
GXE.CA Yearly ROA, ROE, ROICGXE.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 40 -40 -60

1.3 Margins

  • The Profit Margin of GXE (9.19%) is comparable to the rest of the industry.
  • GXE's Profit Margin has improved in the last couple of years.
  • Looking at the Operating Margin, with a value of 19.40%, GXE is in line with its industry, outperforming 59.02% of the companies in the same industry.
  • GXE's Operating Margin has improved in the last couple of years.
Industry RankSector 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
GXE.CA Yearly Profit, Operating, Gross MarginsGXE.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 0 50 -50

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4

2. GXE.CA Health Analysis

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
  • GXE has a worse debt/assets ratio than last year.
GXE.CA Yearly Shares OutstandingGXE.CA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M 250M
GXE.CA Yearly Total Debt VS Total AssetsGXE.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M

2.2 Solvency

  • GXE has an Altman-Z score of 0.95. This is a bad value and indicates that GXE is not financially healthy and even has some risk of bankruptcy.
  • The Altman-Z score of GXE (0.95) is comparable to the rest of the industry.
  • GXE has a debt to FCF ratio of 0.63. This is a very positive value and a sign of high solvency as it would only need 0.63 years to pay back of all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 0.63, GXE belongs to the top 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.
  • GXE's Debt to Equity ratio of 0.06 is fine compared to the rest of the industry. GXE outperforms 71.71% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.06
Debt/FCF 0.63
Altman-Z 0.95
ROIC/WACC0.71
WACC8.16%
GXE.CA Yearly LT Debt VS Equity VS FCFGXE.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 50M 100M 150M 200M 250M

2.3 Liquidity

  • A Current Ratio of 1.20 indicates that GXE should not have too much problems paying its short term obligations.
  • With a Current ratio value of 1.20, GXE perfoms like the industry average, outperforming 58.05% of the companies in the same industry.
  • GXE has a Quick Ratio of 1.20. This is a bad value and indicates that GXE is not financially healthy enough and could expect problems in meeting its short term obligations.
  • GXE has a Quick ratio of 0.88. This is comparable to the rest of the industry: GXE outperforms 52.68% of its industry peers.
Industry RankSector Rank
Current Ratio 1.2
Quick Ratio 0.88
GXE.CA Yearly Current Assets VS Current LiabilitesGXE.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 10M 20M 30M

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1

3. GXE.CA Growth Analysis

3.1 Past

  • GXE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -68.75%.
  • 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%.
  • The Revenue has been growing slightly by 5.46% on average over the past years.
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.
  • The Revenue is expected to decrease by -2.21% on average over the next years.
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

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
GXE.CA Yearly Revenue VS EstimatesGXE.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 50M 100M 150M
GXE.CA Yearly EPS VS EstimatesGXE.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0 0.2 -0.2 -0.4 -0.6 -0.8 -1

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8

4. GXE.CA Valuation Analysis

4.1 Price/Earnings Ratio

  • GXE is valuated reasonably with a Price/Earnings ratio of 9.60.
  • Based on the Price/Earnings ratio, GXE is valued a bit cheaper than 65.85% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of GXE to the average of the S&P500 Index (24.88), we can say GXE is valued rather cheaply.
  • GXE is valuated cheaply with a Price/Forward Earnings ratio of 4.32.
  • 89.27% of the companies in the same industry are more expensive than GXE, based on the Price/Forward Earnings ratio.
  • When comparing the Price/Forward Earnings ratio of GXE to the average of the S&P500 Index (22.19), we can say GXE is valued rather cheaply.
Industry RankSector Rank
PE 9.6
Fwd PE 4.32
GXE.CA Price Earnings VS Forward Price EarningsGXE.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, GXE is valued cheaply inside the industry as 95.12% of the companies are valued more expensively.
  • 94.15% of the companies in the same industry are more expensive than GXE, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 5.23
EV/EBITDA 2.05
GXE.CA Per share dataGXE.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0.2 0.4 0.6 0.8

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.
  • A cheap valuation may be justified as GXE's earnings are expected to decrease with -12.35% in the coming years.
PEG (NY)0.04
PEG (5Y)1.14
EPS Next 2Y92.44%
EPS Next 3Y-12.35%

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4

5. GXE.CA Dividend Analysis

5.1 Amount

  • GXE has a Yearly Dividend Yield of 12.50%, which is a nice return.
  • GXE's Dividend Yield is rather good when compared to the industry average which is at 4.47. GXE pays more dividend than 98.54% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.90, GXE pays a better dividend.
Industry RankSector Rank
Dividend Yield 12.5%

5.2 History

  • GXE 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
GXE.CA Yearly Dividends per shareGXE.CA Yearly Dividends per shareYearly Dividends per share 2022 2023 2024 0.02 0.04 0.06 0.08 0.1

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%
GXE.CA Yearly Income VS Free CF VS DividendGXE.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 0 50M -50M
GXE.CA Dividend Payout.GXE.CA Dividend Payout, showing the Payout Ratio.GXE.CA Dividend Payout.PayoutRetained Earnings

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GXE.CA Fundamentals: All Metrics, Ratios and Statistics

GEAR ENERGY LTD

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)11-07
Earnings (Next)02-19
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 RankSector 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 RankSector 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 RankSector 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 RankSector 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 Fundamental Analysis 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.